CTS | 10-Q: FY2025 Q1 Revenue Misses Estimate at USD 125.77 M

Revenue: As of FY2025 Q1, the actual value is USD 125.77 M, missing the estimate of USD 128.72 M.

EPS: As of FY2025 Q1, the actual value is USD 0.44, missing the estimate of USD 0.49.

EBIT: As of FY2025 Q1, the actual value is USD 16.12 M.

Segment Revenue

• Transportation: Revenue decreased by 12.1% from $66,516 in Q1 2024 to $58,489 in Q1 2025.
• Industrial: Revenue increased by 4.5% from $31,064 in Q1 2024 to $32,448 in Q1 2025.
• Medical: Revenue increased by 13.2% from $16,901 in Q1 2024 to $19,131 in Q1 2025.
• Aerospace & Defense: Revenue increased by 39.3% from $11,269 in Q1 2024 to $15,701 in Q1 2025.

Operational Metrics

• Net Earnings: Increased by 20.2% from $11,119 in Q1 2024 to $13,367 in Q1 2025.
• Gross Margin: Increased by 3.2% from $45,090 in Q1 2024 to $46,549 in Q1 2025.
• Operating Earnings: Increased by 12.0% from $14,536 in Q1 2024 to $16,285 in Q1 2025.
• Operating Margin: Increased from 11.6% in Q1 2024 to 12.9% in Q1 2025.
• Operating Costs: Total operating expenses decreased slightly from $30,554 in Q1 2024 to $30,264 in Q1 2025.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $15,518 in Q1 2025 compared to $18,311 in Q1 2024.
• Free Cash Flow: Net cash used in investing activities was $4,465 in Q1 2025 compared to $4,035 in Q1 2024.

Unique Metrics

• SyQwest Acquisition Impact: Added net sales of $2,987 in Q1 2025.

Future Outlook and Strategy

• Core Business Focus: CTS Corporation aims to continue investing in the development of products, technologies, and talent within the categories of sensing, connectivity, and motion devices.
• Non-Core Business: The company is managing tariff-related impacts with a focus on agility in adapting to cost and price adjustments.

Priority

• Strategic Plans: Emphasis on sales growth, diversification, and profitability as part of strategic planning and annual operating plan.