TTM Technologies (NASDAQ:TTMI) reported fourth-quarter and full-year fiscal 2025 results that management said reflected strong demand tied to artificial intelligence and defense spending, alongside improved execution. The company also reiterated previously shared longer-term growth ambitions and provided first-quarter and full-year fiscal 2026 guidance.
Strategic focus and demand drivers
President and CEO Edwin Roks said TTM is focused on two strategic directions: Advanced Interconnect—including complex printed circuit boards (PCBs), substrates, and advanced packaging—and a second direction that builds on those technologies to deliver more integrated modules, subsystems, and systems. He cited examples such as in-house developed RF modules, thermal and power management systems, edge and AI processing products, and integrated mission systems.
Q4 results: sales growth and record non-GAAP EPS
For the fourth quarter of 2025, TTM posted sales of $774.3 million, which management said was above the high end of its guided range. Roks said sales increased 19% year over year, driven by continued strength in data center computing and networking tied to generative AI, with “solid to strong” growth also cited in medical, industrial and instrumentation, and aerospace and defense (A&D).
Roks said non-GAAP EPS was $0.70 per diluted share, which met the high end of guidance and represented an “all-time quarterly record high” for the company. Adjusted EBITDA margin was 16.3%, compared with 14.7% in the prior-year quarter, which management attributed to improved execution. Cash flow from operations was $63 million in the quarter, and $292 million for fiscal 2025, which management said equated to 10% of sales for the year.
End-market performance, bookings, and backlog
Roks detailed performance across end markets and provided updated mix expectations for the first quarter of 2026. In A&D, which represented 41% of Q4 sales, TTM reported 5% year-over-year growth for the quarter and 13% growth for the full year. Roks said Q4 included significant A&D bookings related to programs including AN/APS-153 airborne surveillance radar, LTAMDS air defense radar, AMRAAM air dominance missile, and the Javelin anti-armor missile system. He also said bookings for restricted programs increased.
For A&D, Roks reported a book-to-bill of 1.46 in Q4 and 1.04 for the full year, lifting program backlog to $1.6 billion from $1.56 billion a year earlier. He said A&D sales are expected to represent 42% of total sales in Q1 2026.
In the data center computing end market, which represented 20% of Q4 sales, TTM recorded 57% year-over-year growth in the quarter and 36% growth for the full year. Networking represented 8% of Q4 sales, with 23% growth in Q4 and 43% for the full year. Roks said that because data center computing and networking have become increasingly correlated with AI-related demand, TTM will report them as a single combined end market in 2026. On a combined basis, data center and networking would have represented 36% of Q4 2025 sales, and management expects 37% of Q1 2026 sales.
The medical, industrial, and instrumentation end market represented 14% of Q4 sales and grew 28% year over year in the quarter and 22% for the full year, which Roks linked to AI-enabled robotics, complex sensing applications, and increased demand for automated test equipment. Automotive represented 9% of Q4 sales; management said it plans to be more selective in automotive, focusing on higher-value products, and expects automotive to represent about 8% of Q1 2026 sales.
Overall, TTM reported a Q4 companywide book-to-bill ratio of 1.35 (commercial at 1.28, A&D at 1.46, and RF&S at 0.94). The company’s 90-day backlog was $654.9 million at year-end 2025, up from $502.1 million a year earlier.
Margin drivers, Penang headwinds, and financial detail
CFO Dan Bailey said fourth-quarter net sales rose to $774.3 million from $651 million a year earlier, and full-year net sales increased to $2.9 billion from $2.4 billion. He also outlined GAAP results and noted that prior-year comparisons included a $32.6 million goodwill impairment charge related to the RF&S component segment.
On a non-GAAP basis, Bailey reported fourth-quarter gross margin of 21.7% (up from 20.5% a year earlier) and full-year gross margin of 21.3% (up from 20.4%). He attributed the improvement primarily to higher volume, favorable mix—particularly in data center computing, networking, and A&D—and improved operational execution. Non-GAAP operating margin was 12.7% in Q4 (up from 10.1%) and 11.7% for the full year (up from 9.6%), which he said reflected improved gross margin and spending discipline in SG&A.
During Q&A, Bailey addressed a “headwind” at Penang, saying Q4 gross profit still faced about 180 basis points of pressure versus prior guidance of 160 basis points. Management said it expects this headwind to improve through 2026 and reiterated prior expectations that it would be roughly halved by year-end, with Roks adding that Penang revenues roughly doubled versus the prior quarter and yields on “lead vehicles” were trending in the right direction.
Guidance, capacity expansion, and capital spending
For the first quarter of 2026, Bailey guided net sales to a range of $770 million to $810 million and non-GAAP EPS to $0.64 to $0.70 per diluted share. He noted that first-quarter profitability is typically impacted by increased operating costs—particularly labor costs—related to the Chinese New Year.
Bailey also said TTM expects full-year 2026 net sales to increase 15% to 20% over 2025. For Q1 2026 modeling items, he cited expectations including SG&A at about 8.5% of net sales and R&D at about 1% of net sales, as well as interest expense of approximately $10.6 million, interest income of approximately $2.2 million, and other non-operating expense of approximately $2.7 million. He estimated an effective tax rate of 12% to 17%.
On capacity, Roks said the company is making “very good progress” extending capacity in China and the U.S., adding that capacity, supply chain, and equipment “are not the issue.” He said the Syracuse expansion is on track, with the building up, equipment installed, and tie-ins underway; he expects “first revenues” from the Syracuse “Diamond” capacity in the second half of the year.
Roks also discussed the Eau Claire site, describing it as a large U.S. PCB facility (750,000 square feet) with three modules. He said TTM plans to tool up Eau Claire over the next 18 to 24 months and is discussing plans with lead customers across commercial and defense. He added that Eau Claire was not included in the capacity plans previously described, characterizing it as “on top of” those plans.
On capital spending, Bailey said the company previously indicated incremental data center and compute capacity investments in China of about $200 million to $300 million over the next two to three years, above its “normal” 4% to 5% capital expenditures. He said TTM expects to disclose in its 10-K an estimated 2026 CapEx range of $240 million to $260 million.
Asked about the company’s goal to double earnings from 2025 to 2027, Roks said the plan is based on organic growth, citing demand and capacity investment. Management also said copper price volatility is not expected to have significant impacts because the company builds volatility into pricing and hedges copper, enabling it to pass costs through to customers.
About TTM Technologies (NASDAQ:TTMI)
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.
