TTM Technologies Earnings Call Transcripts
Fiscal Year 2026
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Record Q2 2026 sales of $1 billion and non-GAAP EPS of $0.99 were driven by strong growth in Data Center & Networking, Medical, and A&D markets. Outlook for 2026 was raised to $4.4 billion in sales and nearly $5 EPS, with continued expansion through strategic acquisitions and capacity investments.
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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 saw 19% year-over-year sales growth, record non-GAAP EPS, and strong Adjusted EBITDA margin, driven by robust demand in AI and defense-related markets. Capacity expansions are on track, with organic growth expected to double earnings by 2027.
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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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The company is focused on high-growth sectors like Aerospace and Defense and Data Center Computing, with significant expansion in integrated electronics and global manufacturing. Organic growth in defense is driven by program lifecycles and technology refreshes, while commercial growth is supported by generative AI and customer-driven facility investments.
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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, supported by facility investments in Malaysia and the U.S. Strong growth in data center/AI and stable defense demand offset challenges in auto and muted recovery in other segments. Financial targets and capital allocation remain focused on growth, efficiency, and M&A opportunities.
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Q3 2024 saw strong revenue and margin growth, led by aerospace & defense and data center computing, with continued operational improvements and strategic facility investments. Penang ramp remains on track, while automotive lags amid market turbulence. Cash flow and balance sheet remain solid.
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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.