CTS : Investor Presentation April 2026
CTS
Published on 04/29/2026 at 08:38 am EDT
CTS Investor
Presentation
April 2026
that Sense, Connect and Move - Enabling an Intelligent and Seamless World
LTM Revenue
Diversified Markets2
LTM Adj. EBITDA Margin
LTM Adj. Diluted EPS
Global design and manufacturing capabilities1
Technical and application expertise applied across diverse and growing end markets
Europe
21%
America
58%
Asia
21%
Sales/Technical Office
Manufacturing Facility
North
26%
Industrial
Revenue1
16%
M
43%
15%
Aero & D
Transportation
edical
4
Diversified End Market Revenue
efense
Notes:
1 Last 12 months Revenue as of March 2026
2 Diversified end markets, previously referred as the "non-transportation" market, includes the industrial, aerospace & defense, and medical end markets.
3 Adj. EBITDA Margin and Adj. Diluted EPS are non-GAAP financial measures. 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.
4 2019-2025 including acquisitions 3
Deep custom engineered capability and long-standing customer relationships
Megatrend tailwinds - automation, healthcare innovation, defense, electrification
Strong new product pipeline -piezo formulations, medical applications, eBrakeTM
Clear strategy of growth and diversification led by diversified end markets
Focus on technology to augment core capabilities
Strong balance sheet and cash flow to support M&A strategy
Regional capabilities to serve customers reducing cross-border challenges
Strong leadership team leveraging operational excellence to drive profitable growth
Strengthening and aligning organizational capabilities through strategic initiatives
Automation Healthcare Innovation Sustainability
Industry 4.0 Factory Automation Passenger Safety
Autonomous Underwater Vehicles
Improved Diagnostics Minimally Invasive Procedures Therapeutics
Patient Experience
Electrification Reduced Emissions Energy Efficiency Fluid Metering
Capabilities
Key Technologies
Applications
Advanced Ceramics
Piezoelectric Ceramics
Acoustic Sensing
Temperature Sensing
Signal Processing
Magnetics
Position Sensing Current Sensing
Bulk
Tapecast
Single Crystal
Textured
Transducers
Hydrophones
Arrays and Electronics
NTC Thermistors
RF Filters
EMI/EMC
Crystal Oscillators
Hall Effect
Inductive
Force
Ferromagnetics
Circuit Design
Core and busbar
Ultrasonic Imaging: Traditional, IVUS and High Definition
Medical Therapeutics
Naval Sonar Systems
AUVs/UUVs
Ordnance and Countermeasures
HVAC-R
Medical Devices
Condition Monitoring
Aerospace and Defense
Communications Infrastructure
Vehicle Controls
Pro Audio / Video
Medical Devices
Electric Vehicles
Renewable Energy
Industrial
2017
Revenues $423M
LTM
Revenues $555M 1
Long-term target
+10% CAGR
15%
4%
15-25%
8%
< 40%
43%
23%
16%
65%
15-25%
25-35%
26%
Transportation
Industrial
Medical
Aero & Defense
Notes:
1 Beginning in 2022, sales to Telecom & IT end-market are included in the Industrial end-market.
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
1 LTM through March 2026
Efficiency
Material Expertise
Up integration into sensors and transducers
Drivers of
Outperformance:
Mid-single
Digit
Estimated Market
Growth:
$145M
+14% YOY
LTM Revenue:1
$3.6B
Addressable
Market Size:
INDUSTRIAL
Sustainability
Heat Pumps (HVAC)
Accuracy (Metering)
Productivity
Micro-positioning (Automation)
Actuation (Industrial Printing)
1 LTM through March 2026
Strong growth in
ultrasound modality
Superior material performance enables share gains
Drivers of
Outperformance:
Mid-single
Digit
Estimated Market
Growth:
$90M
+25% YOY
LTM Revenue:1
$1.5B
Addressable
Market Size:
MEDICAL
Minimally Invasive Highly Precise
Intravenous Ultrasound High Resolution Ultrasound
Cardiac Rhythm (Wireless Pacemaker)
Medical Therapeutics
Increase in Defense
spending
EU expansion
Up-integration into sensors, transducers, sub-systems
Drivers of
Outperformance:
1 LTM through March 2026
Mid-single
Digit
Estimated Market
Growth:
$84M
+15% YOY
LTM Revenue:1
$1.5B
Addressable
Market Size:
AEROSPACE & DEFENSE
Enhanced Performance
Underwater Sonar
Ordnance and Countermeasures
Reliability
Space Temperature Applications
Unmanned Underwater Vehicles
ke
>95% of existing light vehicle portfolio is powertrain agnostic
New products expand future content per vehicle1
Accelerator Modules Chassis Height Sensor
Seat Belt Buckle
Switch Sensor
Seat Track Position
Sensor
Brake Position
Sensor
Belt Tension
Sensor
eBra Footwell Integration
Award Secured - Award Secured
Brake Applied
Sensor - Award Secured
Floor Hinge
Pedal - Award Secured
Current Sensor
Award Secured
Drive-Pa
In Development
d
1 Multiple patent applications pending on eBrake TM
and Drive-Pad TM products
1 LTM through March 2026
Increased Content
with new powertrain agnostic products leading to expanded SAM
Drivers of
Outperformance:
Flat to Low-
single Digit
Estimated Market
Growth:
$236M
(3)% YOY
LTM Revenue:1
$4.6B
Addressable
Market Size:
TRANSPORTATION
Operating Cash Flow
16-20% of Sales
Capital Structure Leverage 1.0 - 2.5x
Growth
Capex Acquisitions
~4% of 60-80% of Sales FCF
Cash Returned to Shareholders
Dividend & Repurchases 20-40% of FCF
Capital Allocation Priorities
Maintain healthy Balance Sheet
Disciplined organic investments
Growth resources and support systems
IT systems - ERP, analytics capabilities
CTS Business System - Operational excellence
Strategic M&A - a growth priority
Return capital to shareholders
1 Cumulative from 2013 through Q1 2026 including dividends and share repurchases. 12
Attractive Financials Enhance Technology Portfolio
Geographical Expansion
~ 5% of Sales Growth From M&A
Expand Product & Applications
Expand End Markets Strengthen Customer Relationships
Disciplined approach to acquisitions
ROI in excess of cost of capital Maintain balance sheet strength Synergistic opportunities Accretive to earnings
FY 2026 Updated Guidance
Revenue
($ Millions)
Adjusted Diluted EPS 1
$580
$541
$550
$560
$2.45
$2.35
$515
$2.22
$2.12
$2.23
2023 2024 2025 2026F
2023 2024 2025 2026F
Key Outlook Assumptions
Continuation of current market conditions - Ongoing monitoring of near-term economic impacts, including geopolitical conflicts, tariffs, precious metals, and petroleum-based products, with a focus on agility in cost and pricing actions
Continued progress on growth in diversified end markets
Light vehicle production in 2026 expected to be slightly down year over year
Effective tax rate expected to be in the range of 21-23%, excluding discrete items
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.
LTM 1
Long-Term Target
Revenue
$555M
+10% per year
Adj Gross Margin % 2
39.1%
37-40%
Adj SG&A Expense % 2
17.7%
15-17% 3
R&D Expense %
4.6%
4-6%
CapEx %
2.9%
~4%
Notes:
1 LTM through March 2026.
2 Adj Gross Margin and Adj SG&A Expense are non-GAAP financial measures. 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.
3 Adj SG&A target includes intangible amortization from acquisitions.
Accelerate organic and inorganic growth
Establish a culture of continuous improvement throughout our extended value chain
Engage and develop our talent to create a competitive advantage
Engagement
Operational Excellence
Growth
Appendix
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 presented are commonly used by financial analysts and others in the industries in which CTS operates, and thus further provide useful information to investors. CTS' definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. Non-GAAP measures should not be used by investors or third parties as the sole basis for formulating investment decisions, as they may exclude a number of important cash and non-cash recurring items.
CTS has presented these non-GAAP financial measures as it believes that the presentation of its financial results that exclude (1) restructuring charges; (2) restructuring-related charges; (3) environmental charges; (4) acquisition-related adjustments; (5) inventory fair value step-up costs; (6) foreign exchange (gains) losses; (7) non-cash pension expenses (income); and (8) certain discrete tax items are useful and assist in comparing CTS' current operating results with past periods and with the operational performance of other companies in its industry. Included below is a description of the expenses that CTS has determined are not normal, recurring cash operating expenses necessary to operate its business and the rationale for why providing financial measures for its business with such expenses excluded or adjusted is useful to investors as a supplement to the U.S. GAAP measures.
Restructuring charges - costs primarily relating to workforce reductions, building and equipment relocations, asset impairment charges and other facility closure activities in connection with our continued optimization of our organization.
Restructuring-related charges - costs related to restructuring actions that do not qualify as direct restructuring charges under U.S. GAAP. These include duplicative expenses incurred due to plant consolidation related transition activities such as excess rent, utilities, personnel related and other costs incurred prior to the start of production at the new location.
Environmental charges - costs associated with our non-operating facilities that are unrelated to ongoing operations. Currently, none of these costs and accruals relate to sites that provide revenue generating activities for the Company.
Acquisition-related adjustments - diligence and transaction costs related to acquisitions including related contingent earnout and other adjustments.
Inventory fair value step-up costs - purchase accounting-related inventory costs from acquisitions.
Foreign exchange (gains) losses - remeasurement income and expenses for non-U.S. subsidiaries with the U.S. dollar as the functional currency.
Non-cash pension expenses (income) - pension income and expenses relating to the non-operating U.S. pension and post-retirement life insurance plans, including historical plan settlement activities.
Discrete tax items - non-recurring, infrequent, or unusual tax adjustments (e.g., valuation allowances, uncertain tax position changes, unremitted assertion changes and discrete impacts associated with pre-tax non-GAAP items or due to tax law changes, etc.).
At times, the reconciliations below have been intentionally rounded to the nearest thousand, or $0.01 for EPS figures, and, therefore, may not sum.
CTS does not provide reconciliations of forward-looking non-GAAP financial measures, such as estimated adjusted diluted earnings per share, to the most comparable GAAP financial measures on a forward-looking basis because CTS is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, foreign exchange rates and other non-routine costs. Each of such adjustments has not yet occurred, are out of CTS' control and/or cannot be reasonably predicted. For the same reasons, CTS is unable to address the probable significance of the unavailable information.
Regulation G Schedules
Adjusted Gross Margin
($ Millions, except percentages)
Three Months Ended March 31,
Three Months Ended December 31,
LTM
Twelve Months Ended December 31,
2026
2025
2025
Q2-25 to Q1-26 2025 2024
2023
Gross margin
$ 55.0
$ 46.5
$ 53.7
$ 216.5 $ 208.0 $ 187.6
$ 190.9
Net sales
$ 139.2
$ 125.8
$ 137.3
$ 554.8
$ 541.3 $ 514.8
$ 550.4
Gross margin as a % of net sales
39.5%
37.0%
39.1%
39.0% 38.4% 36.4%
34.7%
Adjustments to reported gross margin: Restructuring-related charges (b) Inventory fair value step-up (b)
- - -
- - -
0.2
-
0.2
-
0.7
2.1
0.6
-
Adjusted gross margin
$ 55.0
$ 46.5
$ 53.7
$ 216.7 $ 208.2 $ 190.4
$ 191.4
Adjusted gross margin as a % of net sales
39.5%
37.0%
39.1%
39.1% 38.5% 37.0%
34.8%
Disclaimer
CTS Corporation published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 12:37 UTC.