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 ...