TTM Technologies Earnings Call Transcripts
Fiscal Year 2026
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The event highlighted a refreshed strategy focused on technology leadership, robust growth in both Aerospace & Defense and Commercial sectors, and significant investments in advanced PCB technology and global capacity. Financial guidance was raised, with 2026 revenue expected to reach $4 billion and margins expanding, supported by disciplined capital allocation and a strong balance sheet.
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Record Q1 2026 sales and earnings were driven by robust demand in AI, data center, and defense markets, with 30% revenue growth and significant margin expansion. CapEx guidance was raised to support accelerated growth, and strong bookings/backlog support a positive outlook.
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The company expects robust growth driven by AI, data center, and defense markets, with annual top-line increases of 5–20% and plans to double earnings by 2027. Capacity expansions in China, Malaysia, and the U.S. support this growth, while strategic flexibility and technology leadership differentiate it in both commercial and defense sectors.
Fiscal Year 2025
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Q4 2025 sales rose 19% year-over-year to $774.3 million, with record non-GAAP EPS and strong growth in AI and defense-driven markets. Guidance projects 15%-20% sales growth in 2026, supported by capacity expansion and robust backlog, with all growth expected to be organic.
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Q3 2025 saw 22% year-over-year sales growth, record highs in Aerospace & Defense and data center markets, and strong cash flow. Outlook remains positive with continued investment in Penang and Syracuse, and Q4 guidance projects sustained growth and profitability.
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Aerospace/defense and data center/networking drive strong growth, with 75%-80% of business in these expanding markets. Major investments in advanced PCB technology, new facilities, and a technical new CEO position the company for continued margin and revenue gains.
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Q2 2025 saw 21% revenue growth, record non-GAAP EPS, and strong margins, led by aerospace/defense and data center markets. New U.S. and Malaysia facilities advance supply chain diversification, while Penang ramp lags expectations. CEO retirement announced.
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Q1 2025 saw 14% revenue growth and record non-GAAP margins, led by aerospace, defense, and AI-driven markets. Tariff exposure remains limited, with strong backlogs and ongoing facility investments supporting future growth.
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A diversified technology supplier is driving growth in Aerospace & Defense and data center markets, with organic expansion in defense programs and a strong global footprint. Investments in Malaysia and integrated electronics are expected to boost margins and flexibility, while leveraging commercial tech for defense innovation.
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Aerospace and defense now comprise nearly half of sales, with strong bookings and growth in radar, surveillance, and microelectronics. Major investments in uHDI and global manufacturing are set to drive margin expansion and meet onshoring demand. Financials show improving margins, robust cash flow, and readiness for further acquisitions.
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A&D now comprises nearly half of revenue, with strong backlog and margin gains from engineered products and radar systems. Data Center Computing, driven by AI, is rapidly expanding, while automotive faces headwinds from Chinese competition. Major investments in Syracuse and Penang support advanced technology and global flexibility.
Fiscal Year 2024
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Q4 2024 saw 14% revenue growth and record highs in aerospace & defense and data center computing, with double-digit non-GAAP operating margins and strong cash flow. Outlook for Q1 2025 projects $600–640 million in sales and continued margin strength, driven by strategic focus on high-growth markets.
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Aerospace and defense and data center computing are driving strong growth, with rapid expansion in high-tech manufacturing and a focus on operational efficiency. Strategic investments and facility upgrades support long-term margin and cash flow targets.
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The company is executing a strategic shift toward engineered products and aerospace/defense, with strong growth in data center and AI-driven segments. Supply chain and labor issues have improved, and new facilities in Malaysia and the U.S. support future expansion. Financial targets remain robust, with ongoing M&A and share buybacks.
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Q3 2024 saw strong operating margins and revenue growth, led by aerospace & defense and data center computing, while automotive remained weak. The Penang facility continues to be a margin drag but is on track for break-even by mid-2025. Cash flow and backlog remain robust.
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Transitioning to higher-value engineered products, the company is leveraging acquisitions and a diversified global footprint to drive growth, especially in aerospace and defense. Margin expansion is expected from operational improvements and new facility ramp-ups, supported by a strong balance sheet.
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Q2 saw revenue and non-GAAP EPS exceed guidance, led by aerospace & defense and data center computing, with improved margins and strong cash flow. Penang facility ramp is delayed, and refinancing will lower interest costs. Customer concentration in data center remains high.
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Revenue reached $2.2 billion with a major shift toward defense, now nearly half of total sales. Data center computing and AI drive growth, while automotive faces challenges from China's EV market. Margin improvement is expected from new facilities and ongoing strategic initiatives.