CTS Corporation

Good morning and thank you for joining us. We delivered a strong third quarter with revenue growing 5% to $150 million. Our diversified end markets increased 7% year-over-year and represented 60% of total sales. Strong execution drove record profitability and robust cash generation with gross margin of 42.2%, adjusted EBITDA margin of 24.7%, and adjusted diluted EPS of 77 cents. While transportation sales increased modestly, continued growth across our diversified end markets enabled strong financial results and improved the quality of our earnings. As announced last Friday, we are excited about the acquisition of Millar, a highly complimentary business that strengthens our position in diversified end markets, primarily medical, and expands our portfolio in advanced pressure sensing technologies. Ashish Agrawal, our CFO, will take us through the safe harbor statement.

Ashish. I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today and more information can be found in the company's SEC filings. To the extent that today's discussion refers to any non-GAAP measures under Regulation G, the required explanations and reconciliations are available with today's earnings press release and the supplemental slide presentation which can be found in the investors section of the CTS website. I will now turn the discussion back over to Pratik.

Thank you, Ashish. We finished the third quarter with sales of 150 million representing a 5% increase compared to the third quarter of 2025 and up 3% sequentially from the second quarter. Our diversified end markets were up 7% year-over-year, while transportation sales were up 2%. Diversified end market sales were 60% of overall company revenue in the quarter, up from 59% in the prior year period. For 2026 year-to-date, diversified sales were up 12% and transportation sales remained flat over the same period last year. Our book-to-bill ratio for the third quarter was 1.18, reflecting sustained customer demand across our portfolio. Diversified bookings were particularly strong with a book-to-bill of 1.3. We added one new customer in the industrial end market and one in the transportation end market. The strength of our operational execution and favorable product mix was evident as we expanded gross margin to a record 42.2% up 330 basis points compared to the third quarter of 2025. Adjusted EBITDA margin reached 24.7% and improvement of approximately 90 basis points year over year. Third quarter adjusted diluted earnings with a record 77 cents per share up from 60 cents in the third quarter of 2025. We maintain strong cash generation supporting our balanced capital allocation approach that includes strategic investments in growth and returning cash to shareholders. Ashish will add further color on our financial performance later in today's call. The recently completed acquisition of Millar represents another important step in our strategy to reshape CTS towards a more diversified portfolio of high-value, differentiated technologies serving attractive end markets. The acquisition meaningfully increases our exposure to medical and industrial markets while expanding our capabilities into pressure, chemical and electrochemical sensing, and differentiated catheter-based technologies. Millar's vertically integrated capabilities spanning design, micro fabrication, and precision manufacturing enable differentiated solutions for demanding applications. Beyond the strategic fit, We see compelling opportunities to accelerate growth by leveraging complementary technologies, expanding customer relationships, and bringing CTS's broader engineering and commercial capabilities to the Millar platform. We expect Millar to generate revenues of approximately $30 million on an annual basis. The acquisition is expected to be accretive in the second half of 2027. The medical end market continued to be a significant growth driver in the third quarter, generating revenue of 27 million, an increase of 21% year-over-year, and decrease of 4% sequentially, mainly due to timing of orders. Performance was fueled by broad-based demand across our sensing and actuation technologies, particularly in applications supporting advanced diagnostics and therapeutic treatments. New business wins were impacted by timing of orders in the quarter, resulting in a book-to-bill ratio of 0.66. During the quarter, we had key wins in implantable pacemaker applications, ultrasound diagnostics, and therapeutic applications across all regions. We continue to partner with leading global medical OEMs on next generation programs across diagnostic, imaging, therapeutics, and several emerging applications. These opportunities combined with favorable demographics and continued medical innovation reinforce our confidence in the long-term growth of the market. Aerospace and defense sales were 24 million in the third quarter, 7% below prior year but 30% higher quarter over quarter, reflecting the flow of program funding and government contract orders. Orders remain very healthy as reflected in our 1.91 book to bill ratio providing strong support for future growth. We continue to move up the value chain, expanding from components to higher value sensing solutions and integrated subsystems for naval sonar, undersea warfare, and secure communications applications. During the quarter, we achieved an important win by successfully scaling production of a critical sensing solution for a US Navy undersea warfare application. Increasing investments in traditional defense infrastructure as well as our customer engagements in modern warfare applications position us well for the long-term growth in this end market. Our industrial end market continued its strong momentum in the third quarter with sales of 40 million increasing 7% year-over-year and 1% sequentially, further extending the recovery trend that began in 2025. Growth was broad-based across OEM customers and distribution partners and bookings remained healthy with a book-to-bill ratio of 1.36. During the quarter, we secured multiple design wins across a diverse set of applications, including distribution components, industrial printing, data center applications, refrigeration, HVAC systems, and industrial automation. We added one new customer during the quarter expanding our presence for temperature sensing in industrial steam and condensate systems. Looking ahead, we expect industrial demand to remain healthy, supported by favorable secular trends, including data center applications, automation, connectivity, digitalization, and the increasing focus on energy efficiency. These trends continue to expand the addressable market for our industrial portfolio, positioning us well for sustained growth. Transportation sales in the third quarter were 60 million, up 2% versus the prior year, and up 1% sequential. We secured important new business wins across our transportation portfolio, particularly in foot controls and sensing applications. These wins expand our presence across global vehicle platforms, establish our entry into the seat track market with Japanese OEMs, and extend our floor hinge pedal business into China. creating additional opportunities for future growth. Total booked business was approximately 1.2 billion at the end of the quarter. We added one new tier one customer during the quarter. We continue to build momentum around our e-brake technology with multiple customer opportunities, progressing across future hybrid and electric vehicle platforms. Positive customer feedback, Continued product development and upcoming vehicle demonstrations are building customer momentum and positioning ebrake for broader adoption. Turning to the outlook for 2026, for our diversified end markets, demand is expected to remain solid. In medical, we see continued momentum, especially with the acquisition of Millar. In aerospace and defense, revenue is expected to remain strong in the fourth quarter, given our robust order backlog. An industrial OEM and distribution demand is expected to remain healthy. Across transportation markets, global light vehicle production volumes are forecasted to be flat to modestly down given ongoing tariff, geopolitical and consumer demand uncertainties. We continue to closely monitor and evaluate the tariff and geopolitical environment. Our focus remains on agility in adapting to cost and price adjustments in close collaboration with our customers and suppliers. Assuming the continuation of current market conditions for the full year 2026, we are raising our guidance with sales now expected in the range of 580 million to 590 million and adjusted diluted EPS in the range of $2.78 to $2.88. Now I'll turn it over to Ashish. who will walk us through the financial results in more details.