CTS Corporation Earnings Recaps
Q2 2026
Jul 30, 2026
CTS reported a modest 1.9% stock increase following Q2 earnings, reflecting solid revenue growth and margin expansion balanced against modest transportation declines and cautious near-term segment performances.
Key takeaways
- Revenue grew 7% year over year to $145 million, led by a 15% increase in diversified end markets, which now represent 59% of total sales.
- Adjusted gross margin reached a record 41.5%, up 270 basis points year over year; adjusted EBITDA margin improved by approximately 240 basis points to 25.4%.
- Adjusted diluted EPS was a record $0.74, benefiting from roughly $0.07 per share of unusual items.
- Medical end market sales rose 45% year over year to $28 million, supported by strong demand and a book-to-bill ratio of 1.21.
- Transportation sales declined 2% year over year and sequentially, reflecting ongoing softness in that segment despite new business awards totaling $163 million.
Q1 2026
Apr 30, 2026
Shares of CTS Corporation rose 5.2% following first quarter results that reflected notable upside in top-line growth and significant margin expansion. Outperformance in diversified end markets, especially medical and industrial, along with a 250bps increase in gross margin, resonated positively with investors.
Key takeaways
- First quarter sales reached $139 million, up 11% year-over-year, with diversified market revenues increasing 18% and medical end market sales up 28%.
- Gross margin expanded by 250 basis points, contributing to adjusted diluted EPS of $0.62, up from $0.44 last year.
- Book-to-bill ratio finished at 1.1 for the quarter, supported by strong industrial and medical bookings (medical book-to-bill at 1.2).
- Management narrowed full-year 2026 sales guidance to $560–$580 million and adjusted EPS to $2.35–$2.45, while continuing to monitor geopolitical and supply chain risks.
- Transportation revenue grew 3%, with new awards in Europe, although management noted a cautious outlook for global vehicle volumes in light of challenging macro conditions.