TTM Technologies delivered a strong finish to fiscal 2025, with Q4 revenue of $774.3 million (up 19% year-over-year) and full-year sales of $2.9 billion (up 19%). Non-GAAP EPS hit a record $0.70 in Q4, meeting the high end of guidance, driven by a 16.3% adjusted EBITDA margin. Performance was fueled by robust demand in Data Center Computing (57% YoY growth in Q4) and Aerospace & Defense (13% YoY growth for the full year), which together comprise roughly 80% of sales. Management raised its outlook, projecting 15-20% revenue growth for 2026 and targeting a doubling of earnings by 2027, supported by significant capacity expansions in China and the U.S. and a record $1.6 billion A&D backlog.
| Metric | Value | Change |
|---|---|---|
| Q4 Revenue | $774.3 million | +19% YoY |
| FY 2025 Revenue | $2.9 billion | +19% YoY |
| Q4 Non-GAAP EPS | $0.70 | Record High |
| FY 2025 Non-GAAP EPS | $2.46 | +45% YoY |
| Q4 Adj. EBITDA Margin | 16.3% | +160 bps YoY |
| Q4 Operating Margin | 12.7% | +260 bps YoY |
| A&D Backlog | $1.6 billion | +$40M YoY |
| Data Center Sales Growth | 57% | Q4 YoY |
Management is aggressively capitalizing on the AI megatrend, with Data Center Computing sales growing 57% year-over-year in Q4. They are expanding capacity in China (Dongguan and Guangzhou) with a dedicated capital expenditure plan of $200-$300 million over the next few years. This investment is targeted at high-layer count PCBs (78+ layers) required for AI applications, positioning TTM as a critical infrastructure provider for hyperscalers.
The Aerospace & Defense (A&D) segment remains a bedrock for the company, with sales growing 13% for the full year and a book-to-bill of 1.04. Management highlighted key program wins like the LTAMPS radar and Javelin missile systems, contributing to a record backlog of $1.6 billion. This provides strong revenue visibility and mitigates cyclicality found in commercial markets.
TTM is executing a strategic shift up the value chain from basic PCBs to complex 'modules and subsystems,' including RF modules and thermal management systems. This integration of sensors, actuators, and photonics allows TTM to capture higher margins and strengthen customer stickiness by offering more sophisticated solutions beyond just interconnects.
Operational efficiency is improving significantly, with Q4 operating margins expanding 260 basis points to 12.7%. Management attributed this to better mix and execution, noting that headwinds from the new Penang facility are halving. This operating leverage suggests that incremental revenue growth will fall largely to the bottom line, supporting the goal to double earnings by 2027.
The automotive end market continues to be a weak point, with management noting a decline in sales and a strategic decision to be 'increasingly selective' to focus only on high-value products. While this aligns with their margin strategy, it represents a loss of diversification and volume, making the company more heavily reliant on the success of the AI and defense cycles.
The Penang, Malaysia facility remains a drag on profitability, exerting a 180 basis point headwind on gross margins in Q4, which was worse than the guided 160 basis points. While management claims yields are improving, the facility is still ramping, and any further delays in reaching maturity could impede margin expansion targets.
Management disclosed a goodwill impairment charge of $32.6 million in the prior year related to the RF&S component segment. While current results are strong, this historical write-down highlights the risks associated with their M&A integration and the volatility inherent in the RF components market.
Guidance for Q1 2026 EPS ($0.64-$0.70) is flat to slightly down compared to Q4 2025 ($0.70), despite revenue growth guidance. Management attributes this to typical seasonality and costs associated with the Chinese New Year, but investors should watch for margin compression in the first half of the year as new capacity ramps.
Overall: Management displayed a high level of confidence and enthusiasm throughout the call, frequently using strong descriptors like 'excellent,' 'strong,' and 'record high.' There was no discernible shift in tone between the prepared remarks and the Q&A session; executives remained assertive about their strategic positioning and ability to execute on capacity expansions.
Confidence: HIGH - Management provided specific, ambitious long-term targets (15-20% CAGR, doubling earnings) and detailed operational updates on facility ramps. Their language was direct regarding demand visibility, and they dismissed concerns about supply chain or capacity constraints.
$770 million - $810 million
$0.64 - $0.70
15% - 20% increase over 2025
15% - 20% CAGR for next 3 years
Double earnings from 2025 to 2027
Hedging & Uncertainty: Management used very little hedging regarding core demand, utilizing strong verbs like 'delivered,' 'achieved,' and 'expect.' However, they employed temporal hedges when discussing new facilities, using phrases like 'eighteen to twenty-four months' for Eau Claire and 'hope we do better' regarding Penang margins. The phrase 'we expect' was used consistently for guidance, which is standard but acknowledges forward-looking uncertainty.
We delivered an excellent 2025... We achieved sales of $774.3 million, above the high end of our guided range. - Edwin Roks, CEO
We are well-positioned to support this growth... and are on track towards our ambition to grow revenues 15% to 20% per year for the next three years. - Edwin Roks, CEO
Capacity is not the issue. Also, the supply chain is not the issue. The equipment is not the issue. So we are well on track. - Edwin Roks, CEO
We project net sales for 2026 to be in the range of $770 million to $810 million and non-GAAP earnings to be in the range of $0.64 to $0.70 per diluted share. - Dan Bailey, CFO
We expect our full year 2026 total net sales to increase in the range of 15% to 20% over 2025 total net sales. - Dan Bailey, CFO
Analyst Sentiment: Analysts were highly constructive and congratulatory, focusing heavily on the sustainability of the growth cycle and the mechanics of the capacity expansion. Questions from firms like Needham and Truist sought confirmation on the company's ability to execute on its ambitious targets rather than challenging the thesis.
Management Responses: Management responses were detailed and reassuring. Edwin Roks provided granular updates on facility status (Syracuse, Eau Claire, Penang) and dismissed concerns about capacity constraints. Dan Bailey provided clear financial color on margins and copper pricing, demonstrating strong command of the business fundamentals.
Capacity expansion plans in China and the US (Syracuse Diamond, Eau Claire).
Margin headwinds and recovery trajectory at the Penang, Malaysia facility.
Visibility into the AI demand cycle and book-to-bill dynamics.
Capital expenditure allocation and strategy for the Data Center end market.
Pass-through of commodity costs, specifically copper pricing.
TTM Technologies is executing at a high level, leveraging its position as a key enabler of the AI and Defense megatrends. The company reported record Q4 revenue and EPS, with robust margin expansion and strong cash generation. The 15-20% long-term growth target is credible given the $1.6B A&D backlog and the aggressive ramp in AI-related data center sales. While the automotive segment remains a drag, the strategic pivot to high-value modules and subsystems, combined with disciplined operational execution, supports a positive investment thesis. The capacity expansions in China and the US position TTM to capture share in a consolidating market, making the stock a compelling play on the digital infrastructure build-out.
Management confirmed that AI is driving a 'demand wave' for complex PCBs, with Data Center sales up 57% in Q4. The complexity of boards (78+ layers) is increasing, requiring advanced manufacturing capabilities that TTM is actively expanding.
Positive tailwinds in defense budgets are driving growth, with specific mentions of radar and missile programs (LTAMDS, Javelin). The A&D backlog increased to $1.6 billion, indicating sustained visibility.
Management stated that supply chain and equipment availability are no longer bottlenecks to growth. They are effectively passing through copper inflation to customers, mitigating commodity cost risks.