TTM Technologies(US:TTMI)2026-01-13 14:47TTM Technologies Conference Call Summary Company Overview - TTM Technologies is a high-tech technology company focused on advanced interconnect solutions, including PCBs, substrates, and advanced packaging [9][10] - The company aims to increase visibility in the market and has plans for significant growth in the coming years [11] Key Market Insights - TTM is affected by 80% of current megatrends, including AI, defense spending, and automation [9] - The company expects to grow its top line by 5% to 20% annually over the next three years and to double its earnings from 2025 to 2027 [11] Data Center Market - Data center sales accounted for approximately 22% of total sales in the first nine months of 2025, with a 44% increase in Q3 [12] - The data center and networking markets are forecasted to grow by over 30% this year, driven by AI [14] - TTM has strong visibility into customer demand, with a six to nine-month outlook on orders [14] Capacity and Production - TTM has added 25% capacity in its Chinese plants dedicated to AI work, with expansions in Dongguan and Guangzhou [22] - The company plans to invest $200-$300 million over the next two to three years to expand existing facilities rather than building new ones [23] - The Penang facility is part of the "China plus one" strategy but has faced challenges in ramping up capacity due to cultural and operational differences [26][27] Defense Sector - The defense sector represents about 45% of TTM's revenue, with a significant backlog of approximately $1.5 billion [62] - The company is focused on advanced interconnect solutions for radar, surveillance, and communication systems [59][62] - TTM is positioned as a trusted partner for U.S. defense needs, benefiting from stable government budgets and long-term relationships [62] Financial Performance and Projections - TTM is expected to achieve consistent growth and may update its financial targets due to recent performance exceeding previous models [75] - The company is not currently focused on share buybacks but prioritizes expansion and R&D investments [78] M&A Strategy - TTM is open to acquisitions, particularly in the U.S. and Europe, but is not in a rush due to strong organic growth [69] - The company is exploring opportunities to support defense primes and may consider carve-outs from larger companies [73] Market Trends - The medical and industrial instrumentation (MII) market is showing signs of recovery, with a 20% sales increase in 2025 [47] - The automotive market has been challenging, with a decline in sales for three consecutive years [49] - TTM is focusing on high-end applications and automation within these markets, leveraging long-term customer relationships [50] Conclusion - TTM Technologies is strategically positioned for growth in high-tech markets, particularly in data centers and defense, while navigating challenges in other sectors. The company is committed to enhancing its operational capacity and maintaining strong customer relationships to drive future success.