TTM Technologies(US:TTMI)2025-10-29 21:30Financial Data and Key Metrics Changes - TTM Technologies reported net sales of $752.7 million for Q3 2025, a 22% increase year-on-year from $616.5 million in Q3 2024 [16] - The adjusted EBITDA margin was 16.1%, slightly down from 16.3% in the same quarter last year [9][21] - Non-GAAP EPS reached $0.67, compared to $0.55 in Q3 2024 [20][21] - Cash flows from operations were $141.8 million, or 18.8% of sales, bringing year-to-date cash flow to $229 million, or 10.7% of sales [9][21] Business Line Data and Key Metrics Changes - Aerospace and defense sales accounted for 45% of total sales, with a 20% year-on-year growth to $336.8 million [11][16] - Data center computing represented 23% of sales, growing 44% year-on-year, driven by demand for GenAI applications [12][13] - Medical, industrial, and instrumentation sales grew 22% year-on-year, representing 14% of total sales [13] - Automotive sales declined to 11% of total sales, primarily due to inventory adjustments [14] Market Data and Key Metrics Changes - Approximately 80% of total sales were related to aerospace and defense and AI-driven markets [8] - The book-to-bill ratio was 1.15 for Q3 2025, indicating strong order intake relative to shipments [15] - The 90-day backlog was $610.4 million, up from $534.5 million in Q3 2024 [14] Company Strategy and Development Direction - The company aims to move up the value chain into complex modules and subsystems for high-reliability markets [4][5] - TTM is focused on expanding its manufacturing capabilities in Penang and Syracuse, with plans for a second facility in Penang [10][11] - The strategic review is ongoing, with plans to be presented to the board for approval next month [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand strength across key markets, particularly in aerospace and defense and AI [9][10] - The company does not expect significant short-term impacts from tariffs due to its diversified supplier base [9] - Future sales growth is anticipated, particularly in the aerospace and defense sector, with a solid program backlog [12] Other Important Information - The company is participating in several upcoming conferences to engage with investors [23] - The effective tax rate for Q3 2025 was 15%, compared to 10.6% in the same quarter last year [19] Q&A Session Summary Question: Visibility in the data center market and capacity to meet demand - Management indicated visibility extends six to nine months and capacity is well balanced between North America and Asia [25][26] Question: Margin headwinds in Penang - The impact on margins was about 195 basis points in Q3, expected to be around 160 basis points in Q4 [27][30] Question: PCB manufacturing capacity share globally - TTM is the number one player in the U.S. and ranks about six or seven globally, with a strong position in the data center segment [35][36] Question: Background of the new CEO and future metrics - The new CEO emphasized growth, maintaining healthy gross margins, and strong cash generation as key metrics for the company [40][44]