Ttm Technologies ((TTMI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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TTM Technologies’ recent earnings call conveyed a generally positive sentiment, underscored by strong sales growth and record highs in critical markets. Despite facing some challenges in the automotive sector and margin pressures from the Penang facility, the company showcased a solid financial performance, reflecting its resilience and strategic positioning in the industry.
Sales Growth
TTM Technologies reported an impressive 22% year-on-year sales growth, driven by robust demand in data center computing, networking, and aerospace and defense markets. This growth highlights the company’s ability to capitalize on emerging opportunities and strengthen its market presence.
Record Highs in Key Markets
The company achieved record highs in the aerospace and defense and data center markets. Aerospace and defense sales accounted for 45% of total sales, while data center computing experienced a remarkable 44% year-on-year growth, underscoring TTM’s strategic focus on these high-potential sectors.
Non-GAAP EPS and Cash Flow
TTM reported a record quarterly non-GAAP EPS of $0.67, alongside a robust cash flow from operations amounting to $141.8 million, or 18.8% of sales. These figures reflect the company’s efficient operational management and financial health.
Strong Bookings and Backlog
The aerospace and defense program backlog reached $1.46 billion, with an overall book-to-bill ratio of 1.15 for the third quarter. This strong backlog indicates sustained demand and future revenue potential for TTM Technologies.
Data Center Visibility and Capacity
TTM has visibility in the data center market extending 6 to 9 months, with a balanced capacity in North America and Asia Pacific. This strategic positioning ensures the company can meet future demand efficiently.
Automotive Sales Decline
The automotive sector faced a year-over-year sales decline due to inventory adjustments and soft demand, expected to represent about 9% of total sales in Q4. This highlights a challenge area for TTM that may require strategic adjustments.
Margin Headwinds from Penang
The Penang facility posed margin headwinds, impacting the bottom line by 195 basis points in Q3, though this was an improvement from Q2. Addressing these headwinds remains a priority for maintaining profitability.
Forward-Looking Guidance
For the fourth quarter of 2025, TTM Technologies provided guidance for net sales between $730 million and $770 million, with non-GAAP EPS expected to range from $0.64 to $0.70 per diluted share. The company aims to leverage its global manufacturing footprint and robust backlog, particularly in the aerospace and defense sector, to drive strategic growth.
In summary, TTM Technologies’ earnings call painted a picture of strong financial performance and strategic market positioning, despite some sector-specific challenges. The company’s focus on high-growth markets and efficient operational management positions it well for future success.