Core Insights - TTM Technologies (TTMI) shares fell 8.3% to close at $43.34 on Friday, with an 11.1% drop since the second-quarter 2025 results were reported, attributed to a weak third-quarter 2025 outlook [1][9] - Year-to-date, TTMI shares have appreciated 75.1%, significantly outperforming the broader Zacks Computer and Technology sector's return of 9.1% [1] Revenue and Earnings Guidance - TTM Technologies expects third-quarter 2025 revenues between $690 million and $730 million, with the high end lower than the $730.6 million reported in the second quarter [2] - The revenue figure for the second quarter beat the Zacks Consensus Estimate by 9.38% and increased 21% year over year [2] - The Zacks Consensus Estimate for third-quarter 2025 revenues is currently $710.5 million, suggesting a 15.2% growth year over year but a 2.8% sequential decline [2] - For third-quarter 2025, non-GAAP earnings are expected to be between 57 cents and 63 cents per share, compared to the second-quarter 2025 non-GAAP earnings of 58 cents per share [3] Second Quarter 2025 Performance - Revenues from Aerospace & Defense, Commercial, and RF&S Components were $327.6 million (44.8% of total revenues), $395.6 million (54.1% of total revenues), and $10.1 million (1.4% of total revenues), respectively [4] - Year-over-year revenue growth for Aerospace & Defense, Commercial, and RF&S Components was 19.3%, 22.4%, and 11%, respectively [4] - TTM Technologies generated 45% of total revenues from Aerospace and Defense end markets, with significant contributions from Data Center computing (21%) and Medical, Industrial & Instrumentation (15%) [5] Operating Metrics - TTM Technologies reported a non-GAAP gross margin of 20.9%, expanding 90 basis points year over year [7] - Non-GAAP operating income surged 49.3% year over year to $81.4 million, with an operating margin of 11.1%, up 210 basis points year over year [8] - Adjusted EBITDA increased 29.6% year over year to $109.7 million [7] Financial Position - As of June 30, 2025, TTM Technologies had cash and cash equivalents of $448 million and total debt of $917.1 million, resulting in a net leverage of 1.2X [10] - Net cash provided by operating activities was $97.8 million, while free cash flow was $37.6 million in the reported quarter [10] Customer Concentration and Backlog - The top five customers accounted for 41% of revenues in the reported quarter, with a backlog of $496.8 million and a Book to Bill ratio of 0.89 [6]
TTM Technologies Beats Q2 Earnings Estimates, Shares Fall on Weak View