CTS Corporation Q3 2026 Earnings Recap

CTS shares rose 9.8% after earnings, with investors responding to record margins and EPS alongside broad-based demand indicators. Revenue grew 5% year over year, while a 1.18 company book-to-bill and strong bookings in industrial and aerospace and defense point to continued demand; medical bookings were a notable weak spot.

Key Takeaways

• Q3 revenue was $150 million, up 5% year over year and 3% sequentially. Diversified end markets grew 7% and made up 60% of sales; transportation grew 2%.
• Gross margin reached a record 42.2%, up 330 basis points year over year. Adjusted EBITDA margin was 24.7%, up about 90 basis points, and adjusted diluted EPS rose to $0.77 from $0.60.
• Company book-to-bill was 1.18, including 1.3 in diversified markets. Industrial sales increased 7% year over year with a 1.36 book-to-bill; aerospace and defense sales fell 7%, but its book-to-bill was 1.91.
• Medical sales rose 21% year over year to $27 million but declined 4% sequentially; its book-to-bill was 0.66, with management citing order timing.
• CTS said acquired Millar is expected to generate about $30 million in annual revenue and be accretive in the second half of 2027.