The strong beat and raised guidance, combined with record margins and accelerating diversification, suggest upside momentum. Monitor the Q3 earnings call for continued execution on diversified end-market growth and any incremental guidance raise. The significant sensor award with a North American OEM and new EV customer additions provide a positive pipeline. The stock has historically reacted well to strong earnings (75% win rate at T+20), so continuation of the trend is likely.
Price Chart
Executive Summary
CTS Corp reported Q2 2026 results with revenue of $144.8M (+7% YoY), GAAP diluted EPS of $0.66 (+$0.04 YoY), and adjusted diluted EPS of $0.74 (+$0.17 YoY), all beating consensus estimates. The company raised its full-year 2026 guidance: sales to $565-$585M (from $560-$580M) and adjusted diluted EPS to $2.55-$2.70 (from $2.35-$2.45), driven by record adjusted gross margins of 41.5% (+270 bps), strong cash flow, and continued diversification momentum with diversified end markets growing 15% YoY and now representing 59% of total revenue.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $144.8M vs consensus $143.4M (+1.0% beat)
- GAAP diluted EPS $0.66 vs consensus $0.61 (+8.2% beat)
- Adjusted diluted EPS $0.74, up 30% YoY from $0.57
- Adjusted gross margin 41.5%, up 270 bps YoY (record)
- Adjusted EBITDA margin 25.4%, up 240 bps YoY
- Diversified end-market sales up 15% YoY, now 59% of total revenue
- Transportation sales down 2% YoY, but new wins of $163M in quarter
- FY2026 guidance raised: revenue $565-$585M, adjusted EPS $2.55-$2.70
- Operating cash flow $33.4M, up $5.0M YoY; free cash flow $28.8M
- Book-to-bill ratio of 1.1 overall, with diversified markets at 1.17
Financial Impact
Revenue $144.8M (+7% YoY), EPS $0.66 (+6.5% YoY), record adjusted gross margin 41.5% (+270 bps), guidance raised significantly
Risk Factors
- Transportation end market down 2% YoY, with ongoing exposure to automotive sector cyclicality
- Tariff and geopolitical risks (USMCA, China, metals/oil inflation) could impact costs and demand
- Forward guidance assumes continuation of current market conditions; any macroeconomic deterioration could challenge revised targets
- Dependence on a few key customers and concentration in aerospace & defense, industrial, and medical markets
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-318911 |
| Document: cts-20260728.htm | 0001193125-26-318911 |
| Document: cts-ex99_2.htm | 0001193125-26-318911 |
| Document: 0001193125-26-318911-index-headers.html | 0001193125-26-318911 |
| Document: 0001193125-26-318911-index.html | 0001193125-26-318911 |
| Document: 0001193125-26-318911.txt | 0001193125-26-318911 |
| 8-K Data (Synthetic) | 0001193125-26-318911 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 9w ago | 8-K | $64.82 $56.69 | ▼ −12.54% | ▼ −15.92% | $61.60 (−4.97%) |
Jul 28, 2026 9w ago | Press Release | $64.82 $56.69 | ▼ −12.54% | ▼ −15.92% | $61.60 (−4.97%) |
Jul 14, 2026 11w ago | Press Release | $60.05 $64.14 | ▲ +6.81% | ▲ +4.32% | $61.60 (+2.58%) |
Jun 25, 2026 14w ago | 8-K | $65.00 $60.92 | ▼ −6.28% | ▼ −7.54% | $61.60 (−5.23%) |
Apr 29, 2026 22w ago | 8-K | $54.43 $65.12 | ▲ +19.64% | ▲ +14.18% | $61.60 (+13.17%) |
Apr 29, 2026 22w ago | 8-K | $54.43 $64.79 | ▲ +19.03% | ▲ +12.99% | $61.60 (+13.17%) |
Apr 29, 2026 22w ago | Press Release | $54.43 $65.12 | ▲ +19.64% | ▲ +14.18% | $61.60 (+13.17%) |
Apr 14, 2026 24w ago | Press Release | $55.56 $61.49 | ▲ +10.67% | ▲ +4.38% | $61.60 (+10.87%) |
US Market Status
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