On February 10, 2026, CTS Corporation (NYSE: CTS), a prominent player in the design and manufacturing of engineered solutions that "Sense, Connect, and Move," released its financial results for the fourth quarter and full year of 2025. Under the leadership of CEO Kieran O'Sullivan, the company demonstrated solid performance, marked by significant growth in diversified end-market sales and enhanced profitability.

1. Fourth Quarter 2025 Highlights

CTS Corporation's fourth quarter results showcased a robust increase in overall sales:

Sales Performance: The company reported sales of $137 million, reflecting a 9% increase year-over-year. Notably, sales to diversified end markets surged by 16%, while sales to the transportation sector experienced a slight decline of 1%.

Net Income: The net income for the quarter reached $20 million, representing 14.4% of sales, a significant increase from $12 million, or 9.1% of sales, in the same quarter of 2024.

Earnings Per Share (EPS): Diluted EPS stood at $0.67, marking a 29-cent increase from $0.38 in the fourth quarter of 2024. Adjusted diluted EPS also rose to $0.62, up 12 cents year-over-year.

Margin Improvement: CTS achieved an adjusted gross margin of 39.1%, a 150 basis point improvement from 37.6% in the previous year. The adjusted EBITDA margin improved to 23.7%, up 50 basis points from 23.2% in the fourth quarter of 2024.

Operating Cash Flow: The company generated $29 million in operating cash flow, an increase of $4 million from $25 million in the prior year’s fourth quarter.

2. Full-Year 2025 Financial Overview

The financial performance for the entire year was equally impressive, reflecting CTS's commitment to its strategic priorities:

Sales Growth: For the full year, CTS reported total sales of $541 million, a 5% increase compared to 2024. Sales to diversified end markets rose by 16%, while the transportation segment saw a decrease of 7%.

Net Income and EPS: Net income for the year reached $65 million, or 12.1% of sales, compared to $56 million, or 10.8% of sales, in the previous year. Diluted EPS increased to $2.19, up from $1.80 in 2024. Adjusted diluted EPS also saw a rise, reaching $2.23, reflecting an 11-cent increase from $2.12 in 2024.

Margin Growth: CTS recorded an adjusted gross margin of 38.5%, up 150 basis points from 37.0% in 2024, and an adjusted EBITDA margin of 22.8%, which was a 40 basis point improvement from the previous year.

Operating Cash Flow: Operating cash flow totaled $102 million for the year, an increase of $4 million from $98 million in 2024.

3. Strategic Focus and Future Guidance

In his remarks, CEO Kieran O'Sullivan emphasized the importance of diversification in CTS's strategic approach, stating, "Diversification remains central to our strategy as we continue to strengthen our growth and quality of earnings." The company is poised to build on its momentum with strong new business awards and an expanded product offering in the transportation market.

Looking ahead, CTS expects full-year 2026 sales to range between $550 million and $580 million, with adjusted diluted EPS projected to be between $2.30 and $2.45. The company aims to sustain its growth trajectory while managing operational efficiencies and capitalizing on emerging opportunities in various markets.

4. Conclusion

CTS Corporation's fourth quarter and full-year results for 2025 highlight a successful year characterized by strategic growth, enhanced profitability, and a commitment to innovation across its diversified end markets. As the company prepares for the upcoming year, stakeholders will be keenly observing its progress in executing its long-term strategies and delivering value to its investors. The scheduled conference call at 10:00 a.m. ET today will provide further insights into CTS's performance and future outlook.

Original press release