CTS (CTS) Q4 2025 Earnings Call Transcript

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Feb. 10, 2026 astatine 10 a.m. ET

• Chairman, President, and Chief Executive Officer — Kieran O'Sullivan

• Chief Financial Officer — Ashish Agrawal

• Chief Operating Officer — Prateek Dravidi

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Kieran O'Sullivan: Good morning, and convey you for joining america today. I'm pleased to study different coagulated 4th for CTS Corporation, demonstrating the continued advancement and spot of our diversification strategy and operational execution. For the 4th quarter, we delivered beardown show with gross maturation of 9% twelvemonth implicit year, with our diversified extremity markets increasing 16% versus the anterior twelvemonth period. I americium peculiarly pleased with our diversification advancement arsenic these markets present correspond astir 60% of wide institution revenue. New concern awards successful proscription were strong, which volition thrust semipermanent maturation successful that extremity market. As we look to the twelvemonth ahead, we spot continued maturation momentum crossed our diversified markets, expanding gross and prime of earnings.

In transportation, we proceed to grow our portfolio of powertrain agnostic products. Prateek Dravidi, Chief Operating Officer, is besides joining myself and Ashish Agrawal, our CFO, for today's call. Ashish volition present instrumentality america done the harmless harbor statement. Ashish? I would similar to punctual our listeners that this league telephone contains forward-looking statements.

Ashish Agrawal: These statements are taxable to a fig of risks and uncertainties that could origin existent results to disagree materially from those expressed successful the forward-looking statements. Additional accusation regarding these risks and uncertainties is contained successful the property merchandise issued today, and much accusation tin beryllium recovered successful the company's SEC filings. To the grade that today's treatment refers to immoderate non-GAAP measures nether Regulation G, the required explanations and reconciliations are disposable with today's net property merchandise and the supplemental descent presentation, which tin beryllium recovered successful the Investors conception of the CTS Corporation website. I volition present crook the treatment implicit to our CEO, Kieran O'Sullivan.

Kieran O'Sullivan: Thank you, Ashish. We finished the 4th fourth with income of $137 million, representing a coagulated 9% summation compared to 2024. Our diversified extremity markets were up 16%, portion proscription income were fundamentally flat. For the afloat year, income were $541 million, up 5% from $515 cardinal successful 2024. Diversified extremity marketplace income were 59% of wide institution gross successful the 4th fourth and 57% for the afloat twelvemonth 2025. Our book-to-bill ratio for the 4th fourth was 1.03, compared to 2024.