TTM Technologies’ first quarter results were met with a strongly positive market reaction, reflecting management’s emphasis on growth in aerospace and defense, as well as momentum in data center computing and networking segments. CEO Tom Edman attributed the performance to “demand strength from our aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation end markets,” with only a minor offset from continued softness in automotive. Management highlighted operational improvements, including increased capacity utilization in Asia-Pacific and stable execution in North America, as key contributors to the quarter’s margin expansion and overall financial outperformance.
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TTM Technologies (TTMI) Q1 CY2025 Highlights:
- Revenue: $648.7 million vs analyst estimates of $620 million (13.8% year-on-year growth, 4.6% beat)
- Adjusted EPS: $0.50 vs analyst estimates of $0.40 (26.6% beat)
- Adjusted EBITDA: $99.48 million vs analyst estimates of $83.93 million (15.3% margin, 18.5% beat)
- Revenue Guidance for Q2 CY2025 is $670 million at the midpoint, above analyst estimates of $644.5 million
- Adjusted EPS guidance for Q2 CY2025 is $0.52 at the midpoint, above analyst estimates of $0.48
- Operating Margin: 7.7%, up from 3% in the same quarter last year
- Market Capitalization: $3.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions TTM Technologies’s Q1 Earnings Call
- William Stein (Truist Securities) asked about the revenue and margin trajectory for the Penang facility. CEO Tom Edman explained that Penang saw $2.2 million in Q1 revenue, with a gradual ramp expected to reach breakeven by Q3 as customer qualifications progress.
- William Stein (Truist Securities) inquired about the slight sequential decline in aerospace and defense program backlog. Edman clarified that the decrease was minimal and attributed it to strong Q4 bookings, with Q1 bookings remaining above seasonal expectations.
- Jim Ricchiuti (Needham & Co.) asked for details on customer qualifications at Penang and the mix of end markets. Edman reported four anchor customers, with a concentration in data center and networking, and ongoing qualification for additional customers, especially in medical and industrial instrumentation.
- Ruben Roy (Stifel) questioned whether recent data center and networking demand reflected pull-in activity due to tariff uncertainty. Edman responded that order patterns appeared steady, with no abnormal pull-in detected in these segments.
- Mike Crawford (B. Riley Securities) sought clarity on TTM’s global PCB manufacturing capacity outside China and implications for advanced boards. Edman stated that TTM remains the largest producer in North America and, after Syracuse ramps, will have unique scaled capability for advanced technology boards.
Catalysts in Upcoming Quarters
In the next few quarters, our team will be monitoring (1) the pace of customer qualifications and production ramp at Penang and progress on the Syracuse facility buildout; (2) bookings momentum and backlog development in the aerospace and defense segment, especially tied to missile defense and radar programs; and (3) ongoing demand from data center and networking customers as generative AI investments continue. The effectiveness of tariff mitigation strategies and operational execution in these new facilities will also be critical signposts.
TTM Technologies currently trades at $38.59, up from $20.05 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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