Cts Corporation · NYSE:CTS
Cts — Q3 2026 Earnings Presentation
20 slides from Cts's earnings presentation, Oct 27, 2026
Slide 1: CTS Corporation 3rd Quarter 2026 Earnings Call
CTS Corporation 3rd Quarter 2026 Earnings Call October 27, 2026
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this document regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are, or may be deemed to be, “forward-
Slide 3: Strong execution drives profitable growth
Strong execution drives profitable growth Revenue +5% YoY and +3% sequentially Book-to-bill ratio2 of 1.18 Adj. gross margin expanded 330 bps to 42.2% Continued momentum in diversified end markets Revenue +7% YoY, representing 60% of Q3 sales Strong bookings with a Book-to-bill ratio2 of 1.3 Modest
Slide 4: Millar Acquisition – Advancing Portfolio Diversification
Millar Acquisition – Advancing Portfolio Diversification Expanding CTS into attractive markets with differentiated sensing technologies Precision pressure sensing for medical, life sciences and industrial applications 55+ years Sensing expertise across the U.S. and Europe ~$30M Expected annual reven
Slide 5: Medical and Aerospace & Defense End Markets Update
Medical 5 Aerospace & Defense End Markets Update ($ Millions) Revenue ($ Millions) Revenue Strong sales growth of 21% YoY; down 4% sequentially Book-to-bill of 0.7, with bookings down 5% YoY due to timing of orders Key wins across implantable pacemakers, ultrasound diagnostics, precision measurement
Slide 6: End Markets Update: Industrial and Transportation
End Markets Update 6 Industrial Sales up 7% YoY and 1% sequentially Strong bookings with Book-to-bill of 1.36 Multiple design wins across data centers, automation, connectivity, digitalization and energy efficiency New customer win in temperature sensing ($ Millions) Revenue 1 Refer to slide 2 for i
Slide 7: FY 2026 Updated Guidance
$2.88 2 $2.78 Notes: 1 Adjusted Diluted EPS is a non-GAAP financial measure. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. 2 Revenue and EPS guidance include the expected i
Slide 8: Financials
Financials
Slide 9: Q3 2026 Financial Summary
Notes: All comparisons vs. same period in prior year unless otherwise noted. 1 Adj. Diluted EPS, Adj. Gross Margin and Adj. EBITDA Margin are non-GAAP financial measures. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calcu
Slide 10: Cash and Debt
Cash and Debt1 $19M Cash Returned to Shareholders YTD Q3 20263 $82M YTD Q3 2026 Free Cash Flow2 Strong Balance Sheet Solid Foundation for Strategic M&A $12M YTD Q3 2026 Capital Expenditures Borrowed Total Facility Q3 YTD Operating Cash Flow Prioritizing strong cash flow generation ($ Millions) ($ Mi
Slide 11: Q&A
Q&A cts
Slide 12: Appendix
Appendix cts
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 14: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted Gross Margin Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended June 30, Twelve Months Ended December 31, 2026 2025 2026 2025 2026 2025 2024 2023 Gross margin $ 63.2 $ 55.3 $ 178.2 $ 154.3 $ 60.0 $ 208.
Slide 15: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules ($ Millions, except percentages) Adjusted Operating Earnings Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended December 31, 2026 2025 2026 2025 2025 2024 2023 Operating earnings $ 25.5 $ 20.9 $ 74.3 $ 60.0 $ 82.6 $ 71.2 $ 75.1 Net sales $ 149
Slide 16: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA Margin Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended June 30, Twelve Months Ended December 31, 2026 2025 2026 2025 2026 2025 2024 2023 Net earnings $ 17.8 $ 13.7 $ 54.1 $ 45.6 $ 19.2 $ 65.3
Slide 17: Regulation G Schedules: Adjusted Net Earnings and Diluted EPS
Regulation G Schedules ($ Millions, except percentages and per share amounts) Adjusted Net Earnings and Adjusted Diluted Earnings Per Share ` Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended June 30, 2026 2026 2025 2025 2026 2026 2025 2025 2026 2026 Per Share Per S
Slide 18: Regulation G Schedules: Adjusted Net Earnings and Diluted EPS
Regulation G Schedules ($ Millions, except percentages and per share amounts) Adjusted Net Earnings and Adjusted Diluted Earnings Per Share NOTE: CTS believes that adjusted gross margin, adjusted operating earnings, adjusted EBITDA margin, adjusted net earnings and adjusted diluted earnings per shar
Slide 19: Reflected in Selling, general and administrative and other income (expense), net. Reflected in Cost
Reflected in Selling, general and administrative and other income (expense), net. Reflected in Cost of goods sold. Reflected in Restructuring charges. Reflected in Other income (expense), net. Reflected in Income tax expense. For 2023, discrete tax items include adjusting for tax benefits resulting
Slide 20: Free Cash Flow and Controllable Working Capital
($ Millions, except percentages) Free Cash Flow ($ Millions, except percentages) Controllable Working Capital NOTE: CTS believes the controllable working capital ratio is a useful measure because it provides an objective measure of the efficiency with which CTS manages its short-term capital needs.