Financial Data and Key Metrics Changes - TTM Technologies achieved revenue of $730.6 million in Q2 2025, a 21% increase from $605.1 million in Q2 2024, driven by strong demand in various end markets [25][6][7] - Non-GAAP EPS reached a record $0.58, compared to $0.39 in the same quarter last year [31][7] - Non-GAAP operating margins improved to 11.1%, up 210 basis points year-on-year [29][7] - Cash flow from operations was 13.4% of revenues, with net leverage at 1.2 times [32][7] Business Line Data and Key Metrics Changes - Aerospace and defense represented 45% of total revenues, with a program backlog of approximately $1.46 billion, showing strong demand and growth [17][7] - Data center computing accounted for 21% of total sales, with a 20% year-on-year growth, driven by generative AI applications [18][7] - Medical industrial instrumentation contributed 15% of total sales, with a 28% year-on-year growth [19][7] - Automotive sales declined slightly to 11% of total sales due to inventory adjustments and soft demand [19][7] - Networking revenue grew significantly by 52% year-on-year, accounting for 8% of total sales [20][7] Market Data and Key Metrics Changes - The defense market is expected to benefit from increased defense budgets, with a significant $150 billion allocated in the fiscal year 2025 reconciliation bill [12][7] - NATO leaders have agreed to increase defense spending to 5% of GDP, providing a positive outlook for defense-related revenues [13][7] - The company is seeing growing interest from hyperscalers and EMS companies investing in new facilities in the U.S., particularly for generative AI [10][7] Company Strategy and Development Direction - TTM is focusing on diversifying its manufacturing footprint and end markets, having divested lower-margin facilities in China and invested in new capabilities in the U.S. and Malaysia [8][7] - The company plans to enhance its production capabilities in Eau Claire, Wisconsin, to support high-volume U.S. production of advanced technology PCBs [11][7] - TTM is also expanding its facility in Penang, Malaysia, to meet customer demand and diversify supply chains beyond China [15][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential tariff impacts due to its diversified end markets and manufacturing locations [9][7] - The company remains optimistic about future growth in the aerospace and defense sector, supported by a solid backlog and ongoing program bookings [17][7] - Management acknowledged challenges in ramping up the Penang facility but remains focused on achieving breakeven revenue levels [15][7] Other Important Information - The company announced a change in its reportable segments to better reflect its operations, now categorized into aerospace and defense, commercial, and RF and specialty components [26][7] - TTM's top five customers contributed 41% of total sales, indicating a stable customer base [21][7] - The company is actively pursuing M&A opportunities in the microelectronics and RF microwave spaces, anticipating more properties to come to market in the next year [76][7] Q&A Session Summary Question: Timeline for new capacity in Wisconsin and customer requests - Management indicated that the Eau Claire facility is prepared for customer engagement and discussions are ongoing, particularly in the data center space [39][7] Question: Concerns about slippage in Penang's breakeven timeline - Management stated that while there are challenges, they do not believe it impacts their competitive position and are focused on optimizing yields [46][7] Question: Update on capacity expansion in China - Management confirmed that they are on track to add 20% additional capacity in their Dongguan facility and are qualifying programs in Guangzhou [55][7] Question: Customer diversification in the data center segment - Management reported good diversification in the data center space, with ongoing efforts to balance capacity for core customers and new entrants [58][7] Question: Cost competitiveness of the Eau Claire facility - Management acknowledged that initial costs would be higher than in China, but there is customer appetite for U.S.-based capacity [82][7] Question: Margin drag in Penang - Management noted that the margin drag in Penang has increased to about 210 basis points year-over-year [84][7]

Financial Data and Key Metrics Changes - TTM Technologies achieved revenue of $730.6 million in Q2 2025, a 21% increase from $605.1 million in Q2 2024, driven by strong demand in various end markets [25][26] - Non-GAAP EPS reached a record $0.58, compared to $0.39 in the same quarter last year, reflecting strong operational performance [31] - Non-GAAP operating margins improved to 11.1%, up 210 basis points year on year, marking the fourth consecutive quarter of double-digit operating margin performance [6][29] Business Line Data and Key Metrics Changes - Aerospace and Defense segment accounted for 45% of total revenues, with net sales of $327.6 million, up from $274.5 million in Q2 2024 [26][17] - Data Center Computing segment represented 21% of total sales, achieving 20% year-on-year growth, driven by demand for generative AI applications [18][19] - Medical Industrial Instrumentation segment contributed 15% of total sales, with a 28% year-on-year growth due to increased demand in robotics and automated test equipment [18][19] Market Data and Key Metrics Changes - The automotive market saw a slight decline, contributing 11% of total sales, down from 14% in the previous year, primarily due to inventory adjustments [19] - Networking segment grew significantly, accounting for 8% of revenue with a 52% year-on-year increase, driven by demand from networking customers [20] - The company maintains a solid backlog in the Aerospace and Defense market, amounting to approximately $1.46 billion, indicating strong future revenue visibility [17][22] Company Strategy and Development Direction - TTM is focusing on expanding its manufacturing capabilities in the U.S. to support defense and generative AI markets, including a new facility in Eau Claire, Wisconsin [9][10] - The company is diversifying its production footprint and end markets, having divested lower-margin facilities in China and invested in new capabilities in the U.S. and Malaysia [7][8] - TTM plans to establish a second production site in Malaysia to meet increasing customer demand and supply chain diversification needs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the defense market due to increased government spending, with a $150 billion increase in defense budgets expected to drive growth [11][12] - The geopolitical environment is being monitored, but TTM does not anticipate significant short-term impacts from tariffs due to its diversified operations [8] - Management remains optimistic about future growth, particularly in the aerospace and defense sectors, and expects continued strong demand in data center computing [5][6] Other Important Information - The company announced a change in its reportable segments to better reflect its operations, now categorizing into Aerospace and Defense, Commercial, and RF and Specialty Components [26] - TTM's cash flow from operations was 13.4% of revenues, with a net leverage ratio of 1.2 times, indicating a healthy financial position [6][32] - The CEO announced plans to retire, with a search for a successor already underway [24] Q&A Session Summary Question: Timeline for new capacity in Wisconsin and customer requests - Management indicated that the Eau Claire facility is prepared for customer engagement and infrastructure is ready for equipment installation as demand increases [39][40] Question: Concerns about slippage in Malaysia's breakeven timeline - Management stated that while the ramp-up in Penang is slower than anticipated, it does not impact competitive positioning, and customer interest remains strong [46][48] Question: Update on capacity expansion in China - Management confirmed that capacity in China is being expanded, particularly in Dongguan and Guangzhou, to meet data center demands [54][56] Question: Customer diversification in the data center segment - Management reported good diversification in the data center space, with ongoing efforts to balance capacity for core customers while adding new ones [58] Question: Cost competitiveness of the Eau Claire facility - Management acknowledged that initial costs in Eau Claire would be higher than in China, but there is customer appetite for U.S.-sourced capacity [84][85] Question: Margin drag in Penang - Management noted that the margin drag in Penang has worsened slightly, now at about 210 basis points [86]

Financial Performance - Net sales for Q2 2025 were $730.6 million, a 21% increase from $605.1 million in Q2 2024[3] - GAAP net income for Q2 2025 was $41.5 million, or $0.40 per diluted share, compared to $26.4 million, or $0.25 per diluted share in Q2 2024[4] - Non-GAAP net income for Q2 2025 was $60.8 million, or $0.58 per diluted share, up from $40.2 million, or $0.39 per diluted share in Q2 2024[5] - Adjusted EBITDA for Q2 2025 was $109.7 million, representing 15.0% of sales, compared to $84.6 million, or 14.0% of sales in Q2 2024[5] - Non-GAAP operating margins were 11.1%, an increase of 210 basis points year on year[6] - Non-GAAP net income for Q2 2025 was $60.76 million, up from $40.20 million in Q2 2024, indicating a growth of approximately 51.4%[24] - Non-GAAP operating income reached $81.42 million in Q2 2025, up from $54.52 million in Q2 2024, representing a growth of approximately 49.2%[24] - GAAP net income for Q2 2025 was $41.53 million, up from $26.35 million in Q2 2024, representing a 57.5% increase[25] - Adjusted EBITDA for Q2 2025 reached $109.73 million, compared to $84.64 million in Q2 2024, reflecting a 29.6% growth[25] - Free cash flow for Q2 2025 was $37.57 million, an increase from $31.90 million in Q2 2024, marking a 17.0% rise[25] Operational Highlights - Cash flow from operations was $97.8 million, or 13.4% of revenues[8] - Gross margin improved to 20.3% in Q2 2025 from 19.4% in Q2 2024, while operating margin increased to 8.5% from 6.4%[23] - Total segment sales rose to $730.62 million in Q2 2025, up from $605.14 million in Q2 2024, marking an increase of approximately 20.7%[23] - Aerospace & Defense segment sales increased to $327.57 million in Q2 2025, compared to $274.51 million in Q2 2024, reflecting a growth of about 19.3%[23] - Stock-based compensation expense totaled $9.19 million in Q2 2025, compared to $6.58 million in Q2 2024, an increase of about 39.5%[23] - The company reported a total operating income of $61.77 million in Q2 2025, compared to $38.99 million in Q2 2024, reflecting an increase of approximately 58.1%[23] - The adjusted EBITDA margin improved to 15.0% in Q2 2025 from 14.0% in Q2 2024, reflecting enhanced operational efficiency[25] Market and Strategic Developments - TTM expects Q3 2025 revenues to be between $690 million and $730 million, with non-GAAP net income per diluted share projected between $0.57 and $0.63[9] - The company acquired a facility in Wisconsin and land rights in Penang to support regional diversification of PCB supply chains[6] - Record quarterly revenues were achieved in the Aerospace and Defense and Data Center Computing end markets[8] - The company reported a strong demand in Aerospace and Defense, Medical, Industrial and Instrumentation, Data Center Computing, and Networking end markets, driven by generative AI requirements[6] Asset and Cash Management - Cash and cash equivalents decreased from $5,003.93 million in December 2024 to $4,479.67 million in June 2025, representing a decline of approximately 10.4%[22] - Total current assets amounted to $1,676.44 million as of June 2025, compared to $1,606.74 million in December 2024, an increase of about 4.3%[22] Capital Expenditures - Capital expenditures for Q2 2025 were $60.23 million, significantly higher than $9.96 million in Q2 2024, indicating increased investment[25]

Q2 2025 Financial Performance - Revenue reached $730.6 million, exceeding the guided range of $650 million to $690 million[14] - Non-GAAP EPS was $0.58, surpassing the guided range of $0.49 to $0.55 and marking a quarterly record[13, 14] - Cash flow from operations amounted to $97.8 million, representing 13.4% of revenues[14] - The company holds a cash balance of $448.0 million, with net leverage (net debt divided by the last twelve months of EBITDA) at 1.2x[14] - Free cash flow was $37.6 million, compared to $31.9 million in Q2 2024[19] Q3 2025 Guidance - Expect revenues to be in the range of $690 million to $730 million[14] - Anticipate non-GAAP EPS to be between $0.57 and $0.63[14] End Market Performance (Q2 2025) - Aerospace & Defense accounted for 45% of revenues, showing a year-on-year growth of 21%[15] - Data Center Computing represented 21% of revenues, with a year-on-year growth of 20%[15] - Medical, Industrial & Instrumentation contributed 15% of revenues, experiencing a year-on-year growth of 28%[15] - Networking saw a significant year-on-year growth of 52%, accounting for 8% of revenues[15]

Core Insights - TTM Technologies, Inc. announced the retirement of President and CEO Thomas T. Edman, with a search for his successor underway, expected to conclude by the end of 2025 [1][2][4] - Edman has been with the company since 2004, serving as President since 2013 and CEO since 2014, leading TTM through significant growth and operational improvements [2][3] - Under Edman's leadership, TTM has strengthened its capabilities in the Aerospace and Defense market and expanded its focus on Data Center Computing and Networking, particularly in support of generative AI [2][3] Company Performance - TTM is experiencing its strongest first half of any year in terms of revenue growth and margins, supported by a solid balance sheet for future growth [3] - The company has successfully integrated multiple acquisitions and diversified its end markets, enhancing its position as a global leader in advanced electronics solutions [3] Leadership Transition - Edman will remain as President and CEO until a successor is appointed and will continue to serve as a Director and member of the Government Security Committee post-transition [1][4] - The Board of Directors expressed gratitude for Edman's visionary leadership and commitment, noting his impact on the company's strategic direction [4]

Core Insights - TTM Technologies, Inc. reported strong financial results for the second quarter of 2025, with significant year-on-year growth in net sales and net income [2][3][4]. Financial Performance - Net sales for Q2 2025 were $730.6 million, a 21% increase from $605.1 million in Q2 2024 [2][8]. - GAAP operating income rose to $61.8 million in Q2 2025 from $39.0 million in Q2 2024 [2]. - GAAP net income for Q2 2025 was $41.5 million, or $0.40 per diluted share, compared to $26.4 million, or $0.25 per diluted share, in Q2 2024 [3][8]. - Non-GAAP net income for Q2 2025 was $60.8 million, or $0.58 per diluted share, up from $40.2 million, or $0.39 per diluted share, in Q2 2024 [4][22]. - Adjusted EBITDA for Q2 2025 was $109.7 million, representing 15.0% of sales, compared to $84.6 million, or 14.0% of sales, in Q2 2024 [4][22]. Market Demand and Growth Drivers - The revenue growth was attributed to strong demand in Aerospace and Defense, Medical, Industrial and Instrumentation, Data Center Computing, and Networking markets, with particular growth in Data Center Computing driven by generative AI requirements [5]. - Non-GAAP operating margins improved to 11.1%, an increase of 210 basis points year-on-year, marking the fourth consecutive quarter of double-digit margins [5]. Business Outlook - For Q3 2025, TTM estimates revenues to be between $690 million and $730 million, with non-GAAP net income projected to be between $0.57 and $0.63 per diluted share [6]. Operational Developments - The company announced the acquisition of a facility in Wisconsin and land rights in Penang to support regional diversification of PCB supply chains and future growth [5]. Segment Performance - Segment sales for Aerospace and Defense reached $327.6 million, up from $274.5 million in Q2 2024, while Commercial segment sales increased to $395.6 million from $323.3 million [21]. - The Aerospace and Defense segment accounted for 45% of total sales, while Data Center Computing also represented 21% [20]. Cash Flow and Financial Health - Cash flow from operations was reported at $97.8 million, or 13.4% of revenues, indicating strong operational efficiency [5][8]. - Total assets as of June 30, 2025, were $3.58 billion, with total stockholders' equity at $1.64 billion [19].

Core Insights - TTM Technologies (TTMI) is expected to report second-quarter fiscal 2025 results on July 30, with projected revenues of $650-$690 million, indicating a 10.39% year-over-year increase [1][9] - The company anticipates non-GAAP earnings per share (EPS) between 49 cents and 55 cents, reflecting a 33.33% year-over-year growth [2][9] - TTMI has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 17.65% [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for TTMI's revenues is $667.99 million, which aligns with the company's guidance [1] - The consensus mark for earnings is set at 52 cents per share, unchanged over the past 30 days [2] Segment Performance - The aerospace and defense segment is experiencing strong growth, supported by a $1.55 billion backlog and increased visibility in radar, surveillance, and missile systems [3] - Data center computing and networking are key growth drivers, with AI infrastructure demands likely boosting the need for advanced Printed Circuit Boards [4] Challenges and Risks - Tariff-related uncertainties and weakness in the automotive market may limit revenue growth, with ongoing inventory corrections expected to keep automotive volumes subdued [5] - Start-up costs from the Penang facility are anticipated to compress near-term margins, alongside tariff exposure on imported materials [5] Earnings Model Insights - According to the Zacks model, TTMI has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), indicating a lower likelihood of an earnings beat [6]

Company Overview - TTM Technologies (TTMI) shares increased by 5.4% to $47.47 in the last trading session, with a notable trading volume and a 22.7% gain over the past four weeks [1] - The company is experiencing strong demand in aerospace and defense, data center computing, and networking markets, alongside investments in advanced manufacturing facilities in Penang and Syracuse [1] Earnings Expectations - TTM is projected to report quarterly earnings of $0.52 per share, reflecting a year-over-year increase of 33.3% [2] - Expected revenues for the upcoming quarter are $667.99 million, which is a 10.4% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for TTM has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - TTM currently holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] Industry Comparison - TTM is part of the Zacks Electronics - Miscellaneous Components industry, where Rogers Corp. (ROG) has a consensus EPS estimate of $0.5, representing a year-over-year decline of 27.5% [4] - Rogers Corp. holds a Zacks Rank of 3 (Hold), indicating a less favorable outlook compared to TTM [4]

Company Overview - TTM Technologies, Inc. is a leading global manufacturer of technology solutions, including mission systems, radio frequency components, RF microwave/microelectronic assemblies, and advanced printed circuit boards (PCBs) [4] Upcoming Events - TTM Technologies will host a conference call on July 30, 2025, at 4:30 p.m. Eastern Time to discuss its second quarter 2025 performance [1] - The company will release its second quarter 2025 financial results after the market closes on the same day [3] - Access to the conference call will be available through a registration link, and participants will receive dial-in information and a unique PIN [2]

Core Insights - TTM Technologies, Inc. has announced the acquisition of a 750,000-square-foot facility in Eau Claire, Wisconsin, and land rights for a future manufacturing site in Penang, Malaysia, to enhance its manufacturing capabilities [1][3][4] Group 1: Acquisition Details - The Eau Claire facility was previously owned by TDK and is well-equipped for advanced technology PCB manufacturing, allowing TTM to reduce lead times for U.S. domestic capacity [3][4] - The new facility in Penang will support supply chain diversification beyond China, providing cost-competitive, high-quality PCB manufacturing in Southeast Asia [4] Group 2: Strategic Implications - These investments align with TTM's strategy to offer regionally optimized, globally connected manufacturing solutions, enhancing supply chain security and flexibility for global customers [2][4] - The Eau Claire facility is expected to support high-volume production for key markets, particularly in data center computing and networking for generative AI applications [3][4] Group 3: Economic Impact - The expansion in Wisconsin is seen as beneficial for the local economy, with the state recognized for its precision manufacturing capabilities [4] - TTM does not anticipate significant impacts on its operational results or financial condition for 2025 from these investments [5]