CTS Corporation, a global manufacturer of sensors, connectivity components, and actuators, has recently released its 10-Q report. The company was established in 1896 and is based in Lisle, Illinois. CTS designs, manufactures, and sells a broad line of sensors, connectivity components, and actuators to original equipment manufacturers and tier one suppliers for various industries including aerospace, defense, industrial, medical, and transportation. The company's vision is to be a leading provider of sensing and motion devices as well as connectivity components, enabling an intelligent and seamless world.
In the first quarter of 2025, CTS reported net sales of $125,769, essentially flat compared to the first quarter of 2024. The gross margin for the first quarter of 2025 was $46,549, an increase of 3.2% from the first quarter of 2024, primarily driven by an improved mix of sales by end market. Operating earnings for the first quarter of 2025 were $16,285, reflecting a 12.0% increase from the same period in 2024.
The company reported net earnings of $13,367 for the first quarter of 2025, marking a 20.2% increase from the first quarter of 2024. Diluted net earnings per share for the first quarter of 2025 were $0.44, compared to $0.36 for the same period in 2024.
In terms of liquidity and capital resources, CTS had cash and cash equivalents of $90,288 at the end of the first quarter of 2025, with total long-term debt amounting to $86,700. The company's net cash provided by operating activities was $15,518 during the first quarter of 2025, compared to $18,311 during the same period in 2024.
CTS Corporation's long-term debt includes a total credit facility of $400,000, with a balance outstanding of $86,700 as of March 31, 2025. The company was in compliance with all debt covenants at the end of the first quarter of 2025.
The company's net sales to Toyota Motor Corporation and Cummins Inc. accounted for 11.9% and 10.3% of total net sales, respectively, during the first quarter of 2025.
Readers are cautioned that the statements contained in the report regarding expectations of CTS Corporation's performance or other matters that may affect its business, results of operations, or financial condition are considered "forward-looking statements" as defined by the "safe harbor" provisions in the Private Securities Litigation Reform Act of 1995. The market has reacted to these announcements by moving the company's shares -5.1% to a price of $37.84. For more information, read the company's full 10-Q submission here.
