Q4 2025 CTS Corp Earnings Call Transcript
Key Points
- CTS Corp (CTS) reported a 9% year-over-year revenue growth for the fourth quarter of 2025, with diversified end markets growing 16%.
- The company's diversification strategy is proving successful, with diversified markets now representing almost 60% of overall revenue.
- CTS Corp (CTS) achieved a 150 basis point expansion in gross margin for both the fourth quarter and the full year, driven by operational improvements.
- The medical end market showed strong performance, with a 41% sales increase in the fourth quarter, driven by demand in therapeutic applications.
- The industrial end market demonstrated solid momentum, with a 16% sales increase in the fourth quarter, supported by stabilization and growth in OEM demand.
- Transportation sales faced headwinds, declining 7% for the full year 2025 due to market dynamics in China and the commercial vehicle market.
- Aerospace and defense sales were down 4% in the fourth quarter due to the timing of certain programs.
- CyQuest revenues were lower than expected in 2025, mainly due to the timing of government contract awards.
- The transportation market is expected to remain challenging, with production volumes forecasted to be flat to marginally down in 2026.
- CTS Corp (CTS) faces potential supply chain issues related to rare earth metals and semiconductors, although no significant immediate impact is reported.
Hello everyone.
Thank you for joining us and welcome to the CTS Corporation 4th quarter 2025 earnings call. (Operator Instructions). I will now hand the call over to Kieran OâSullivan. Please go ahead.
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Good morning and thank you for joining us today. I'm pleased to report another solid quarter for CTS demonstrating the continued progress and strength of our diversification strategy and operational execution.
For the 4th quarter, we delivered strong performance with revenue growth of 9% year over year, with our diversified end markets growing 16% versus the prior year period.
I am particularly pleased with our diversification progress, as these markets now represent almost 60% of overall company revenue.
New business awards in transportation were strong, which will drive long-term growth in that end market.
As we look to the year ahead, we see continued growth momentum across our diversified markets, increasing
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