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TTM Technologies Inc (NASDAQ:TTMI), a leading global printed circuit board manufacturer, reported strong first-quarter 2025 results on April 30, with performance exceeding guidance across key metrics and shares jumping over 15% in after-hours trading.
Quarterly Performance Highlights
TTM Technologies delivered revenue of $648.7 million in Q1 2025, surpassing the company’s guided range of $600-$640 million and representing a 13.8% increase compared to the $570.1 million reported in the same quarter last year. The company achieved a non-GAAP earnings per share of $0.50, significantly above its guided range of $0.37-$0.43 and marking a record for a first quarter.
The strong performance was driven by robust demand in the aerospace and defense sector, which accounted for 47% of total revenue, as well as significant growth in networking and data center computing segments.
As shown in the following summary of key metrics from the earnings presentation:
The company maintained a solid balance sheet with a cash balance of $411.3 million and a net leverage ratio of 1.3x (net debt divided by last twelve months of EBITDA), improving from 1.5x in the year-ago period. However, TTM reported cash usage from operations of -$10.7 million due to an increase in working capital, compared to positive operating cash flow of $43.9 million in Q1 2024.
End Market Analysis
TTM Technologies’ diversified end market exposure continues to serve as a buffer against sector-specific challenges. The company’s revenue breakdown shows aerospace and defense leading at 47% of total revenue, followed by data center computing at 21%.
The following table illustrates the company’s end market performance and year-over-year growth:
Aerospace and defense revenue grew 15% year-over-year, maintaining its position as the company’s largest segment. Data center computing also showed strong 15% growth, while networking delivered the highest growth rate at 53%, albeit from a smaller base of 8% of total revenue.
The medical, industrial, and instrumentation segment posted modest 5% growth, while the automotive segment was the only category to decline, falling 3% year-over-year. This weakness in automotive aligns with broader industry trends noted in the company’s previous earnings call.
Operational Metrics
TTM’s operational performance showed mixed results across different regions and metrics. The company’s Asia Pacific PCB capacity utilization improved to 58% from 52% in the prior year, while North America utilization declined slightly to 35% from 38%.
The following operational metrics provide additional insight into the company’s performance:
The company’s backlog increased to $517.5 million from $459.5 million in Q1 2024, while the aerospace and defense program backlog grew to $1.55 billion from $1.38 billion. The book-to-bill ratio remained healthy at 1.10, though slightly below the 1.15 reported in the same quarter last year.
Customer concentration increased modestly, with the top five customers accounting for 45% of revenue, up from 42% in Q1 2024. Advanced technology as a percentage of total business decreased to 44% from 48% year-over-year.
Financial Results
TTM Technologies demonstrated significant margin expansion in Q1 2025. Non-GAAP operating margin improved to 10.5% from 7.1% in the prior year, while EBITDA margin increased to 15.3% from 12.4%.
The detailed quarterly financial results and guidance are presented in the following table:
Despite the strong operational performance, free cash flow was negative at -$73.9 million compared to -$5.4 million in Q1 2024. This decline was primarily due to negative operating cash flow of -$10.7 million and increased capital expenditures of $63.2 million, up from $49.3 million in the prior year.
GAAP net income for the quarter was $32.2 million, or $0.31 per diluted share, compared to $10.5 million, or $0.10 per diluted share, in Q1 2024. On a non-GAAP basis, net income was $52.4 million, or $0.50 per diluted share, compared to $29.1 million, or $0.28 per diluted share, in the same period last year.
Forward Guidance
Looking ahead to the second quarter of 2025, TTM Technologies provided an optimistic outlook, projecting revenue between $650 million and $690 million and non-GAAP earnings per diluted share of $0.49 to $0.55.
The company provided the following additional financial guidance for Q2 2025:
TTM expects SG&A expense to be approximately 8.9% of revenue and R&D expense around 1.2%. The company anticipates interest expense of approximately $11.4 million, partially offset by interest income of about $3.0 million. The effective tax rate is expected to range from 13% to 17%, with a diluted share count of 104 million.
Market Reaction
Investors responded positively to TTM’s strong results and guidance, with the stock surging 15.14% to $23.05 in after-hours trading following the earnings release. Prior to the announcement, TTM shares had closed at $20.02, down 1.96% in regular trading.
The stock remains well below its 52-week high of $30.41 but significantly above its 52-week low of $13.43, suggesting potential upside if the company continues to execute on its growth strategy.
TTM’s strong performance in Q1 2025 builds on the momentum from previous quarters, with the company’s strategic focus on high-growth markets like aerospace and defense and data center computing continuing to drive results. The company’s ongoing investments in new facilities in Penang, Malaysia, and Syracuse, New York, as mentioned in previous earnings calls, position TTM for continued growth despite challenges in certain end markets like automotive.
Full presentation:
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