CTS Corporation announced a $0.04 per share cash dividend, with a record date of December 26, 2025 and a payment date of January 23, 2026. The dividend continues the company’s 55‑year streak of consecutive payments, underscoring its long‑term commitment to returning value to shareholders.
The company also authorized a new share‑repurchase program that allows it to buy back up to $100 million of common stock. The program replaces the February 2024 program and has no set expiration, giving management flexibility to deploy capital as opportunities arise while preserving liquidity for future investments.
CTS’s decision to issue a dividend and launch a sizable buyback is supported by robust free‑cash‑flow generation. In the trailing 12 months ending September 2025, the company generated $80.20 million in free cash flow, a level that comfortably exceeds the $100 million buyback authorization and provides a cushion for continued capital returns.
The dividend and buyback come after a strong Q3 2025 earnings report. Sales rose to $143 million, an 8% year‑over‑year increase, driven largely by a 22% jump in diversified end‑market revenue, which accounted for 59% of total sales. Transportation sales fell 7%, reflecting a shift in demand away from legacy markets. Adjusted gross margin improved to 38.9% from 38.2% in Q3 2024, while adjusted EBITDA margin climbed to 24.8% from 22.5% in the prior year, indicating effective pricing power and operational leverage.
Net income for the quarter was $14 million, down from $18 million in Q3 2024, largely due to an extraordinary charge. Despite the one‑time hit, the company’s earnings per share of $0.60 were only a modest $0.01 below consensus estimates, reflecting the impact of the charge and the company’s disciplined cost management.
CEO Kieran O’Sullivan highlighted the company’s strategic focus on diversification, noting that “Diversification remains a strategic priority to drive growth and margin expansion.” He also acknowledged near‑term headwinds in transportation but emphasized progress in medical, aerospace, and defense segments.
Looking ahead, CTS is guiding for full‑year 2025 sales of $535 million to $545 million and adjusted diluted EPS of $2.20 to $2.25. The guidance reflects confidence in continued demand in diversified markets and the ability to maintain profitability while deploying capital through dividends and buybacks.
The combination of a steady dividend, a flexible buyback program, and solid financial performance positions CTS to reward shareholders while maintaining the flexibility to invest in growth opportunities.
The company’s capital allocation strategy signals a balanced approach: it rewards investors, preserves liquidity, and supports strategic initiatives in high‑margin, diversified markets.
The announcement reinforces CTS’s reputation for disciplined capital management and its commitment to long‑term shareholder value.
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