Financial Data and Key Metrics Changes - Revenues reached a new quarterly record of $212.6 million, a 6% increase year-over-year, marking the 18th consecutive quarter of revenue growth [9][20] - Gross margins improved to 26.6%, up from 26.2% year-over-year, with adjusted EBITDA margins at 16.2%, reflecting a 30 basis point increase from the prior year [13][14][21] - The company reported a net loss of $64.4 million, or $4.30 per share, primarily due to litigation settlements, compared to a net income of $10.1 million, or $0.67 per share in Q3 2024 [15][23][24] Business Line Data and Key Metrics Changes - The defense business grew by 13% in Q3, driven by a 21% increase in the missile franchise and 17% growth in military fixed-wing aircraft [9][10] - The commercial aerospace segment saw a decline of 10% year-over-year, primarily due to lower revenues from Boeing and regional jets [12][18] - The Structural Systems segment posted revenue of $89 million, up from $86 million, while the Electronic Systems segment revenue increased to $123.1 million from $115.4 million [24][26] Market Data and Key Metrics Changes - The military and space sector revenues increased to $126 million from $111 million in Q3 2024, reflecting strong growth in missile programs and military rotorcraft [17] - The company achieved a book-to-bill ratio of 1.6 times, with $338 million in new orders during Q3 [10][11] - Remaining performance obligations (RPO) reached a record $1.03 billion, increasing by $125 million sequentially [16][30] Company Strategy and Development Direction - The Vision 2027 Game Plan focuses on increasing the revenue percentage of engineered products and aftermarket content, which rose to 23% in 2025 from 15% in 2022 [7][8] - The company is consolidating its manufacturing footprint and pursuing a focused acquisition strategy to enhance growth in high-demand segments [6][8] - Management remains optimistic about the defense business outlook, citing strong order activity and a robust pipeline of opportunities [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the commercial aerospace sector due to destocking but expressed confidence in the defense business's strength [12][17] - The company expects continued mid-single-digit revenue growth for the full year of 2025, with low double-digit growth anticipated in Q4 [16][17] - Management highlighted the importance of strategic pricing and cost efficiencies as key drivers for margin expansion moving forward [46][47] Other Important Information - The company entered into a binding settlement for the Guam fire litigation, resulting in a $150 million payment, with $56 million expected to be covered by insurance [15][30] - The restructuring initiative is expected to generate annual savings of $11 million to $13 million, with initial cost savings already realized [28][29] Q&A Session Summary Question: Can you provide more detail on bookings in commercial aerospace? - Management noted strong bookings across Boeing and Airbus, with production rates currently at mid-20s to high 20s for MAX [34][35] Question: What are the expectations for revenue growth in Q4? - Management indicated continued strength in defense business will drive growth, despite ongoing destocking pressures in commercial aerospace [37][38] Question: What is the difference between RPO and backlog? - RPO represents total remaining performance obligations, while backlog is constrained to a two-year window and linked to shipments [39][40] Question: What are the expectations for margins in 2026? - Management expects stable margins for the rest of 2025, with significant opportunities for savings from facility consolidation in 2026 [45][46] Question: How will the litigation settlement impact M&A plans? - Management confirmed that they will maintain sufficient liquidity for acquisitions and are in discussions to expand their credit facility [47][48] Question: What is the company's position regarding the Golden Dome program? - Management expressed optimism about being well-positioned in missile and radar franchises, although specific customer feedback is still pending [49][50]

TTM Technologies (TTMI) 2025 Conference Summary Company Overview - TTM Technologies is a technology solutions provider primarily focused on printed circuit boards (PCBs), which account for approximately 75% of its business. The company generated revenues of about $2.5 billion last year and is diversifying into integrated electronics and subsystems [3][4][6]. Core Business Segments - The company operates in five end markets: - Aerospace and Defense (46% of net sales in 2024) - Data Center Computing - Networking - Medical - Automotive [11][20][22]. Growth and Diversification Strategy - TTM has grown through acquisitions and has shifted focus from traditional PCB manufacturing to more complex, value-added products, particularly in aerospace and defense [6][7]. - The company has a program backlog of nearly $500 million, indicating strong future revenue potential [14]. - Year-to-date revenue growth for 2025 is approximately 15%, with defense revenue growth year-over-year at about 21% [13]. Market Trends and Opportunities - The rise of generative AI is driving demand in data center computing and networking, which are expected to grow significantly [18][22]. - The automotive sector is facing challenges, with expected growth below the industry benchmark due to slower adoption of electric vehicles (EVs) in the U.S. and Europe [22][24]. - The medical and industrial automation sectors are also showing growth, driven by advancements in technology and increased demand for sensors and testing equipment [25][26]. Operational Expansion - TTM is expanding its manufacturing footprint globally, with significant operations in Asia (primarily China and Penang) and the U.S. [8][30]. - A new facility in Penang is expected to generate $200 million in annual revenues, while a facility in Syracuse, New York, will focus on ultra-high-density interconnect PCBs for military applications, projected to generate $100 million [32][34]. Financial Performance - The company has achieved operating margins of around 11% to 13%, with a target of maintaining a leverage ratio between 1.5 to 2 [36][40]. - Strong cash flow from operations has enabled TTM to invest in growth and maintain a solid capital structure [39][42]. Strategic Focus - TTM's strategic focus includes diversification, differentiation through engineering capabilities, and operational discipline [26][35]. - The company is also exploring opportunities in the commercial space sector and is preparing for potential onshoring of manufacturing related to generative AI [18][50]. Leadership Transition - A new CEO has recently been appointed, bringing a more technical background, which may influence the company's focus on technology and innovation moving forward [56][58]. Conclusion - TTM Technologies is well-positioned for growth in aerospace and defense, data center computing, and networking, while navigating challenges in the automotive sector. The company's strategic investments and operational expansions are expected to enhance its competitive edge in the market [57][44].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $194.1 million, a 1.7% increase from $190.8 million in Q1 2024, marking the sixteenth consecutive quarter of year-over-year revenue growth [8][22] - Gross margin increased to 26.6%, up from 24.6% year-over-year, achieving a new quarterly record [12][23] - Adjusted EBITDA reached 15.9% of sales, a record high, reflecting strong operational performance [13][37] - GAAP diluted EPS was $0.69, compared to $0.46 in Q1 2024, while adjusted diluted EPS was $0.83, up from $0.70 [14][28] Business Line Data and Key Metrics Changes - Military and space revenue grew by 15% year-over-year, driven by missile and electronic warfare programs [9][19] - Commercial aerospace revenue declined by 10% to $72 million, marking the first decline in 15 quarters, primarily due to lower demand for the 737 MAX [10][20] - Industrial business revenue decreased to $9 million as the company pruned non-core operations [21] Market Data and Key Metrics Changes - The defense backlog increased by $15 million year-over-year to $620 million, while the commercial aerospace backlog decreased by $31 million to $411 million [14][20] - The company reported that 95% of its revenue is generated in the U.S., with minimal exposure to tariffs due to its manufacturing footprint [17][26] Company Strategy and Development Direction - The Vision 2027 strategy aims to increase the revenue percentage from engineered products to over 25%, with current contributions at 23% [8][15] - The company is focused on consolidating its manufacturing footprint and pursuing targeted acquisitions to enhance growth [8][34] - Continued emphasis on value-added pricing and expanding content on key commercial aerospace platforms is part of the strategic plan [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in commercial aerospace in the second half of 2025, despite current headwinds [16][100] - The company anticipates mid-single-digit revenue growth for 2025, supported by strong defense activity and recovery in commercial aerospace [16][101] - Management highlighted the importance of maintaining a balanced portfolio between defense and commercial sectors to mitigate risks [68] Other Important Information - The company is undergoing a restructuring initiative aimed at improving operational efficiency and reducing costs, with expected annual savings of $11 million to $13 million [33][34] - Cash flow from operating activities improved to $800,000 in Q1 2025, compared to a cash outflow of $1.6 million in Q1 2024 [35] Q&A Session Summary Question: How would you characterize any delay in ship set rates to Boeing and Spirit? - Management noted that rates from Boeing are in the low twenties and Spirit is ramping up to the mid to high twenties, with optimism for continued growth despite destocking impacts [40][41] Question: What is the outlook for the M&A pipeline? - Management confirmed ongoing diligence on multiple opportunities and expressed confidence in completing a deal this year, focusing on niche engineered product businesses [52][54] Question: How do you see growth rates between commercial aerospace and defense for the remainder of the year? - Management expects continued strength in defense and a recovery in commercial aerospace, aiming for mid-single-digit growth for the full year [67][101] Question: What are the potential new work scopes in commercial and defense? - Management highlighted opportunities with Spirit AeroSystems and ongoing bidding for new work with major defense customers like RTX [80][83]

INVESTOR PRESENTATION May 2025 Disclaimers Forward-Looking Statements In this presentation, when using the terms the "company," "DRS," "we," "us" and "our," unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This presentation contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such ...