CTS Corporation (CTS) Q2 2026 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:05.114 Hello everyone, thank you for joining us and welcome to CTS 00:00:05.114 -- 00:00:10.357 Corporation's second quarter 2026 earnings call. 00:00:10.357 -- 00:00:15.981 After today's prepared remarks, we will host a question and answer session. 00:00:15.981 -- 00:00:20.984 If you would like to ask a question, please press star 1 to 00:00:20.984 -- 00:00:26.107 raise your hand. To withdraw your question, press star 1 00:00:26.107 -- 00:00:28.059 again. 00:00:28.059 -- 00:00:32.461 I will now hand the conference over to Pratik Trivedi. 00:00:32.461 -- 00:00:35.743 Pratik, please go ahead. 00:00:35.743 -- 00:00:38.564 Good morning and thank you for joining us. 00:00:38.564 -- 00:00:44.207 As I begin my first earnings call as CEO, I want to thank Kieran O'Sullivan 00:00:44.207 -- 00:00:49.050 for his leadership and the strong foundation he built at CTS. 00:00:49.050 -- 00:00:54.152 The Evolution 2030 strategy and our focus on diversification remain 00:00:54.152 -- 00:00:56.902 central to our value creation. 00:00:56.902 -- 00:01:01.945 We delivered a strong second quarter with revenue growing 7% to 00:01:01.945 -- 00:01:06.969 145 million. Our diversified end markets increased 15% 00:01:06.969 -- 00:01:08.950 year-over-year 00:01:08.950 -- 00:01:12.813 and represented 59% of total sales. 00:01:12.813 -- 00:01:17.976 Equally important, we converted that growth into record profitability, achieving 00:01:17.976 -- 00:01:20.997 gross margin of 41.5%, 00:01:21.098 -- 00:01:24.559 adjusted EBITDA margin of 25.4%, 00:01:24.688 -- 00:01:29.950 and adjusted diluted EPS of 74 cents. While the quarter benefited 00:01:29.950 -- 00:01:34.953 from certain unusual items that contributed approximately seven cents of 00:01:34.953 -- 00:01:40.235 favorabl...