TTM Technologies Q4 Earnings Call Highlights

Core Insights - TTM Technologies reported strong fourth-quarter sales of $774.3 million, exceeding guidance, with a year-over-year increase of 19% driven by demand in data center computing and networking linked to generative AI, as well as growth in medical, industrial, and aerospace sectors [1][4][5] Financial Performance - The company achieved record non-GAAP EPS of $0.70, an adjusted EBITDA margin of 16.3%, and operating cash flow of $63 million for Q4, with full-year net sales rising to $2.9 billion from $2.4 billion [5][6][13] - TTM's book-to-bill ratio was 1.35 for the quarter, with a strong defense segment book-to-bill of 1.46, contributing to a program backlog of approximately $1.6 billion [5][8][12] Market Demand and Growth Drivers - Approximately 80% of TTM's net sales are associated with artificial intelligence and defense, highlighting the strategic focus on Advanced Interconnect technologies and integrated modules [2][6] - The aerospace and defense sector represented 41% of Q4 sales, with a 5% year-over-year growth, while data center computing saw a remarkable 57% growth in Q4 [7][9] Guidance and Future Outlook - Management guided for FY26 net sales to increase by 15% to 20%, with Q1 2026 net sales expected to range from $770 million to $810 million [5][16][17] - The company plans significant capital expenditures of approximately $240 million to $260 million for 2026, alongside targeted investments of $200 million to $300 million in data center capacity [5][20] Capacity Expansion and Strategic Initiatives - TTM is expanding capacity in Syracuse and Eau Claire, with the Syracuse facility expected to generate revenues in the second half of the year [18][19] - The company is focusing on organic growth and aims to double earnings from 2025 to 2027, leveraging demand and capacity investments [21]