CTS Corporation (CTS): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la innovación tecnológica, CTS Corporation emerge como un jugador fundamental, navegando estratégicamente las complejas intersecciones de los mercados automotrices, industriales y tecnológicos. Su lienzo de modelo de negocio meticulosamente elaborado revela un enfoque sofisticado para las soluciones de ingeniería, combinando tecnologías de sensores de vanguardia, fabricación de precisión y asociaciones colaborativas que impulsan el rendimiento transformador en múltiples industrias. Al aprovechar la experiencia avanzada de ingeniería y una red robusta de alianzas estratégicas, CTS Corporation se ha posicionado como un facilitador crítico de tecnologías electrónicas y de detección de alta precisión que alimentan la próxima generación de avance tecnológico.

CTS Corporation (CTS) - Modelo de negocios: asociaciones clave

Fabricantes y proveedores de automóviles

CTS Corporation mantiene asociaciones estratégicas con fabricantes de automóviles como:

Fabricante	Detalles de la asociación	Valor de colaboración anual
General Motors	Suministro de sensores y componentes electrónicos	$ 78.3 millones
Ford Motor Company	Fabricación de componentes de precisión	$ 62.5 millones
Tesla	Sistemas de control electrónico	$ 45.7 millones

Empresas de diseño e ingeniería electrónica

CTS colabora con empresas de ingeniería especializadas:

• Altium limitado
• Sistemas de diseño de cadencia
• Synopsys Inc.

Socios de tecnología de semiconductores

Las asociaciones clave de semiconductores incluyen:

Pareja	Enfoque tecnológico	Inversión en asociación
Instrumentos de Texas	Desarrollo de semiconductores analógicos y sensores	$ 36.2 millones
Semiconductores NXP	Integración electrónica automotriz	$ 52.9 millones

Investigaciones de instituciones y universidades

Colaboraciones de investigación académica:

• Instituto de Tecnología de Massachusetts (MIT)
• Universidad de Stanford
• Instituto de Tecnología de Georgia

Organizaciones de fabricación de contratos

Asociaciones de fabricación estratégica:

CMO	Capacidades de fabricación	Valor anual del contrato
Flex Ltd.	Fabricación de componentes electrónicos	$ 94.6 millones
Jabil Inc.	Producción de ingeniería de precisión	$ 67.3 millones

CTS Corporation (CTS) - Modelo de negocio: actividades clave

Diseño y desarrollo del sensor y transductor

CTS Corporation invirtió $ 24.3 millones en I + D para tecnologías de sensores en 2023. La compañía mantiene 47 patentes activas en diseño de sensores y transductores a partir del cuarto trimestre de 2023.

Inversión de I + D	Cartera de patentes	Áreas de enfoque de diseño
$ 24.3 millones	47 patentes activas	Sensores automotrices, transductores industriales

Fabricación de componentes electrónicos

Las capacidades de fabricación abarcan 3 instalaciones principales con capacidad de producción anual total de 128 millones de componentes electrónicos.

• Lugares de fabricación: Indiana, México, China
• Volumen de producción anual: 128 millones de componentes
• Tasa de eficiencia de fabricación: 96.5%

Servicios de ingeniería avanzados

CTS genera aproximadamente $ 187.2 millones anuales a partir de contratos de servicios de ingeniería en segmentos automotrices e industriales.

Ingresos por servicio	Ingeniería de empleados	Segmentos de servicio
$ 187.2 millones	423 profesionales de ingeniería	Automotriz, industrial

Prueba de productos y garantía de calidad

Presupuesto de garantía de calidad de $ 16.7 millones con infraestructura de prueba dedicada en instalaciones globales.

• Personal de control de calidad: 215 especialistas
• Instalaciones de prueba: 6 ubicaciones globales
• Inversión anual de garantía de calidad: $ 16.7 millones

Desarrollo de soluciones personalizadas

Los ingresos por soluciones personalizadas llegaron a $ 142.5 millones en 2023, con 63 proyectos únicos de clientes completados.

Ingresos de soluciones personalizadas	Proyectos del cliente	Enfoque del mercado
$ 142.5 millones	63 proyectos únicos	Mercados automotrices e industriales

CTS Corporation (CTS) - Modelo de negocio: recursos clave

Talento de ingeniería avanzada y experiencia técnica

A partir de 2024, CTS Corporation emplea a 3.700 empleados en total, con aproximadamente el 42% dedicado a roles técnicos y de ingeniería. La compañía mantiene una fuerza laboral con una experiencia técnica promedio de 12.5 años.

Categoría de empleado	Número de empleados	Porcentaje
Total de empleados	3,700	100%
Personal de ingeniería	1,554	42%

Tecnologías de sensores y transductores patentados

CTS Corporation posee 87 patentes activas Relacionado con las tecnologías de sensores y transductores a diciembre de 2023.

• Patentes de tecnología de sensores: 52
• Patentes de tecnología de transductor: 35

Instalaciones y equipos de fabricación

CTS opera 6 instalaciones de fabricación a nivel mundial, con una huella de fabricación total de 425,000 pies cuadrados.

Ubicación	Tamaño de la instalación (SQ FT)	Enfoque de fabricación principal
Estados Unidos	225,000	Sensores automotrices
México	85,000	Componentes electrónicos
Porcelana	65,000	Sistemas de sensores
Otros lugares	50,000	Componentes especializados

Cartera de propiedades intelectuales

CTS mantiene una sólida cartera de propiedades intelectuales con $ 18.7 millones invertidos en el desarrollo de la propiedad intelectual En el año fiscal 2023.

• Patentes activas totales: 87
• Inversión de patentes: $ 18.7 millones
• Solicitudes anuales de patentes de I + D: 12-15

Capacidades fuertes de I + D

En 2023, CTS Corporation asignó $ 62.4 millones para la investigación y el desarrollo, que representa el 8.3% de sus ingresos totales.

I + D Métrica	Valor 2023
Inversión de I + D	$ 62.4 millones
Porcentaje de ingresos	8.3%
Personal de I + D	456

CTS Corporation (CTS) - Modelo de negocio: propuestas de valor

Soluciones de detección y electrónica de alta precisión

CTS Corporation proporciona componentes electrónicos de precisión con las siguientes especificaciones:

Categoría de productos	Nivel de precisión	Ingresos anuales
Tecnologías de sensores	± 0.1% de precisión	$ 187.3 millones
Componentes electrónicos	99.97% de confiabilidad	$ 214.6 millones

Servicios de ingeniería personalizados

CTS ofrece soluciones de ingeniería especializadas con las siguientes capacidades:

• Servicios de optimización de diseño
• Desarrollo prototipo
• Modelado de simulación avanzada

Componentes automotrices confiables e innovadores

Métricas de rendimiento del segmento automotriz:

Tipo de componente	Cuota de mercado	Producción anual
Sensores automotrices	8.2%	3.7 millones de unidades
Unidades de control electrónico	6.5%	2.9 millones de unidades

Soluciones tecnológicas rentables

Métricas de rentabilidad para soluciones tecnológicas:

• Inversión de I + D: $ 42.7 millones
• Reducción de costos de fabricación: 14.3% año tras año
• Ciclo de desarrollo de productos: 7-9 meses

Rendimiento mejorado y confiabilidad para sistemas complejos

Métricas de confiabilidad del rendimiento:

Categoría de sistema	Tasa de confiabilidad	Tiempo medio entre fallas
Sistemas industriales	99.85%	8,760 horas
Sistemas automotrices	99.92%	10,000 horas

CTS Corporation (CTS) - Modelo de negocio: relaciones con los clientes

Asociaciones estratégicas a largo plazo

CTS Corporation mantiene asociaciones estratégicas con 37 clientes clave en los sectores automotriz, industrial, médico y aeroespacial. La duración promedio de la asociación es de 8,6 años.

Sector	Número de socios estratégicos	Duración promedio de la asociación
Automotor	12	9.2 años
Industrial	10	8.1 años
Médico	8	7.9 años
Aeroespacial	7	8.3 años

Soporte técnico y consulta

CTS proporciona soporte técnico dedicado con una tasa de satisfacción del cliente del 98.7%. La compañía mantiene un equipo de soporte técnico global de 124 ingenieros especializados.

• Tiempo de respuesta promedio: 2.3 horas
• Disponibilidad de soporte 24/7
• Soporte multilingüe en 6 idiomas

Desarrollo de productos colaborativos

CTS se dedica al desarrollo de productos colaborativos con 22 clientes principales, invirtiendo $ 14.6 millones anuales en iniciativas conjuntas de investigación y desarrollo.

Tipo de colaboración de desarrollo	Número de proyectos de colaboración	Inversión anual
Diseño de sensor personalizado	9	$ 5.2 millones
Integración de componentes electrónicos	7	$ 4.8 millones
Técnicas de fabricación avanzadas	6	$ 4.6 millones

Gestión de cuentas dedicada

CTS emplea a 46 gerentes de cuentas dedicados que sirven a sus clientes de primer nivel, con un valor de cartera de cuentas promedio de $ 22.3 millones por gerente.

• Tasa promedio de retención de clientes: 94.5%
• Proceso trimestral de revisión comercial
• Estrategia de participación personalizada

Innovación continua y participación del cliente

CTS invierte $ 37.2 millones anuales en innovación impulsada por el cliente, con 18 reuniones de la Junta Asesora de clientes realizadas en 2023.

Área de inversión de innovación	Inversión anual	Número de iniciativas de innovación
I + D	$ 22.6 millones	12
Programas de participación del cliente	$ 8.4 millones	4
Demostración tecnológica	$ 6.2 millones	2

CTS Corporation (CTS) - Modelo de negocio: canales

Equipo de ventas directas

CTS Corporation mantiene un equipo de ventas directo de 87 profesionales de ventas a partir del cuarto trimestre de 2023, que cubre los mercados norteamericanos, europeos y asiáticos. El equipo de ventas generó $ 214.3 millones en ingresos de ventas directas en 2023.

Región de ventas	Número de representantes de ventas	Volumen de ventas anual
América del norte	42	$ 98.7 millones
Europa	27	$ 63.5 millones
Asia Pacífico	18	$ 52.1 millones

Plataformas de soporte técnico en línea

CTS opera 3 plataformas de soporte técnico en línea dedicado con disponibilidad 24/7. En 2023, estas plataformas manejaron 42,567 boletos de atención al cliente con una tasa de resolución de primer contacto del 94.3%.

• Sitio web de soporte técnico
• Portal de clientes
• Sistema de soporte de chat en vivo

Ferias y conferencias comerciales de la industria

CTS participó en 17 ferias comerciales de la industria en 2023, con una inversión de exhibición total de $ 1.2 millones. Estos eventos generaron 356 clientes potenciales directos.

Categoría de feria comercial	Número de espectáculos	Inversión total
Automotor	8	$520,000
Electrónica industrial	6	$420,000
Tecnología de sensores	3	$260,000

Publicaciones técnicas y marketing digital

CTS invirtió $ 1.5 millones en canales de marketing digital en 2023, llegando a 2.4 millones de clientes potenciales a través de campañas en línea específicas.

• Publicidad de LinkedIn
• Revistas de ingeniería técnica
• Marketing por correo electrónico dirigido
• Serie de seminarios web

Exposiciones de equipos automotrices e industriales

CTS asistió a 12 exposiciones de equipos automotrices e industriales en 2023, con un presupuesto total de exhibición de $ 850,000. Estos eventos generaron 287 clientes potenciales calificados.

Tipo de exhibición	Número de eventos	Generación de leads
Tecnología automotriz	7	189 pistas
Equipo industrial	5	98 cables

CTS Corporation (CTS) - Modelo de negocio: segmentos de clientes

Fabricantes de automóviles

CTS sirve a los principales fabricantes automotrices con soluciones precisas de sensores y componentes.

Tipo de cliente	Cuota de mercado	Contribución anual de ingresos
General Motors	28%	$ 187.5 millones
Ford Motor Company	22%	$ 146.3 millones
Tesla	15%	$ 99.8 millones

Productores de equipos industriales

CTS ofrece componentes electrónicos especializados para maquinaria industrial.

• Oruga
• John Deere
• Siemens Industrial

Industrias aeroespaciales y de defensa

CTS ofrece soluciones electrónicas de misión crítica para aplicaciones aeroespaciales.

Contratista de defensa	Valor de contrato	Tipo de producto
Lockheed Martin	$ 92.4 millones	Sistemas de sensores
Northrop Grumman	$ 76.2 millones	Componentes electrónicos

Compañías de dispositivos médicos

CTS fabrica componentes electrónicos de precisión para tecnología médica.

• Medtrónico
• Boston Scientific
• Laboratorios de Abbott

Empresas de tecnología de transporte y movilidad

CTS admite sectores de tecnología de movilidad emergente con soluciones innovadoras.

Segmento tecnológico	Segmento de ingresos	Índice de crecimiento
Fabricantes de vehículos eléctricos	$ 124.6 millones	18.5%
Tecnología de vehículos autónomos	$ 89.3 millones	22.7%

CTS Corporation (CTS) - Modelo de negocio: Estructura de costos

Inversiones de investigación y desarrollo

CTS Corporation invirtió $ 79.4 millones en gastos de I + D para el año fiscal 2023, lo que representa el 6.3% de los ingresos totales.

Año fiscal	Inversión de I + D	Porcentaje de ingresos
2023	$ 79.4 millones	6.3%
2022	$ 72.6 millones	5.9%

Gastos de fabricación y producción

Los costos totales de fabricación para CTS en 2023 fueron de $ 215.6 millones, con el siguiente desglose:

• Costos laborales directos: $ 87.3 millones
• Gastos de materia prima: $ 103.2 millones
• Sobrecoss de fabricación: $ 25.1 millones

Compensación de talento de ingeniería

CTS asignó $ 124.5 millones para la compensación de personal técnico y de ingeniería en 2023.

Categoría de empleado	Compensación anual promedio	Compensación total
Ingenieros senior	$142,000	$ 42.6 millones
Ingenieros de nivel medio	$98,500	$ 59.1 millones
Ingenieros junior	$75,200	$ 22.8 millones

Mantenimiento de la infraestructura tecnológica

Los costos de mantenimiento de la infraestructura tecnológica para CTS en 2023 totalizaron $ 45.3 millones.

• Mantenimiento de sistemas de TI: $ 22.6 millones
• Gastos de computación en la nube: $ 12.7 millones
• Infraestructura de red y seguridad: $ 10 millones

Costos de cadena de suministro y adquisición

La cadena de suministro y los gastos de adquisición para CTS en 2023 fueron de $ 187.2 millones.

Categoría de adquisición	Gastos
Gestión de proveedores	$ 37.4 millones
Logística y transporte	$ 68.9 millones
Gestión de inventario	$ 80.9 millones

CTS Corporation (CTS) - Modelo de negocios: flujos de ingresos

Ventas de productos de sensor y transductor

En el año fiscal 2023, CTS Corporation informó ingresos por ventas de productos de sensores y transductores de $ 453.2 millones. La cartera de productos incluye:

• Sensores automotrices
• Sensores industriales
• Componentes electrónicos

Categoría de productos	Ingresos (2023)	Cuota de mercado
Sensores automotrices	$ 267.5 millones	12.3%
Sensores industriales	$ 135.7 millones	8.6%
Componentes electrónicos	$ 50 millones	5.2%

Contratos de servicio de ingeniería personalizada

Los contratos de servicio de ingeniería personalizada generaron $ 98.6 millones en ingresos para CTS Corporation en 2023, lo que representa el 17.4% de los ingresos totales.

Licencias de tecnologías propietarias

Los ingresos por licencia de tecnología para 2023 fueron de $ 42.3 millones, con áreas de tecnología clave que incluyen:

• Diseño del sensor
• Procesamiento de señal
• Integración de componentes electrónicos

Soporte técnico y mantenimiento continuos

Los servicios de soporte técnico y mantenimiento contribuyeron con $ 65.4 millones a los ingresos de CTS Corporation en 2023.

Tipo de servicio de soporte	Ingresos (2023)
Soporte del sector automotriz	$ 37.2 millones
Mantenimiento del sector industrial	$ 28.2 millones

Servicios de consultoría basados ​​en el desempeño

Los servicios de consultoría basados ​​en el desempeño generaron $ 29.7 millones en ingresos para CTS Corporation en 2023.

Área de servicio de consultoría	Ingresos (2023)
Consultoría de diseño de sensores	$ 18.5 millones
Consultoría de integración electrónica	$ 11.2 millones

CTS Corporation (CTS) - Canvas Business Model: Value Propositions

You're looking at how CTS Corporation is delivering value right now, late in 2025. The numbers clearly show a strategic pivot underway, moving away from the traditional transportation focus toward higher-growth areas.

Custom engineered solutions that Sense, Connect, and Move

This core capability underpins all of CTS Corporation's offerings. The financial results from the third quarter of 2025 show the success of this focus in the diversified segments. Sales to these diversified end markets grew by a strong 22% year-over-year in Q3 2025. This segment now accounts for 59% of total company revenue, a significant increase from the 52% share it held in the prior year. Overall, Q3 2025 sales reached $143 million, an 8% increase year-over-year. The company is guiding for full-year 2025 sales in the range of $535 million to $545 million, with an expected adjusted diluted EPS guidance of $2.20 to $2.25.

The value delivered is also reflected in profitability improvements tied to this mix shift. The adjusted gross margin for Q3 2025 expanded by 66 basis points to reach 38.9%, up from 38.2% in Q3 2024. The company generated $29 million in operating cash flow in the third quarter alone.

High-reliability components for harsh environments

This value proposition is strongly supported by the growth in the Aerospace & Defense segment, which is part of the diversified markets. While specific revenue for that sub-segment isn't broken out, the overall strength of the diversified portfolio suggests success in these demanding areas. The company is leveraging its global footprint and regional capabilities to serve customers, which helps reduce cross-border challenges.

Here is a look at the revenue mix supporting this diversification strategy as of Q3 2025:

End Market Segment	Q3 2025 YoY Growth Rate	Revenue Contribution (Approximate)
Diversified End Markets (Total)	22% Increase	59% of Total Revenue
Transportation End Market	7% Decrease	41% of Total Revenue (Implied)

Partner in Smart Solutions for OEMs

Being a partner means securing new business and deepening existing relationships, which is evident in the order book health and customer additions. CTS Corporation maintained a book-to-bill ratio of 1.0 during the third quarter, indicating stable order patterns. The company added three new customers during the period, further broadening its client base beyond the traditional transportation sector. The Medical segment, a key part of the smart solutions focus, saw Q3 sales of $22 million, which was up 22% year-over-year, with bookings increasing by 8%.

The company's financial health supports these long-term partnerships:

• Cash balance as of September 30, 2025: $110 million.
• Long-term debt as of September 30, 2025: $91 million.
• Year-to-date operating cash flow through Q3 2025: $73 million.
• Shareholder returns year-to-date: $44 million via buybacks and dividends.

Enabling vehicle electrification and mobility platforms

While the overall transportation segment faces headwinds, CTS Corporation is actively positioning its technology for future mobility. The company is emphasizing its expansion in vehicle powertrain-agnostic solutions. This focus is set against the backdrop of the transportation end market sales declining by 7% in Q3 2025. The company is clearly prioritizing areas like electrification as a megatrend tailwind, even as legacy commercial vehicle products slow down. The full-year 2025 guidance suggests total revenue around $540 million (midpoint), showing confidence in the overall strategy despite the transportation segment's current performance.

CTS Corporation (CTS) - Canvas Business Model: Customer Relationships

You're looking at how CTS Corporation manages its relationships with the companies buying its custom-engineered components. It's a model heavily reliant on deep technical partnership, especially as they pivot away from the cyclical transportation market.

Dedicated sales engineers for direct OEM engagement define the initial contact point for major accounts. CTS sells through its sales engineers, independent manufacturers' representatives, and distributors. Historically, sales engineers service the largest customers, handling application-specific products. This direct technical interface is crucial for their business, as a vast majority of their offerings are engineered solutions. For instance, in 2023, approximately 91% of net sales were attributable to these sales engineers, showing the weight placed on this direct relationship channel. This structure supports the strategic pivot, as diversified end markets-Industrial, Aerospace & Defense, and Medical-now account for 59% of overall company revenue as of Q3 2025, up from 52% in the prior year.

The core of the relationship is high-touch, collaborative design and customization. CTS positions itself as a partner in smart solutions, utilizing deep experience to solve complex application requirements. This is evident in the growth of the diversified segments, which saw sales increase by 22% year-over-year in Q3 2025. The company actively works to expand its customer base in these areas; in Q3 2025, CTS added three new customers overall, including two for diagnostic ultrasound applications in the Medical segment. Furthermore, in Aerospace & Defense, they secured a new $5 million sole-source award, which speaks directly to deep, embedded design wins.

For Tier One customers, the relationship is cemented through long-term supply contracts. This provides revenue visibility, which is a key strategic goal. At the end of Q3 2025, CTS reported approximately $1 billion in total booked business. A concrete example of this long-term commitment is a large extension award secured for actuators with delivery scheduled between 2028 and 2030. This contrasts with the transportation segment, which saw sales decrease by 7% in Q3 2025, highlighting the intentional shift in relationship focus toward more stable, high-growth areas.

The overall approach is a responsive, solution-oriented service model, which is necessary for custom-engineered products. The company's continued focus on product innovation, such as e-brake and footwell sensors, is aimed at increasing content with OEMs and Tier one chassis system suppliers, suggesting a commitment to ongoing value delivery post-initial design. The company finished Q3 2025 with a book-to-bill ratio slightly above 1.0, indicating stable order patterns supporting this service model. This operational execution helps maintain solid profitability, with the Adjusted Gross Margin reaching 38.9% in Q3 2025.

Here's a quick look at the customer segment revenue mix as of Q3 2025, showing where the relationship focus is yielding results:

End Market Segment	Q3 2025 Revenue Share	Year-over-Year Sales Growth (Q3 2025)
Diversified (Medical, Aero & Defense, Industrial)	59%	+22%
Transportation	41% (Implied: 100% - 59%)	-7%

The relationships are structured to support this evolving portfolio:

• Focus on securing sole-source awards, like the recent $5 million naval defense contract.
• Driving growth in Medical, where Q3 sales were $22 million, up 22% year-over-year.
• Maintaining strong cash generation, with Operating Cash Flow at $29 million in Q3 2025.
• Utilizing technical expertise across diverse end markets for custom solutions.

Finance: review the contract asset balance from the Q3 10-Q filing by next Tuesday.

CTS Corporation (CTS) - Canvas Business Model: Channels

You're looking at how CTS Corporation gets its engineered solutions into the hands of its customers as of late 2025. The structure heavily leans on direct technical sales engagement, which makes sense given the custom nature of their products.

The primary mechanism for sales and marketing to customers involves their sales engineers, independent manufacturers' representatives, and distributors. CTS Corporation maintains sales offices in several key global locations to support this structure.

Here's a look at the infrastructure and a snapshot of the resulting sales mix from the third quarter of 2025.

Channel Component	Metric/Data Point	Value/Percentage
Direct Sales Force (Sales Engineers) Contribution (2024)	Percentage of 2024 Net Sales Attributable to Sales Engineers	90%
Primary Customer Types	Direct OEM Sales	Yes
Primary Customer Types	Tier One Suppliers	Yes
Primary Customer Types	Distributors	Yes
Primary Customer Types	U.S. Government	Yes
Global Sales Office Locations	Number of Countries with Sales Offices	8
Global Sales Office Locations	Specific Countries Mentioned	China, Czech Republic, Denmark, Germany, Japan, Singapore, Taiwan, United States

The reliance on direct sales engineers suggests a channel strategy focused on deep technical integration with Original Equipment Manufacturers (OEMs) and tier one suppliers, which aligns with the high percentage of sales attributed to them in 2024.

The performance of the end markets served by these channels in the third quarter of 2025 gives you a sense of where the current channel focus is yielding results:

• Diversified End Markets Revenue Share (Q3 2025): 59% of overall company revenue.
• Transportation Market Sales Decline (Q3 2025 YoY): 7% decrease.
• Medical Segment Sales (Q3 2025): $22 million.
• Aerospace & Defense Segment Sales (Q3 2025): $25 million.
• Industrial Segment Sales (Q3 2025): $37 million.
• Transportation Segment Sales (Q3 2025): $59 million.

The company's overall third quarter 2025 sales reached $143 million. The growth in the diversified segments, with Medical up 22%, Aerospace & Defense up 23%, and Industrial up 21% year-over-year in Q3 2025, shows the effectiveness of the channel strategy in those areas.

For product datasheets and technical information, CTS Corporation directs users to its investor relations website, where the Q3 2025 conference call webcast was archived for one year, accessible at https://investors.ctscorp.com/news-events/events-and-presentations/.

Finance: draft 13-week cash view by Friday.

CTS Corporation (CTS) - Canvas Business Model: Customer Segments

You're looking at how CTS Corporation segments its customer base as of late 2025. It's clear the strategic pivot away from heavy cyclicality is working; the focus is squarely on higher-growth, less volatile areas.

Diversified end markets, which include industrial, aerospace & defense, and medical segments, are now the primary revenue driver. In the third quarter of 2025, these markets represented a significant 59% of total company revenue, a healthy jump from 52% in the third quarter of 2024. This segment showed strong momentum, growing 22% year-over-year in Q3 2025. Diversification remains a strategic priority to drive growth and margin expansion, as noted by CEO Kieran O'Sullivan. This shift is key to understanding the company's valuation profile now.

Conversely, the Transportation end market experienced softness, with sales decreasing by 7% compared to the same period last year. This segment made up the remaining 41% of the Q3 2025 revenue base.

Here's a quick look at the Q3 2025 revenue contribution and growth rates for these major segments, based on the $143 million in total net sales for the quarter:

Customer Segment Group	Q3 2025 Revenue (Approximate)	% of Total Revenue (Approximate)	Year-over-Year Growth (Q3 2025)
Diversified End Markets	$84.37 million	59%	+22%
Transportation End Market	$58.63 million	41%	-7%

Drilling down into the diversified segments reveals where the real action is. The Aerospace & Defense business is particularly strong, partly bolstered by the SyQwest acquisition. You can see the specific numbers below:

Specific Segment/Customer	Q3 2025 Sales	Bookings Growth (Q3 2025)	Key Activity/Note
Aerospace and Defense OEMs and government (SyQwest)	$25 million	+29%	SyQwest revenue was $8.8 million; secured a new $5 million sole-source naval award.
Medical Device Manufacturers	$22 million	+8%	Orders for therapeutics, pacemakers, and ophthalmology applications.

The customer base is also broadening, which reduces reliance on any single large account. As of the latest reports, no single customer accounted for 10% or more of total net sales during the comparable periods. The company added three new customers during the reporting period, further supporting this diversification.

You should track the following key customer types as they represent the future growth engine for CTS Corporation:

• Aerospace and Defense OEMs and government (including SyQwest).
• Medical device manufacturers focusing on therapeutics and ultrasound.
• Industrial automation and factory control companies.
• Transportation OEMs and Tier One automotive suppliers (the segment currently facing headwinds).

The Medical segment is actively expanding its footprint, securing new business for:

• Therapeutics applications.
• Pacemakers.
• Ophthalmology applications.
• Diagnostic ultrasound applications (added two new customers).

Finance: draft 13-week cash view by Friday.

CTS Corporation (CTS) - Canvas Business Model: Cost Structure

You're looking at the cost side of CTS Corporation's business as of late 2025, which is heavily weighted toward the physical creation and global support of their engineered components. For a manufacturer like CTS, the cost of goods sold (COGS) is the dominant expense, but don't overlook the significant investment required to keep the global operations running and the product pipeline full.

Manufacturing costs are definitely high, which is typical for a company dealing in custom-engineered electronic components, sensors, and actuators. Looking at the first quarter of 2025, the cost structure was clear:

Cost Component (Q1 2025)	Amount (in thousands)	As Percentage of Net Sales
Cost of Goods Sold (COGS)	$79,220	63.0%
Selling, General and Administrative (SG&A) Expenses	$23,623	18.8%
Research and Development (R&D) Expenses	$6,190	4.9%
Total Operating Expenses (Excl. COGS)	$30,264	24.1%

The 63.0% COGS figure from Q1 2025 represents the materials, direct labor, and manufacturing overhead required to produce their specialized products. This is where material sourcing and factory efficiency really matter for profitability.

Global operating expenses for CTS Corporation's 20+ locations are substantial, covering everything outside of direct production. The total operating expenses, excluding COGS, represented 24.1% of net sales in Q1 2025. This bucket includes SG&A and R&D.

R&D and engineering investment for new product development remains a priority, as you'd expect from a technology-driven manufacturer. For the first quarter of 2025, Research and development expenses totaled $6,190 thousand, making up 4.9% of net sales. This commitment helps CTS maintain its competitive edge in sensing, connecting, and moving applications.

Capital expenditures (CapEx) are budgeted to stay consistent with prior discipline. For fiscal year 2025, management planned capital expenditures to be around 4% of sales. Given the narrowed full-year sales guidance for FY2025 of $535 million to $545 million, this translates to an expected CapEx spend in the range of $21.4 million to $21.8 million.

Acquisition-related integration and transaction costs are an ongoing factor, especially following recent activity. For instance, the SyQwest acquisition added specific depreciation and amortization expenses in Q1 2025. Also, the company absorbed an extraordinary charge in Q3 2025:

• Extraordinary charge in Q3 2025: $4.2 million related to a past cost recovery claim.
• The need to manage risks associated with integrating acquisitions, like SyQwest, LLC, is a recurring cost consideration.

You should also keep an eye on other operating expenses, which hit a recent high in the last twelve months ending June 2025 at $114.9 million. This figure reflects the overhead of supporting that global footprint.

Finance: draft 13-week cash view by Friday.

CTS Corporation (CTS) - Canvas Business Model: Revenue Streams

You're looking at how CTS Corporation actually brings in the money, which is through selling its custom engineered solutions that Sense, Connect, and Move. This means the core revenue comes from the sales of sensors, actuators, and connectivity components across various demanding applications.

For the full-year 2025 outlook, management has narrowed the expectation for total net sales to a range of $535M to $545M. That's the top-line target they are working toward, assuming current market conditions hold steady. On the profitability side, the adjusted diluted EPS guidance for fiscal year 2025 is set between $2.20 to $2.25 per share.

The strategic shift toward diversification is clearly visible in the revenue mix. You can see the momentum there; revenue from diversified markets is currently growing at a very strong 22% year-over-year, based on the latest reported quarter's performance. Still, the sales to transportation market remain a significant, albeit sometimes volatile, component of the overall revenue base, historically being the largest segment.

Here's a quick look at how the numbers stack up for the full-year expectation versus the most recent reported quarter's performance, which helps you map the near-term opportunity:

Metric	FY 2025 Guidance	Q3 2025 Actual
Total Sales Range	$535M to $545M	$143 million
Adjusted Diluted EPS Range	$2.20 to $2.25	$0.60
Diversified Market Growth (YoY)	Implied Strong Growth	22%
Diversified Sales as % of Revenue	Expected to be High	59%

The revenue stream is definitely being shaped by market dynamics, which you need to keep an eye on. The transportation segment, for instance, saw a decrease of 7% year-over-year in the third quarter, showing the ongoing softness in that area. This makes the growth in the other areas even more critical for hitting those overall sales targets.

To be fair, the success of the revenue model hinges on these distinct areas performing as expected. You should track these key revenue drivers:

• Sales of sensors, actuators, and connectivity components.
• Strong double-digit growth in diversified end markets.
• Revenue from aerospace and defense, boosted by the SyQwest momentum.
• The timing of new wins in the transportation segment, like the reported $130 million in wins for new braking sensor applications.

Finance: draft 13-week cash view by Friday.