PCB manufacturing company TTM Technologies (NASDAQ:TTMI) announced better-than-expected revenue in Q4 CY2025, with sales up 18.9% year on year to $774.3 million. On top of that, next quarter’s revenue guidance ($790 million at the midpoint) was surprisingly good and 7% above what analysts were expecting. Its non-GAAP profit of $0.70 per share was 2.6% above analysts’ consensus estimates.
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TTM Technologies (TTMI) Q4 CY2025 Highlights:
- Revenue: $774.3 million vs analyst estimates of $752.3 million (18.9% year-on-year growth, 2.9% beat)
- Adjusted EPS: $0.70 vs analyst estimates of $0.68 (2.6% beat)
- Adjusted EBITDA: $126.2 million vs analyst estimates of $119.9 million (16.3% margin, 5.2% beat)
- Revenue Guidance for Q1 CY2026 is $790 million at the midpoint, above analyst estimates of $738.5 million
- Adjusted EPS guidance for Q1 CY2026 is $0.67 at the midpoint, above analyst estimates of $0.61
- Operating Margin: 10.4%, up from 1.4% in the same quarter last year
- Market Capitalization: $9.94 billion
StockStory’s Take
TTM Technologies’ fourth-quarter results were marked by strong sales momentum in both its data center and aerospace and defense segments, yet the market responded negatively despite revenue and non-GAAP profit surpassing analyst expectations. Management attributed the quarter’s outperformance to ongoing demand for advanced interconnect solutions in artificial intelligence and defense, with CEO Edwin Roks noting, “Sales grew 19% year-on-year, reflecting continued demand strength in our data center computing and networking end markets, driven by the requirements of generative AI.” Gross margin improvements were primarily driven by increased volumes and a favorable mix, though operational headwinds at the Penang facility modestly tempered gains.
Looking ahead, TTM Technologies’ guidance for next quarter reflects management’s confidence in continued demand from both AI-driven data center customers and defense programs. CEO Edwin Roks outlined expectations for “15% to 20% annual revenue growth over the next three years and to double our earnings from 2025 to 2027,” emphasizing ongoing capacity expansions in China and the U.S. The company’s outlook is supported by a robust backlog in defense and growing visibility in commercial end markets, with CFO Dan Bailey highlighting that investments in new manufacturing capacity and operational efficiency are expected to support both top-line and margin growth.
Key Insights from Management’s Remarks
Management credited the quarter’s growth to robust demand in AI-enabled data center and networking markets, as well as strategic wins in defense and medical applications, while highlighting operational execution and improved product mix as key contributors to margin expansion.
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AI-related demand surge: The company’s data center computing and networking businesses benefited from increased investment in generative AI infrastructure, which led to a 57% year-on-year growth in data center sales and 23% growth in networking. Management cited close collaboration with customers to deliver highly complex, multi-layer printed circuit boards as a competitive advantage, with Roks noting that “numbers go up. There are numbers beyond the 100 layers already, which are required.”
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Aerospace and defense strength: The aerospace and defense segment, which accounted for 41% of quarterly sales, saw bookings tied to key U.S. defense programs, including advanced radar and missile systems. Management described a book-to-bill ratio of 1.46 and an order backlog of $1.6 billion, providing strong multi-year revenue visibility.
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Operational improvements at Penang: Progress at the Penang facility, which doubled revenues quarter-on-quarter, contributed to margin gains despite an ongoing 180 basis point headwind. Management expects operational yields to improve further, which should reduce margin drag in future quarters.
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Capacity expansion across geographies: TTM Technologies continued to invest in capacity additions in both China and the U.S. to meet rising demand. The new Syracuse facility is on track to deliver initial revenues in the second half of the year, while the Eau Claire site in the U.S. is being prepared for tooling over the next 18-24 months.
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Capital allocation focused on organic growth: Management emphasized that all near-term earnings growth targets are expected to be achieved organically, with capital expenditure plans largely directed toward expanding high-value capabilities for AI, defense, and medical markets. M&A is not currently a factor in guidance.
Drivers of Future Performance
Management expects future performance to be driven by AI infrastructure demand, defense program visibility, and ongoing capacity expansion, balanced by operational execution and input cost management.
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AI and data center expansion: Demand for advanced printed circuit boards designed for AI workloads is forecasted to drive high-single to low-double-digit sales growth, supported by ongoing investments in Chinese and U.S. manufacturing capacity. Management believes these expansions will keep the company aligned with global technology trends and customer requirements.
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Defense backlog and multi-year programs: The sizeable backlog in aerospace and defense, with multi-year government contracts and sustained demand for high-reliability electronics, provides a stable revenue foundation. Management expects this segment to remain a key growth driver, with approximately 42% of first-quarter sales projected from this market.
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Operational and input cost risks: While improved yields and execution are expected to enhance margins, management flagged ongoing headwinds from facility ramp-up costs and potential input price volatility (such as copper). CFO Dan Bailey stated that the company can generally pass higher raw material costs to customers, but margin pressure could arise if price increases outpace hedging or pricing adjustments.
Catalysts in Upcoming Quarters
In the coming quarters, our team will watch (1) operational milestones at the Syracuse and Penang facilities, (2) sustained momentum in AI-related data center and networking orders, and (3) execution on defense program backlogs and new awards. Evolving input costs and progress on facility ramp-ups will also be important markers as the company pursues its growth targets.
TTM Technologies currently trades at $94.51, down from $96.22 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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