TTMI

TTM Technologies (TTMI) drew fresh attention after its second quarter 2026 report showed non GAAP earnings and revenue above expectations, supported by AI related demand in Data Center and Networking markets. The earnings surprise and AI related demand helped TTM Technologies’ share price jump 8.85% on the day to US$125.60. However, the 30 day share price return is down 4.30% and the 90 day share price return is down 25.07%, even as the 1 year total shareholder return of 163.31% and very large 3 and 5 year total shareholder returns point to strong longer term momentum that investors are now weighing against the recent pullback. Compare TTM Technologies' AI fueled momentum with other potential breakouts in the same space by scanning the hand picked 55 AI infrastructure stocks. For TTM Technologies, the latest jump after strong AI linked results comes after a sharp three-month pullback and substantial multi-year gains. Are you seeing a reset in sentiment, or a price that now better reflects fundamentals? Based on the most followed narrative, TTM Technologies' fair value of $212 sits well above the latest close at $125.60, which puts the current pullback in a different light. Large scale data center buildouts announced by tech giants (e.g., Google, CoreWeave, Meta) and TTM's new Wisconsin facility position the company to capture outsized demand for advanced PCBs and interconnects required for AI and cloud infrastructure, directly supporting revenue growth and long-term customer relationships. Read the complete narrative. Want to see what kind of revenue curve and profit profile sits behind that fair value? The narrative leans heavily on fast compounding earnings and a richer long term margin mix. Curious how those assumptions stack up against the current 7% net margin and the projected step up in profitability? The full narrative spells out the path that has to play out for $212 to make sense. Result: Fair Value of $212 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, TTM Technologies still faces real pressure if higher cost U.S. facilities are underused, or if revenue from concentrated key customers falls away faster than expected. Find out about the key risks to this TTM Technologies narrative. While the fair value narrative for TTM Technologies leans on future growth and margins, the current P/E of 55.9x is higher than both the US Electronic industry at 29.8x and peer average at 34.6x, and only slightly below the fair ratio of 58.4x. Does that leave more room for upside, or more room for disappointment if expectations cool? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals on valuation and growth around TTM Technologies, the key is to get comfortable with the trade off between risk and reward yourself. To see both sides of that debate in one place, start with the 3 key rewards and 2 important warning signs If TTM Technologies has caught your attention, do not stop there. Use the Simply Wall St screener to quickly surface fresh ideas that match your style. Target resilient income by checking companies in the 11 dividend fortresses that aim to combine higher yields with balance sheet strength. Hunt for value opportunities that the market may be overlooking by scanning the 19 high quality undiscovered gems with solid fundamentals. Protect your downside first by focusing on companies in the 82 resilient stocks with low risk scores that score well on financial and business risk factors. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TTMI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

TTM Technologies stock has delivered an exceptionally strong three year gain, yet current valuation checks now lean toward a premium, with the Discounted Cash Flow (DCF) estimate sitting below the market price while earnings based multiples look broadly in line with peers. With the share price near US$125.60 and a low overall value score, the recent run raises questions about how much of the AI and data center growth story is already reflected in the valuation. TTM Technologies has returned very roughly 8.7x over the past three years, which places extra focus on whether the current share price leaves a comfortable margin of safety. Investor optimism today is closely tied to expectations that AI driven data center and networking demand can continue to support sales growth, while any slowdown in those end markets may put pressure on the cash flow outlook that underpins the current price. The broader valuation checks give TTM Technologies a low value score of 2 out of 6, which points to a stock that leans expensive rather than a clear bargain. The issue now is whether TTM Technologies offers enough long term cash flow potential to justify paying what looks like a richer price after such a large multi year move. Scan beyond TTM Technologies and compare its AI data center story with a curated list of 55 AI infrastructure stocks to see how other infrastructure plays stack up on valuation and momentum. The Discounted Cash Flow (DCF) approach looks at what TTM Technologies could generate in future cash, then brings that back to today. The latest twelve month free cash flow is about $28.3 million, while the model assumes growing cash flows that reach several hundred million dollars a year over the next decade. On those assumptions, the DCF points to an estimated intrinsic value of about $106.47 per share. Compared with the current share price around $125.60, TTM Technologies appears to trade roughly 18.0% above this intrinsic value estimate on this cash flow view. The strong AI data center headlines, including record sales and expectations for rapid revenue growth, help explain why the market is currently assigning a premium to the DCF output. On this DCF assessment, TTM Technologies stock currently appears overvalued relative to its projected cash flows. Our Discounted Cash Flow (DCF) analysis suggests TTM Technologies may be overvalued by 18.0%. Discover 47 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for TTM Technologies. The P/E ratio is a useful yardstick for TTM Technologies because it ties the current share price directly to the earnings investors are paying for. TTM Technologies trades on a P/E of about 55.9x, which is well above the broader Electronic industry average of roughly 29.7x and higher than the peer group average of about 34.6x. That indicates investors are placing a clear premium on the stock relative to many sector peers. The fair P/E multiple for TTM Technologies, based on its profile, is estimated at about 58.4x. This sits slightly above the current 55.9x level, so the gap between what the shares are priced at and what the model suggests as fair is not large. On this earnings yardstick, the stock appears rich versus the industry but is broadly aligned with what this framework suggests investors might pay. Overall, TTM Technologies appears roughly fairly valued on its P/E ratio, with the current earnings multiple close to the modelled fair level. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for TTM Technologies link the valuation puzzle above to concrete assumptions about the company’s future growth, margins and earnings. Each Narrative lays out what would need to happen for TTM Technologies' stock to be worth materially more or less than today’s price and presents fair value as a thesis about the business that can be tracked over time on Simply Wall St's Community page. One of the top community narratives on TTM Technologies: 41% undervalued Read one of the top narratives on TTM Technologies Do you think there's more to the story for TTM Technologies? Head over to our Community to see what others are saying! For TTM Technologies, the Discounted Cash Flow (DCF) view points to an intrinsic value that sits below the current share price, while the P/E based view suggests the stock is priced roughly in line with the earnings profile that the market is assuming. The gap between the DCF and the multiple view reflects how strongly investors are leaning on growth expectations and sentiment after a very large share price move. From here, the key question is whether AI driven data center and networking demand can support the cash flow and margin trajectory that current expectations are building in. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TTMI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for TTM Technologies (TTMI). Shares have lost about 15.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is TTM due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. TTM Technologies reported second-quarter 2026 non-GAAP earnings of 99 cents per share, up 70.7% year over year. The figure beat the Zacks Consensus Estimate by 7.61%.Revenues rose 37.4% to $1 billion, surpassing the consensus estimate by 4.1%. Robust AI-related demand in the Data Center and Networking market supported growth, while the total book-to-bill ratio improved to 1.49. In the reported quarter, Aerospace & Defense revenues increased 14.2% year over year to $382.8 million. Commercial revenues surged 57.1% to $621.6 million, reflecting strong demand across the company’s commercial end markets. Data Center and Networking represented 40% of quarterly sales, up from 29% year over year. Aerospace and Defense accounted for 37%, compared with 45% in the prior-year quarter. Medical, Industrial and Instrumentation contributed 15%, while Automotive represented 8%. Management stated that Data Center and Networking revenues climbed 91% year over year, driven by continued AI demand. Medical, Industrial and Instrumentation revenues grew 33%, while Aerospace and Defense benefited from alignment with priority defense programs. The company’s commercial 90-day backlog increased 144% year over year to approximately $0.9 billion. The commercial book-to-bill ratio reached 1.63, indicating that new orders exceeded shipments during the quarter. Aerospace and Defense program backlog rose to more than $1.7 billion from $1.5 billion a year ago. The segment’s book-to-bill ratio improved to 1.30 from 0.71. Program bookings included the APS-153 Maritime Surveillance Radar, the ATP Sensor System for Targeting and Surveillance, Golden Dome and multiple restricted programs. TTMI also received its first development contract for an active electronically scanned array Detect and Avoid radar system for the Advanced Air Mobility market. Its first Golden Dome-related award supports a potential pipeline exceeding $600 million across interconnect and integrated electronics solutions. In the second quarter of 2026, TTM Technologies reported a non-GAAP gross margin of 21.9%, which expanded 100 basis points (bps) year over year, with non-GAAP gross profit of $219.8 million. Selling and marketing expenses increased 19.6% year over year to $25.5 million. General and administrative expenses rose 24.9% year over year to $62.1 million. Research and development expenses increased 13.8% year over year to $8 million. Non-GAAP operating income increased 70% to $138.4 million. The corresponding margin expanded 270 basis points to 13.8%.Adjusted EBITDA rose 52% to $166.8 million, while adjusted EBITDA margin increased 160 basis points to 16.6%. As of June 29, 2026, TTM Technologies’ cash and cash equivalents were $507.9 million, compared with $410 million as of March 30, 2026.Total debt, including short- and long-term borrowings, increased to $973.5 million, up from $915.7 million sequentially.In the reported quarter, cash flow from operations was $96.4 million. Net capital expenditures were $50.4 million, resulting in free cash flow of $46 million. For the third quarter of 2026, TTM Technologies expects revenues between $1.10 billion and $1.14 billion. Non-GAAP earnings are projected between $1.21 and $1.27 per share. For 2026, management now anticipates revenues of approximately $4.4 billion and non-GAAP earnings per share approaching $5. The outlook excludes contributions or other impacts from the pending STG and ILFA acquisitions, which are expected to close in the third quarter. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 7.25% due to these changes. Currently, TTM has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TTM has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Voya Investment Management, an investment management company, released its second-quarter 2026 investor letter for its “Voya MI Dynamic Small Cap Fund.” A copy of the letter can be downloaded here. US Equity markets rebounded strongly in the second quarter of 2026, recovering from geopolitical tensions that nearly pushed the S&P 500 Index into correction territory. Technology dominated the landscape, powered by increasing AI adoption, while industrials benefited from strong capital expenditure. Small-cap and growth stocks outperformed; investors grew selective amid concerns about returns, competition, and regulation. The Fund outperformed the Index, benefitting from stock selection in energy, consumer discretionary, and health care sectors. Overall market performance could become more volatile due to rising costs and increased supply from IPOs and secondary issuances. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026. In its Q2 2026 investor letter, Voya MI Dynamic Small Cap Fund highlighted TTM Technologies, Inc. (NASDAQ:TTMI), a US-based global manufacturer of mission systems, radio frequency (RF) components, RF microwave/microelectronic assemblies, and printed circuit boards (PCBs). Accounting for 1.39% of the portfolio, TTM Technologies, Inc. (NASDAQ:TTMI) contributed to the Fund's performance during the quarter. On August 14, 2026, TTM Technologies, Inc. (NASDAQ:TTMI) closed at $140.00 per share, reflecting a market capitalization of $14.75 billion. TTM Technologies, Inc. (NASDAQ:TTMI) posted a one‑month return of 5.13%, while its shares gained 234.77% over the past 52 weeks.” Voya MI Dynamic Small Cap Fund stated the following regarding TTM Technologies, Inc. (NASDAQ:TTMI) in its Q2 2026 investor letter: TTM Technologies, Inc. (NASDAQ:TTMI) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held TTM Technologies, Inc. (NASDAQ:TTMI) at the end of the first quarter which was 54 in the previous quarter. While we acknowledge the potential of TTM Technologies, Inc. (NASDAQ:TTMI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered TTM Technologies, Inc. (NASDAQ:TTMI) and shared Sands Capital Technology Innovators Fund’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

TTM Technologies’ second quarter showed notable momentum, with the market reacting positively to results that surpassed Wall Street’s expectations. Management credited strong demand in both artificial intelligence (AI) and defense end markets as primary growth drivers, highlighting robust order pipelines and an 81% year-on-year increase in backlog. CEO Edwin Roks emphasized, “Approximately 80% of our net sales are related to these two megatrends,” and pointed to successful customer alignment in data center, networking, and aerospace programs. Is now the time to buy TTMI? Find out in our full research report (it’s free). Revenue: $1.00 billion vs analyst estimates of $958.4 million (37.4% year-on-year growth, 4.8% beat) Adjusted EPS: $0.99 vs analyst estimates of $0.90 (10.3% beat) Adjusted EBITDA: $166.8 million vs analyst estimates of $157.4 million (16.6% margin, 5.9% beat) Revenue Guidance for Q3 CY2026 is $1.12 billion at the midpoint, above analyst estimates of $1.04 billion Adjusted EPS guidance for Q3 CY2026 is $1.24 at the midpoint, above analyst estimates of $1.10 Operating Margin: 10.9%, up from 8.5% in the same quarter last year Market Capitalization: $13.77 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. James Ricchiuti (Needham & Company) asked about the impact of the N+M scale-up on revenues and margins. CEO Edwin Roks and CFO Daniel Boehle explained that N+M will increasingly contribute to margins as yields improve, with a large portion of production expected in the second half of the year. James Ricchiuti (Needham & Company) also inquired about customer concentration, specifically 10% customers. Roks responded that large customers are well-distributed across commercial and defense segments, with a growing number of significant commercial customers. James Ricchiuti (Needham & Company) questioned Penang facility progress. Roks reported positive developments, noting Penang is very close to breakeven, which they hope to achieve in late Q3 or Q4, expanding anchor customer relationships, and beginning to support data center production alongside medical and industrial products. Steven Fox (Fox Advisors) explored the expanding aerospace and defense pipeline. Roks described a balanced business split between PCB and electronics integration, with strong demand in both munitions and advanced radar, and a $7 billion qualified pipeline. Michael Crawford (B. Riley Securities) probed supply chain risks for high-end PCB materials. Roks said supply issues are more pronounced in low-end automotive, while TTM has been able to secure needed materials for advanced products, protecting key growth segments. In the coming quarters, TTM Technologies (NASDAQ:TTMI) will be closely watched for (1) the scale and profitability of the N+M ramp, especially as the Syracuse facility moves toward full capacity by 2028, (2) the successful integration and early performance of the newly acquired European businesses, and (3) the ability of TTM’s pipeline in defense and medical markets to convert into sustainable revenue growth. Progress in operational efficiency and supply chain management will also be key indicators of execution. TTM Technologies currently trades at $132.66, up from $131.25 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Sean Kilian Hannan President and Chief Executive Officer - Edwin Roks Executive Vice President and Chief Financial Officer - Daniel Boehle Operator: Hello, and welcome to TTM Technologies' Second Quarter 2026 Earnings Conference Call. Please note that this call is being recorded. I will now hand the call over to Sean Hannan, Vice President of Investor Relations at TTM. Mr. Hannan, please go ahead. Sean Kilian Hannan: Greetings, everyone. Welcome, and thank you for joining us today. I'm Sean Hannan, Vice President of Investor Relations for TTM. With me on the call are Edwin Roks, our President and Chief Executive Officer; and Dan Boehle, our Executive Vice President and Chief Financial Officer. Before we get started, I'd like to remind everybody that today's call contains forward-looking statements, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the risk factors we provided in our filings with the Securities and Exchange Commission, which we encourage you to review. These forward-looking statements represent management's expectations and assumptions based on currently available information. TTM does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or other circumstances, except as required by law. We will also discuss on this call certain non-GAAP financial measures such as adjusted EBITDA. Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliations between GAAP and non-GAAP measures included in the company's earnings release, which is available on the Investor Relations section of TTM's website at investors.ttm.com. We have also posted on the website an earnings presentation that we will refer to during the call. Here is Edwin. Edwin Roks: Thank you, Sean. Good afternoon, everyone, and thank you for joining us for our second quarter 2026 conference call. At TTM Technologies, we are focused on designing and manufacturing complex advanced interconnect products and printed circuit boards in addition to what we term up as up-the-chain products and solutions such as sophisticated RF modules, intricate subsystems and fully integrated mission systems. Core to the design of all our products and solutions as well as the key strategy to our business is innovative focus to satisfy next-generation needs for our customers and end markets, particularly regarding SWaP or size, weight and power. We believe the future of electronics lies in speed to market, high reliability and efficient technology integration, and we consequently engaged early with our customers to ensure this alignment while also enabling optimal management of their complex supply chains. From a demand standpoint, we remain excited about the key megatrends of artificial intelligence and defense, which have been strong drivers of our performance and new business activity at TTM. We previously stated that approximately 80% of our net sales are related to these 2 megatrends, and we believe this will continue to put us in a beneficial position for our investors for the foreseeable future. We remain committed to thoughtful capital and resource investments at our facilities around the globe to take full advantage of these opportunities. And we also plan to continue the pursuit of opportunities that enhance our business and financial strength with additive products, capabilities and geographic offerings through thoughtful strategic acquisitions. We are tracking well ahead of our previously communicated plan to achieve at least $4 billion in net sales in 2026, and our earnings for 2026 are exceeding our prior expectations as well as Dan will share later in his comments. With the continued strong demand in both artificial intelligence and defense, we also remain confident in our ability to achieve 15% to 20% organic revenue growth for 2027 and 2028 as previously shared. We will also provide further clarity on these out years next quarter as we develop our updated long-term plan. In our commercial segment, we are highly focused on supporting the demand wave of artificial intelligence in the data center and networking end market. In this market, technology demand has been robust across our diverse set of customers, and we are particularly excited for our growth momentum as we've initiated the early stage of our full production launch of N+M, our asymmetrical interconnect printed circuit boards. We are also focused on evolving opportunities in the use of automation and AI in our medical, industrial and instrumentation end markets, while we remain strategically positioned in automotive for longer-term advanced technology cycles. In our aerospace and defense end market, we continue to excel with our leading position in advanced interconnect products as we work to expand our product offerings in integrated electronics and up-the-chain solutions. We remain quite encouraged by our opportunities, and we are very actively working to secure additional future awards or orders for the Golden Dome program, multiple munition programs, and emerging technologies and companies. In the third quarter, we will begin the initial stages of ramping up volume for Ultra-HDI products at our new Syracuse facility. This plant is expected to continue into the fourth quarter and throughout 2027 to reach full capacity run rate at 2028. Operationally, in A&D, we are also very pleased with our progress on targeted initiatives to implement better pricing structures, streamline our supply chain and drive manufacturing efficiencies, which should all enable margin improvements in the long run. Toward the end of the second quarter, we announced our intentions to acquire 2 well-established companies in Europe, which are privately held: Swiss Technology Group AG, or STG, in Switzerland; and ILFA GmbH, or ILFA, in Germany. This transaction is expected to close in the third quarter. From a model standpoint, these businesses are expected to contribute less than 5% of incremental sales and to be moderately accretive on an adjusted EBITDA basis. But most importantly, these strategic acquisitions will establish our initial footprint in Europe, adding healthy long-cycle businesses, primarily into medical and A&D end markets with strategic technology capabilities that reinforce our up-the-chain, value-add technology approach. This will serve as a first step toward our long-term vision to become a significant competitor in this geography, and we expect to continue to be opportunistic in the future for businesses that simulate such criteria. I'll now begin with an overview of our business highlights from the quarter. Dan will follow up with a summary of our Q2 2026 financial performance and our Q3 2026 fiscal guidance. We will then open the call to your questions. We delivered an excellent second quarter of 2026; and as always, I would like to thank our employees for delivering these results. 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. Sales grew 37% year-on-year reflecting continued demand strength in our data center and networking end market driven by the requirements of AI while our medical, industrial and instrumentation, and aerospace and defense end markets also experienced very strong growth. The company's adjusted EBITDA margin was 16.6% in the second quarter of 2026, up 160 basis points year-on-year and 90 basis points sequentially, largely reflecting positive mix impacts. Non-GAAP EPS of $0.99 per diluted share was a 71% improvement year-on-year. The aerospace and defense end market represented 37% of second quarter 2026 sales. Sales in the aerospace and defense market grew 14% year-on-year in the second quarter while the vast majority of our facilities performing at very strong levels. The sales growth in the defense market continues to be a result of positive tailwinds in defense budgets, our strong strategic program alignment, and key bookings for new and ongoing programs. Our ability to support sustained longer-term growth is also very encouraging. We have many product innovation initiatives on track within our internal road maps, including unique advancements in printed circuit board technologies for materials that enable high frequency in support of all our applications. During the second quarter of 2026, we booked significantly aerospace and defense business related to APS-153 multi-mode maritime surveillance radar, the ATP Sensor System for targeting and surveillance, Golden Dome and a number of projected priority restricted programs. A&D book to bill was 1.3 for the quarter, which led to a total program backlog of $1.7 billion, up from $1.5 billion a year ago. We are also pleased to share that business proposals for this end market are at an all-time high with over $7 billion of potential business currently qualified in our strategic pipeline. For the third quarter of 2026, we expect this end market to represent 32% of our total sales and continue delivering both year-on-year and sequential growth. For the full year 2026, we now expect sales in this end market to grow in the low to mid-teens year-on-year. Sales in the data center and networking end market represented 40% of our second quarter 2026 sales. This end market experienced 91% year-on-year growth in the second quarter, above our growth expectations and reflecting continued demand strength from our data center and networking customers, building out the AI data centers. For the third quarter of 2026, we expect this end market to represent 49% of net sales as early stages begin for the planned ramp-up to volume production of our N+M asymmetrical printed circuit boards. For the full year 2026, we now expect sales in this end market to more than double year-on-year. The medical, industrial and instrumentation end market represented 50% of our second quarter 2026 sales. This end market saw a year-on-year growth of 33% during the second quarter, primarily aided by healthy demand in medical, which is included support for major continuous glucose monitoring products and in instrumentation for automated test equipment supporting AI solutions. Year-to-date, TTM's top 5 medical customers' performance have more than doubled our internal expectations, and we expect growth in this submarket to continue to be driven by demand of innovative products such as surgical robots, electrophysiology and continuous glucose measuring solutions. For the third quarter of 2026, we expect the medical, industrial and instrumentation end market to represent 13% of total sales, growing both sequentially and year-on-year. For the full year 2026, we now expect sales in this end market to grow 35% to 40% year-on-year. Automotive sales represented 8% of second quarter 2026 sales and was down marginally year-on-year. We continue to be very selective in this market to focus on higher value-add products that carry margin profiles consistent with our financial goals as we also believe long-term business cycles should migrate back towards our advanced capabilities. For the third quarter of 2026, we expect that automotive market to represent about 6% of total sales, which reflects slight pressure in supply chain materials availability as CCL producers attempt to shift away from lower complexity materials towards higher complexity products. Given this dynamic, we are actively working with our supply chain partners to secure adequate supply that is in line with our customer demand. For the full year 2026, we continue to expect sales in this end market to decrease in the mid-single digits year-on-year. The overall book to bill was 1.49 for the second quarter of 2026, with the commercial reporting segment at 1.63 and the A&D reporting segment at 1.3. At the end of the second quarter of 2026, the 90 days backlog, which is subject to cancellations, was $901 million compared to $497 million a year ago, an 81% increase year-on-year. Now Dan will summarize our financial performance for the second quarter. Dan? Daniel Boehle: Thanks, Edwin, and good afternoon, everyone. I will review our financial results for the second quarter of 2026 that were included in the press release distributed today. Key financial highlights are also summarized in the earnings presentation posted on our website. For the second quarter of 2026, net sales were $1.0 billion compared to $731 million in the second quarter of 2025. The 37% year-over-year increase was due to continued strong growth in our data center and networking; medical, industrial and instrumentation; and aerospace and defense end markets, partially offset by a more modest than anticipated decline in our automotive end market. GAAP operating income for the second quarter of 2026 was $109.1 million compared to GAAP operating income for the second quarter of 2025 of $61.8 million. During the second quarter, we also recognized a noncash pretax unrealized loss in the amount of $14 million from changes in the fair value of a deal contingent cross-currency swap we entered into in order to economically hedge the Swiss franc-denominated purchase price of the pending STG acquisition. We could not use hedge accounting since the deal had not yet closed. Therefore, changes in the fair value of the swap were required to be recognized in our GAAP earnings. On a GAAP basis, net income in the second quarter of 2026 was $83 million or $0.77 per diluted share. This compares to GAAP net income for the second quarter of 2025 of $41.5 million or $0.40 per diluted share. The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP performance excludes M&A-related costs, restructuring costs, certain noncash expense items such as amortization of intangibles, impairment of goodwill, stock-based compensation, gains on the sale of property, unrealized gains or losses on foreign exchange and other unusual or infrequent items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate comparison with expectations and prior periods. Gross margin in the second quarter of 2026 was 21.9%, an increase of 100 basis points from 20.9% in the second quarter of 2025. The year-on-year increase was due primarily to higher sales volume and favorable product mix, particularly in the data center and networking, and aerospace and defense end markets. Selling and marketing expense was $24.2 million in the second quarter of 2026 or 2.4% of net sales versus $20.3 million or 2.8% of net sales a year ago. Second quarter general and administrative expense was $49.3 million or 4.9% of net sales compared to $44.3 million or 6.1% of net sales a year ago. Our operating margin in the second quarter of 2026 was 13.8%, a 270 basis point improvement from 11.1% in the same quarter last year. The increase in the period was due both to the improvement in gross margin as well as operating leverage resulting from selling, general and administrative expense discipline. Interest expense was $9.9 million in the second quarter of 2026 compared to $10.6 million in the same quarter last year. Interest income was $1.9 million in the second quarter of 2026 compared to $2.2 million in the same quarter last year. Realized foreign exchange and other nonoperating income and expenses in the second quarter of 2026 totaled a net expense of $4.7 million as compared to net expense of $1.6 million in the same quarter last year. The increased expense was driven by the weakening of the U.S. dollar, which resulted in a $4.9 million foreign exchange loss in the second quarter of 2026 as compared to a $1.4 million loss in the same quarter last year. Our effective tax rate was 15.0% in the second quarter of 2026, resulting in tax expense of $18.9 million. This compares to an effective tax rate of 15.0% or a tax expense of $10.7 million in the same quarter last year. Second quarter 2026 non-GAAP net income was $106.9 million or $0.99 per diluted share. This compares to second quarter of 2025 non-GAAP net income of $60.8 million or $0.58 per diluted share. Adjusted EBITDA for the second quarter of 2026 was $166.8 million or 16.6% of net sales compared with second quarter 2025 adjusted EBITDA of $109.7 million or 15.0% of net sales. Cash flow provided by operating activities was $96.4 million in the second quarter of 2026, which compares to cash flow provided by operating activities of $97.8 million in the same quarter last year. Free cash flow in the second quarter of 2026 was $46.0 million as compared to free cash flow of $37.6 million in the second quarter of last year. Now we will provide our financial guidance for the third quarter of 2026 and an update to our outlook for the full year 2026. We project net sales for the third quarter of 2026 to be in the range of $1.10 billion to $1.14 billion and non-GAAP earnings to be a range of $1.21 to $1.27 per diluted share. These estimates exclude any contribution or impact from pending acquisitions. In addition, considering the current demand dynamics reflected in our first half results and third quarter guidance, we believe that the net sales growth should continue with a sequential uptick in the fourth quarter. Consequently, we now expect full year 2026 sales of approximately $4.4 billion and non-GAAP earnings to approach $5 per diluted share. These full year 2026 projections also exclude any contribution or impact from pending acquisitions. The third quarter 2026 non-GAAP diluted EPS forecast is based on a diluted share count of approximately 107.7 million shares, which includes the dilutive effect of outstanding stock options and other stock awards. We expect SG&A expense to be approximately 7% of net sales in the third quarter and R&D expenditures to be approximately 1% of net sales. We expect interest expense of approximately $11.3 million, interest income of approximately $2.5 million, and realized foreign exchange and other nonoperating expenses of approximately $5 million. We estimate our effective tax rate to be between 13% and 17%. Further, we expect depreciation expense of approximately $33.5 million, amortization of intangibles of approximately $9.2 million, stock-based compensation expense of approximately $18.8 million and noncash interest expense of approximately $0.7 million. And finally, I'd like to announce that we will be participating in the Jefferies Semiconductor Conference in Chicago on August 26, The Jefferies Industrial Conference in New York on September 9 and the B. Riley TMT Conference in New York on September 10. That concludes our prepared remarks, so I'll turn it back to you, Justin, for the Q&A session. Operator: And we will take our first question from the line of Jim Ricchiuti from Needham & Company. James Ricchiuti: First question, I wonder if you can talk a little bit about the impact you may be assuming on revenues and margins from the N+M scale-up in Q3. If you can't provide specific numbers to it, I wonder if you could just speak about the impact qualitatively. Edwin Roks: Jim, yes, thank you for being on the call. Happy to start this answer and then hand it over to Dan. First of all, yes, the second half of the year is, of course, a very big thing for us. It will be -- as you know, the asymmetrical PCBs, the N+M will kick in. So the good thing, Jim, is that we already delivered about tens of millions, and yields are looking really, really well. But again, we have to do another -- about $600 million of that technology, which is a really nice technology. So that will help us in our margins, assuming that the rest will stay all the same. So this is a thing to look forward to. Daniel Boehle: And so Jim, just to give a little bit more color. So Edwin just mentioned $600 million in the second half. About 1/3 of that's in Q3 and then 2/3 in Q4. So you see that ramp as we ramp production and then improve yields as well in the fourth quarter. So then the margin will kind of improve as well as those yields improve. So it will -- I won't quantify exactly what it will have. It depends upon how quickly we come up those -- that yield curve. But it will improve the margins in both the third quarter and fourth quarter. Edwin Roks: And of course, Jim, this is all building in our guidance for Q3. And since we guided also sort of for the year, you also had the Q4 numbers, correct? Daniel Boehle: Yes. We're talking about margins. That's our adjusted EBITDA margins. James Ricchiuti: Right. Okay. I wonder if you could talk to the number of 10% customers you may have had in the quarter. I know that the Q is -- it was just filed. I'm not sure if you disclosed it there, but I wonder if you can help on that score in terms of defense and the -- presumably the data center area. Edwin Roks: Sure, sure, sure. And Jim, I'm always happy that, let's say, these 10% customers, which we disclosed in our 10-Q and 10-K, are largely distributed over the 2 reporting segments. So one is, let's say, in our commercial businesses, yes; and one is in our aerospace and defense businesses. And I must say, in the commercial business, it's getting a bit crowded, so there is another one, which is getting very close to the 10% customer. So we're in a pretty good spot. It's good to have 10% customers. It's also good to have a good distribution of customers. As you know, the hyperscalers and the networking guys, we have about 10 plus of big, big companies in that field. And of course, you're very much aware, on the defense side, who our customers are, and that's also a nice balance. So again, one, I'm happy with these big guys, the 10% customers, nicely balanced over the 2 important segments. We're also very happy with having these types of customers nicely distributed. James Ricchiuti: Got it. One quick question and I'll jump back in the queue. It sounds like you're making progress in Penang. Are you pivoting now to producing product for the data center market from this facility? Edwin Roks: Yes, yes, yes, I'm extremely happy about Penang by the way. Penang is doing exactly what we told you guys half a year ago. It's -- we're getting to very decent revenue levels, very close to, let's say, a breakeven number, which we hope to get, let's say, late Q3, Q4. I think we are exactly on track. As I mentioned to you before, we are looking at the yields of some very important lead vehicles for our anchor customers. These anchor customers are still the same. We added even a few. So they are very happy. Most of that business in Penang, Jim, is related to our MI&I business. But also, if I talk about N+M, which is one of the most difficult technologies we have in the company, I'm so happy that Penang is also doing N+M and indeed, supporting some of our data center and networking customers. So a good mix, still mostly MI&I, medical, instrumentation, industrial, but also some of the data center guys. James Ricchiuti: Congrats on the quarter by the way. Edwin Roks: Thank you. Thank you, Jim. I was expecting that remark. Thank you. Operator: And we will take our next question from Steven Fox of Fox Advisors. Steven Fox: I was wondering if you could dig in a little bit more into the sales pipeline you talked about in the aerospace and defense business. Any sort of gauge into how maybe your business either is changing or expanding? And what type of capability trends are you seeing that's needed there that maybe we haven't thought of yet? And then I had a follow-up. Edwin Roks: Yes. Thank you, Steve. Good question. As you know, our aerospace and defense business is basically split in 2. It's our PCB business, which is using the Ultra-HDI, and you saw the opening of Syracuse Diamond, which is really good, so helping us on our Ultra-HDI. The other part of the business, let's say, everything we do up the chain. So using our interconnect technologies to making modules, mostly RF modules, subsystems and systems, even complete radar systems. So that business is very balanced. The business is doing very well on the PCB side but also very, very well on the interconnect -- sorry, in the electronics side. So that's going well on both ends. If you look at the customers, let's say, they're very active on both sides. So if you look at the book to bill or if you look at the backlog, even better, at the $1.7 billion, that's a very solid number. If I look at the pipeline, which we also review, of course, every month, we're getting over the $7 billion. And this is a qualified pipeline. So we see very nice things happening both on the munition side. Yes, that's probably the most urgent thing. That's mostly on PCBs by the way. And we see a lot of things happening on the Golden Dome side. That's a good mix between both of the businesses, and then all of the other things like communications and other applications. So Steve, a good mix in A&D, well positioned. I was on the Farnborough show just a few weeks ago. All these large players, they come with additional demand. And it looks like sometimes we are the only supplier in the U.S., so this is very helpful. And also our international business, by the way, is growing very nicely, and we hope to grow that even further with the announcement of the 2 companies we addressed in our earnings release. Steven Fox: Great. That's very helpful. And then just as a follow-up. I'm sorry if I missed this. But is there any update on the Wisconsin facility ramp and your latest thinking on that? Edwin Roks: No, but I can give you an update on the Wisconsin facility. So first of all, Steve, we're not in a rush there. Yes? We are -- we always have to plan with Eau Claire. We will start some production there, and we will start an innovation center. Probably the last thing, the innovation center is the most important thing. We will demonstrate the newest technologies, very close to Chippewa Falls, where even today, I saw some very new milestones. That site is doing amazing. 20 minutes away from that site, we have Eau Claire. We have Wisconsin. So it's very well positioned to do advanced R&D. The other thing, let's say, looking at the data centers and networking customers, they all have the opportunity to step in Eau Claire whenever they want. Yes? and of course, we will ask them a contribution there. But again, we are not in a rush. And they are not in a rush, which I understand. That also means that we have a bit more time also to think about our aerospace and defense business, but again, also here, we are not in a rush. The thing is we have the capacity available. We only paid less than $20 million for that site, so again, it's not a burden. So again, we'll take our time. Steven Fox: Congrats on the quarter. Edwin Roks: Thanks, Steve. Operator: Our next question comes from Mike Crawford from B. Riley Securities. Michael Crawford: I believe in your remarks, you addressed some CCL supply chain issues facing kind of lower end automotive products serving that vertical. But what about supply chain of T-glass and other materials needed for your most sophisticated printed circuit board serving the data center vertical? How is that supply chain looking? Edwin Roks: Yes, yes. So Mark, there's trend going in that direction, indeed, what you say. It is -- it looks like all the suppliers are a bit more focused on the higher end products, yes, on the high-end materials. So I understand that. They want to make some money there, so they do that. That also means that if we are suffering a bit with our supply chain, it is always in the somewhat lower end parts of our business, yes? So you pick an example here, automotive. Yes, it's not our most important business. We pick our battles there. We look for the higher end. We look for the higher margins. So if we have some supply chain issues with slightly longer lead times, it is in those businesses, protecting basically our higher end. So yes, I see that trend. Are the customers suffering on that? I don't think so. It's not happening. We still are able to get decent lead times. We still have the materials. But yes, the effect is more severe in the lower-end materials than in the higher-end materials. Michael Crawford: And then switching gears for my one follow-up. I think you said that the 2 proposed acquisitions would be less than $220 million. That's -- even that number is a bit higher than we estimated in our preview. But could you give any more firm economics over potential annualized revenue contribution once they close, what you're paying and also ability to expand in the footholds that you're gaining in Europe like whether within the existing facilities or adjacent to as you've done in Syracuse and elsewhere? Edwin Roks: Yes. No, Michael, let me cover this first and then hand it over to Dan. So first of all, I cannot be more excited about these 2 companies. I was there just a few weeks ago. This will be a great, great addition to TTM. Okay? If I both look at ILFA, I met the General Manager by the way, the CEO at the Farnborough show. He was already helping us with a lot of TTM stuff, so that's great. And also STG, I would almost feel that they are already part of TTM. So -- but still, we are in a quiet period. Yes? We still have the regulatory offices to give their guidance, and we wait for that and that, hopefully, they will conclude September or so and come with a good conclusion there. The only thing I can say and I said it in the -- we said it in the press release, that it is less than 5% and are happy with that because that also makes it for regulatory offices a bit more easy. I wish I could talk more about revenue. I wish I could talk more about what we paid for it or what we will pay for it, but I'm on [ -- really ] I cannot do that, Mike, unfortunately. But I can tell you, I'm very, very excited. And Dan, if you want to add something there. Daniel Boehle: No, nothing more to add. We do expect them to close in the third quarter, and we'll provide all the related information at that time, including the impacts that it will have going forward. Operator: Our next question comes from the line of William Stein from Truist Securities. William Stein: First, I want to say congrats on the good results, a better outlook and a very strong implied Q4, which I think is what's giving the stock the relief now. So again, congrats on that. I'd like to ask about N+M again a little bit and maybe a couple of questions about it. First, it would seem to me that this is the major contributor to the upside in Q4. Edwin, I think you talked about doing an incremental $1 billion of N+M revenue next year. So I'm hoping you can comment whether I have that data point correct and whether there's a need for this technology outside of data center. And maybe you can talk us through why and what the expected impact would be on your margins. Edwin Roks: Yes. Yes. Sure, Will. First of all, we are extremely happy with N+M, not only with N+M but also what it opens up. N+M is not just one process. It's a family of different options. And this is only the first step. So I'm extremely happy with that. It supports multiple customers and again, not only data centers and networking customers but all other customers as well. So new opportunities are opening up, which is great. Second thing is, yes, we are delivering now N+M. Yields are much better than we thought. And again, this is just ramping up, so this is great. Yes, we're planning to do a lot of business next year as well. What that exact number is, Will, is still a bit our work, let's say, a work in progress. We're still doing our planning for next year. We're still doing our strategic plan. By the way, our strategic plan goes out 7 years. Okay? And our business plan is the first year of that. So we're doing all these analysis to make sure that we are more accurate. You see that we are getting far more transparent to our analysts than we ever were, yes? So we give the guidance. Of course, we give guidance on the quarter and also the EPS, but we're also adding now the full year, yes? This is the first year that we give guidance on the full year. And also since this quarter, you give guidance on the full year EPS. We plan to do that next year as well. So as soon as we did our exercise, and this is basically -- this is a bottom-up exercise, not only top down, working with all our customers, seeing how much they need on N+M and how much they need on other technologies, we get back to you with a very, very accurate number, I would say. But I can tell you, Will, N+M is really, really important for us, and it could be in the ballpark you mentioned. William Stein: Great. As a follow-up, maybe I can ask about capacity constraints. I think the last time we spoke, you said that you're not facing any in data center, but if you had any additional capacity, you'd love it in the MI&I. Is that still the case? Or are -- have capacity additions allowed you to overcome those constraints? Or are they still affecting you? And maybe compare this to what your customers are seeing broadly in the industry. Edwin Roks: Good question, Will. The thing is -- and even, let's say, with the growth quarter-over-quarter -- so the year-over-year growth in MI&I is 33%. Even with those growth numbers, we're still able to supply these customers. If we look at the whole capacity calculations, mostly China, China Plus One, but also U.S., we're still very, very comfortable. You see that we do -- we focus a lot on brownfield. That basically means existing facilities, which we are going to expand. We do that very well in China. During the Analyst Day, I remember we gave you a few examples how fast these things go. Remember in March was an empty hall, and in May, we have all these drill stations there. So that's how fast we can move in China, and that's still happening. By the way, I just came from my Board meeting last week, and we approved another capital investment on the same thing. So that's going very well. On MI&I, that business is growing. We love it. That's also the reason for the acquisition of STG, by the way. We love that business, the medical business. When you're in, you're in. And the same thing, Will, on the A&D side. There, we are also expanding Sterling. We're expanding a lot of other sites where -- which are really relevant sites, and suddenly you make from $100 million site, you make a $200 million site. That's how it works. So I like that brownfield, and I like the expansion of existing sites. And that's helping us a lot, and the capacity is available immediately. So this is way forward. Daniel Boehle: And Will, I'll just point out, just as Edwin just mentioned, we got approval to accelerate some of our capital expenditures. So if you look at the 10-Q disclosure, it will -- you'll see the expenditures expected for this year went up around $45 million at the top and bottom end of that range. Edwin Roks: Yes. Thank you, Justin. I'd like to close by summarizing 3 key items. First, we are experiencing high healthy growth. We delivered strong sales growth in Q2 of 37% year-on-year, resulting in an all-time high of $1 billion for quarterly revenue, driven by increases in our data center and networking; medical, industrial and instrumentation; aerospace and defense end markets. Second, our adjusted EBITDA for the second quarter of 16.6%, reflecting strong operating performance, leading to another all-time high record and quarterly non-GAAP EPS of $0.99. We expect to continue building on this operating performance in the second half of 2026. And third, we continue to generate solid cash flows from operations, which enables us to invest in our projected continued growth while maintaining a healthy net leverage ratio of 0.9x. In closing, as always, I would like to thank our employees of TTM, our customers, our suppliers and our shareholders for your continued support. Thank you very much, and goodbye. Operator: Ladies and gentlemen, that concludes our conference call today. Hope you have a great rest of the week. You may now disconnect. Before you buy stock in TTM Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TTM Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. TTM Technologies (TTMI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

TTM Technologies TTMI reported second-quarter 2026 non-GAAP earnings of 99 cents per share, up 70.7% year over year. The figure beat the Zacks Consensus Estimate by 7.61%.Revenues rose 37.4% to $1 billion, surpassing the consensus estimate by 4.1%. Robust AI-related demand in the Data Center and Networking market supported growth, while the total book-to-bill ratio improved to 1.49. In the reported quarter, Aerospace & Defense revenues increased 14.2% year over year to $382.8 million. Commercial revenues surged 57.1% to $621.6 million, reflecting strong demand across the company’s commercial end markets.Data Center and Networking represented 40% of quarterly sales, up from 29% year over year. Aerospace and Defense accounted for 37%, compared with 45% in the prior-year quarter. Medical, Industrial and Instrumentation contributed 15%, while Automotive represented 8%. TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote Management stated that Data Center and Networking revenues climbed 91% year over year, driven by continued AI demand. Medical, Industrial and Instrumentation revenues grew 33%, while Aerospace and Defense benefited from alignment with priority defense programs. The company’s commercial 90-day backlog increased 144% year over year to approximately $0.9 billion. The commercial book-to-bill ratio reached 1.63, indicating that new orders exceeded shipments during the quarter.Aerospace and Defense program backlog rose to more than $1.7 billion from $1.5 billion a year ago. The segment’s book-to-bill ratio improved to 1.30 from 0.71. Program bookings included the APS-153 Maritime Surveillance Radar, the ATP Sensor System for Targeting and Surveillance, Golden Dome and multiple restricted programs.TTMI also received its first development contract for an active electronically scanned array Detect and Avoid radar system for the Advanced Air Mobility market. Its first Golden Dome-related award supports a potential pipeline exceeding $600 million across interconnect and integrated electronics solutions. In the second quarter of 2026, TTM Technologies reported a non-GAAP gross margin of 21.9%, which expanded 100 basis points (bps) year over year, with non-GAAP gross profit of $219.8 million.Selling and marketing expenses increased 19.6% year over year to $25.5 million. General and administrative expenses rose 24.9% year over year to $62.1 million. Research and development expenses increased 13.8% year over year to $8 million.Non-GAAP operating income increased 70% to $138.4 million. The corresponding margin expanded 270 basis points to 13.8%.Adjusted EBITDA rose 52% to $166.8 million, while adjusted EBITDA margin increased 160 basis points to 16.6%. As of June 29, 2026, TTM Technologies’ cash and cash equivalents were $507.9 million, compared with $410 million as of March 30, 2026.Total debt, including short- and long-term borrowings, increased to $973.5 million, up from $915.7 million sequentially.In the reported quarter, cash flow from operations was $96.4 million. Net capital expenditures were $50.4 million, resulting in free cash flow of $46 million. For the third quarter of 2026, TTM Technologies expects revenues between $1.10 billion and $1.14 billion. Non-GAAP earnings are projected between $1.21 and $1.27 per share.For 2026, management now anticipates revenues of approximately $4.4 billion and non-GAAP earnings per share approaching $5. The outlook excludes contributions or other impacts from the pending STG and ILFA acquisitions, which are expected to close in the third quarter. TTM Technologies currently carries a Zacks Rank #4 (Sell).Kimball Electronics KE, Quantum QMCO and Lumentum LITE are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13.Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026.Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Quantum Corporation (QMCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $1.0 billion in Q2 2026, up 37% year-over-year from $731 million. Non-GAAP EPS: $0.99 per diluted share, a 71% increase year-over-year. GAAP Net Income: $83 million, or $0.77 per diluted share, compared to $41.5 million, or $0.40 per diluted share, in Q2 2025. Gross Margin: 21.9%, up 100 basis points from 20.9% in the prior-year quarter. Operating Margin: 13.8%, a 270 basis point improvement from 11.1% in Q2 2025. Adjusted EBITDA: $166.8 million, or 16.6% of net sales, up from $109 million, or 15.0% of net sales, a year ago. Free Cash Flow: $46.0 million in Q2 2026, compared to $37.6 million in Q2 2025. Data Center and Networking Sales: Represented 40% of Q2 sales, with 91% year-on-year growth. Aerospace and Defense Sales: Represented 37% of Q2 sales, with 14% year-on-year growth. Medical, Industrial, and Instrumentation Sales: Represented 15% of Q2 sales, with 33% year-on-year growth. Automotive Sales: Represented 8% of Q2 sales, down marginally year-on-year. Book-to-Bill Ratio: 1.49 overall for Q2 2026, with commercial at 1.63 and A&D at 1.3. Backlog: $901 million at the end of Q2 2026, an 81% increase year-on-year. Q3 2026 Guidance: Net sales expected between $1.10 billion and $1.14 billion; non-GAAP EPS expected between $1.21 and $1.27. Full Year 2026 Guidance: Net sales of approximately $4.4 billion and non-GAAP EPS approaching $5.00 per diluted share. Warning! GuruFocus has detected 4 Warning Sign with RVMD. Is TTMI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TTM Technologies Inc (NASDAQ:TTMI) achieved record quarterly sales of $1 billion, a 37% year-over-year increase, driven by strong demand in data center, networking, and aerospace and defense markets. Non-GAAP EPS of $0.99 per diluted share was an all-time high, a 71% improvement year-over-year, with adjusted EBITDA margin expanding 160 basis points to 16.6%. The company raised its full-year 2026 guidance to approximately $4.4 billion in sales and non-GAAP EPS approaching $5, reflecting strong demand and successful ramp-up of new technologies. Aerospace and defense bookings remain robust with a book-to-bill of 1.3, a total program backlog of $1.7 billion, and a strategic pipeline of over $7 billion in qualified potential business. The company is successfully ramping production of its advanced M+N (asymmetrical) printed circuit boards, with yields better than expected, supporting significant growth in the AI data center market. Strategic acquisitions of STG and ILFA in Europe are expected to close in Q3, establishing a footprint in the region and adding capabilities in medical and A&D markets. The automotive end market experienced a slight year-over-year decline, with expectations for a mid-single-digit decrease in sales for the full year 2026. Supply chain issues persist for lower-complexity materials, particularly copper-clad laminates (CCL), as producers shift focus to higher-end products, impacting the automotive segment. The company recognized a non-cash pre-tax unrealized loss of $14 million from changes in the fair value of a deal-contingent cross-currency swap related to the STG acquisition. Foreign exchange losses increased to $4.9 million in Q2 2026 due to the weakening of the U.S. Dollar, negatively impacting non-operating expenses. The ramp-up of the new Syracuse facility for Ultra-HDI products is expected to continue through 2027, with full capacity run rate not expected until 2028, indicating a prolonged period of investment and potential margin pressure. The company faces potential margin dilution during the initial stages of the M+N production ramp in Q3, as yields improve gradually through the quarter and into Q4. Q: Can you discuss the impact of the N+M (asymmetrical interconnect PCB) scale-up on Q3 revenues and margins?A: Edwin Roks (CEO) stated that the second half of the year will be significantly driven by the ramp of N+M technology. The company has already delivered tens of millions in revenue with yields looking very good. Dan Bailey (CFO) added that the $600 million in second-half N+M revenue will be split roughly one-third in Q3 and two-thirds in Q4, with margins improving as yields improve throughout the quarter. Q: What is the current status of the aerospace and defense sales pipeline, and what capability trends are you seeing?A: Edwin Roks (CEO) explained that the A&D business is split between PCB (using Ultra HDI) and up-the-chain electronics (RF modules, subsystems, complete radar systems). The qualified pipeline has grown to over $7 billion, with strong activity in munitions programs (mostly PCBs), Golden Dome (a mix of both), and other communications applications. He noted that international business is growing nicely and that TTM is sometimes the only U.S. supplier for certain large defense programs. Q: Can you provide an update on the Wisconsin (Eau Claire) facility ramp and your latest thinking on that site?A: Edwin Roks (CEO) stated that TTM is not in a rush with the Eau Claire site. The plan includes starting some production and establishing an innovation center, which is the most important element. The site is well-positioned for advanced R&D near Chippewa Falls, and data center/networking customers have the opportunity to step in, though TTM will ask for their contribution. The company has more time to consider its A&D business use for the site, and since it paid less than $20 million, it is not a financial burden. Q: Are there any supply chain issues with materials like Teflon glass for your most sophisticated PCBs serving the data center vertical?A: Edwin Roks (CEO) confirmed that suppliers are increasingly focused on higher-end materials, which is understandable. However, the supply chain issues are primarily affecting the lower-end parts of TTM's business, such as automotive. The company is protecting its higher-end business, and customers are not suffering as TTM is still able to secure adequate lead times and materials for its advanced products. Q: Can you provide more firm economics on the proposed acquisitions of STG and ILFA, including annualized revenue contribution and purchase price?A: Edwin Roks (CEO) expressed excitement about both companies, noting they will be a great addition to TTM. He stated that the combined contribution is expected to be less than 5% of incremental sales, which should make regulatory approval easier. However, he could not disclose specific revenue or purchase price details due to NDA agreements. Dan Bailey (CFO) added that the transactions are expected to close in the third quarter, with all related information provided at that time. Q: Is the incremental $1 billion-plus N+M revenue target for next year correct, and is this technology needed outside of data center? What is the expected margin impact?A: Edwin Roks (CEO) confirmed that N+M is a family of processes, not just one, and supports multiple customers beyond data center and networking. He stated that the $1 billion ballpark for next year is possible, but the exact number is still a work in progress as the company completes its bottom-up strategic planning. He emphasized that N+M is extremely important for TTM and that yields are much better than expected. Q: Are you still facing capacity constraints in the MI&I market, and how are you addressing capacity overall?A: Edwin Roks (CEO) stated that despite 33% year-over-year growth in MI&I, TTM is still able to supply customers. The company focuses on brownfield expansions, particularly in China, where it can move very quickly (e.g., an empty hall in March became fully equipped by May). He noted that the board recently approved another capital investment for expansion. Dan Bailey (CFO) added that the 10-Q disclosure shows expected capital expenditures for the year increased by around $45 million. Q: How many 10% customers did you have in the quarter, and how are they distributed?A: Edwin Roks (CEO) stated that the 10% customers are evenly distributed between the commercial and A&D reporting segments. In the commercial business, it is getting "a bit crowded" as another customer is getting very close to the 10% threshold. He noted that TTM has about 10-plus large hyperscaler and networking companies, providing a good balance and distribution of customers. Q: Is Penang now producing product for the data center market?A: Edwin Roks (CEO) expressed extreme satisfaction with the Penang facility, stating it is doing exactly what was communicated six months ago. Revenue levels are very close to breakeven, expected by late Q3 or Q4. While most of the business is MI&I-related, Penang is also producing N+M technology and supporting some data center networking customers, providing a good mix. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in TTM Technologies, Inc.? Here are five stocks we like better. Record quarterly performance: TTM Technologies reported Q2 2026 revenue of $1 billion, up 37% year over year, while non-GAAP earnings per share rose to $0.99 from $0.58. AI and defense demand drove growth: Data Center and Networking sales surged 91%, supported by AI data-center investment and the N+M circuit-board ramp. Aerospace and Defense revenue increased 14%, with a $1.7 billion backlog and a 1.3 book-to-bill ratio. 2026 outlook raised: TTM now expects approximately $4.4 billion in full-year revenue and nearly $5 in non-GAAP EPS; Q3 revenue guidance is $1.10 billion to $1.14 billion. Pending European acquisitions are expected to modestly add to adjusted EBITDA. 3 Under-the-Radar Tech Names Investors Might Have Missed TTM Technologies (NASDAQ:TTMI) reported second-quarter 2026 revenue of $1 billion, its first quarterly sales result at that level, as demand tied to artificial intelligence data centers, networking, medical products and aerospace and defense programs increased. Revenue rose 37% from $731 million in the prior-year quarter. Non-GAAP net income increased to $106.9 million, or $0.99 per diluted share, from $60.8 million, or $0.58 per share, a year earlier. GAAP net income was $83 million, or $0.77 per diluted share, compared with $41.5 million, or $0.40 per share, in the 2025 period. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 3 Stocks Poised to Benefit From Google’s AI Breakthough “We delivered an excellent second quarter of 2026,” President and Chief Executive Officer Edwin Roks said, citing continued demand in artificial intelligence and defense-related markets. Roks said the company believes about 80% of its net sales are tied to those two megatrends. Adjusted EBITDA was $166.8 million, equal to 16.6% of sales, compared with $109.7 million, or 15.0% of sales, in the prior-year quarter. The adjusted EBITDA margin improved 160 basis points year over year and 90 basis points sequentially, which management attributed largely to product mix. → 3 Drone Stocks That Should Soar After the Summer Slump Top 3 Behind-the-Scenes Electronic Component Companies to Watch Non-GAAP gross margin rose to 21.9% from 20.9% a year earlier, driven by higher volume and favorable mix in data center and networking as well as aerospace and defense. Non-GAAP operating margin increased to 13.8% from 11.1%, supported by gross-margin gains and operating leverage from selling, general and administrative expense discipline. Chief Financial Officer Dan Boehle said second-quarter GAAP results included a $14 million non-cash, pre-tax unrealized loss related to a cross-currency swap used to economically hedge the Swiss franc-denominated purchase price for the pending acquisition of Swiss Technology Group AG. The company could not apply hedge accounting because the transaction had not closed, he said. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Cash flow from operations totaled $96.4 million, compared with $97.8 million a year earlier, while free cash flow increased to $46 million from $37.6 million. Roks said the company ended the quarter with a net leverage ratio of 0.9 times. Data Center and Networking accounted for 40% of second-quarter sales and grew 91% from a year earlier, exceeding management’s expectations. The growth reflected customer investment in AI data centers, Roks said. TTM has begun early-stage full-volume production of N+M, or asymmetrical interconnect printed circuit boards. Roks said the company had already delivered “tens of millions” of dollars of the technology and that yields were progressing well. Boehle said TTM expects approximately $600 million in N+M revenue during the second half, with about one-third expected in the third quarter and two-thirds in the fourth quarter. Management said the N+M production ramp and improving yields are expected to support adjusted EBITDA margins in the third and fourth quarters. For the third quarter, Data Center and Networking is expected to account for 49% of sales. TTM expects full-year sales in that market to more than double from 2025. The Medical, Industrial & Instrumentation market represented 50% of second-quarter sales and grew 33% year over year, aided by medical demand, including continuous glucose monitoring products and automated test equipment supporting AI solutions. Management said its five largest medical customers have outperformed its internal expectations by more than twofold year to date. The company expects full-year sales in the market to grow 35% to 40%. Automotive represented 8% of second-quarter sales and declined marginally year over year. Roks said the company was being selective in automotive, emphasizing higher-value products with margin profiles aligned with its financial goals. TTM cited some supply constraints for lower-complexity materials as copper-clad laminate producers prioritize more advanced products, though management said its higher-end supply chain remained adequately supported. Aerospace and Defense represented 37% of second-quarter revenue and grew 14% from a year earlier. The segment’s book-to-bill ratio was 1.3, and program backlog reached $1.7 billion, up from $1.5 billion a year earlier. Roks said the company’s qualified strategic pipeline exceeded $7 billion. During the quarter, TTM booked business related to the AN/APS-153 Multi-Mode Maritime Surveillance Radar, the ATP Sensor System, Golden Dome and other programs. Management expects Aerospace and Defense sales to grow in the low- to mid-teens for the full year. TTM expects to begin initial volume ramp-up for Ultra-HDI products at its Syracuse facility in the third quarter. The ramp is expected to extend through 2027, with the facility reaching full-capacity run rate in 2028. The company also expects its acquisitions of Switzerland-based Swiss Technology Group AG and Germany-based ILFA GmbH to close in the third quarter, subject to remaining approvals. Roks said the transactions will create TTM’s initial European footprint and add long-cycle businesses primarily serving medical and aerospace and defense customers. Management expects the acquisitions to contribute less than 5% of incremental sales and to be moderately accretive to adjusted EBITDA, though its guidance excludes their impact. For the third quarter, TTM projected revenue of $1.10 billion to $1.14 billion and non-GAAP earnings of $1.21 to $1.27 per diluted share. The company expects SG&A expense to be about 7% of sales and research and development spending to be about 1% of sales. Based on first-half performance and third-quarter guidance, TTM raised its full-year outlook to approximately $4.4 billion in revenue and non-GAAP earnings approaching $5 per diluted share. Management said it expects a sequential increase in sales in the fourth quarter and remains confident in its previously stated goal of 15% to 20% organic revenue growth in 2027 and 2028. TTM Technologies, Inc is a leading global manufacturer of printed circuit boards (PCBs) and related electronic components. The company's product portfolio spans rigid, flexible and rigid-flex circuit boards, as well as advanced substrates, backplanes, hybrid circuits and integrated antenna modules. In addition to PCB fabrication, TTM offers comprehensive system‐level services, including design support, surface mount technology (SMT) assembly, cable and wire harness assembly, and complete box-build solutions to address end-to-end customer requirements. Serving a broad array of end markets, TTM Technologies supports customers in the communications, computing, automotive, aerospace and defense, industrial, and medical sectors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TTM Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly revenue of $1 billion, driven by a 91% year-on-year surge in the data center and networking market as hyperscalers build out AI infrastructure. Performance attribution is heavily concentrated in two megatrends, with approximately 80% of net sales now tied to artificial intelligence and defense applications. Operational success in the commercial segment is anchored by the early-stage production launch of N+M asymmetrical interconnect PCBs, a high-complexity technology family. Aerospace and defense growth of 14% was supported by positive tailwinds in defense budgets and strategic alignment with high-priority programs like Golden Dome and maritime surveillance. Management attributes the 160 basis point year-on-year expansion in adjusted EBITDA margin to favorable product mix and disciplined SG&A operating leverage. The strategic entry into the European market via the pending acquisitions of STG and ILFA is intended to establish a long-cycle footprint in medical and defense sectors. Manufacturing strategy is shifting toward 'brownfield' expansions of existing facilities to rapidly add capacity for high-demand AI and medical instrumentation products. Management raised full-year 2026 revenue expectations to approximately $4.4 billion, projecting a sequential uptick in the fourth quarter driven by the N+M production ramp. The company maintains a long-term organic revenue growth target of 15% to 20% for 2027 and 2028, supported by a $7 billion qualified pipeline in the defense sector. The Syracuse facility is scheduled to begin initial volume ramping for Ultra-HDI products in Q3, with a trajectory to reach full capacity run rate by 2028. Guidance for Q3 assumes the data center and networking market will grow to represent 49% of total sales as the N+M technology reaches higher volume stages. Capital expenditure projections for 2026 were increased by approximately $45 million to accelerate capacity for advanced technologies in both China and the U.S. Recognized a $14 million noncash pretax unrealized loss related to a deal-contingent cross-currency swap for the pending STG acquisition due to GAAP hedging requirements. Management flagged slight supply chain pressure in automotive due to CCL producers shifting capacity away from lower-complexity materials toward higher-margin products. The automotive segment is expected to decline in the mid-single digits for the full year as the company selectively exits lower-margin business to focus on advanced technology cycles. The pending European acquisitions are expected to contribute less than 5% of incremental sales but are strategically valued for their 'up-the-chain' technology capabilities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to deliver approximately $600 million of N+M technology in the second half of 2026, with 1/3 in Q3 and 2/3 in Q4. Yields are currently exceeding internal expectations, which is expected to drive adjusted EBITDA margin improvements as the production curve matures. The company is utilizing 'brownfield' expansions to double capacity at certain sites, such as Sterling, to meet growing demand without the delays of new builds. Management noted they are not in a rush to ramp the Wisconsin facility, treating it as a strategic innovation center where customers can participate in R&D. Supply chain issues are primarily confined to lower-end materials like those used in automotive, as suppliers prioritize high-end T-glass and materials for AI data centers. Management confirmed they are actively working with partners to secure supply for the automotive segment but emphasized that higher-end lead times remain stable.

TTM Technologies, Inc. TTMI entered the second half of 2026 with artificial intelligence and defense demand supporting a stronger outlook. The call centered on the N+M printed circuit board ramp, backlog and capacity investments. TTMI’s second-quarter 2026 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 92 cents. Revenues of $1 billion also beat the consensus mark of $964.60 million by 1.10%, while adjusted EBITDA margin reached 16.6%. TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote Executive Vice President and CFO Daniel Boehle guided third-quarter net sales to $1.10-$1.14 billion and adjusted earnings to $1.21-$1.27 per share. The forecast excludes pending acquisitions. Boehle raised the full-year view to approximately $4.4 billion in net sales, with adjusted earnings approaching $5 per share. He expects another sequential sales increase in the fourth quarter. President and CEO Edwin Roks said TTM is well ahead of its earlier plan for at least $4 billion in 2026 sales. He maintained expectations for 15%-20% organic growth in 2027 and 2028. Roks said TTM has begun the production launch of its N+M asymmetrical interconnect boards. The company has delivered tens of millions of dollars of product, with initial yields better than expected. Boehle said about $600 million of N+M revenue is planned for the second half, with one-third in the third quarter and two-thirds in the fourth. Margin improvement will depend partly on yield gains. A Needham analyst pressed management on the earnings impact, while a Truist Securities analyst asked about 2027. Roks said N+M has uses outside data centers and could reach the analyst’s roughly $1 billion estimate next year, though planning continues. Roks said aerospace and defense sales rose 14% and represented 37% of quarterly revenues. Segment book-to-bill reached 1.3, while program backlog increased to $1.7 billion from $1.5 billion a year earlier. TTM booked business tied to the APS-153 maritime surveillance radar, ATP Sensor System, Golden Dome and restricted priority programs. Roks said the qualified strategic pipeline exceeded $7 billion. The Syracuse Ultra-HDI facility will begin its volume ramp in the third quarter, with expansion continuing through 2027 toward full capacity in 2028. Roks also highlighted pricing, supply-chain and manufacturing initiatives intended to improve margins. Data center and networking revenues increased 91% and represented 40% of quarterly sales. Roks expects the category to reach 49% of third-quarter sales and more than double for full-year 2026. Medical, industrial and instrumentation revenues grew 33%. Roks said performance from TTM’s five largest medical customers more than doubled internal expectations, supported by glucose monitoring, surgical robotics and electrophysiology applications. Automotive sales declined marginally and represented 8% of revenues. Roks said TTM remains selective, focusing on higher-value programs, while lower-complexity material availability is creating pressure. A B. Riley Securities analyst asked whether advanced data-center materials faced the same supply pressure as automotive products. Roks said suppliers are prioritizing higher-end materials, leaving greater constraints in lower-complexity products. A Truist Securities analyst questioned whether capacity could limit growth. Roks said brownfield expansions provide faster additions, while Boehle noted that the expected 2026 capital-spending range increased by about $45 million. A Needham analyst asked about Penang. Roks said the facility is approaching breakeven, targeted for late in the third quarter or the fourth, and is supporting medical, industrial and instrumentation products alongside N+M demand. Roks expects the acquisitions of Swiss Technology Group and ILFA to close in the third quarter. The businesses should add less than 5% to sales and be moderately accretive to adjusted EBITDA while establishing TTM’s European footprint. The closing message combined growth investment with balance-sheet restraint. Roks said a 0.9-times net leverage ratio supports organic expansion and acquisitions, while management plans more detail on its updated long-term plan next quarter. TTMI carries a Zacks Rank #4 (Sell), reflecting unfavorable earnings-estimate revision trends and weaker near-term performance potential under the Zacks framework. Its Growth Score of A is favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Value Score of D, Momentum Score of C and VGM Score of C make the style profile mixed. Style Scores complement the Zacks Rank, and the Rank can change as analysts revise estimates following the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research