CTS Corporation (NYSE: CTS): Corporate Profile & Financials

Source: CTS Corporation Form 10-K for the Fiscal Year Ended December 31, 2025

Quick Facts / Company Snapshot

Company Overview

CTS Corporation (“CTS”) is a global manufacturer of sensors, connectivity components, and actuators. Established in 1896 as a provider of telephone products and incorporated as an Indiana corporation in February 1929, CTS is headquartered in Lisle, Illinois. The Company designs, manufactures, and sells a broad line of products primarily to original equipment manufacturers (OEMs), tier one suppliers, and the U.S. Government across the aerospace and defense, industrial, medical, and transportation markets. The Company operates under a corporate vision centered on enabling an intelligent and seamless world through devices categorized into three core capabilities:

• Sense: Products that provide vital inputs to electronic systems, including controls, pedals, piezo sensing products, sensors, switches, and transducers.
• Connect: Products that allow electronic systems to function in synchronization with other systems, including EMI/RFI filters, capacitors, frequency control products, resistors, and RF filters.
• Move: Products that ensure required movements are effectively and accurately executed, including piezo microactuators and rotary actuators.

CTS maintains manufacturing facilities across North America, Asia, and Europe. Primary sales and marketing activities are conducted through internal sales engineers, who accounted for approximately 86% of net sales in 2025. The Company also utilizes independent distributors (accounting for approximately 7% of 2025 net sales) and independent manufacturers’ representatives (accounting for approximately 7% of 2025 net sales) to extend its commercial reach.

Business Segments

CTS operates as a single reportable business segment. The Chief Operating Decision Maker (CODM)—the Chair, President and Chief Executive Officer—evaluates performance and allocates resources based on consolidated financial metrics, primarily Net Earnings, as reported on the Consolidated Statements of Earnings. While managed as a single segment, the Company tracks and reports consolidated net sales disaggregated by four primary end-user industries: In terms of revenue recognition timing, approximately 96% of CTS’ net sales are recognized at a point in time upon transfer of control to customers, while approximately 4% are recognized over time for specialized contracts that feature termination-for-convenience clauses and enforceable rights to payment for work completed to date.

History and Evolution

Founded in 1896, CTS originally produced high-quality telephone products. Over more than a century, the Company evolved into a diversified global producer of electronic components and sensing/motion solutions. In recent years, CTS has executed a strategy aimed at expanding into high-growth, non-transportation markets—including industrial, medical, and aerospace & defense—through targeted research and development as well as strategic acquisitions. Material corporate developments and strategic acquisitions in recent years include:

• TEWA Temperature Sensors SP. Zo.o. (“TEWA”): Acquired to expand CTS’ sensing capabilities in temperature applications.
• Meggitt A/S (a/k/a Ferroperm Piezoceramics A/S, “Ferroperm”): Acquired on June 30, 2022, expanding CTS’ piezoceramic technology offerings.
• maglab AG (“Maglab”): Acquired on February 6, 2023, for a final purchase price of $7,717 thousand, bringing magnetic system design and current measurement expertise for electric mobility, industrial automation, and renewable energy applications.
• SyQwest, LLC (“SyQwest”): Acquired on July 29, 2024, for a purchase price of $128,017 thousand (inclusive of working capital adjustments and $6,105 thousand in initial contingent consideration), adding sonar and acoustic sensing solutions for naval defense applications.
• Matamoros Consolidation: In Q1 2023, CTS announced the closure of its Juarez, Mexico manufacturing plant and consolidated operations into an expanded facility in Matamoros, Mexico. This consolidation was substantially completed as of December 31, 2024.

Products and Services

CTS categorizes its product line into three operational domains based on electronic function:

Sense Products

Sense products gather and provide inputs to electronic systems. Key offerings include:

• Pedals and Position Sensors: Accelerator pedal modules, throttle position sensors, and rotary position sensors primarily utilized in transportation and commercial vehicle applications.
• Piezo Sensing Products: Piezoceramic elements and transducers used in medical ultrasound equipment, underwater sonar, and industrial diagnostics.
• Temperature Sensors: High-precision thermistors and custom temperature probes for industrial and medical uses.
• Current Sensors: Magnetic current measurement solutions for electric vehicles and industrial automation.
• Controls and Switches: Electromechanical switches, encoders, and potentiometers.

Connect Products

Connect products enable multi-system synchronization and signal integrity. Key offerings include:

• EMI/RFI Filters: Electromagnetic interference and radio frequency interference suppression filters.
• Frequency Control Products: Crystals, clock oscillators, and voltage-controlled crystal oscillators (VCXOs).
• Resistor Networks & Capacitors: Custom passive resistor networks, chip resistors, and specialty capacitors.
• RF Filters: Radio frequency filters for telecommunications, aerospace, and defense applications.

Move Products

Move products execute targeted mechanical movements within electronic assemblies. Key offerings include:

• Piezo Microactuators: Ultra-precise piezoceramic microactuators used in medical equipment, high-precision industrial tools, and defense technology.
• Rotary Actuators: Smart actuators designed for harsh environment vehicle engine controls and industrial controls.

Brand Portfolio

CTS relies on a combination of patents, trademarks, trade secrets, and non-disclosure agreements to maintain its intellectual property position. In 2025, the Company obtained 24 patents globally (10 in the U.S., 6 in Asia, and 8 in Europe). Worldwide, CTS owns approximately 285 patents, including 144 active U.S. patents, and holds 55 active patent applications under examination. CTS also holds eight registered U.S. trademarks, most of which are registered internationally. Key brand assets and operating business names within the corporate structure include CTS, TEWA, Ferroperm, Maglab, and SyQwest.

Geographical Presence

CTS manufactures and markets its products globally, operating manufacturing plants, administrative offices, and sales centers across North America, Europe, and Asia.

Manufacturing Facilities

• United States: Albuquerque, New Mexico (leased); Boise, Idaho (leased); Cranston, Rhode Island (leased); Lisle, Illinois (leased).
• Mexico: Matamoros (owned and leased properties); Tecate (leased); Nogales (leased).
• Czech Republic: Nupaky (leased); Ostrava (leased).
• Denmark: Kvistgaard (leased).
• Poland: Lublin (leased).
• Philippines: Calamba (leased).
• Taiwan: Kaohsiung (leased via ground lease through 2036).
• China: Tianjin (owned, land use rights through 2050); Zhongshan (leased).

Non-Manufacturing Facilities

The Company maintains dedicated administrative, research, warehouse, or sales offices in Boise, Idaho; Brownsville, Texas; Elkhart, Indiana; Farmington Hills, Michigan; Nagoya and Yokohama, Japan; Rüsselsheim, Germany; Singapore; and Zug, Switzerland.

Workforce Distribution

As of December 31, 2025, CTS employed 3,492 personnel across the following regions:

• North America: 1,875 employees
• Asia: 1,099 employees
• Europe: 518 employees

Geographic Sales & Asset Distribution

Net sales based on country of origin and long-lived tangible assets by location are presented below:

Competitor Analysis

CTS operates in highly competitive global markets characterized by rapid technological advancement and price erosion. The Company competes principally on product features, technology, price, quality, reliability, delivery, and customer service. No single competitor competes against CTS across all of its product lines, although several competitors are larger and more diversified. Competitive factors vary across end markets:

• OEM Sourcing Trends: Customers are continuing to consolidate supplier bases to achieve economies of scale, while in other cases dual-sourcing to manage supply risks.
• Cost Pressures: Customers demand ongoing cost reductions and stringent delivery/quality metrics.
• Technical Obsolescence: Rapid changes in customer specifications require continuous engineering investments to prevent technological obsolescence.

CTS focuses its competitive strategy on custom-engineered solutions manufactured to meet the specific requirements of major tier-one and OEM customers.

Operating Performance and Business Drivers

In 2025, consolidated net sales were $541,318 thousand, representing a 5.2% increase compared to $514,756 thousand in 2024. Operating drivers included:

• Diversified End Market Expansion: Sales to non-transportation end markets (industrial, medical, aerospace and defense) increased by $42,998 thousand, or 16.3%, driven by strength in aerospace & defense, medical applications, and a recovery in industrial demand.
• Acquisition Contributions: The acquisition of SyQwest contributed $22,329 thousand in net sales in 2025 compared to $13,433 thousand in 2024 (post-acquisition period).
• Transportation Market Headwinds: Sales to the transportation end market decreased $16,436 thousand, or 6.6%, impacted by reduced demand for commercial vehicle products and customer market share losses in China.

Gross margin expanded from 36.4% in 2024 to 38.4% in 2025, yielding $208,026 thousand in gross profit. The 10.9% gross margin dollar increase reflected operational efficiencies and a higher proportion of sales from higher-margin diversified end markets. Selling, general, and administrative (SG&A) expenses rose to $98,720 thousand (18.2% of net sales) in 2025 from $88,285 thousand (17.2% of net sales) in 2024, driven by additional intangible asset amortization from SyQwest and a charge related to a potential settlement with the U.S. Environmental Protection Agency (EPA). Research and development (R&D) spending increased to $25,268 thousand (4.7% of sales) in 2025, up from $23,388 thousand (4.5% of sales) in 2024. Restructuring charges fell to $1,396 thousand in 2025 from $4,697 thousand in 2024 following the completion of the Matamoros facility consolidation. Net earnings grew 17.7% to $65,317 thousand ($2.19 per diluted share) in 2025, up from $55,472 thousand ($1.81 per diluted share) in 2024. Effective income tax rates were 22.0% in 2025 and 18.4% in 2024, with the increase reflecting geographic mix shifts and provisional impacts from the One Big Beautiful Bill Act (OBBBA) enacted in July 2025.

Board of Directors and Leadership Team

The executive leadership team of CTS Corporation as of December 31, 2025 includes:

• Kieran O’Sullivan (Age 63): President, Chief Executive Officer and Chairman of the Board. Joined CTS in January 2013 as President and CEO; named Chairman in May 2014. Former Executive Vice President at Continental A.G.
• Ashish Agrawal (Age 55): Vice President and Chief Financial Officer. Elected CFO in November 2013 after joining CTS in June 2011 as VP, Treasury and Corporate Development.
• Mark Pacioni (Age 60): Vice President, Chief Legal and Administrative Officer and Secretary. Appointed July 1, 2025; former Chief Legal Officer of CareerBuilder, LLC.
• Pratik Trivedi (Age 47): Senior Vice President, Chief Operating Officer. Appointed COO effective December 5, 2025; joined CTS in April 2024 after serving as VP, North America Mobility at Eaton Corporation plc.

Non-executive members of the Board of Directors include Robert A. Profusek (Lead Director), William S. Johnson, Alfonso G. Zulueta, Donna M. Costello, Randy Stone, Amy Dodrill, and Kimberly Banks MacKay.

Future Strategy and Business Priorities

CTS focuses its long-term corporate strategy on the following key operational and financial priorities:

• End Market Diversification: Accelerating revenue growth in non-transportation markets, specifically aerospace & defense, medical, and industrial automation, to reduce revenue volatility from automotive build cycles.
• Organic Growth and Innovation: Capitalizing on secular technology trends—such as vehicle electrification, medical imaging, defense acoustics, and smart industrial automation—by allocating R&D investments into piezo sensing, microactuation, and magnetic current sensing.
• Inorganic Expansion: Pursuing complementary acquisitions that add proprietary technical capabilities, expand customer bases, or enter adjacent high-growth markets.
• Operational Excellence and Restructuring: Enhancing operating margins through ongoing lean manufacturing initiatives, footprint optimization, and supply chain management.
• Disciplined Capital Allocation: Maintaining liquidity and balance sheet strength through a $300,000 thousand revolving credit facility executed in November 2025 (maturing November 24, 2030), returning cash to shareholders through dividends ($0.16 per share declared in 2025), and executing share repurchases under a $100,000 thousand share repurchase program approved in November 2025 ($90,367 thousand remaining available at year-end 2025).

Key Strengths

• Custom Engineering Focus: Deep technical capability in developing customized sensor, actuator, and connectivity components tailored to complex customer specifications.
• Piezoceramic Technology Leadership: Proprietary piezoceramic formulations and manufacturing processes supporting critical medical ultrasonic and naval acoustic applications.
• Global Manufacturing Infrastructure: Strategically situated manufacturing sites across low-cost regions in North America, Europe, and Asia, providing global customer supply continuity.
• Strong Financial Position: Robust operational cash flow generation ($102,105 thousand in 2025) backed by a low net debt position ($57,500 thousand in credit facility borrowings offset by $82,295 thousand in cash and cash equivalents as of December 31, 2025).

Key Challenges and Risks

• Customer Concentration: Toyota Motor Corporation and Cummins, Inc. represented 11.2% and 8.4% of total net sales in 2025, respectively. Material order reductions or platform losses by these major transportation customers could adversely affect financial results.
• Cyclical End Markets: Exposure to downturns in the commercial vehicle, general industrial, and automotive automotive build cycles.
• Supply Chain and Raw Material Vulnerabilities: Dependence on specialized raw materials and components, including rare earth elements (REEs), semiconductor chips, precious metals (silver, gold, platinum), and custom resins, which are subject to cost inflation and availability constraints.
• Geopolitical and Trade Risks: Cross-border trade disputes, import/export controls, and potential tariff changes affecting facilities and commercial activities in China, Mexico, Taiwan, and Europe.
• Environmental Liabilities: Ongoing remediation obligations at designated Superfund sites, including the Asheville, North Carolina site, where EPA response cost claims remain subject to negotiation and pre-litigation mediation (remediation reserve stood at $16,450 thousand at December 31, 2025).
• Cybersecurity and Information Technology Exposures: Potential operational disruptions, data compromises, or financial losses resulting from sophisticated cyber threats against internal systems or third-party cloud providers.

Conclusion and Strategic Outlook

CTS Corporation continues to transition its revenue base toward higher-margin, diversified end markets while strengthening its presence in core transportation markets. Supported by acquisitions like SyQwest and Maglab, expanding piezoceramic and current sensing technologies, and an updated $300,000 thousand revolving credit facility, the Company maintains a strong foundation to navigate ongoing macroeconomic uncertainties, supply chain shifts, and changing customer demand.

Official Site

The official corporate website of CTS Corporation can be accessed at: https://www.ctscorp.com.

Financial Statements

Disclaimer: Figures are reported in thousands of U.S. dollars, except per share data or unless otherwise noted, exactly as disclosed in the company’s Consolidated Financial Statements. Reporting periods correspond to the fiscal years ended December 31, 2025 and December 31, 2024.

Income Statement

Balance Sheet

Cash Flow Statement

Subsidiaries & Joint Ventures

The consolidated financial statements include the accounts of CTS Corporation and its wholly owned subsidiaries. The following entities and foreign subsidiary operations are specifically disclosed in the filing:

Other Investments & Holdings

No material joint ventures, associates, or non-controlling equity holdings are separately disclosed in the filing. All operating entities referenced in the filing are 100% owned subsidiaries.

Physical Properties

As of December 31, 2025, CTS Corporation operated manufacturing and non-manufacturing facilities at the following locations:

Investments and Capital Expenditure

Share Capital and Outstanding Shares

Frequently Asked Questions

What does CTS Corporation do?

CTS Corporation is a global manufacturer of electronic components, sensors, and actuators designed to Sense, Connect, and Move electronic systems across the transportation, industrial, medical, and aerospace and defense markets.

Which exchange does CTS trade on and what is its symbol?

CTS Corporation’s common stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol CTS.

Who are CTS Corporation’s largest customers?

In 2025, CTS’ largest individual customers were Toyota Motor Corporation, which accounted for 11.2% of total net sales, and Cummins, Inc., which accounted for 8.4% of total net sales.

What acquisitions has CTS completed recently?

Recent acquisitions include maglab AG in February 2023 (current sensing and magnetic design) and SyQwest, LLC in July 2024 (naval sonar and acoustic defense solutions).

Where is CTS Corporation headquartered and where are its main operations?

CTS is headquartered in Lisle, Illinois. It operates manufacturing and administrative facilities across the United States, Mexico, China, the Czech Republic, Denmark, Poland, the Philippines, Singapore, Taiwan, Japan, Germany, and Switzerland.