CTS reported 2Q:25 adjusted EPS of $0.57 was modestly ahead of our $0.55 projection. Revenue was up 4% year over year in the second quarter. Non-transportation (mostly medical, aerospace & defense and industrial) rose 13% (an estimated 55% of 2Q:25 revenue). Transportation sales (estimated 45% of revenue) were down 6%. Relative to our expectations, the volume and lower share count were the primary drivers of better profitability. The company left 2025 guidance unchanged, with revenue of $520-$550 million and EPS of $2.20-$2.35. We think CTS's diversification efforts into more profitable end markets has enabled the company to better endure slower trends in the vehicle market. Despite an active M&A profile, the company has a disciplined capital allocation strategy. At the end of 2Q:25, the company had a net cash position of $11.4 million ($0.38 per share). We look for free cash flow (FCF) of $81.9 million ($2.73 per share) in 2025, allowing net cash to widen to $35.3 million ($1.19 per share). We maintain our price target of $43, which is based on an unchanged 18x our 2026 EPS estimate of $2.41. We maintain CTS's moderate risk rating, reflecting the company's strong balance sheet and solid cash flow generation.