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• Fourth Quarter Revenue: $127 million, up 2% from Q4 2023.

• Full Year Revenue: $516 million, down 6% from 2023.

• Diversified End Market Sales: Up 28% in Q4; 56% of overall company revenue in Q4 and 51% for the full year.

• Transportation Sales: $57 million in Q4, down 18% from the same period last year.

• Adjusted Gross Margin: 38.1% in Q4, up 394 basis points from Q4 2023.

• Adjusted Diluted EPS: $0.53 in Q4, up 14% year over year; $2.17 for the full year, down from $2.22 in 2023.

• Book to Bill Ratio: 0.96 for Q4; 1.01 for the full year 2024.

• Operating Cash Flow: $26 million for Q4; $99 million for the full year, up from $89 million in 2023.

• Cash Balance: $94 million as of December 31, 2024.

• Long Term Debt: $91 million at the end of 2024.

• Share Repurchase: 154,000 shares repurchased in Q4 totaling $8 million; 898,000 shares for the full year totaling $43 million.

• 2025 Revenue Outlook: Expected range of $520 million to $550 million.

• 2025 Adjusted Diluted EPS Outlook: Expected range of $2.20 to $2.35.

• Warning! GuruFocus has detected 4 Warning Sign with ADM.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CTS Corp (NYSE:CTS) achieved a 28% increase in sales to diversified end markets, including medical, aerospace, defense, and industrial sectors, in the fourth quarter.

• The company reported a 394 basis point improvement in gross margin for the fourth quarter, driven by favorable market mix and operational improvements.

• CTS Corp (NYSE:CTS) secured multiple wins in electrification, including six E platform wins for accelerator modules, indicating progress in their diversification strategy.

• The SyQwest acquisition contributed $11 million in revenue during the fourth quarter, supporting CTS Corp (NYSE:CTS)'s growth strategy.

• CTS Corp (NYSE:CTS) maintained a strong balance sheet with a cash balance of $94 million and generated $99 million in operating cash flow for the full year 2024, up from $89 million in 2023.

Negative Points

• Full-year sales for 2024 were down 6% compared to 2023, with transportation sales declining by 17% due to softness in the China market and competition in the commercial vehicle sector.

• The book-to-bill ratio for the fourth quarter remained at 0.96, indicating potential challenges in future order intake.

• Adjusted diluted earnings per share for the full year 2024 were $2.17, down from $2.22 in 2023, reflecting a decrease in profitability.

• CTS Corp (NYSE:CTS) anticipates headwinds in transportation revenue in 2025 due to China market dynamics and other regional factors.

• The company expects softness in commercial vehicle revenue throughout 2025, which may impact overall growth prospects.