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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