CTS Corporation Reports $515.8 Million in Net Sales for Fiscal Year 2024

CTS Corporation reported a net sales figure of $515.8 million for the fiscal year ending December 31, 2024, reflecting a decrease of 6.3% compared to $550.4 million in 2023. The decline was primarily attributed to a significant drop in transportation product sales, which fell by 16.9% or $51.1 million. In contrast, sales in diversified end markets increased by 6.6%, contributing an additional $16.4 million. The acquisition of SyQwest, LLC, completed in July 2024, added $14.4 million to net sales, while the previous year's acquisition of Maglab AG contributed $1.8 million.

The company's gross margin for 2024 was $189.2 million, a slight decrease of 0.9% from $190.9 million in 2023. This decline was primarily driven by lower sales volumes, although it was partially offset by improvements in operational efficiency and favorable foreign exchange impacts. Selling, general, and administrative expenses rose to $88.3 million, or 17.1% of sales, up from 15.2% in the prior year, largely due to increased incentive compensation and costs associated with the SyQwest acquisition. Research and development expenses remained stable at $23.4 million, consistent with the company's commitment to innovation.

In terms of strategic developments, CTS completed the acquisition of SyQwest for $121.9 million, which is expected to enhance its capabilities in the defense sector. The company also reported a restructuring charge of $4.7 million, down from $7.1 million in 2023, related to plant closures and consolidation activities. As of December 31, 2024, CTS employed approximately 30,026 individuals, a decrease from 30,824 in the previous year, reflecting ongoing efforts to streamline operations.

Geographically, CTS's sales from non-U.S. operations accounted for 42% of total net sales in 2024, down from 45% in 2023. The company operates manufacturing facilities in several countries, including China, Mexico, and the Czech Republic, and continues to focus on expanding its market presence. The effective income tax rate for 2024 was 18.4%, a decrease from 19.5% in 2023, primarily due to a favorable mix of earnings taxed at lower rates.

Looking ahead, CTS anticipates continued challenges in the market, including potential supply chain disruptions and inflationary pressures. The company remains committed to investing in product development and strategic acquisitions to drive growth. Management expressed confidence in its ability to navigate these challenges while maintaining a focus on operational efficiency and customer satisfaction.