TTM Technologies, Inc. (TTMI) | The Buildout — AI Infrastructure
The Verdict
TTM Technologies builds the physical interconnect layer under AI data centers and networking gear: high-complexity printed circuit boards, substrates, and next-generation asymmetric interconnect boards. The company also makes higher-integration electronics such as RF modules, subsystems, and mission systems, which extends the same core technology into defense electronics. TTM is not a chipmaker; it provides the board-level fabric that carries power and signals between advanced AI components and the systems built around them.
| Market Cap | — |
| Revenue (TTM) | $3.1B |
| Revenue Growth | +23.1% |
| EBITDA Margin (TTM) | 13.9% |
| Net Debt | $639M |
| Earnings Beats | 6 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Data Center & Networking grew 91% year over year in Q2 FY2026 and is guided to 49% of Q3 sales.
- Overall book-to-bill was 1.49 in Q2, with Commercial at 1.63; 90-day backlog rose 81% y/y to $901M.
- A&D program backlog reached $1.7B and qualified strategic pipeline is over $7B, an all-time high.
- Non-GAAP operating margin improved 270 bps y/y to 13.8% in Q2; adjusted EBITDA margin was 16.6%.
- Net leverage was 0.9x after a new $1.0B revolver and upsized $400M Term Loan B.
What We’re Watching
- N+M plan: management plans about $600M of N+M revenue in H2 2026, with roughly one-third in Q3 and two-thirds in Q4.
- Customer concentration: two customers represented 23% of FY2025 sales, with one 10% commercial customer, one 10% A&D customer, and another commercial customer close to 10%.
- Q4 implied step-up: management's FY guide implies Q4 revenue around $1.4B and non-GAAP EPS close to $2, mostly arithmetic from the guide.
- Automotive is guided to a mid-single-digit FY decline; supply for key PCB materials such as copper-clad laminates can vary over time depending on supply/demand dynamics.
The thesis has strengthened across the last three call dates: guidance has only moved upward, management says it is tracking well ahead of the prior plan, and the defense pipeline is at a record. The open question is whether the back-end-loaded N+M production ramp executes as planned.
Earnings Beat
TTM reported Q2 FY2026 revenue of $1.0 billion, its first quarterly result at that threshold and up 37% year over year. Non-GAAP gross margin was 21.9%, up 100 bps year over year, and adjusted EBITDA was $166.8M, or 16.6% of net sales, up 160 bps year over year. Both revenue and non-GAAP EPS of $0.99 were all-time quarterly highs and above guidance.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $846M | $774M | $649M | +30.4% |
| Gross margin | 20.8% | 20.0% | 20.2% | +60bps |
| EBITDA | $110M | $117M | $86M | +27.9% |
| EPS | $0.47 | $0.48 | $0.31 | +51.5% |
| Overall book-to-bill | 1.49 | 1.41 | n/a | — |
| 90-day backlog | $901M | $787M | $497M | +81% y/y |
We achieved sales of $1 billion, our first quarterly result reaching that threshold, and non-GAAP EPS of $0.99 per diluted share, both above our guidance and both all-time quarterly highs.— Edwin Roks, President and CEO, August 5, 2026
Management tone: Management's tone shifted from 'on track' to 'tracking well ahead' across Q1 and Q2 2026. On the Q2 call, management said 2026 sales and earnings are 'exceeding our prior expectations' and noted it is becoming more transparent, including giving full-year EPS guidance for the first time.
Management Guidance
For Q3 FY2026, management guided revenue to $1.10–1.14 billion and non-GAAP EPS to $1.21–1.27. For FY2026, revenue was guided to approximately $4.4 billion and non-GAAP EPS to approaching $5 per diluted share, excluding any contribution or impact from pending acquisitions. Full-year end-market guidance called for A&D low-to-mid teens growth, Data Center & Networking to more than double, Medical, Industrial & Instrumentation +35% to +40%, and Automotive a mid-single-digit decline.
Trajectory
Revenue is accelerating in the source data: trailing audited revenue stepped from $731M in Q2 2025 to $753M, then $774M, then $846M in Q1 2026, and Q2 2026 came in near $1.0B. The audited gross margin has held near 20% to 21% in recent quarters. The driver is Data Center & Networking, which grew 61% y/y in Q1 and 91% in Q2, with mix guided from 36% in Q1 to 49% in Q3.
The Model
The model projects FY+1 revenue of $3,811M and EBITDA of $560M, a 14.7% EBITDA margin. For FY+2, it projects revenue of $4,650M and EBITDA of $753M, a 16.2% margin. The near term is anchored by ramping Data Center & Networking and the first N+M contributions; FY+2 assumes continued mix and yield improvement.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $2.9B | $3.8B | $4.7B |
| YoY Growth | — | +31.1% | +22.0% |
| EBITDA | $408M | $560M | $753M |
| EBITDA Margin | 14.0% | 14.7% | 16.2% |
Projections are the median of 5 independent model runs. The model’s revenue sits 1.4% below analyst consensus.
For Q3 FY2026, management guided revenue to $1.10–1.14 billion and non-GAAP EPS to $1.21–1.27. For FY2026, revenue was guided to approximately $4.4 billion and non-GAAP EPS to approaching $5 per diluted share, excluding any contribution or impact from pending acquisitions. Full-year end-market guidance called for A&D low-to-mid teens growth, Data Center & Networking to more than double, Medical, Industrial & Instrumentation +35% to +40%, and Automotive a mid-single-digit decline.
What Could Go Right — and Wrong
- N+M yield and qualification success supports the ~$600M H2 2026 plan and potentially a $1B ballpark in 2027.
- Data Center & Networking demand continues: already guided to 49% of Q3 sales and more than double for FY2026.
- A&D pipeline conversion from the >$7B qualified pipeline, including Golden Dome and munitions, extends the defense cycle.
- Penang reaches breakeven late Q3 or Q4 2026, reducing the full-year margin headwind to about 80 bps.
- STG/ILFA close in Q3 2026 and establish the first European footprint.
- N+M execution slips if Q4-heavy yield or qualification issues delay about $400M of second-half revenue.
- A large data center customer pauses or shifts share; two customers were 23% of FY2025 sales.
- Supply for key PCB materials such as copper-clad laminates can vary over time depending on supply/demand dynamics.
- Backlog cancellations or defense program timing slips on Golden Dome and restricted programs.
Looking Ahead
The next 12 months hinge on Q3 execution, a Q4-heavy N+M production ramp, and the updated long-term plan. The company expects Syracuse volume to begin in Q3 2026 and continue through 2027, while Penang approaches breakeven late Q3 or Q4 2026. Management has promised 2027/2028 clarity next quarter, including a formal 2027 N+M revenue number.
- Q3 2026Q3 report and updated long-term plan — Tests first ~$200M of N+M ramp and formal 2027/2028 targets.
- Q3 2026 (possibly September)STG/ILFA acquisition close — Expected close Q3; adds first European footprint.
- Q3 2026Syracuse Ultra-HDI volume ramp — Initial volume production begins Q3, runs through 2027 to capacity in 2028.
- Late Q3 / Q4 2026Penang breakeven — Management hopes Penang approaches breakeven late Q3 to Q4.
- Q4 2026N+M Q4 ramp — About $400M of N+M revenue lands in Q4.
- FY2026Full-year FY2026 results — Tests ~$4.4B revenue and non-GAAP EPS approaching $5.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $2.4B | $2.9B | $3.1B | +19.0% |
| Gross Margin | 19.5% | 20.3% | 20.5% | +80bps |
| EBITDA | $266M | $408M | $3.2B | +53.3% |
| EBITDA Margin | 10.9% | 14.0% | 13.9% | +314bps |
| Net Income | $56M | $178M | $195M | +214.7% |
| Free Cash Flow | $51M | −$1M | $1.1B | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)20.5%
- EBITDA Margin (TTM)13.9%
- Net Margin (TTM)6.3%
- ROIC9.1%
- FCF Conversion-2.7%
- SBC / Revenue1.8%
The Company
TTM Technologies makes advanced interconnect products — high-complexity printed circuit boards, substrates, and advanced packaging — plus modules, subsystems, and systems built on top of that base. The 10-K describes the company as a leading global manufacturer of technology products, including mission systems, RF components, RF microwave/microelectronic assemblies, and advanced interconnect products including PCBs and substrates. Its boards sit underneath AI servers, switches, accelerators, and networking platforms, while its higher-integration electronics serve defense and other high-reliability markets.
TTM operates 24 specialized facilities in North America and Asia, with approximately 18,200 employees. The A&D segment covers 13 domestic system, subsystem, and PCB fabrication plants. Commercial spans three domestic PCB plants, four in China, one in Malaysia, and one in Canada. RF&S Components has one domestic RF component plant and one RF component plant in China.
Business Segments
Competitive Landscape
TTM's 10-K lists different competitor sets by segment: A&D competes with BAE Systems, Curtiss-Wright, Leonardo DRS, Mercury Systems, and Sanmina; Commercial competes with AT&S, Founder Technology, Gold Circuit Electronics, Isu Petasys, Kinwong, Unimicron, Victory Giant, and WUS; RF&S competes with AMD, IDT, MACOM, Microchip, Qorvo, and Silicon Labs. Management also said that in some defense areas it is sometimes the only U.S. supplier.
- BAE Systems plcNamed as an A&D competitor in the 10-K.
- Named as an A&D competitor in the 10-K.
- Named as an A&D competitor in the 10-K.
- Named as an A&D competitor in the 10-K; neighbor read-through shows it shipped $1.88B of accelerated compute revenue.
- AT&SNamed as a Commercial segment competitor in the 10-K.
Supply Chain
TTM sits between raw-material suppliers such as copper-clad-laminate producers and the OEM customers whose AI servers and defense systems carry its boards. In the scanned set, no equipment supplier named TTM directly.
More on TTMI: Earnings recap