CTS Corporation Q2 2026 Earnings Recap

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.