The following is a summary of the CTS Corporation (CTS) Q2 2024 Earnings Call Transcript:

Financial Performance:

• CTS reported Q2 2024 revenue of $130 million, a decrease of 10% from the previous year. Non-transportation sales increased by 4% year-over-year.

• Adjusted gross margin improved by 80 basis points year-over-year to 35.8%.

• Adjusted diluted earnings per share for Q2 were $0.54, down 10% year-over-year but up 14% sequentially.

Business Progress:

• CTS completed the acquisition of SyQwest, enhancing its defense market segment and expecting it to be accretive in 2025.

• Notable sales growth in defense and medical segments and key wins across various markets including medical therapeutics and industrial printing.

• Introduced important innovations like eBrake and advanced sensors, improving product range and competitive positioning.

Opportunities:

• Diversification in non-transportation markets like industrial, medical, and aerospace and defense which showed strong sales and bookings increment.

• Megatrends such as automation, connectivity, energy efficiency, and minimally invasive medical procedures expected to drive future growth.

Risks:

• Transportation end market showed continued weakness, with a 22% year-over-year sales decline and soft demand expected through 2024.

• Commercial vehicle market and China market challenges persist, impacting sales and competitive dynamics.

More details: CTS Corp IR

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