CTS (NYSE:CTS) Announces Quarterly Earnings Results, Beats Expectations By $0.13 EPS

CTS (NYSE:CTS) posted its quarterly earnings results on Tuesday. The electronics maker reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.13, FiscalAI reports. The business had revenue of $144.78 million during the quarter, compared to analysts’ expectations of $143.43 million. CTS had a return on equity of 12.90% and a net margin of 12.46%.During the same quarter last year, the company posted $0.62 earnings per share. CTS updated its FY 2026 guidance to 2.550-2.700 EPS.

Here are the key takeaways from CTS’s conference call:

• Strong second-quarter performance: Revenue rose 7% year over year to $144.8 million, while adjusted gross margin expanded to a record 41.5%, adjusted EBITDA margin reached 25.4%, and adjusted EPS increased 30% to a record $0.74. Results included approximately $0.07 per share of favorable impact from foreign exchange and a customer reimbursement.
• Diversified markets continued to drive growth. Sales increased 15% year over year, led by Medical revenue growth of 45% and Industrial growth of 16%; Aerospace and Defense bookings and backlog also point to a stronger second half as government funding improves.
• Transportation secured significant new awards totaling approximately $163 million, including a record $100 million sensor award with a North American OEM and a new North American EV customer. Total booked business rose to approximately $1.2 billion.
• Full-year 2026 guidance was raised to revenue of $565 million-$585 million and adjusted diluted EPS of $2.55-$2.70, reflecting continued momentum in diversified markets and anticipated modest commercial-vehicle growth.
• Transportation and cost risks remain. Transportation sales declined 2% year over year, global light-vehicle production is expected to be flat to modestly down, and the company is still negotiating the impact of tariffs, precious-metal inflation, and other input costs; the second-half EPS outlook includes a wide range of possible outcomes.

CTS Trading Up 7.6%

Shares of CTS stock opened at $65.02 on Wednesday. The firm has a 50 day moving average price of $63.24 and a two-hundred day moving average price of $56.20. The company has a quick ratio of 1.98, a current ratio of 2.52 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $1.86 billion, a PE ratio of 27.79, a price-to-earnings-growth ratio of 1.55 and a beta of 1.04. CTS has a 12-month low of $36.03 and a 12-month high of $69.55.

CTS Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, June 26th were issued a $0.04 dividend. This represents a $0.16 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Friday, June 26th. CTS’s dividend payout ratio is currently 6.84%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CTS. Zacks Research downgraded CTS from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Weiss Ratings restated a “hold (c+)” rating on shares of CTS in a research note on Tuesday, May 26th. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has an average rating of “Hold”.

Hedge Funds Weigh In On CTS

Several institutional investors and hedge funds have recently made changes to their positions in CTS. State of Tennessee Department of Treasury lifted its holdings in CTS by 21.6% during the 4th quarter. State of Tennessee Department of Treasury now owns 26,233 shares of the electronics maker’s stock worth $1,125,000 after purchasing an additional 4,658 shares during the last quarter. Captrust Financial Advisors boosted its stake in CTS by 12.1% in the 2nd quarter. Captrust Financial Advisors now owns 8,113 shares of the electronics maker’s stock valued at $346,000 after purchasing an additional 876 shares during the period. Horizon Investments LLC grew its holdings in CTS by 14.0% in the 3rd quarter. Horizon Investments LLC now owns 13,453 shares of the electronics maker’s stock valued at $537,000 after buying an additional 1,653 shares in the last quarter. Lazard Asset Management LLC grew its holdings in CTS by 4.3% in the 2nd quarter. Lazard Asset Management LLC now owns 31,664 shares of the electronics maker’s stock valued at $1,349,000 after buying an additional 1,299 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in CTS by 11.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 70,298 shares of the electronics maker’s stock worth $2,921,000 after buying an additional 7,144 shares during the period. Institutional investors and hedge funds own 96.87% of the company’s stock.

Key CTS News

Here are the key news stories impacting CTS this week:

• Positive Sentiment: Q2 results exceeded expectations. CTS reported revenue of $144.8 million, up 7% year over year and above the $143.4 million consensus estimate. Adjusted diluted EPS was $0.74, well ahead of the $0.61 estimate and up from $0.57 a year earlier. CTS Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: CTS raised its 2026 guidance. The company now expects sales of $565 million to $585 million, compared with its previous $560 million-$580 million range, and adjusted EPS of $2.55-$2.70, up from $2.35-$2.45. The EPS outlook is above the roughly $2.43 analyst consensus, while the sales midpoint is also above consensus. CTS Raises 2026 Outlook
• Positive Sentiment: Profitability and cash generation improved. Adjusted gross margin expanded to 41.5% from 38.7%, adjusted EBITDA margin rose to 25.4% from 23.0%, and operating cash flow increased to $33.4 million. Diversified end-market sales—including industrial, aerospace and defense, and medical—grew 15% and represented 59% of revenue. CTS Announces Second Quarter 2026 Results
• Negative Sentiment: Transportation sales declined 2%. This weakness could limit overall growth if the company’s diversification efforts do not offset softer automotive and transportation demand.
• Negative Sentiment: Insider selling may temper sentiment. Reported recent transactions showed CEO Kieran O’Sullivan selling 130,000 shares over the past six months, with no insider purchases.
• Neutral Sentiment: A feature on the first-generation Cadillac CTS-V concerns General Motors’ vehicle, not CTS Corporation, and has no direct investment relevance. First-Generation Cadillac CTS-V

CTS Company Profile

CTS Corporation (NYSE:CTS) is a global manufacturer and supplier of electronic components and sensors, headquartered in Lisle, Illinois. Established in 1896 as the Chicago Telephone Supply Company, the firm has evolved over more than a century to become a diversified provider of high-precision products for a wide range of end markets.

The company’s core business encompasses the design, development and production of sensors and actuators, frequency control devices such as quartz crystals and filters, multilayer ceramic capacitors, and inductive components.