TTM Technologies (TTMI)

PCB manufacturing company TTM Technologies (NASDAQ:TTMI) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 22.1% year on year to $752.7 million. Guidance for next quarter’s revenue was optimistic at $750 million at the midpoint, 2.9% above analysts’ estimates. Its non-GAAP profit of $0.67 per share was 11.2% above analysts’ consensus estimates.

Company Overview

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways.

TTM Technologies competes with several global PCB and RF component manufacturers including Unimicron Technology, Sanmina Corporation, Shennan Circuits, and WUS Printed Circuit. In the RF systems and defense electronics space, its competitors include BAE Systems, Mercury Systems, Cobham, and Thales Group.

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.

With $2.78 billion in revenue over the past 12 months, TTM Technologies is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, TTM Technologies’s 5.6% annualized revenue growth over the last five years was decent. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. TTM Technologies’s annualized revenue growth of 10.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, TTM Technologies reported robust year-on-year revenue growth of 22.1%, and its $752.7 million of revenue topped Wall Street estimates by 6%. Company management is currently guiding for a 15.2% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and suggests the market sees some success for its newer products and services.

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

TTM Technologies was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.9% was weak for a business services business.

On the plus side, TTM Technologies’s operating margin rose by 1.3 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, TTM Technologies generated an operating margin profit margin of 9.6%, up 1.3 percentage points year on year. This increase was a welcome development and shows it was more efficient.

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

TTM Technologies’s EPS grew at an astounding 15.4% compounded annual growth rate over the last five years, higher than its 5.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into TTM Technologies’s earnings to better understand the drivers of its performance. As we mentioned earlier, TTM Technologies’s operating margin expanded by 1.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For TTM Technologies, its two-year annual EPS growth of 32.4% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q3, TTM Technologies reported adjusted EPS of $0.67, up from $0.41 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects TTM Technologies’s full-year EPS of $2.35 to grow 7.4%.

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

TTM Technologies has shown weak cash profitability over the last five years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 3.9%, subpar for a business services business.

Taking a step back, we can see that TTM Technologies’s margin dropped by 2.7 percentage points during that time. This along with its unexciting margin put the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it’s becoming a more capital-intensive business.

TTM Technologies’s free cash flow clocked in at $42.57 million in Q3, equivalent to a 5.7% margin. This result was good as its margin was 1.7 percentage points higher than in the same quarter last year, but we wouldn’t read too much into the short term because investment needs can be seasonal, causing temporary swings. Long-term trends are more important.

EPS and free cash flow tell us whether a company was profitable while growing its revenue. But was it capital-efficient? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

TTM Technologies historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 6.3%, somewhat low compared to the best business services companies that consistently pump out 25%+.

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Unfortunately, TTM Technologies’s ROIC has stayed the same over the last few years. If the company wants to become an investable business, it must improve its returns by generating more profitable growth.

TTM Technologies reported $491.1 million of cash and $916.6 million of debt on its balance sheet in the most recent quarter. As investors in high-quality companies, we primarily focus on two things: 1) that a company’s debt level isn’t too high and 2) that its interest payments are not excessively burdening the business.

With $438.9 million of EBITDA over the last 12 months, we view TTM Technologies’s 1.0× net-debt-to-EBITDA ratio as safe. We also see its $23.36 million of annual interest expenses as appropriate. The company’s profits give it plenty of breathing room, allowing it to continue investing in growth initiatives.

We were impressed by how significantly TTM Technologies blew past analysts’ EPS guidance for next quarter expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.5% to $65.15 immediately after reporting.

Updated: December 3, 2025 at 10:34 PM EST

When considering an investment in TTM Technologies, investors should account for its valuation and business qualities as well as what’s happened in the latest quarter.

There are definitely a lot of things to like about TTM Technologies. First off, its revenue growth was decent over the last five years and is expected to accelerate over the next 12 months. And while its relatively low ROIC suggests management has struggled to find compelling investment opportunities, its astounding EPS growth over the last five years shows its profits are trickling down to shareholders. On top of that, its projected EPS for the next year implies the company’s fundamentals will improve.

TTM Technologies’s P/E ratio based on the next 12 months is 24.2x. Looking at the business services landscape right now, TTM Technologies trades at a pretty interesting price. If you believe in the company and its growth potential, now is an opportune time to buy shares.

Wall Street analysts have a consensus one-year price target of $76 on the company (compared to the current share price of $67.75), implying they see 12.2% upside in buying TTM Technologies in the short term.