CTS (CTS) Is Up 7.5% After Strong 2025 Results And Acquisition-Focused 2026 Guidance - What’s Changed

Simply Wall St

Wed, February 11, 2026 at 3:17 PM GMT+9 3 min read

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CTS

+3.08%

On February 10, 2026, CTS Corporation reported full-year 2025 results showing higher sales and earnings, issued 2026 revenue guidance of US$550 million to US$580 million, and highlighted strong cash generation with US$82 million in cash, US$58 million of borrowings, and US$62 million returned to shareholders through dividends and buybacks.

Management also signaled an appetite for acquisitions alongside an existing US$90 million share repurchase capacity, underscoring an active capital allocation approach that could reshape CTS’s portfolio mix and earnings profile over time.

We’ll now examine how CTS’s stronger cash generation and renewed acquisition focus might influence its existing investment narrative and risk profile.

Find 51 companies with promising cash flow potential yet trading below their fair value.

CTS Investment Narrative Recap

To own CTS, I think you need to believe in its shift from a transportation-heavy business toward more resilient, diversified end markets supported by solid cash generation. The latest results confirm higher 2025 sales and earnings, but do not materially change the near term catalyst around execution in medical, industrial and aerospace, or the key risk that transportation softness and geopolitical pressures could still weigh on overall growth.

The announcement that CTS generated US$102 million in operating cash flow in 2025, ended the year with US$82 million in cash and US$58 million of borrowings, and still returned US$62 million to shareholders stands out to me. It keeps the acquisition and buyback option firmly on the table, which matters for how quickly CTS can offset any transportation weakness with new wins and potential bolt on deals in its higher margin, diversified segments.

Yet despite this stronger cash profile, investors should still pay close attention to how ongoing softness in transportation sales could…

Read the full narrative on CTS (it’s free!)

CTS’ narrative projects $610.6 million revenue and $78.8 million earnings by 2028.

Uncover how CTS’ forecasts yield a $52.00 fair value, a 9% downside to its current price.

Exploring Other Perspectives

CTS 1-Year Stock Price Chart

Two fair value estimates from the Simply Wall St Community span roughly US$45.29 to US$52, showing how far apart individual views can be. These differing perspectives sit against a backdrop where transportation exposure and geopolitical risks are front of mind for CTS’s future performance, so it is worth weighing several viewpoints before forming your own.

Explore 2 other fair value estimates on CTS - why the stock might be worth as much as $52.00!

Story Continues  

Build Your Own CTS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your CTS research is our analysis highlighting 3 key rewards that could impact your investment decision.

Our free CTS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CTS' overall financial health at a glance.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include CTS.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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