Slide 1: CTS Corporation 1st Quarter 2026 Earnings Call
CTS Corporation 1st Quarter 2026 Earnings Call April 29, 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: Q1 2026 – Strong Results Driven by Growth in Diversified End-Markets
Solid execution in Q1 Revenue increased 11% Book-to-bill ratio3 of 1.1 Adj. gross margin expanded 250 bps Continued momentum from diversified end markets2 Revenue growth of 18% Diversified end markets represented 57% of total Q1 2026 revenue Strong industrial and medical bookings Transportation end
Slide 4: FY 2026 Updated Guidance
$2.45 $2.35 Notes: 1 Adjusted Diluted EPS is a non-GAAP financial measure. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. FY 2026 Updated Guidance Revenue ($ Millions) Adjus
Slide 5: End markets Performance
End markets Performance
Slide 6: Medical and Aerospace & Defense End Markets Update
Medical 6 Aerospace & Defense End Markets Update ($ Millions) Revenue ($ Millions) Revenue Q1 sales increased 28% year over year Book‑to‑bill ratio 1.20, up 18% vs Q1 2025 Multiple ultrasound program wins, including a large non‑invasive aesthetics award Sustained strong demand for ultrasound imaging
Slide 7: Industrial and Transportation End Markets Update
End Markets Update 7 Industrial Q1 sales increased 14% year over year Book-to-bill ratio 1.29 driven by strength with industrial OEM and distribution customers Solid momentum in temperature sensing, with wins in heat pumps, pool and spa systems, and commercial appliances ($ Millions) Revenue 1 Refer
Slide 8: Financials
Financials
Slide 9: Q1 2026 Financial Results
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 $10M Cash Returned to Shareholders in Q1 20263 $12M Q1 2026 Free Cash Flow2 Strong Balance Sheet Solid Foundation for Strategic M&A $5M Q1 2026 Capital Expenditures Borrowed Total Facility Operating Cash Flow Prioritizing strong cash flow generation ($ Millions) ($ Millions) Notes: 1
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 March 31, Three Months Ended December 31, Twelve Months Ended December 31, 2026 2025 2025 2025 2024 2023 Gross margin $ 55.0 $ 46.5 $ 53.7 $ 208.0 $ 187.6 $ 190.9 Net sales $ 139.2 $ 125.8 $ 137.3 $ 541.
Slide 15: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules ($ Millions, except percentages) Adjusted Operating Earnings Three Months Ended March 31, Twelve Months Ended December 31, 2026 2025 2025 2024 2023 Operating earnings $ 22.0 $ 16.3 $ 82.6 $ 71.2 $ 75.1 Net sales $ 139.2 $ 125.8 $ 541.3 $ 514.8 $ 550.4 Operating earnings as a %
Slide 16: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA Margin Three Months Ended March 31, Three Months Ended December 31, Twelve Months Ended December 31, 2026 2025 2025 2025 2024 2023 Net earnings $ 17.2 $ 13.4 $ 19.7 $ 65.3 $ 55.5 $ 60.5 Net sales $ 139.2 $ 125.8 $ 137.3 $ 541.3
Slide 17: Regulation G Schedules: Adjusted Net Earnings and Adjusted Diluted EPS
Regulation G Schedules ($ Millions, except percentages and per share amounts) Adjusted Net Earnings and Adjusted Diluted Earnings Per Share Three Months Ended March 31, Three Months Ended December 31, 2026 2026 2025 2025 2025 2025 Per Share Per Share Per share Net earnings (A) $ 17.2 $ 0.59 $ 13.4 $
Slide 18: Regulation G Schedules: Adjusted Net Earnings and Adjusted 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: Footnotes to Regulation G Schedules
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.