Core Insights - TTM Technologies, Inc. (TTMI) is highlighted as a significant player in the printed circuit board industry, despite its relatively small market capitalization of $7 billion [1]. Company Overview - TTM Technologies is identified as the largest printed circuit board manufacturer, which positions it favorably within the industry [1]. Investment Insights - The article suggests that TTM Technologies may present a potential investment opportunity, particularly for those looking for growth and value balance [1].

Group 1 - TTM Technologies, Inc. (TTMI) has a market capitalization of approximately $7 billion and is recognized as the largest printed circuit board manufacturer [1] - The investment group Beyond the Wall Investing offers a fundamentals-based portfolio and provides insights from institutional investors, along with technical trade alerts [1] - Oakoff Investments, a personal portfolio manager, emphasizes finding a balance between growth and value through proprietary Wall Street information [1]

Core Viewpoint - TTM Technologies (TTMI) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture that impacts stock prices [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock movements, with institutional investors using these estimates to determine fair value [3]. Business Improvement Indicators - The upgrade in TTM's rating signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions is crucial for investment decisions, and the Zacks Rank system effectively utilizes this data to classify stocks [5][6]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. Specifics on TTM's Earnings Estimates - For the fiscal year ending December 2025, TTM is projected to earn $2.44 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.6% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8][9]. - TTM's upgrade to Zacks Rank 1 places it in the top 5% of stocks based on estimate revisions, suggesting potential for higher stock movement in the near term [9].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - TTM Technologies (TTMI) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 14.5%, with projected EPS growth of 37.2% this year, significantly surpassing the industry average of 21.2% [4] Group 2: Financial Metrics - TTM's asset utilization ratio stands at 0.78, indicating that the company generates $0.78 in sales for every dollar in assets, which is higher than the industry average of 0.74 [5] - The company's sales are expected to grow by 18.1% this year, compared to an industry average of 0% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for TTM, with the Zacks Consensus Estimate for the current year increasing by 1.5% over the past month [8] - TTM has achieved a Growth Score of B and a Zacks Rank 2, indicating its potential as a strong choice for growth investors [10]

Financial Performance - Net sales increased by $136.2 million, or 22.1%, to $752.7 million for the quarter ended September 29, 2025, driven by strong demand in aerospace and defense, data center computing, and networking markets [83]. - Gross profit for the quarter increased by $26.8 million to $156.7 million, with a gross margin rate of 20.8%, slightly down from 21.1% in the previous year [85]. - Operating income rose by $20.9 million to $71.9 million for the quarter, with an operating margin rate of 9.6%, up from 8.3% in the prior year [89]. - Total net sales for the three quarters ended September 29, 2025, increased by $340.2 million, or 19.0%, to $2,132.0 million compared to the same period in the previous year [84]. - Total segment sales increased by $137.5 million, or 22.2%, to $756.2 million for the quarter ended September 29, 2025, from $618.7 million for the same quarter in 2024 [99]. - A&D segment sales increased by $57.3 million, or 20.5%, to $336.8 million for the quarter ended September 29, 2025, driven by improved defense spending and strong demand in missiles and munitions [101]. - Commercial segment sales increased by $79.5 million, or 24.1%, to $408.9 million for the quarter ended September 29, 2025, primarily due to strong demand in data center computing driven by generative AI [105]. - RF&S Components segment sales increased by $0.7 million, or 6.8%, to $10.4 million for the quarter ended September 29, 2025, supported by stronger demand across various end markets [109]. - Total operating income increased by $20.9 million to $71.9 million for the quarter ended September 29, 2025, compared to $51.0 million for the same quarter in 2024 [99]. - A&D segment operating income increased by $12.6 million to $52.9 million for the quarter ended September 29, 2025, with an operating margin rate of 15.7% [103]. - Commercial segment operating income increased by $8.9 million to $60.0 million for the quarter ended September 29, 2025, with a margin rate of 14.7% [107]. Tax and Expenses - Total other expense, net decreased by $15.9 million to $10.1 million for the quarter, primarily due to lower unrealized foreign exchange losses [91]. - Income tax expense decreased by $1.9 million to $8.8 million for the quarter, influenced by tax impacts and deductions related to stock-based compensation [93]. - Income tax expense increased by $3.1 million to $21.6 million for the three quarters ended September 29, 2025, compared to $18.5 million for the same period in 2024 [94]. Cash Flow and Capital Expenditures - Cash flow from operating activities was $229.0 million for the first three quarters of 2025, up from $150.8 million in the same period in 2024, primarily due to a $75.6 million increase in net income [115]. - As of September 29, 2025, the company had cash and cash equivalents of approximately $491.1 million, with $199.4 million of available borrowing capacity under revolving credit facilities [118]. - Total capital expenditures for 2025 are expected to be between $265.0 million and $285.0 million, with approximately $54.0 million allocated for the construction of a new plant in Syracuse, New York [119]. - Cash generated from operations and available cash are expected to meet anticipated capital expenditures, debt service, and working capital needs for the next 12 months [123]. Debt and Compliance - As of September 29, 2025, the company had $916.6 million in outstanding debt, including $497.2 million in Senior Notes due 2029 and $337.4 million under the Term Loan Facility [121]. - The company was in compliance with all covenants under the Senior Notes, Term Loan Facility, and ABL Revolving Loans as of September 29, 2025 [122]. - Liabilities associated with supplier finance program obligations amounted to $12.2 million as of September 29, 2025, down from $17.2 million as of December 30, 2024 [124]. - There were no material changes to contractual obligations and commitments since December 30, 2024, impacting liquidity and capital resource needs [125]. Market and Operational Insights - The company announced the acquisition of a 750,000-square-foot facility in Eau Claire, Wisconsin, to enhance advanced technology PCB manufacturing capabilities [74]. - A new advanced technology PCB manufacturing facility is under construction in Syracuse, New York, with volume production expected to commence in the second half of 2026 [75]. - Sales to the ten largest customers accounted for 56% of net sales for the quarter ended September 29, 2025, compared to 54% in the same quarter of the previous year [77]. - The percentage of net sales by end markets for the quarter included 45% aerospace and defense, 23% data center computing, and 14% medical/industrial/instrumentation [78]. - The company experiences seasonal softness in the first and third quarters due to holidays and vacation periods, leading to stronger revenue in the second and fourth quarters [126]. - There have been no material changes to market risks as previously disclosed in the Annual Report for the fiscal year ended December 30, 2024 [128]. Stock Repurchase Program - The 2025 Repurchase Program allows for the repurchase of up to $100.0 million in common stock, with no shares repurchased in the quarter ended September 29, 2025; approximately 0.7 million shares were repurchased for $17.9 million in the previous program [120].

Core Insights - TTM Technologies, Inc. announced that two team members received prestigious awards from the Global Electronics Association for their contributions to the electronics manufacturing sector [1][2]. Group 1: Awards and Recognition - Meising Ho, Vice President of Commercial Technology, received the IPC ASSC Outstanding Service Award [2]. - Richard Xie, Vice President of Human Resources, Asia Pacific, was awarded the IPC AESC Outstanding Service Award [2]. - These awards recognize significant contributions to advancing industry standards and education in the electronics manufacturing sector across Asia [2]. Group 2: Company Commitment - Doug Soder, Executive Vice President and President of the Commercial Sector, expressed pride in the honorees, highlighting their dedication as a reflection of TTM's commitment to leadership and excellence in the electronics industry [3]. - The recognition of these individuals underscores TTM's ongoing commitment to shaping the future of the electronics industry [3]. Group 3: Event Information - The IPC CEMAC is an annual gathering of electronic industry professionals for knowledge-sharing and discussions on industry trends [3].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - TTM Technologies (TTMI) reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing a significant increase from $0.41 per share a year ago, indicating strong performance in the printed circuit board sector [1][2]. Financial Performance - The company achieved revenues of $752.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.63% and reflecting a year-over-year increase from $616.54 million [2]. - TTM has consistently outperformed consensus EPS estimates over the last four quarters, with an earnings surprise of +9.84% in the latest report and +11.54% in the previous quarter [1][2]. Stock Performance - TTM shares have increased approximately 139.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63, with projected revenues of $726.44 million, and for the current fiscal year, the estimates are $2.32 EPS on $2.82 billion in revenues [7]. - The trend of estimate revisions for TTM has been favorable leading up to the earnings release, suggesting positive sentiment among analysts [6]. Industry Context - TTM operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the top 13% of over 250 Zacks industries, indicating a strong industry outlook [8]. - The performance of TTM's stock may also be influenced by the overall industry trends, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8].

Financial Data and Key Metrics Changes - TTM Technologies reported net sales of $752.7 million for Q3 2025, a 22% increase year-on-year from $616.5 million in Q3 2024 [16] - The adjusted EBITDA margin was 16.1%, slightly down from 16.3% in the same quarter last year [9][21] - Non-GAAP EPS reached $0.67, compared to $0.55 in Q3 2024 [20][21] - Cash flows from operations were $141.8 million, or 18.8% of sales, bringing year-to-date cash flow to $229 million, or 10.7% of sales [9][21] Business Line Data and Key Metrics Changes - Aerospace and defense sales accounted for 45% of total sales, with a 20% year-on-year growth to $336.8 million [11][16] - Data center computing represented 23% of sales, growing 44% year-on-year, driven by demand for GenAI applications [12][13] - Medical, industrial, and instrumentation sales grew 22% year-on-year, representing 14% of total sales [13] - Automotive sales declined to 11% of total sales, primarily due to inventory adjustments [14] Market Data and Key Metrics Changes - Approximately 80% of total sales were related to aerospace and defense and AI-driven markets [8] - The book-to-bill ratio was 1.15 for Q3 2025, indicating strong order intake relative to shipments [15] - The 90-day backlog was $610.4 million, up from $534.5 million in Q3 2024 [14] Company Strategy and Development Direction - The company aims to move up the value chain into complex modules and subsystems for high-reliability markets [4][5] - TTM is focused on expanding its manufacturing capabilities in Penang and Syracuse, with plans for a second facility in Penang [10][11] - The strategic review is ongoing, with plans to be presented to the board for approval next month [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand strength across key markets, particularly in aerospace and defense and AI [9][10] - The company does not expect significant short-term impacts from tariffs due to its diversified supplier base [9] - Future sales growth is anticipated, particularly in the aerospace and defense sector, with a solid program backlog [12] Other Important Information - The company is participating in several upcoming conferences to engage with investors [23] - The effective tax rate for Q3 2025 was 15%, compared to 10.6% in the same quarter last year [19] Q&A Session Summary Question: Visibility in the data center market and capacity to meet demand - Management indicated visibility extends six to nine months and capacity is well balanced between North America and Asia [25][26] Question: Margin headwinds in Penang - The impact on margins was about 195 basis points in Q3, expected to be around 160 basis points in Q4 [27][30] Question: PCB manufacturing capacity share globally - TTM is the number one player in the U.S. and ranks about six or seven globally, with a strong position in the data center segment [35][36] Question: Background of the new CEO and future metrics - The new CEO emphasized growth, maintaining healthy gross margins, and strong cash generation as key metrics for the company [40][44]

Financial Performance - Net sales for Q3 2025 were $752.7 million, a 22% increase compared to $616.5 million in Q3 2024[4] - GAAP net income for Q3 2025 was $53.1 million, or $0.50 per diluted share, up from $14.3 million, or $0.14 per diluted share in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $120.9 million, representing 16.1% of net sales, compared to $100.6 million, or 16.3% of net sales in Q3 2024[5] - Non-GAAP net income for Q3 2025 reached $71.0 million, or $0.67 per diluted share, a quarterly record high, compared to $56.8 million, or $0.55 per diluted share in Q3 2024[5] - Non-GAAP net income for the first three quarters of 2025 was $184.149 million, significantly higher than $126.091 million in the same period of 2024, marking a 46% increase[24] - Non-GAAP earnings per diluted share for Q3 2025 was $0.67, compared to $0.55 in Q3 2024, indicating a 21.8% rise[24] Cash Flow and Efficiency - Cash flow from operations was $141.8 million, or 18.8% of net sales, indicating strong operational efficiency[7] - Free cash flow for Q3 2025 was $42.570 million, compared to $24.231 million in Q3 2024, showing a 76% increase[24] - Operating cash flow for the first three quarters of 2025 was $228.952 million, compared to $150.840 million in the same period of 2024, representing a 51.7% increase[24] Sales and Market Growth - The company reported double-digit year-on-year revenue growth in Medical, Industrial and Instrumentation, and Aerospace and Defense end markets[6] - Aerospace and Defense segment net sales increased to $336.8 million from $279.5 million year-on-year[23] - For Q4 2025, the company estimates net sales to be between $730 million and $770 million, with non-GAAP net income projected to be between $0.64 and $0.70 per diluted share[8] Profitability Metrics - Gross margin for Q3 2025 was 20.8%, slightly down from 21.1% in Q3 2024, while operating margin improved to 9.6% from 8.3%[22] - GAAP gross profit for Q3 2025 was $156.736 million, up from $129.888 million in Q3 2024, representing a 20.6% increase[24] - Non-GAAP gross profit for Q3 2025 reached $162.016 million, compared to $135.734 million in Q3 2024, reflecting a 19.4% growth[24] - Non-GAAP gross margin for Q3 2025 was 21.5%, slightly down from 22.0% in Q3 2024[24] Capital Expenditures - Capital expenditures for Q3 2025 were $99.233 million, significantly higher than $40.859 million in Q3 2024, indicating a 143% increase[24] Adjustments and Revisions - The company has revised prior year results to exclude the impact of unrealized (gain) loss on foreign exchange from non-GAAP net income and adjusted EBITDA[25]