CTS Raises Full-Year Guidance Following Strategic Medical Acquisition and Strong Defense Demand
CTS (CTS) has raised its full-year sales guidance to a range of $580 million to $590 million following strong third-quarter performance. The company is successfully pivoting its revenue base away from slowing light-vehicle production toward higher-margin sectors, specifically medical and industrial markets. A key driver of this transition is the $50 million cash acquisition of Millar, which adds approximately $30 million in annual medical sensor revenue. Financial results for the third quarter showed a record gross margin of 42.2%, bolstered by operational execution and favorable product mix. While transportation sales remained relatively flat with only 2% year-over-year growth, the aerospace and defense segment provided significant stability, posting a robust book-to-bill ratio of 1.91. This indicates strong future demand as incoming orders significantly outpace current shipments.
Tickers: $CTS
Topics: acquisition earnings report gross margin revenue guidance
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