CTS Corp. Lifts 2026 Outlook on Record Q2 Margins
CTS sits 68% above its 52-week low of $36.025.
Summary
CTS Corporation posted record margins in Q2 2026 and raised its full-year guidance, fueled by strong growth in diversified end markets.
Key Events · Earnings and Guidance · CTS
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Q2 Revenue and Earnings Beat
Revenue reached $144.8M, up 7% year-over-year, while adjusted diluted EPS came in at $0.74, a $0.17 improvement from Q2 2025.
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Record Margins Achieved
Adjusted gross margin expanded 270 basis points to 41.5%, and adjusted EBITDA margin rose 240 basis points to 25.4%.
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Full-Year Guidance Raised
The 2026 revenue outlook was lifted to $565–$585M (from $560–$580M), and adjusted diluted EPS guidance increased to $2.55–$2.70 (from $2.35–$2.45).
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Diversification Momentum
Sales in diversified end markets grew 15% year-over-year, now representing 59% of total revenue, while transportation sales declined 2%.
Analysis · CTS · Manufacturing
A standout second quarter saw revenue climb 7% and adjusted EPS jump to $0.74 from $0.57 a year ago. Margins reached new highs, with adjusted gross margin expanding 270 basis points to 41.5% and adjusted EBITDA margin hitting 25.4%. Reflecting this momentum, management raised full-year guidance: revenue is now expected at $565–$585 million, and adjusted EPS at $2.55–$2.70, up from the prior $2.35–$2.45. The diversification strategy is clearly paying off—non-transportation sales grew 15% and now account for 59% of revenue, more than offsetting a modest decline in automotive. The balance sheet remains robust, with $107.5 million in cash and year-to-date free cash flow of $41.1 million, supporting both strategic M&A and shareholder returns.
At the time of this filing, CTS was trading at $60.41 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $36.03 to $69.55. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.