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: Q3 2026 – Diversification Momentum and Strong Execution Drive Record Profitability
Q3 2026 – Diversification Momentum and Strong Execution Drive Record Profitability • Strong execution drives profitable growth - Revenue +5% YoY and +3% sequentially Third Quarter 2 - Book-to-bill ratio of 1.18 $150M 42.2% $0.77 - Adj. gross margin expanded 330 bps to 42.2% 1 1 • Continued momentum
Slide 4: Millar Acquisition – Advancing Portfolio Diversification
Millar Acquisition – Advancing Portfolio Diversification Precision pressure sensing for medical, life sciences and industrial applications 55+ years ~$30M 2H 2027 Sensing expertise across the Expected annual revenue Accretive U.S. and Europe Differentiated capabilities Portfolio diversification • ME
Slide 5: End Markets Update: Medical and Aerospace & Defense
End Markets Update Revenue • Strong sales growth of 21% YoY; down 4% ($ Millions) sequentially Medical $28 $27 • Book-to-bill of 0.7, with bookings down 5% YoY $22 due to timing of orders • Key wins across implantable pacemakers, Q3 2025 Q2 2026 Q3 2026 ultrasound diagnostics, precision measurement
Slide 6: End Markets Update: Industrial and Transportation
End Markets Update Revenue ($ Millions) • Sales up 7% YoY and 1% sequentially Industrial • Strong bookings with Book-to-bill of 1.36 $40 $40 $37 • Multiple design wins across data centers, automation, connectivity, digitalization and energy efficiency Q3 2025 Q2 2026 Q3 2026 • New customer win in te
Slide 7: FY 2026 Updated Guidance
FY 2026 Updated Guidance Revenue Adjusted Diluted EPS 1 ($ Millions) 2 $590 2 $2.88 $580 $2.78 $550 $2.22 $2.23 $541 $2.12 $515 2023 2024 2025 2026F 2023 2024 2025 2026F Key Outlook Assumptions - Continuation of current market conditions – Ongoing monitoring of near-term economic impacts, including
Slide 8: Financials
Financials 8
Slide 9: Q3 2026 Financial Summary
Q3 2026 Financial Summary Results Highlights ($ Millions, except percentages and per share amounts) • Revenue up 5% year over year and 3% sequentially Revenue $150 $143 $145 • Diversified end market revenue up 7% vs Q3 2025 • Transportation revenue up 2% year-over-year • Adjusted gross margin +330 b
Slide 10: Prioritizing strong cash flow generation
Prioritizing strong cash flow generation Q3 YTD Operating Cash Flow Cash and Debt1 ($ Millions) ($ Millions) $94 $300 Total Facility $73 $73 $144 $55 Borrowed 2024 2025 2026 Cash Debt $82M $19M 2 YTD Q3 2026 Free Cash Flow Cash Returned to Shareholders YTD Q3 20263 $12M Strong Balance Sheet YTD Q3 2
Slide 11: Q&A
Q&A cts
Slide 12: Appendix
Appendix cts
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 14: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules Adjusted Gross Margin ($ Millions, except percentages) Three Months Ended Nine Months Ended Three Months Twelve Months Ended September 30, September 30, Ended June 30, 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 Adjusted Operating Earnings ($ Millions, except percentages) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, 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 Adjusted EBITDA Margin ($ Millions, except percentages) Three Months Ended Nine Months Ended Three Months Twelve Months Ended September 30, September 30, Ended June 30, 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 Adjusted Diluted EPS
Regulation G Schedules Adjusted Net Earnings and Adjusted Diluted Earnings Per Share ($ Millions, except percentages and per share amounts) ` Three Months Ended Nine Months Ended Three Months Ended September 30, September 30, 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 Adjusted Diluted EPS (Annual)
Regulation G Schedules Adjusted Net Earnings and Adjusted Diluted Earnings Per Share ($ Millions, except percentages and per share amounts) Twelve Months Ended December 31, 2025 2025 2024 2024 2023 2023 Per share Per share Per share Net earnings (loss) (A) $ 65.3 $ 2.19 $ 55.5 $ 1.80 $ 60.5 $ 1.92 A
Slide 19: Regulation G Schedules: Footnotes
Regulation G Schedules a) Reflected in Selling, general and administrative and other income (expense), net. b) Reflected in Cost of goods sold. c) Reflected in Restructuring charges. d) Reflected in Other income (expense), net. e) Reflected in Income tax expense. For 2023, discrete tax items include
Slide 20: Regulation G Schedules: Free Cash Flow
Regulation G Schedules Free Cash Flow ($ Millions, except percentages) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, December 31, 2026 2025 2026 2025 2025 2024 2023 Net cash provided by operating activities $ 43.5 $ 29.0 $ 94.3 $ 72.9 $ 102.1 $ 98.2 $ 88.8 Capi