# CTS CORP (CTS)

Informational only - not investment advice.

CIK: 0000026058
SIC: 3672 Printed Circuit Boards
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3672 Printed Circuit Boards](/industry/3672/)
Latest 10-K filed: 2026-02-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=26058
Filing source: https://www.sec.gov/Archives/edgar/data/26058/000119312526067039/cts-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0001193125-26-067039 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000026058.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 541,318,000 USD | 2025 | verified |
| Net income | 65,317,000 USD | 2025 | verified |
| Assets | 764,311,000 USD | 2025 | verified |
| Free cash flow | 86,374,000 USD | 2025 | computed |
| Net margin | 12.07% | 2025 | computed |
| Operating margin | 15.27% | 2025 | computed |
| Revenue YoY | +5.16% | 2025 | computed |
| ROE | 11.84% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CTS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 12.1% | 3.1% | 100 | 8 |
| Operating margin | 15.3% | 4.6% | 100 | 8 |
| Revenue growth | 5.2% | 4.2% | 57 | 8 |
| FCF margin | 16.0% | 3.9% | 100 | 8 |
| ROE | 11.8% | 11.0% | 57 | 8 |
| ROA | 8.5% | 4.1% | 100 | 8 |
| Liabilities / equity | 0.39 | 1.17 | 0 | 8 |
| Current ratio | 2.30 | 1.83 | 100 | 8 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3672 Printed Circuit Boards, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 541318000 | USD | 2025 | 2026-02-24 |
| Net income | 65317000 | USD | 2025 | 2026-02-24 |
| Assets | 764311000 | USD | 2025 | 2026-02-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000026058.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 396,679,000 | 422,993,000 | 470,483,000 | 468,999,000 | 424,066,000 | 512,925,000 | 586,869,000 | 550,422,000 | 514,756,000 | 541,318,000 |
| Net income | 34,380,000 | 14,448,000 | 46,532,000 | 36,146,000 | 34,686,000 | -41,866,000 | 59,575,000 | 60,532,000 | 55,472,000 | 65,317,000 |
| Operating income | 63,166,000 | 38,495,000 | 61,038,000 | 53,815,000 | 45,129,000 | 76,479,000 | 93,006,000 | 75,051,000 | 71,185,000 | 82,642,000 |
| Gross profit | 140,428,000 | 140,431,000 | 164,973,000 | 157,575,000 | 139,063,000 | 184,619,000 | 210,538,000 | 190,859,000 | 187,555,000 | 208,026,000 |
| Diluted EPS | 1.03 | 0.43 | 1.39 | 1.09 | 1.06 | -1.30 | 1.85 | 1.92 | 1.81 | 2.19 |
| Operating cash flow | 47,202,000 | 58,048,000 | 58,152,000 | 64,405,000 | 76,783,000 | 86,141,000 | 121,197,000 | 88,811,000 | 98,242,000 | 102,105,000 |
| Capital expenditures | 20,500,000 | 18,094,000 | 28,488,000 | 21,733,000 | 14,858,000 | 15,641,000 | 14,333,000 | 14,738,000 | 18,644,000 | 15,731,000 |
| Dividends paid | 5,234,000 | 5,260,000 | 5,285,000 | 5,238,000 | 5,179,000 | 5,173,000 | 5,131,000 | 5,040,000 | 4,885,000 | 4,750,000 |
| Share buybacks | 0.00 | 0.00 | 9,440,000 | 11,746,000 | 8,080,000 | 8,786,000 | 21,447,000 | 40,926,000 | 42,596,000 | 56,178,000 |
| Assets | 517,697,000 | 539,696,000 | 548,341,000 | 643,354,000 | 626,049,000 | 664,462,000 | 748,487,000 | 741,167,000 | 765,427,000 | 764,311,000 |
| Liabilities | 199,815,000 | 195,891,000 | 170,412,000 | 238,135,000 | 202,367,000 | 200,884,000 | 242,263,000 | 214,345,000 | 237,219,000 | 212,525,000 |
| Stockholders' equity | 317,882,000 | 343,805,000 | 377,929,000 | 405,219,000 | 423,682,000 | 463,578,000 | 506,224,000 | 526,822,000 | 528,208,000 | 551,786,000 |
| Cash and cash equivalents | 113,805,000 | 113,572,000 | 100,933,000 | 100,241,000 | 91,773,000 | 141,465,000 | 156,910,000 | 163,876,000 | 94,334,000 | 82,295,000 |
| Free cash flow | 26,702,000 | 39,954,000 | 29,664,000 | 42,672,000 | 61,925,000 | 70,500,000 | 106,864,000 | 74,073,000 | 79,598,000 | 86,374,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 8.67% | 3.42% | 9.89% | 7.71% | 8.18% | -8.16% | 10.15% | 11.00% | 10.78% | 12.07% |
| Operating margin | 15.92% | 9.10% | 12.97% | 11.47% | 10.64% | 14.91% | 15.85% | 13.64% | 13.83% | 15.27% |
| Return on equity | 10.82% | 4.20% | 12.31% | 8.92% | 8.19% | -9.03% | 11.77% | 11.49% | 10.50% | 11.84% |
| Return on assets | 6.64% | 2.68% | 8.49% | 5.62% | 5.54% | -6.30% | 7.96% | 8.17% | 7.25% | 8.55% |
| Liabilities / equity | 0.63 | 0.57 | 0.45 | 0.59 | 0.48 | 0.43 | 0.48 | 0.41 | 0.45 | 0.39 |
| Current ratio | 2.20 | 2.28 | 2.30 | 2.45 | 2.22 | 2.53 | 2.89 | 3.29 | 2.46 | 2.30 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CTS/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000026058.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 0.39 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.37 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.58 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  | 18,344,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 145,182,000 |  | 0.41 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 12,897,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 134,552,000 |  | 0.44 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 124,694,000 | 15,320,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 125,750,000 | 11,119,000 | 0.36 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 11,119,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 130,162,000 |  | 0.48 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 14,707,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 132,424,000 |  | 0.61 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 127,435,000 | 13,606,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 125,769,000 | 13,367,000 | 0.44 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 13,367,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 135,309,000 |  | 0.62 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 18,527,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 142,970,000 |  | 0.46 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 137,271,000 | 19,736,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 139,230,000 | 17,197,000 | 0.59 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CTS's latest 10-K: [/company/CTS/business/](/company/CTS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CTS's latest 10-K: [/company/CTS/risk-factors/](/company/CTS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/26058/000119312526320492/cts-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-28
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

(in thousands, except percentages and per share amounts)

The following discussion should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and notes included under Item 1, as well as our Consolidated Financial Statements and notes and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Overview

CTS is a global manufacturer of sensors, connectivity components, and actuators. CTS was established in 1896 as a provider of high-quality telephone products and was incorporated as an Indiana corporation in February 1929. Our principal executive offices are located in Lisle, Illinois.

We design, manufacture, and sell a broad line of sensors, connectivity components, and actuators primarily to original equipment manufacturers (“OEMs”), tier one suppliers and distributors for the aerospace and defense, industrial, medical, and transportation markets, and the U.S. Government. Our vision is to be a leading provider of sensing and motion devices as well as connectivity components, enabling an intelligent and seamless world. These devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed. We are committed to achieving our vision by continuing to invest in the development of products, technologies, and talent within these categories.

We operate manufacturing facilities in North America, Asia, and Europe. Sales and marketing are accomplished through our sales engineers. We also utilize independent manufacturers' representatives and distributors to extend our sales capability.

There is an increasing proliferation of sensing and motion applications within various markets we serve. In addition, the increasing connectivity of various devices to the internet results in greater demand for communication bandwidth and data storage, increasing the need for our connectivity products. Our success is dependent on the ability to execute our strategy to support these trends. We are subject to a number of challenges including, without limitation, periodic market softness, competition from other suppliers, changes in technology, and changes in the economy generally, including inflationary and/or recessionary conditions and increased tariffs, as well as the ability to add new customers, launch new products or penetrate new markets. Many of these, and other risks and uncertainties relating to the Company and our business, are discussed in further detail in Item 1A. of our Annual Report on Form 10-K and other filings made with the SEC.

Recent Developments

On June 25, 2026 we announced the promotion of Pratik Trivedi to President and Chief Executive Officer, effective July 6, 2026. Mr. Trivedi succeeds Kieran O’Sullivan, who will remain on the Board of Directors (the “Board”) and serve as Executive Chair. Mr. Trivedi became a member of the Board, effective July 6, 2026.

25

Results of Operations: Second Quarter 2026 versus Second Quarter 2025

The following table highlights changes in significant components of the Unaudited Condensed Consolidated Statements of Earnings for the quarters ended June 30, 2026 and June 30, 2025:

[[GREPCENT_TABLE]]
[["","","Three Months Ended"],["","","June 30, 2026","","","June 30, 2025","","","Percent Change","","","Percentage of Net Sales \u2013 2026","","","Percentage of Net Sales \u2013 2025"],["Net sales","","$","144,780","","","$","135,309","","","","7.0","%","","","100.0","%","","","100.0","%"],["Cost of goods sold","","","84,732","","","","82,878","","","","2.2","","","","58.5","","","","61.3"],["Gross margin","","","60,048","","","","52,431","","","","14.5","","","","41.5","","","","38.7"],["Selling, general and administrative expenses","","","28,390","","","","23,077","","","","23.0","","","","19.6","","","","17.1"],["Research and development expenses","","","4,763","","","","6,326","","","","(24.7",")","","","3.3","","","","4.7"],["Restructuring charges","","","94","","","","297","","","","(68.4",")","","","0.1","","","","0.2"],["Total operating expenses","","","33,247","","","","29,700","","","","11.9","","","","23.0","","","","21.9"],["Operating earnings","","","26,801","","","","22,731","","","","17.9","","","","18.5","","","","16.8"],["Total other (expense) income, net","","","(563",")","","","251","","","","(324.3",")","","","(0.4",")","","","0.2"],["Earnings before income taxes","","","26,238","","","","22,982","","","","14.2","","","","18.1","","","","17.0"],["Income tax expense","","","7,074","","","","4,455","","","","58.8","","","","4.9","","","","3.3"],["Net earnings","","$","19,164","","","$","18,527","","","","3.4","%","","","13.2","%","","","13.7","%"],["Earnings per share:"],["Diluted net earnings per share","","$","0.66","","","$","0.62"]]
[[/GREPCENT_TABLE]]

Net sales were $144,780 in the second quarter of 2026, an increase of $9,471, or 7.0%, from the second quarter of 2025. Net sales to the diversified end markets increased $10,894, or 14.6%. We achieved continued growth in the medical and industrial end markets, while the aerospace and defense end market declined primarily due to the timing of contract awards. Net sales to the transportation end market decreased $1,423 or 2.3%. Changes in foreign exchange rates increased net sales by $1,354, net of hedges.

Gross margin was $60,048 in the second quarter of 2026, an increase of $7,617, or 14.5%, from the second quarter of 2025. Our gross margin percentage increased from 38.7% for the second quarter of 2025 to 41.5% for the second quarter of 2026 due to improved mix of sales by end market, operational improvements and the favorable impact of changes in foreign exchange rates of approximately $961, net of hedges.

Selling, general and administrative (“SG&A”) expenses were $28,390, or 19.6% of net sales, in the second quarter of 2026 versus $23,077, or 17.1% of net sales, in the second quarter of 2025. The increase in SG&A expenses was primarily driven by higher incentive compensation expense in the second quarter of 2026 due to company performance and a reduction to an acquisition earnout liability in the second quarter of 2025.

Research and development (“R&D”) expenses were $4,763, or 3.3% of net sales, in the second quarter of 2026 compared to $6,326, or 4.7% of net sales, in the comparable quarter of 2025. R&D expenses were lower in the second quarter of 2026 due to a $1,634 one-time customer reimbursement.

Restructuring charges were $94 or 0.1% of net sales in the second quarter of 2026 compared to $297 or 0.2% of net sales in the second quarter of 2025. See Note 7 “Costs Associated with Exit and Restructuring Activities” in the Notes to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for further information.

26

Other income and expense items are summarized in the following table:

[[GREPCENT_TABLE]]
[["","","Three Months Ended"],["","","June 30,","","","June 30,"],["","","2026","","","2025"],["Interest expense","","$","(704",")","","$","(1,121",")"],["Interest income","","","571","","","","622"],["Other (expense) income, net","","","(430",")","","","750"],["Total other (expense) income, net","","$","(563",")","","$","251"]]
[[/GREPCENT_TABLE]]

Other (expense) income, net is due to foreign currency losses, primarily related to the Euro. Interest expense decreased due to lower borrowings on our Revolving Credit Facility during the second quarter of 2026.

[[GREPCENT_TABLE]]
[["","","Three Months Ended"],["","","June 30,","","","June 30,"],["","","2026","","","2025"],["Effective tax rate","","","27.0","%","","","19.4","%"]]
[[/GREPCENT_TABLE]]

Our effective income tax rate was 27.0% and 19.4% in the second quarters of 2026 and 2025, respectively. The increase in the effective income tax rate is primarily attributable to the establishment of valuation allowance against certain tax credits.

Results of Operations: Six Months ended June 30, 2026 versus Six Months Ended June 30, 2025

The following table highlights changes in significant components of the Unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2026, and June 30, 2025:

[[GREPCENT_TABLE]]
[["","","Six Months Ended"],["","","June 30, 2026","","","June 30, 2025","","","Percent Change","","","Percentage of Net Sales \u2013 2026","","","Percentage of Net Sales \u2013 2025"],["Net sales","","$","284,010","","","$","261,078","","","","8.8","%","","","100.0","%","","","100.0","%"],["Cost of goods sold","","","168,976","","","","162,099","","","","4.2","","","","59.5","","","","62.1"],["Gross margin","","","115,034","","","","98,979","","","","16.2","","","","40.5","","","","37.9"],["Selling, general and administrative expenses","","","54,373","","","","46,700","","","","16.4","","","","19.1","","","","17.9"],["Research and development expenses","","","11,398","","","","12,515","","","","(8.9",")","","","4.0","","","","4.8"],["Restructuring charges","","","480","","","","749","","","","(35.9",")","","","0.2","","","","0.3"],["Total operating expenses","","","66,251","","","","59,964","","","","10.5","","","","23.3","","","","23.0"],["Operating earnings","","","48,783","","","","39,015","","","","25.0","","","","17.2","","","","14.9"],["Total other (expense) income, net","","","(872",")","","","86","","","","(1114.0",")","","","(0.3",")","","","\u2014"],["Earnings before income taxes","","","47,911","","","","39,101","","","","22.5","","","","16.9","","","","15.0"],["Income tax expense","","","11,550","","","","7,210","","","","60.2","","","","4.1","","","","2.9"],["Net earnings","","$","36,361","","","$","31,891","","","","14.0","%","","","12.8","%","","","12.2","%"],["Earnings per share:"],["Diluted net earnings per share","","$","1.26","","","$","1.06"]]
[[/GREPCENT_TABLE]]

Net sales were $284,010 in the six months ended June 30, 2026, an increase of $22,932 or 8.8% from the six months ended June 30, 2025. Net sales to the diversified end markets increased $22,686, or 16%. We achieved continued growth in the medical and industrial end markets, while the aerospace and defense end market declined primarily due to the timing of contract awards. Net sales to the transportation end market increased $246, or 0.2%. Changes in foreign exchange rates increased net sales by $4,252, net of hedges.

Gross margin was $115,034 for the six months ended June 30, 2026, an increase of $16,055 or 16.2% from the six months ended June 30, 2025. Our gross margin percentage increased from 37.9% for the six months ended June 30, 2025 to 40.5% for the six months ended June 30, 2026 due to an improved mix of sales by end market, operational improvements, and a favorable impact of changes in foreign exchange rates had a net benefit on our gross margin of approximately $1,632 net of hedges.

27

SG&A expenses were $54,373 or 19.1% of net sales for the six months ended June 30, 2026 versus $46,700 or 17.9% of net sales for the six months ended June 30, 2025. The increase in SG&A expenses was primarily driven by higher employee incentive expense for the six months ended June 30, 2026 due to company performance and a reduction to an acquisition earnout liability in the six months ended June 30, 2025.

R&D expenses were $11,398 or 4.0% of net sales for the six months ended June 30, 2026 compared to $12,515 or 4.8% of net sales for the six months ended June 30, 2025. R&D expenses were lower in the six months ended June 30, 2026 due to a $1,634 one-time customer reimbursement.

Restructuring charges were $480 or 0.2% of net sales for the six months ended June 30, 2026 compared to $749 or 0.3% of net sal

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/26058/000119312526067039/cts-20251231.htm
Complete FY 2025 MD&A: /company/CTS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-24
Report date: 2025-12-31

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Overview

CTS Corporation ("CTS", "we", "our" or "us") is a leading designer and manufacturer of products that Sense, Connect and Move. Our vision is to be a leading provider of sensing and motion devices as well as connectivity components, enabling an intelligent and seamless world. These devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed. We are committed to achieving our vision by continuing to invest in the development of products, technologies and talent within these categories.

We manufacture sensors, actuators and connectivity components in North America, Europe, and Asia. CTS provides highly engineered products to OEMs and tier one suppliers in the aerospace and defense, industrial, medical, and transportation markets, and the U.S. Government.

There is an increasing proliferation of sensing and motion applications within various markets we serve. In addition, the increasing connectivity of various devices to the internet results in greater demand for communication bandwidth and data storage, increasing the need for our connectivity products. Our success is dependent on the ability to execute our strategy to support these trends. We are subject to challenges including periodic market softness, competition from other suppliers, changes in technology, and the ability to add new customers, launch new products or penetrate new markets.

Results of Operations: Year Ended December 31, 2025 versus Year Ended December 31, 2024

(Amounts in thousands, except percentages and per share amounts):

The following table highlights changes in significant components of the Consolidated Statements of Earnings for the years ended December 31, 2025, and December 31, 2024:

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,","","","","","","Percent of Net Sales"],["","","2025","","","2024","","","Percent Change","","","2025","","","2024"],["Net sales","","$","541,318","","","$","514,756","","","","5.2","%","","","100","%","","","100","%"],["Cost of goods sold","","","333,292","","","","327,201","","","","1.9","","","","61.6","","","","63.6"],["Gross margin","","","208,026","","","","187,555","","","","10.9","","","","38.4","","","","36.4"],["Selling, general and administrative expenses","","","98,720","","","","88,285","","","","11.8","","","","18.2","","","","17.2"],["Research and development expenses","","","25,268","","","","23,388","","","","8.0","","","","4.7","","","","4.5"],["Restructuring charges","","","1,396","","","","4,697","","","","(70.3",")","","","0.3","","","","0.9"],["Total operating expenses","","","125,384","","","","116,370","","","","7.7","","","","23.2","","","","22.6"],["Operating earnings","","","82,642","","","","71,185","","","","16.1","","","","15.3","","","","13.8"],["Total other income (expense), net","","","1,129","","","","(2,604",")","","","(143.4",")","","","0.2","","","","(0.5",")"],["Earnings before taxes","","","83,771","","","","68,581","","","","22.1","","","","15.5","","","","13.3"],["Income tax expense","","","18,454","","","","13,109","","","","40.8","","","","3.4","","","","2.5"],["Net earnings","","$","65,317","","","$","55,472","","","","17.7","%","","","12.1","%","","","10.8","%"],["Diluted earnings per share:"],["Diluted net earnings per share","","$","2.19","","","$","1.81"]]
[[/GREPCENT_TABLE]]

Net sales were $541,318 for the year ended December 31, 2025, an increase of $26,562, or 5.2%, from 2024. Net sales to the diversified end markets increased $42,998, or 16.3%. We achieved growth in the aerospace & defense and medical end markets and saw continued recovery in the industrial end market. The acquisition of SyQwest, LLC ("SyQwest") added net sales of $22,329 and $13,433 in 2025 and 2024, respectively. Net sales to the transportation end market decreased $16,436 or 6.6%, primarily driven by lower volumes of our commercial vehicle related products and our customers' loss of market share in China.

Gross margin was $208,026 for the year ended December 31, 2025, an increase of $20,471, or 10.9%, from the year ended December 31, 2024. The increase in gross margin was primarily driven by continued operational improvements and an improved mix of sales by end market.

CTS CORPORATION 26

Table of Contents

Selling, general and administrative ("SG&A") expenses were $98,720, or 18.2% of sales for the year ended December 31, 2025, versus $88,285 or 17.2% of sales in 2024. The increase in SG&A expenses was primarily driven by higher amortization expense in 2025 from the SyQwest acquisition and a one-time charge related to the potential settlement of prior period costs with the U.S. Environmental Protection Agency (the "EPA").

Research and development expenses were $25,268, or 4.7% of sales in 2025, compared to $23,388, or 4.5% of sales in 2024. We continue to invest in research and product development to drive long-term organic growth.

Restructuring charges were $1,396, or 0.3% of net sales in 2025, compared to $4,697, or 0.9% of net sales in 2024. The restructuring charges in the year ended December 31, 2025 were primarily related to changes to adjust our business in response to demand changes across certain locations and products. See Note 9, “Costs Associated with Exit and Restructuring Activities,” in the Notes to the Consolidated Financial Statements in this Annual Report on Form 10-K for further information.

Other income and expense items are summarized in the following table:

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","","2024"],["Interest expense","","$","(4,309",")","","$","(4,236",")"],["Interest income","","","2,134","","","","4,282"],["Other income (expense), net","","","3,304","","","","(2,650",")"],["Total other income (expense), net","","$","1,129","","","$","(2,604",")"]]
[[/GREPCENT_TABLE]]

Interest income decreased due to lower investments of available cash as a result of the SyQwest acquisition. Other income for 2025 is driven by foreign currency translation gains primarily related to the Euro and Mexican Peso, and a prior period adjustment recorded related to the SyQwest acquisition. See Note 1 “Summary of Significant Accounting Policies” in the Notes to the Condensed Consolidated Financial Statements in this Annual Report on Form 10-K for further information.

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["","","2025","","2024"],["Effective tax rate","","22.0%","","18.4%"]]
[[/GREPCENT_TABLE]]

The effective income tax rate in 2025 was 22.0% compared to 18.4% in the prior year. The increase in the effective income tax rate is primarily attributable to a change in mix of earnings taxed at higher rates and the impact of the One Big Beautiful Bill Act (the "OBBBA"). See Note 19 “Income Taxes” in the Notes to the Condensed Consolidated Financial Statements in this Annual Report on Form 10-K for further information.

Liquidity and Capital Resources

We have historically funded our capital and operating needs primarily through cash flows from operating activities, supported by available credit under our Revolving Credit Facility (as defined below). We believe that cash flows from operating activities and available borrowings under our Revolving Credit Facility will be adequate to fund our working capital needs, capital expenditures, investments, and debt service requirements for at least the next twelve months and for the foreseeable future thereafter. However, we may choose to pursue additional equity and debt financing to provide additional liquidity or to fund acquisitions.

Cash and cash equivalents were $82,295 at December 31, 2025 and $94,334 at December 31, 2024, of which $75,943 and $92,944, respectively, were held in our foreign affiliates. Total debt as of December 31, 2025 and December 31, 2024 was $57,500 and $92,300, respectively.

Cash Flows from Operating Activities

Net cash provided by operating activities was $102,105 during the year ended December 31, 2025. Components of net cash provided by operating activities included net earnings of $65,317, depreciation and amortization expense of $34,538, other net non-cash items totaling $750, and a net cash inflow from changes in assets and liabilities of $3,694 primarily driven by increases in accrued expenses and other liabilities, accounts payable and accrued payroll partially offset by an increase in accounts receivable.

Net cash provided by operating activities was $98,242 during the year ended December 31, 2024. Components of net cash provided by operating activities included net earnings of $55,472, depreciation and amortization expense of $30,922, other net non-cash items totaling $2,907, and a net cash inflow from changes in assets and liabilities of $8,941 primarily driven by reductions in inventories.

CTS CORPORATION 27

Table of Contents

Cash Flows from Investing Activities

Net cash used in investing activities for the year ended December 31, 2025 was $18,514, driven by capital expenditures of $15,731 and contributions to short-term investments of $2,783.

Net cash used in investing activities for the year ended December 31, 2024 was $140,556, driven by $121,912 of acquisition payments for the SyQwest acquisition and capital expenditures of $18,644. See Note 3, "Business Acquisitions," in the Notes to the Consolidated Financial Statements in this Annual Report on Form 10-K.

Cash Flows from Financing Activities

Net cash used by financing activities for the year ended December 31, 2025, was $98,438. The net cash outflow was the result of debt payments net of borrowings of $34,800, treasury stock purchases of $56,178, dividend payments of $4,750, and taxes paid on behalf of equity award participants of $2,710.

Net cash used by financing activities for the year ended December 31, 2024, was $26,888. The net cash outflow was the result of treasury stock purchases of $42,596, dividend payments of $4,885, and taxes paid on behalf of equity award participants of $3,131 and contingent consideration payments of $1,076, partially offset by borrowings net of payments of $24,800.

Capital Resources

Long-term debt was comprised of the following:

[[GREPCENT_TABLE]]
[["","","As of December 31,"],["","","2025","","","2024"],["Total credit facility availability","","$","300,000","","","$","400,000"],["Balance outstanding","","","57,500","","","","92,300"],["Standby letters of credit","","","1,640","","","","1,640"],["Amount available, subject to covenant restrictions","","$","240,860","","","$","306,060"],["Weighted-average interest rate","","","5.48","%","","","6.41","%"]]
[[/GREPCENT_TABLE]]

On November 24, 2025, we entered into a new five-year revolving credit agreement (the “Revolving Credit Facility”) with a group of banks for a total credit facility availability of $300,000 which may be increased by up to $125,000, subject to the administrative agent's approval. The new Revolving Credit Facility matures on November 24, 2030 and modified the financial and non-financial covenants to provide the Company additional flexibility. The new Revolving Credit Facility is unsecured and replaced the prior $400,000 revolving credit facility, which would have expired on December 15, 2026.

Borrowings in U.S. dollars under t

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CTS/mda/fy2025/
All MD&A years: /company/CTS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CTS/mda/fy2024/): filed 2025-02-26; accession 0000950170-25-027956 (https://www.sec.gov/Archives/edgar/data/26058/000095017025027956/cts-20241231.htm)
- [FY 2023 MD&A](/company/CTS/mda/fy2023/): filed 2024-02-23; accession 0000950170-24-019292 (https://www.sec.gov/Archives/edgar/data/26058/000095017024019292/cts-20231231.htm)
- [FY 2022 MD&A](/company/CTS/mda/fy2022/): filed 2023-02-24; accession 0000950170-23-004366 (https://www.sec.gov/Archives/edgar/data/26058/000095017023004366/cts-20221231.htm)
- [FY 2021 MD&A](/company/CTS/mda/fy2021/): filed 2022-02-25; accession 0001564590-22-007183 (https://www.sec.gov/Archives/edgar/data/26058/000156459022007183/cts-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3672 Printed Circuit Boards) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CTS.md · JSON record: /company/CTS.json · verified financials: /company/CTS/financials.json / /company/CTS/financials.csv · machine TOC for the whole site: /llms.txt