CTS Q3 Sales Up 5% to $149.6M; 2026 Guidance Raised on Record Margins
CTS sits 49% above its 52-week low of $36.21.
Summary
CTS posted Q3 sales of $149.6M (+5% YoY) and adjusted EPS of $0.77, then raised 2026 sales guidance to $580-$590M and adjusted EPS to $2.78-$2.88 on record 42.2% gross margin.
Key Events · Earnings and Guidance · CTS
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Q3 Sales Rise 5% to $149.6M
Diversified end markets grew 7% and now represent 60% of sales; transportation grew 2%. Adjusted diluted EPS was $0.77 versus $0.60 a year ago.
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2026 Guidance Raised
Sales outlook lifted to $580-$590M from $565-$585M and adjusted diluted EPS to $2.78-$2.88 from $2.55-$2.70, including the expected Millar contribution.
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Record 42.2% Adjusted Gross Margin
Up 330 bps year over year on operations, mix and FX; adjusted EBITDA margin was 24.7%, up 90 bps.
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Strong Cash Generation
Q3 operating cash flow was $43.5M, up $14.5M from $29.0M a year ago; free cash flow was $41.1M. Balance sheet holds $143.9M cash against $55.0M long-term debt.
Analysis · CTS · Manufacturing
Guidance was the headline: CTS beat its own prior outlook and lifted full-year sales and EPS, with adjusted gross margin at a record 42.2% (up 330 bps) and adjusted diluted EPS of $0.77 versus $0.60 a year ago. The quarter also shows the diversification strategy working, as diversified end markets grew 7% and now make up 60% of sales while transportation grew just 2%. Cash generation was strong at $43.5M of operating cash flow, funding $19M of shareholder returns year-to-date and leaving $144M of cash against $55M of debt — capacity for the Millar acquisition, which adds roughly $30M of annual revenue and is expected to be accretive in 2H 2027. The main caveat: GAAP net income of $17.8M was flattered by a $12.5M insurance recovery and a $12.7M discrete tax benefit. Adjusted figures strip these out, so the operating improvement is real but the headline EPS jump overstates it.
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In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CTS was trading at $53.92 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $36.21 to $69.55. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.