What factors drove the changes in CTS's revenue and profit?

Did CTS beat or miss consensus estimates last quarter?

What does CTS do and what are its main business segments?

What is the market's earnings forecast for CTS next quarter?

What were the key takeaways from CTS’s earnings call?

What guidance did CTS's management provide for the next earnings period?

What were the key takeaways from CTS's earnings call?

What is CTS's latest dividend and current dividend yield?

- **Diversified Growth Engine**: Diversified end markets (59% of revenue) led by medical (+22% YoY) and aerospace/defense (+23% YoY) offset transportation softness.
- **SyQwest Momentum**: $8.8M Q3 SyQwest sales with $5M+ defense contract and pipeline for 2026 platform awards.
- **Tax Headwind**: U.S. tax legislation reduces EPS by $0.03/share, expected to persist in 2026.
- **Technological Innovation**: Launch of COBROS motor control platform and e-brake technology for EVs/Hybrids.
- **2026 Outlook**: Medical therapeutics and portable diagnostics growth, with cautious optimism on 15M North American light vehicle production.

**【Management Opening Remarks】**
- Q3 2025 sales of $143 million (+8% YoY), with diversified end market sales up 22% YoY, accounting for 59% of total revenue.
- Gross margin expanded by 66 bps to 38.9%, driven by operational efficiency and cost control.
- Secured a $5 million sole-source naval defense contract with SyQwest and $130 million in transportation wins.
- Book-to-bill ratio slightly above 1, with strong bookings in industrial (+29% YoY) and aerospace/defense (+23% YoY).

**【CEO Commentary】**
- Medical sales grew 22% YoY, with 8% QoQ bookings increase, driven by therapeutic products and new ultrasound applications.
- Aerospace/defense sales up 23% YoY, with SyQwest contributing $8.8 million and 29% YoY bookings growth.
- Transportation sales down 7% YoY due to commercial vehicle softness, but wins in Europe/South America and new e-brake technology launch.
- Guidance: 2025 sales $535-545M, EPS $2.20-2.25, with 2026 light vehicle production expected at 15M units in North America.

**【CFO Financial Commentary】**
- Adjusted EPS $0.60 (-2% YoY) due to U.S. tax legislation impact of $0.03/share.
- Operating cash flow $29M, with $17M share repurchases and $110M cash balance.
- Tax rate expected 21-23%, with ongoing adverse impact from legislative changes.
- SG&A up due to $4.2M EPA-related reserve and equity compensation adjustments.

**【Q&A Highlights】**
- Tax impact on EPS to persist in 2026, but industrial recovery and medical bookings strength offset transportation headwinds.
- SyQwest expected to maintain momentum, with potential $5M+ platform awards over 12 months.
- Tariff mitigation strategies include regional production and customer cost-sharing.
- 2026 outlook: diversified end markets (medical, aerospace) to drive growth, while monitoring EV/hybrid adoption trends.

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