CTS Corporation reported its financial results for the first quarter of 2025, revealing net sales of $125.8 million, a slight increase from $125.8 million in the same period last year. The company experienced a 3.2% rise in gross margin, reaching $46.5 million, attributed to a favorable sales mix and foreign exchange impacts. Operating earnings also improved by 12% to $16.3 million, while net earnings rose by 20.2% to $13.4 million, resulting in diluted earnings per share of $0.44, compared to $0.36 in the prior year.
The company noted significant changes in its revenue streams, with sales to diversified markets increasing by 13.6%, while transportation market sales decreased by 12.1%. The acquisition of SyQwest contributed an additional $3 million in sales, although foreign exchange fluctuations negatively impacted revenue by approximately $835,000. CTS's gross margin percentage improved from 35.9% to 37.0%, reflecting better sales performance and cost management.
Operationally, CTS's selling, general, and administrative expenses rose to $23.6 million, or 18.8% of net sales, up from 17.7% in the previous year, primarily due to increased depreciation and amortization expenses linked to the SyQwest acquisition. Research and development expenses decreased slightly to $6.2 million, representing 4.9% of net sales, as the company continues to invest in product development. Restructuring charges were significantly lower at $451, down from $1.7 million, reflecting adjustments made in response to reduced demand in certain markets.
As of March 31, 2025, CTS reported total assets of $765.5 million, with cash and cash equivalents at $90.3 million. The company’s long-term debt decreased to $86.7 million from $92.3 million at the end of 2024. Looking ahead, CTS remains focused on leveraging its recent acquisitions and expanding its product offerings while navigating market challenges, including inflation and potential tariff impacts. The company anticipates that its cash flows and available credit will adequately support its operational and capital needs in the near term.
About CTS CORP
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