TTMI Q4 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

Core Insights - TTM Technologies (TTMI) achieved a record fourth-quarter 2025 non-GAAP EPS of 70 cents, a 42.9% increase year-over-year, surpassing the Zacks Consensus Estimate by 2.94% [1] - The company's net sales reached $774.3 million, reflecting an 18.9% year-over-year growth and also exceeding the consensus estimate by 2.94% [1] Q4 Top-Line Details - Aerospace & Defense sales increased by 3.9% year-over-year to $318 million, while Commercial revenues surged by 32.2% to $448.5 million, and RF&S Components sales rose by 5.4% to $10.7 million [2] End-Market Sales Distribution - In the reported quarter, the sales distribution was led by Aerospace & Defense (41%), followed by Data Center Computing (28%), Medical, Industrial & Instrumentation (14%), Automotive (9%), and Networking (8%) [3] - Combined revenues from Data Center Computing and Networking accounted for 36% of total sales, driven by strong demand in generative AI [3] Book-to-Bill Ratio and Backlog - TTM Technologies reported a book-to-bill ratio of 1.35, with the Aerospace & Defense program backlog reaching $1.6 billion [4] - The 90-day backlog, excluding shipments into customer hubs, increased to $0.65 billion from $0.50 billion year-over-year [4] Operating Details - The non-GAAP gross margin for Q4 2025 was 21.7%, an expansion of 120 basis points year-over-year, with a gross profit of $167.8 million [5] - Selling and marketing expenses rose by 5.5% year-over-year to $21.1 million, while general and administrative expenses increased by 10.6% to $50.1 million; however, R&D expenses decreased by 13.2% to $6.9 million [5] EBITDA and Operating Income - Adjusted EBITDA increased by 31.8% year-over-year to $126.2 million [6] - Non-GAAP operating income surged by 49.4% year-over-year to $98.2 million, with the operating margin expanding by 260 basis points to 12.7% [6] Balance Sheet & Cash Flow - As of December 29, 2025, TTM Technologies had cash and cash equivalents of $501.2 million, with total debt amounting to $916.2 million [7] - The net cash provided by operating activities was $62.9 million, while free cash flow stood at $11.7 million [7] Q1 & 2026 Guidance - For Q1 2026, TTM Technologies expects non-GAAP earnings between 64 cents and 70 cents per share, with net sales anticipated to be between $770 million and $810 million [8] - For the full year 2026, the company projects net sales growth in the range of 15% to 20% [8] Zacks Rank & Other Stocks - TTM Technologies currently holds a Zacks Rank 1 (Strong Buy) [10] - Other top-ranked stocks in the sector include Amkor Technology, IPG Photonics, and MKS Inc., all with a Zacks Rank 1 [10]