TTM Technologies, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Focus on designing and manufacturing complex products/solutions in advanced interconnect and complex modules/subsystems.
• Participation in AI and defense megatrends, with ~80% of net sales related to these.
• 2025 sales were $774.3 million (above guided range), non-GAAP EPS $0.70 (met guided range). Sales grew 19% YOY.
• Adjusted EBITDA margin was 16.3% in 2025, up from 14.7% in 2024.
• Cash flow from operations was $63 million in Q4 2025 and $292 million for fiscal 2025.
• Book-to-bill ratio was 1.35 for 2025, with A&D at 1.46 and RF&S at 0.94.
• Ninety-day backlog was $654.9 million at the end of 2025.

Segment Performance

• Aerospace and Defense: Represented 41% of Q4 2025 sales. Grew 5% YOY in Q4 2025 and 13% YOY for full year 2025. Backlog increased to $1.6 billion.
• Data Center Computing: Represented 20% of Q4 2025 sales. Grew 57% YOY in Q4 2025 and 36% YOY for full year 2025.
• Networking: Represented 8% of 2025 sales. Grew 23% YOY in Q4 2025 and 43% YOY for full year 2025. From 2026, data center and networking will be combined.
• Medical, Industrial, and Instrumentation: Represented 14% of Q4 2025 sales. Grew 28% YOY in Q4 2025 and 22% YOY for full year 2025.
• Automotive: Represented 9% of Q4 2025 sales. Expected to be about 8% of total sales in 2026.

Guidance

• Projected 2026 net sales range $770M-$810M, non-GAAP earnings $0.64-$0.70 per diluted share.
• Full year 2026 net sales expected to increase 15%-20% over 2025.
• First quarter 2026 EPS forecast based on ~106.7 million diluted shares.
• SG&A expense expected ~8.5% of net sales in Q1 2026, R&D ~1% of net sales.
• Interest expense, income, and other non-operating items outlined.
• Effective tax rate expected 12%-17%.

Risks

• No specific risks detailed beyond general forward-looking statement disclaimers.

Question and Answer

Q: Regarding capacity in China and Syracuse ramp.

A: Edwin Roks discussed progress in China and Syracuse, stating they are on track for second half 2025.

Q: Growth margins, Penang headwind.

A: Dan Bailey and Edwin Roks discussed Penang headwind and margin improvement from volume and mix.

Q: Capacity in US (Eau Claire).

A: Edwin Roks discussed the Eau Claire facility, noting it will take 18-24 months for first revenues.

Q: Book-to-bill, orders by end market.

A: Edwin Roks discussed visibility in commercial (6-9 months) and defense (multi-year).

Q: CapEx, M&A.

A: Dan Bailey and Edwin Roks discussed CapEx for data center capacity and organic growth for doubling earnings.

Q: Data center capacity in China, PCB processes.

A: Edwin Roks and Dan Bailey discussed PCB processes being ported to China facilities.

Q: Space business in aerospace and defense.

A: Edwin Roks discussed space as a strategic direction.

Q: Copper price impact.

A: Dan Bailey discussed hedging and pricing to mitigate copper price volatility.