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Sep 30, 2025
CTS Q3 2025 Earnings Report
CTS reported strong third quarter 2025 results with increased sales and solid profitability, driven by growth in diversified end markets.
Key Takeaways
CTS Corporation announced strong third quarter 2025 results, with sales increasing 8% year-over-year to $143 million. The company achieved solid profitability despite an extraordinary charge related to an EPA claim, and demonstrated strong cash generation. Growth was primarily fueled by a 22% increase in sales to diversified end markets.
Sales for Q3 2025 reached $143 million, an 8% increase year-over-year.
Sales to diversified end markets grew by 22%, while transportation end market sales decreased by 7%.
Net income was $14 million, impacted by a $4.2 million charge for an EPA past cost recovery claim.
Adjusted diluted EPS was $0.60, including a $0.03 unfavorable impact from new US tax legislation.
Revenue by Segment
Forward Guidance
CTS is narrowing its full-year 2025 guidance for sales and adjusted diluted EPS, assuming current market conditions persist.
Positive Outlook
- The company anticipates continued sales in the range of $535-$545 million for the full year.
- Adjusted diluted EPS is expected to be in the range of $2.20-$2.25 for the full year.
- The guidance reflects confidence in the company's ability to perform under current market conditions.
- Management's strategic priority of diversification is expected to drive future growth and margin expansion.
- Solid execution by the CTS team is anticipated to continue contributing to profitability and cash generation.
Challenges Ahead
- The guidance assumes the continuation of current market conditions, which could be subject to change.
- The company does not provide reconciliations of forward-looking non-GAAP financial measures to GAAP, citing inherent difficulties in forecasting certain items.
- Forecasting challenges include restructuring costs, environmental remediation costs, acquisition-related costs, and foreign exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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