TTM Posts Record Sales as AI Demand Accelerates
Adjusted earnings reached a record $0.99 a share, topping TTM’s guidance by 11 cents.
TTM Technologies Inc. (TTMI), the maker of printed circuit boards and radio-frequency components, posted record quarterly sales as demand for artificial-intelligence infrastructure lifted its Data Center and Networking business.
Revenue growth accelerated for a second consecutive quarter, reaching 37% from 30% in the first quarter and 19% in the fourth quarter of 2024. Sales also increased 18.7% sequentially, while book-to-bill strengthened to 1.49 from 1.41.
Second-quarter net sales rose to $1.004 billion from $730.6 million a year earlier, exceeding the high end of TTM’s prior guidance by $34 million. GAAP net income doubled to $83.0 million, or $0.77 a diluted share, from $41.5 million, or $0.40 a share. Adjusted net income increased to $106.9 million from $60.8 million.
Data Center and Networking revenue grew 91% from a year earlier and accounted for 40% of sales, up from 36% in the first quarter. Aerospace and Defense revenue increased 14%, though its share of sales declined to 37% from 40%, while the segment’s program backlog climbed above $1.7 billion. Medical, Industrial and Instrumentation revenue rose 33%.
The stronger mix accompanied wider profitability. Adjusted EBITDA increased 52% to $166.8 million, and its margin expanded to 16.6% from 15.0% a year earlier. GAAP operating margin widened 2.4 percentage points to 10.9%, while non-GAAP operating margin reached 13.8%.
TTM expects third-quarter sales of $1.10 billion to $1.14 billion and adjusted earnings of $1.21 to $1.27 a share, implying sequential growth in both measures. The company also introduced full-year guidance of about $4.4 billion in sales and adjusted earnings approaching $5.00 a share. The outlook excludes contributions from pending acquisitions.
Operating cash flow rebounded to $96.4 million from $21.7 million in the first quarter, and net leverage improved to 0.9 times. TTM also agreed to acquire Swiss Technology Group AG and ILFA GmbH, establishing an entry into Europe, with both transactions expected to close in the third quarter. A new $1.0 billion revolving credit facility and an expanded, lower-priced term loan increased its financing capacity ahead of those deals.