Cts Corporation · NYSE:CTS
Cts — Investor Presentation (October 2026)
28 slides from Cts's investor presentation, Oct 27, 2026
Slide 1: CTS Investor Presentation October 2026
CTS Investor Presentation October 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: CTS is a Leading Designer and Manufacturer of Custom Engineered Solutions
LTM Adj. EBITDA Margin 24% LTM Adj. Diluted EPS $2.75 10% CAGR Diversified End Market Revenue LTM Revenue $571 million Global design and manufacturing capabilities1 Technical and application expertise applied across diverse and growing end markets Notes: 1 Last 12 months Revenue as of September 2026
Slide 4: CTS Is Positioned to Deliver Sustainable, Long-Term Value Creation
Technology Leadership Growth in Diversified End Markets Operational Excellence Strategic Capital Allocation Broad, differentiated product portfolio Deep engineering expertise and long-standing OEM partnerships Approximately 60% of sales from diversified end markets Strong positions in medical, aeros
Slide 5: Secular Trends Are Positioning CTS for Long-Term Growth
Shifting Demographics & Healthcare Innovation Rising Global Defense Spending Secular Trends Are Positioning CTS for Long-Term Growth Improved diagnostics Minimally invasive procedures In-vivo and ex-vivo applications Therapeutics Naval and underwater Modern warfare Space communications Missiles and
Slide 6: Deep Technical Expertise Provides a Sustainable Advantage
Deep Technical Expertise Provides a Sustainable Advantage Signal Processing Bulk Tapecast Single Crystal Textured Ultrasonic Imaging: Traditional, IVUS and High Definition Medical Therapeutics Piezoelectric Ceramics Position Sensing Capabilities Key Technologies Applications Current Sensing Hall Eff
Slide 7: Growing Revenue in Diversified End Markets
2017 Revenues $423M Long-term target +10% CAGR Utilizing core capabilities and domain expertise in fast-growing end markets Investing in business development resources, process and technology capabilities Disciplined capital investments to support diversification strategy < 30% 15-20% 20-30% 30-40%
Slide 8: Industrial: Enabling Automation and Digitalization
Addressable Market Size: $3.6B LTM Revenue:1 $153M +13% YOY Estimated Market Growth: Mid-single Digit Efficiency Material Expertise Up integration into sensors and transducers Drivers of Outperformance: INDUSTRIAL Enabling Automation and Digitalization in Industrial Markets Efficiency, precision and
Slide 9: Medical: Enabling Innovation in Medical Markets
Intravenous Ultrasound High Resolution Ultrasound Medical Therapeutics Cardiac Rhythm (Wireless Pacemaker) Highly Precise Minimally Invasive MEDICAL Enabling Innovation in Medical Markets Utilizing Technology to Enhance Patient Care and Experience Addressable Market Size: $1.5B LTM Revenue:1 $103M +
Slide 10: Millar Acquisition – Advancing Portfolio Diversification
Precision pressure sensing for medical, life sciences and industrial applications 55+ years Sensing expertise across the U.S. and Europe ~$30M Expected annual revenue 2H 2027 Accretive Neurological monitoring Cardiovascular Implantable sensing Industrial / water quality Differentiated capabilities M
Slide 11: Ensuring Performance and Reliability in Aerospace and Defense
Mission Critical Applications in Harsh Environments Enhanced Performance Underwater Sonar Reliability Space Temperature Applications Unmanned Underwater Vehicles Ordnance and Countermeasures AEROSPACE & DEFENSE Ensuring Performance and Reliability in Aerospace and Defense Addressable Market Size: $1
Slide 12: Advancing Safety and Energy Efficiency in Mobility
Advancing Safety and Energy Efficiency in Mobility 12 TRANSPORTATION Long-Term Growth Opportunities with Powertrain Agnostic Products Footwell solutions Addressable Market Size: $4.6B LTM Revenue:1 $235M 0% YOY Estimated Market Growth: Flat to Low-single Digit High-quality cost competitive products
Slide 13: Capital Allocation Framework
Cash Returned to Shareholders Dividend & Repurchases 20-40% of FCF Capital Structure Leverage 1.0 – 2.5x Operating Cash Flow 17-20% of Sales Growth Capex ~4% of Sales Acquisitions 60-80% of FCF Capital Allocation Priorities Maintain healthy Balance Sheet Disciplined organic investments Growth resour
Slide 14: Strategic M&A is Fundamental to Continued Growth
Target Profile Proven M&A Playbook Financial Capability Product extensions, value added products, targeted adjacencies Strong fit with our end markets Accretive financial profile Mature diligence process Proven integration capability CTS Business System Good balance sheet strength $300M total debt f
Slide 15: FY 2026 Updated Guidance
FY 2026 Updated Guidance $2.88 2 $2.78 Notes: 1 Adjusted Diluted EPS is a non-GAAP financial measure. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. 2 Revenue and EPS guidan
Slide 16: Strategy and Operational Execution Enable Long Term Value Creation
Strategy and Operational Execution Enable Long Term Value Creation 1 LTM through September 2026. 2 Adj. Gross Margin and Adj. EBITDA are non-GAAP financial measures. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated
Slide 17: Scaling the CTS Business System to Accelerate Evolution 2030
One operating model to drive execution, continuous improvement and growth Scaling the CTS Business System (CBS) to Accelerate Evolution 2030 Standardize Processes Improve Performance Scale Best Practices Growth Product Life Cycle Management Sales & Customer Service Mergers & Acquisitions (M&A) Envir
Slide 18: Appendix
Appendix
Slide 19: Our Vision and Values
Our Vision We aim to be a leading provider of sensing and motion devices as well as connectivity components enabling an intelligent and seamless world. Our Values CTS Business System The CTS Business System supports the SBU’s and the enterprise-wide functions with the framework for building and sust
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 21: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted Gross Margin Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended June 30, LTM Twelve Months Ended December 31, 2026 2025 2026 2025 2026 Q4-25 to Q3-26 2025 2024 2023 Gross margin $ 63.2 $ 55.3 $ 178.2 $
Slide 22: Regulation G Schedules: Adjusted SG&A Expenses
Regulation G Schedules ($ Millions, except percentages) Adjusted SG&A Expenses Three Months Ended September 30, Nine Months Ended September 30, LTM Twelve Months Ended December 31, 2026 2025 2026 2025 Q4-25 to Q3-26 2025 2024 2023 SG&A Expense $ 30.8 $ 27.2 $ 85.2 $ 73.9 $ 110.0 $ 98.7 $ 88.3 $ 83.8
Slide 23: 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, LTM Twelve Months Ended December 31, 2026 2025 2026 2025 Q4-25 to Q3-26 2025 2024 2023 Operating earnings $ 25.5 $ 20.9 $ 74.3 $ 60.0 $ 97.0 $ 82.6 $ 7
Slide 24: 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 25: 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 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 26: 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 27: 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 28: 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.