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CTS (CTS) investor relations material
CTS Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 sales grew 8% year-over-year to $143 million, driven by strong growth in diversified end markets, which now comprise 59% of total revenue, while transportation sales declined 7% due to softness in commercial vehicle products.
Net income for Q3 2025 was $13.7 million to $14 million, down from $18 million in Q3 2024, primarily due to higher SG&A, tax expenses, and a $4.2 million EPA charge.
Adjusted diluted EPS was $0.60, nearly flat year-over-year, with a $0.03 negative impact from US tax legislation.
The SyQwest acquisition contributed $8.8 million in Q3 sales, strengthening the defense market position.
Secured a $5 million sole source naval defense contract and significant new awards in industrial and transportation segments.
Financial highlights
Adjusted gross margin improved to 38.9% from 38.2% year-over-year, with Q3 gross margin at $55.3 million (38.7% of sales).
Adjusted EBITDA margin was 23.8%, slightly down from 24.4% in Q3 2024.
Operating cash flow was $29 million for the quarter, with a cash balance of $110.3 million and long-term debt of $90.7 million.
Free cash flow for the first nine months of 2025 was $60.4 million.
Returned $44 million to shareholders year-to-date through dividends and share buybacks.
Outlook and guidance
Full-year 2025 sales guidance narrowed to $535–$545 million, with adjusted diluted EPS guidance at $2.20–$2.25.
FY 2025 revenue guidance also cited as $550M–$587M and EPS of $2.20–$2.46.
Tax rate for 2025 projected at 21–23%.
Management expects cash flows and available credit to be sufficient for ongoing needs and investments.
Continued focus on growth in diversified end markets and monitoring of tariffs and geopolitical risks.
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