Cts Corporation · NYSE:CTS
Cts — Investor Presentation (February 2026)
27 slides from Cts's investor presentation, Feb 10, 2026
Slide 1: CTS Investor Presentation February 2026
CTS Investor Presentation February 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 23% LTM Adj. Diluted EPS $2.23 10% Diversified End Market Revenue CAGR LTM Revenue $541 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 December 2025
Slide 4: CTS Positioned to Deliver 10% Organic and Inorganic Growth
CTS Positioned to Deliver 10% Organic and Inorganic Growth Deep custom engineered capability and long-standing customer relationships Megatrend tailwinds – automation, healthcare innovation and electrification Strong new product pipeline –piezo formulations, medical applications, eBrakeTM Mid-Single
Slide 5: Secular Themes Drive Growth Across End Markets
Automation Healthcare Innovation Industry 4.0 Factory Automation Passenger Safety Autonomous Underwater Vehicles Improved Diagnostics Minimally Invasive Procedures Therapeutics Patient Experience Secular Themes Drive Growth Across End Markets Applying deep domain expertise to solve today’s most pres
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 < 40% 15-25% 15-25% 25-35%
Slide 8: Enabling Efficiency and Automation in Industrial Markets
Addressable Market Size: $3.6B LTM Revenue:1 $140M +12% YOY Estimated Market Growth: Mid-single Digit Efficiency Material Expertise Up integration into sensors and transducers Drivers of Outperformance: INDUSTRIAL Enabling Efficiency and Automation in Industrial Markets Sustainability and Efficiency
Slide 9: Unlocking Important Innovation in Medical Markets
Intravenous Ultrasound High Resolution Ultrasound Medical Therapeutics Cardiac Rhythm (Wireless Pacemaker) Highly Precise Minimally Invasive MEDICAL Unlocking Important Innovation in Medical Markets Utilizing Technology to Enhance Patient Care and Experience Addressable Market Size: $1.5B LTM Revenu
Slide 10: 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 11: Long-Term Growth Opportunities with Powertrain Agnostic Products
Powertrain-Agnostic Light Vehicle Portfolio 11 TRANSPORTATION Long-Term Growth Opportunities with Powertrain Agnostic Products Chassis Height Sensor Accelerator Modules Brake Position Sensor Belt Tension Sensor Seat Track Position Sensor Seat Belt Buckle Switch Sensor >95% of existing light vehicle
Slide 12: Capital Allocation Framework
Cash Returned to Shareholders Dividend & Repurchases 20-40% of FCF Capital Structure Leverage 1.0 – 2.5x Operating Cash Flow 16-20% 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 13: Strategic Approach to M&A
Strategic Approach to M&A Strengthen Customer Relationships Geographical Expansion Enhance Technology Portfolio Attractive Financials Expand End Markets Expand Product & Applications ~ 5% of Sales Growth From M&A Disciplined approach to acquisitions ROI in excess of cost of capital Maintain balance
Slide 14: FY 2026 Guidance
$2.45 $2.30 Notes: 1 Adjusted Diluted EPS is a non-GAAP financial measure. Refer to the Appendix for reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. FY 2026 Guidance Revenue ($ Millions) Adjusted Dilu
Slide 15: Financial Framework
LTM 1 Long-Term Target Revenue $541M +10% per year Adj Gross Margin % 2 38.5% 36-40% Adj SG&A Expense % 2 17.8% 15-17% 3 R&D Expense % 4.7% 4-6% CapEx % 2.9% ~4% Financial Framework 1 LTM through December 2025. 2 Adj Gross Margin and Adj SG&A Expense are non-GAAP financial measures. Refer to the App
Slide 16: Evolution 2030 Establishes Our Long-Term Goals
2 1 Engage and develop our talent to create a competitive advantage Establish a culture of continuous improvement throughout our extended value chain Accelerate organic and inorganic growth Growth Operational Excellence Engagement Evolution 2030 Establishes Our Long-Term Goals and Drives Our Executi
Slide 17: Appendix
Appendix
Slide 18: CTS Core Values
Play to Win Responsiveness Simplicity Solution Oriented CTS Core Values
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures From time to time, CTS may use non-GAAP financial measures in discussing CTS’ business. These measures are intended to supplement, not replace, CTS’ presentation of its financial results in accordance with U.S. GAAP. CTS believes that the non-GAAP financial measures prese
Slide 20: Regulation G Schedules: Adjusted Gross Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted Gross Margin Three Months Ended December 31, Three Months Ended September 30, Twelve Months Ended December 31, 2025 2024 2025 2025 2024 2023 Gross margin $ 53.7 $ 46.9 $ 55.3 $ 208.0 $ 187.6 $ 190.9 Net sales $ 137.3 $ 126.5 $ 143.0 $
Slide 21: Regulation G Schedules: Adjusted SG&A Expenses
Regulation G Schedules ($ Millions, except percentages) Adjusted SG&A Expenses Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 2023 SG&A Expense $ 24.8 $ 22.2 $ 98.7 $ 88.3 $ 83.8 Net sales $ 137.3 $ 126.5 $ 541.3 $ 514.8 $ 550.4 SG&A expense as a % of net sales
Slide 22: Regulation G Schedules: Adjusted Operating Earnings
Regulation G Schedules ($ Millions, except percentages) Adjusted Operating Earnings Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 2023 Operating earnings $ 22.7 $ 18.0 $ 82.6 $ 71.2 $ 75.1 Net sales $ 137.3 $ 126.5 $ 541.3 $ 514.8 $ 550.4 Operating earnings as
Slide 23: Regulation G Schedules: Adjusted EBITDA Margin
Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA Margin Three Months Ended December 31, Three Months Ended September 30, Twelve Months Ended December 31, 2025 2024 2025 2025 2024 2023 Net earnings (loss) $ 19.7 $ 11.6 $ 13.7 $ 65.3 $ 55.5 $ 60.5 Net sales $ 137.3 $ 126.5 $ 143
Slide 24: 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 December 31, Three Months Ended September 30, 2025 2025 2024 2024 2025 2025 Per share Per share Net earnings (A) $ 19.7 $ 0.67 $ 11.6 $ 0.38
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 NOTE: CTS believes that adjusted gross margin, adjusted operating earnings, adjusted EBITDA margin, adjusted net earnings and adjusted diluted earnings per shar
Slide 26: Reconciliation footnotes
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 27: 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.