TTM Technologies Reports Strong Q1 2025 Earnings

Ttm Technologies ((TTMI)) has held its Q1 earnings call. Read on for the main highlights of the call.

TTM Technologies’ recent earnings call highlighted a strong positive performance, showcasing significant revenue growth and margin improvements across key markets. Despite concerns about declining automotive sales and potential geopolitical impacts, the company’s strategic initiatives and current market strengths provide a robust foundation for continued growth.

Record Revenue Growth

TTM Technologies achieved a remarkable 14% year-over-year revenue growth, reaching $648.7 million in Q1 2025. This growth was primarily driven by strong performances in the aerospace and defense, data center computing, networking, and medical, industrial, and instrumentation end markets.

Strong Non-GAAP Operating Margins

The company reported a non-GAAP operating margin of 10.5%, an increase of 340 basis points year-over-year. This achievement marks a record high for non-GAAP operating margins and EPS for a first quarter, reflecting the company’s operational efficiency.

Aerospace and Defense Market Performance

The aerospace and defense market, which comprises 47% of TTM’s total sales, grew by 15% year-on-year. This growth was supported by a solid program backlog of $1.55 billion, underscoring the sector’s critical role in the company’s revenue stream.

Data Center and Networking Growth

Data center computing and networking markets experienced significant growth, with year-on-year increases of 15% and 53% respectively. This surge was driven by demand for generative AI applications and increased switch-related demand.

Positive Outlook for New Facilities

TTM continues to make progress on customer qualifications in Penang and construction in Syracuse. The company expects the Penang facility to reach breakeven revenue levels by Q3 2025, signaling positive future prospects.

Sustainable Practices

Reflecting its commitment to minimizing environmental impact, TTM published its second corporate sustainability report on Earth Day, highlighting its dedication to sustainable practices.

Automotive Revenue Decline

Automotive sales represented 11% of total sales, down from 13% in the previous year. This decline was attributed to inventory adjustments and soft demand in the automotive sector.

Geopolitical and Tariff Concerns

The company noted potential impacts from geopolitical tensions and tariffs, with concerns about revenue from imports and costs associated with equipment and materials. However, no significant changes in customer behavior have been observed yet.

Forward-Looking Guidance

During the earnings call, TTM Technologies reported impressive financial metrics, exceeding their own guidance expectations. The company highlighted a book-to-bill ratio of 1.10, indicating robust demand. With a strategic focus on reducing seasonality and diversifying their manufacturing footprint, TTM is well-positioned against potential geopolitical challenges, with minimal expected direct revenue impact. The company is also making progress with new facilities in Penang and Syracuse, aiming for break-even levels in Penang by the end of the third quarter.

In summary, TTM Technologies’ earnings call conveyed a strong positive sentiment, driven by significant revenue growth and margin improvements. Key takeaways include robust performances in the aerospace and defense, data center computing, and networking markets, alongside strategic initiatives to mitigate potential geopolitical impacts. Despite challenges in the automotive sector, the company’s forward-looking guidance remains optimistic, underscoring its resilience and growth potential.