CTS · CTS Corporation

CTS Corporation delivered strong Q1 2026 results with net sales reaching $139.2 million, a 11% increase year-over-year, primarily driven by 18% growth in diversified end markets including industrial, aerospace & defense, and medical, which represented 57% of total revenue. Transportation sales grew modestly by 3%. CEO Kieran O’Sullivan highlighted execution driving profitable growth, margin expansion, and cash generation, with diversification central to strategy. Gross margin expanded to 39.5% adjusted (up 250 bps YoY) due to operational improvements and favorable mix, while adjusted EBITDA margin reached 23.0% (up 250 bps). Net earnings rose to $17.2 million with diluted EPS of $0.59, and adjusted diluted EPS of $0.62. Balance sheet strengthened with cash at $90.9 million and debt at $62.5 million. Operating cash flow of $17.3 million supported $12.3 million free cash flow and $10 million returned to shareholders via dividends and repurchases. The company narrowed FY2026 guidance to $560-$580 million in sales (from $550-$580 million) and adjusted diluted EPS to $2.35-$2.45 (from $2.30-$2.45), assuming current market conditions and monitoring economic impacts like tariffs and inflation. Book-to-bill ratio of 1.1 reflects solid demand, with strength in medical (book-to-bill 1.20) and industrial (1.29).