CTS Corporation reported third‑quarter 2025 results, with revenue of $143 million—an 8 % year‑over‑year increase. GAAP net income was $14 million, down from $18 million in the same period last year, and GAAP diluted earnings per share were $0.46, a decline from $0.59. Adjusted diluted EPS was $0.60, slightly lower than the $0.61 reported for Q3 2024 but higher than the $0.57 of Q2 2025.
Diversified end‑markets drove growth, with sales up 22 % year‑over‑year and accounting for 59 % of total revenue. The adjusted gross margin rose to 38.9 %, an increase of 66 basis points from the prior year. Operating cash flow was $29 million, down from $35 million in Q3 2024.
The transportation segment recorded $130 million in new wins and introduced a new braking sensor application, but sales in that end market fell 7 % year‑over‑year. The SyQwest team secured a sole‑source naval defense contract valued at $5 million, and the company expects a stronger second half for SyQwest.
CTS narrowed its full‑year guidance: revenue is now projected at $535 million to $545 million, and adjusted diluted EPS is expected to be $2.20 to $2.25. The company highlighted continued momentum in diversified markets and noted ongoing tariff and geopolitical uncertainties.
The quarter was impacted by an extraordinary $4.2 million EPA‑related charge and a $0.03 earnings impact from recent U.S. tax legislation. Despite these headwinds, CTS has maintained a dividend payment streak for 55 consecutive years, underscoring its long‑term stability.
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