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olivLaw · US equity research

CTS Corporation CTS

Printed Circuit Boards · SIC 3672 · Vertical: Printed Circuit Boards (SIC 3672)

61.91USD−1.61% · 1 dayClose 04 Nov 2026

CTS Corporation designs and manufactures sensors, connectivity components and actuators, sold mainly to OEMs in the transportation, industrial, medical, aerospace and defense markets. Its diversified end markets are gaining weight, which could reduce its dependence on the automotive sector, where transportation fell to 43% of 2025 sales.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, CTS Corporation (CTS) stock was 61.91 USD (−1.61% on the day), with market capitalisation 1.8 bn USD, P/E 24.4 on diluted EPS of 2.53 USD over the last 12 months, dividend yield 0.26%, beta 1.32, 52-week range 40.29–68.31 USD. Latest reported quarter (Q3 2026): revenue of 149.6 m USD (+4.6% YoY), net income of 17.8 m USD (+29.7% YoY), diluted EPS 0.61 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.8 bn USD
shares as of 20 Oct 2026
P/E (TTM)
24.4
Diluted EPS TTM 2.53 · TTM to 30 Sept 2026
E/P (TTM)
4.09%
TTM to 30 Sept 2026
Dividend yield
0.26%
DPS 12m 0.16
Beta (2y)
1.32
Volatility (1y) 36%
52-week range
40.2968.31

Price history

Loading chart…

Technical reading

RSI (14)
59.7
strong (55–70)
Bollinger (20, 2)
50.91 – 64.52
in the upper half of the band · %B 0.81 · band width 23.6%
SMA 50 / 200
57.97 / 57.59
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
1.15 / 0.32
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+0.5%−1.1%+1.6 pp—
3 months−7.3%−0.5%−6.8 pp—
6 months+3.2%+4.4%−1.2 pp—
Year to date+44.4%+12.3%+32.1 pp—
1 year+47.6%+13.5%+34.0 pp−7.9%
3 years+52.0%+76.4%−24.4 pp+124.2%
5 years+64.7%+63.7%+1.0 pp—
Max drawdown (1y)
−22.3%
22 Jun 2026 → 23 Oct 2026
Max drawdown (5y)
−40.7%
06 Nov 2024 → 08 Apr 2025
Compound annual growth (5y)
+10.5%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
149.6 m USD
+4.6% YoY
Net income
17.8 m USD
+29.7% YoY
Diluted EPS
0.61
+32.6% YoY
net / operating
11.9% / 17.1%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue126.5 m125.8 m135.3 m143.0 m137.3 m139.2 m144.8 m149.6 m
Cost of revenue79.6 m79.2 m82.9 m87.6 m83.6 m84.2 m84.7 m86.4 m
Gross profit46.9 m46.5 m52.4 m55.3 m53.7 m55.0 m60.0 m63.2 m
Research & development5.7 m6.2 m6.3 m6.9 m5.9 m6.6 m4.8 m6.3 m
SG&A22.2 m23.6 m23.1 m27.2 m24.8 m26.0 m28.4 m30.8 m
Operating income18.0 m16.3 m22.7 m20.9 m22.7 m22.0 m26.8 m25.5 m
Depreciation & amortisation8.3 m8.5 m8.6 m ≈8.8 m ≈8.7 m8.8 m8.8 m ≈8.7 m ≈
Interest expense1.3 m1.2 m1.1 m1.1 m911.0 k708.0 k704.0 k630.0 k
Pre-tax income15.3 m16.1 m23.0 m19.7 m24.9 m21.7 m26.2 m38.2 m
Income tax3.7 m2.8 m4.5 m6.0 m5.2 m4.5 m7.1 m20.5 m
Net income11.6 m13.4 m18.5 m13.7 m19.7 m17.2 m19.2 m17.8 m
Diluted EPS0.38 ≈0.440.620.460.67 ≈0.590.660.61
Operating cash flow24.9 m15.5 m28.4 m ≈29.0 m ≈29.2 m17.3 m33.4 m ≈43.5 m ≈
Capex6.1 m4.5 m3.3 m ≈4.8 m ≈3.2 m5.0 m4.6 m ≈2.4 m ≈
Dividends paid1.2 m1.2 m1.2 m ≈1.2 m ≈1.2 m1.2 m1.1 m ≈1.1 m ≈
Share repurchases7.8 m6.5 m16.5 m ≈16.6 m ≈16.6 m8.6 m3.4 m ≈3.3 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 53 percentile of its own 36-quarter history (min 18.1, median 23.8, max 83.7; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue470.5 m469.0 m424.1 m512.9 m586.9 m550.4 m514.8 m541.3 m
Revenue YoY+11.2%−0.3%−9.6%+21.0%+14.4%−6.2%−6.5%+5.2%
Net income46.5 m36.1 m34.7 m-41.9 m59.6 m60.5 m55.5 m65.3 m
Net income YoY+222.1%−22.3%−4.0%−220.7%unavailable+1.6%−8.4%+17.7%
Diluted EPS1.391.091.06-1.301.851.921.812.19
Diluted EPS YoY+223.3%−21.6%−2.8%−222.6%unavailable+3.8%−5.7%+21.0%
net %9.9%7.7%8.2%-8.2%10.2%11.0%10.8%12.1%
Free cash flow29.7 m42.7 m61.9 m70.5 m106.9 m74.1 m79.6 m86.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
82.3 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
551.8 m USD
Total assets
764.3 m USD
Debt / equity
unavailable
Current ratio
2.30x
ROE
12.1%
ROA
8.5%
FCF margin
16.0%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
550.4 m
2024
514.8 m
2025
541.3 m

SEC (XBRL)· 24 Feb 2026verified

Cost of revenue
2023
359.6 m
2024
327.2 m
2025
333.3 m

SEC (XBRL)· 24 Feb 2026verified

Gross profit
2023
190.9 m
2024
187.6 m
2025
208.0 m

SEC (XBRL)· 24 Feb 2026verified

Research & development
2023
24.9 m
2024
23.4 m
2025
25.3 m

SEC (XBRL)· 24 Feb 2026verified

SG&A
2023
83.8 m
2024
88.3 m
2025
98.7 m

SEC (XBRL)· 24 Feb 2026verified

Operating income
2023
75.1 m
2024
71.2 m
2025
82.6 m

SEC (XBRL)· 24 Feb 2026verified

Depreciation & amortisation
2023
28.7 m
2024
30.9 m
2025
34.5 m

SEC (XBRL)· 24 Feb 2026verified

EBITDA
2023
103.8 m ≈
2024
102.1 m ≈
2025
117.2 m ≈

SEC (XBRL)· 24 Feb 2026derived

Interest expense
2023
3.3 m
2024
4.2 m
2025
4.3 m

SEC (XBRL)· 24 Feb 2026verified

Pre-tax income
2023
75.2 m
2024
68.6 m
2025
83.8 m

SEC (XBRL)· 24 Feb 2026verified

Income tax
2023
14.6 m
2024
13.1 m
2025
18.5 m

SEC (XBRL)· 24 Feb 2026verified

Net income
2023
60.5 m
2024
55.5 m
2025
65.3 m

SEC (XBRL)· 24 Feb 2026verified

Diluted EPS
2023
1.92
2024
1.81
2025
2.19

SEC (XBRL)· 24 Feb 2026verified

Weighted average diluted shares
2023
31.6 m
2024
30.7 m
2025
29.8 m

SEC (XBRL)· 24 Feb 2026verified

Dividend per share
2023
0.16
2024
0.16
2025
0.16

SEC (XBRL)· 24 Feb 2026verified

Balance sheet · USD

Cash
2023
163.9 m
2024
94.3 m
2025
82.3 m

SEC (XBRL)· 24 Feb 2026verified

Receivables
2023
78.6 m
2024
77.6 m
2025
88.1 m

SEC (XBRL)· 24 Feb 2026verified

Inventories
2023
60.0 m
2024
52.3 m
2025
52.9 m

SEC (XBRL)· 24 Feb 2026verified

Current assets
2023
319.3 m
2024
242.2 m
2025
252.7 m

SEC (XBRL)· 24 Feb 2026verified

Property, plant & equipment, net
2023
92.6 m
2024
94.4 m
2025
89.7 m

SEC (XBRL)· 24 Feb 2026verified

Goodwill
2023
157.6 m
2024
201.3 m
2025
209.6 m

SEC (XBRL)· 24 Feb 2026verified

Intangibles (excl. goodwill)
2023
104.0 m
2024
163.9 m
2025
153.6 m

SEC (XBRL)· 24 Feb 2026verified

Total assets
2023
741.2 m
2024
765.4 m
2025
764.3 m

SEC (XBRL)· 24 Feb 2026verified

Accounts payable
2023
43.5 m
2024
42.6 m
2025
48.2 m

SEC (XBRL)· 24 Feb 2026verified

Current liabilities
2023
97.0 m
2024
98.5 m
2025
109.7 m

SEC (XBRL)· 24 Feb 2026verified

Total liabilities
2023
214.3 m
2024
237.2 m
2025
212.5 m

SEC (XBRL)· 24 Feb 2026verified

Equity
2023
526.8 m †
2024
528.2 m †
2025
551.8 m †

SEC (XBRL)· 24 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
88.8 m
2024
98.2 m
2025
102.1 m

SEC (XBRL)· 24 Feb 2026verified

Capex
2023
14.7 m
2024
18.6 m
2025
15.7 m

SEC (XBRL)· 24 Feb 2026verified

Free cash flow
2023
74.1 m ≈
2024
79.6 m ≈
2025
86.4 m ≈

SEC (XBRL)· 24 Feb 2026derived

Investing cash flow
2023
-18.1 m
2024
-140.6 m
2025
-18.5 m

SEC (XBRL)· 24 Feb 2026verified

Financing cash flow
2023
-65.4 m
2024
-26.9 m
2025
-98.4 m

SEC (XBRL)· 24 Feb 2026verified

Dividends paid
2023
5.0 m
2024
4.9 m
2025
4.8 m

SEC (XBRL)· 24 Feb 2026verified

Share repurchases
2023
40.9 m
2024
42.6 m
2025
56.2 m

SEC (XBRL)· 24 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
5.2%
computed by olivLawFY 2025
Revenue CAGR 3Y
-2.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
5.0%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
16.1%
computed by olivLawFY 2025
Net income growth (YoY)
17.7%
computed by olivLawFY 2025
Net income CAGR 3Y
3.1%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
13.5%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
21.0%
computed by olivLawFY 2025
EPS CAGR 3Y
5.8%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
15.6%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
8.5%
computed by olivLawFY 2025

Profitability

Gross margin
40.6%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
23.1%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
17.0%
computed by olivLawTTM to 30 Sept 2026
Net margin
12.9%
computed by olivLawTTM to 30 Sept 2026
FCF margin
19.0%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
13.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
9.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
14.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
6.3%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
4.3%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
32.9x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
2.6x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
1.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
123.5 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
15.2 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
108.3 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
146.7%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
93.5%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
57 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
53 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
1.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
23.9x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
24.4x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
4.1%
computed by olivLawTTM to 30 Sept 2026
P/B
3.0x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
3.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
16.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
6.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.3%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
2.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

61.91 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 1.8 bn USD

Key indicators

Market capitalisation
1.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
24.4x
computed by olivLawTTM to 30 Sept 2026
P/B
3.0x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
13.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
12.9%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
5.2%
computed by olivLawFY 2025
Dividend yield
0.3%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

34/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 20 Oct 2026
Source: SEC (XBRL)published 27 Oct 2026
verified 2896derived 229

Score by group

77% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)

no valuation method could be computed

Multiple comparisons use the SIC vertical: Printed Circuit Boards (SIC 3672)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality40.6%2 (on a fixed band)14%
EBIT margin · Quality17.0%100 (vs peers)11%
FCF margin · Quality19.0%76 (on a fixed band)11%
Revenue CAGR 3Y · Growth-2.7%0 (on a fixed band)22%
Revenue growth (YoY) · Growth5.2%36 (vs peers)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.6x100 (on a fixed band)8%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuation6.1%100 (on a fixed band)17%
Shareholder yield (distributions) · Returns2.1%68 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/2 factors with a value
  • Growth12/100 · 2/2 factors with a value
  • Quality55/100 · 3/3 factors with a value
  • Returns68/100 · 1/1 factors with a value
  • Valuation· partial100/100 · 1/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

CTS CORPORATION (CTS). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 541.3 m USD in 2025; YoY growth 5.2%; net margin 12.9%; ROE 13.0%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EBIT margin: 17.0%
  • FCF margin: 19.0%
  • Current ratio: 2.6x
  • FCF yield: 6.1%

What contradicts it

  • Gross margin: 40.6%
  • Revenue CAGR 3Y: -2.7%

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.

Versus the vertical median

Printed Circuit Boards (SIC 3672) · same industry (4-digit SIC) · compared with 11 companies

Multiples and returns vs the median

P/E
24.4x
vertical median 27.9x
below median (−12.5%)
EV/EBITDA
—
vertical median 11.9x
P/S
3.1x
vertical median 0.8x
above median (+281.1%)
P/B
3.0x
vertical median 2.8x
above median (+7.7%)
ROE
13.0%
vertical median 11.8%
above median (+10.6%)
Net margin
12.9%
vertical median 2.4%
above median (+435.9%)
EBIT margin
17.0%
vertical median 4.6%
above median (+268.2%)
Revenue YoY
5.2%
vertical median 8.1%
below median (−36.6%)
Net debt/EBITDA
—
vertical median 0.3x
Dividend yield
0.3%
vertical median 0.2%
above median (+5.4%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CLSCelestica Inc.29.8 bn22.430.2%6.8%+28.5%−31% / +777%
FLEXFlex Ltd.28.5 bn27.919.1%3.4%+8.1%+31% / +303%
JBLJabil Inc26.6 bn26.566.7%2.9%+20.6%+23% / +124%
TTMITtm Technologies, Inc.7.7 bn29.314.3%7.0%+19.0%+5% / +389%
SANMSanmina Corporation7.7 bn25.711.8%2.4%+7.4%−8% / +187%
PLXSPlexus Corp.5.5 bn30.512.6%4.6%+1.8%+45% / +103%
BHEBenchmark Electronics, Inc.2.3 bn42.25.0%1.9%+0.1%+45% / +162%
CTSCts Corporation1.8 bn24.413.0%12.9%+5.2%+48% / +52%
KEKimball Electronics, Inc.619.8 m22.94.8%2.0%−3.7%−11% / +5%
NNDMNano Dimension Ltd.278.3 m—-28.7%-135.2%+77.3%−25% / −43%
ELTKEltek Ltd.42.0 m52.11.9%1.6%+11.3%−27% / −49%
KTCCKey Tronic Corp16.2 m—-51.3%-12.4%−17.4%−44% / −64%

1- and 3-year price returns: for CTS from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
34.74
Total return -44% · Per year -44%
61.64
Total return -0% · Per year -0%
93.16
Total return 51% · Per year 51%
3 years
29.04
Total return -53% · Per year -22%
58.41
Total return -5% · Per year -2%
97.58
Total return 59% · Per year 17%
5 years
24.27
Total return -60% · Per year -17%
55.35
Total return -9% · Per year -2%
102.20
Total return 67% · Per year 11%
What moves the 3-year price the most
  • Exit P/E± 14.60
  • Net margin± 10.22
  • Annual revenue growth± 9.01
  • Annual dilution± 0.86

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).

In brief

CTS Corporation designs and manufactures sensors, connectivity components and actuators, sold mainly to OEMs in the transportation, industrial, medical, aerospace and defense markets. Its diversified end markets are gaining weight, which could reduce its dependence on the automotive sector, where transportation fell to 43% of 2025 sales 1.

SWOT

Strengths

  • Broad portfolio of sensors, connectivity components and actuators, with custom engineered products for OEM customers.
  • Rising gross margin and profitability in recent quarters, supported by a more favorable mix of end markets.
  • Proven innovation activity, shown by the number of patents granted and applications under examination.

Weaknesses

  • Significant dependence on a few automotive customers, making results sensitive to their decisions.
  • High exposure to sales outside the United States, with currency and collection risks.
  • Relatively high fixed costs, which can reduce profitability when volumes fall.

Opportunities

  • Expansion in industrial, medical and defense segments could reduce dependence on transportation.
  • Growing demand for sensors and connectivity in smart devices could support new contracts.
  • Integrating recent acquisitions could bring synergies and new products to existing customers.

Threats

  • Lower orders or loss of a major customer could significantly affect revenue.
  • Geopolitical tensions and tariffs could disrupt supply chains and international sales.
  • Export restrictions on rare earth materials could limit production capacity.

Risks

  • Dependence on large customershigh

    A small number of customers generate a substantial share of sales; a reduction in orders could affect results 1.

  • Defense contract risksmedium

    Government contracts can be suspended or cancelled and budget cuts could slow defense sales 1.

  • Supply chainhigh

    Semiconductor shortages and raw material restrictions could delay shipments and raise costs 1.

  • Currency and geopolitical riskmedium

    International operations expose the company to exchange rates and geopolitical tensions, including those involving China 1.

  • Debt and access to capitallow

    Higher financing costs could limit access to capital if credit conditions deteriorate 1.

Investment thesis

What would need to be true (bull case)

  • If the diversification trend continues, industrial, medical and defense revenue could offset weaker transportation and support the higher margins reported in 2026 3.
  • Raised 2026 sales and adjusted profit guidance signals management confidence under current market conditions 3.
  • The patent portfolio and custom engineering capability could strengthen the company's position with OEM customers.

What would break the thesis

  • Transportation remains a large part of the business, and lost market share at some Chinese customers could keep weighing on sales.
  • Dependence on a few major customers makes results vulnerable to order changes or pricing pressure.
  • Geopolitical risks, tariffs and raw material restrictions could compress margins if they cannot be passed on to customers.

What to watch

  • Development of transportation sales and new orders in diversified end marketsQ3 2026
  • Delivery against the raised 2026 sales and adjusted EPS guidance2026
  • Trend in adjusted gross margin and effect of supply costsQ3 2026
  • New CEO's strategy for growth and portfolio transformationnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).

The business

CTS Corporation, headquartered in Lisle, Illinois, designs and manufactures a broad range of sensors, connectivity components and actuators, grouped by function into 'Sense', 'Connect' and 'Move' 1. Products are generally engineered solutions for OEMs and tier one suppliers. Sales are made through sales engineers, independent manufacturers' representatives and distributors, the latter accounting for about 7% of 2025 net sales 1. The company operates manufacturing facilities in North America, Asia and Europe 1.

Research is central: CTS obtained 24 patents in 2025 and owns roughly 285 patents worldwide, while research and development expenses were 4.7% of 2025 net sales 1. The company completed the SyQwest acquisition in 2024 for $121,912 thousand in cash 1.

Major customers are concentrated: Toyota and Cummins together made up a meaningful share of 2025 sales, so their order volumes matter a great deal to the company's results 1.

Segments

Transportation

Transportation remains the largest segment, but its share fell from 55% in 2023 to 43% in 2025 1. In the first half of 2026 transportation sales rose slightly, though they declined 2% in the second quarter, while new wins are reported as growing 3.

Industrial, medical and defense

The diversified end markets (industrial, aerospace and defense, medical) grew 15% in the second quarter of 2026 and now represent 59% of revenue 3. Medical reached 16% of 2025 sales and aerospace and defense 15% 1.

Market context

CTS operates in a market of precision electronic components for transportation, industrial, medical and defense equipment. Growing numbers of sensing applications and internet-connected devices support demand for its products 2. Sales from non-U.S. operations were 43.7% of the total in 2025 1, exposing the company to currency and geopolitical risks.

The automotive market is cyclical and sensitive to OEM production volumes, and pricing pressure from large customers limits margins. On the other hand, diversified end markets grew faster than transportation in 2026, suggesting a more balanced demand mix 3.

Trends

  • Portfolio diversificationtailwind

    A rising share of industrial, medical and defense sales could reduce dependence on a single automotive sector if the trend holds 3.

  • Weaker commercial vehicle salesheadwind

    Lower volumes of commercial vehicle products and customers losing market share in China reduced transportation revenue 1.

  • Growth of sensing and connectivitytailwind

    The proliferation of sensing applications and connected devices increases demand for connectivity and motion products 2.

  • Supply chain pressure and tariffsmixed

    Semiconductor shortages, Chinese export restrictions on rare earths and higher tariffs could raise costs and delay deliveries 1.

Competitive position

CTS competes with domestic and foreign manufacturers on product features, technology, price, quality, reliability and service. Some competitors are larger and more diversified than the company, and customers may reduce their supplier count 1. The company believes it competes most successfully in custom engineered products for major OEMs 1.

Competitive risk also includes lost business to rivals when customers demand lower costs and higher standards, as well as technical obsolescence 1. The sources do not name individual competitors, so assessing relative position requires further data.

  • Domestic and foreign precision component makers

    Competitors are referred to generically in the annual report, with no names identified in the sources reviewed.

  • Larger and more diversified manufacturers

    The sources indicate that larger competitors exist but do not name them.

  • Asian component suppliers

    Competition from Asia is relevant for standard products, according to the company's description.

  • Distributors and independent representatives

    Distribution channels can offer alternatives for smaller customers but are not direct rivals for custom products.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / CTS Corporation · 24 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / CTS Corporation · 28 Jul 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / CTS Corporation · 28 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.