CTS Corporation ( (CTS) ) has released its Q4 earnings. Here is a breakdown of the information CTS Corporation presented to its investors.
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CTS Corporation, a prominent designer and manufacturer of custom engineered solutions that ‘Sense, Connect and Move,’ operates within the aerospace, defense, industrial, medical, and transportation markets, providing innovative products like sensors and actuators globally.
In its latest earnings report, CTS Corporation reported a mixed performance for the fourth quarter and full-year 2024, with notable progress in diversifying its business portfolio amidst a challenging market environment. The company highlighted growth in the medical, industrial, and aerospace and defense sectors, which now constitute over half of its revenue.
Key financial highlights for the fourth quarter of 2024 include a 2% increase in sales to $127 million, driven by a 28% rise in diversified end-market sales, despite an 18% decline in transportation market sales. The acquisition of SyQwest contributed $11 million to the quarter’s revenue. Adjusted earnings per share rose to $0.53, and the adjusted EBITDA margin improved to 24%. However, net income slightly declined to $14 million, and operating cash flow decreased to $26 million.
For the full year 2024, CTS reported a 6% decline in sales to $516 million, largely due to a 17% drop in the transportation market. Nevertheless, the diversified end-markets showed a 7% increase. The company maintained a steady net income margin of 11%, with adjusted EBITDA margin improving to 23%. Operating cash flow increased to $99 million, signaling strong cash generation capability.
Looking forward, CTS Corporation anticipates further growth in its diversified markets for 2025, aiming for sales between $520-$550 million and adjusted diluted EPS of $2.20-$2.35. The company’s focus remains on expanding its defense capabilities and leveraging innovative products to drive long-term growth, amidst an expected challenging environment in the transportation sector.
