TTM Technologies (TTMI +1.34%), a top provider of advanced printed circuit boards (PCBs) and specialty electronics, reported its financial results for the second quarter of 2025 on July 30, 2025. The key news was broad strength across core segments, including record revenue and record non-GAAP earnings per share. Actual revenue (GAAP) was $730.6 million, above the analyst estimate of $668.5 million (GAAP), and non-GAAP EPS reached $0.58 per share versus the $0.52 expected. Both revenue and profits grew year-over-year. Record revenues were achieved in critical growth markets like aerospace and AI infrastructure, improved non-GAAP operating and gross margins, and careful navigation of ongoing cost pressures.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.58 | $0.52 | $0.39 | 48.7% |
| Revenue | $730.6 million | $668.5 million | $605.1 million | 20.8% |
| Operating Margin | 8.5% | 6.4% | 2.1 pp | |
| Adjusted EBITDA | $109.7 million | $84.6 million | 29.7% | |
| Free Cash Flow | $37.6 million | $31.9 million | 17.9% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Success Factors
TTM Technologies produces printed circuit boards (PCBs), radio frequency (RF) components, and specialty electronics used in complex systems for aerospace, defense, telecommunications, and industrial markets. Its products are found in equipment that powers aircraft, telecom networks, data centers, and medical instruments.
The company has positioned itself as a specialist in advanced technology solutions, emphasizing high-density PCBs and engineered systems tailored to demanding applications. Recent focus areas have included ramping up capacity for advanced products, ongoing investments in global manufacturing (notably in North America and Asia), and strategic acquisitions to broaden end-market reach. Key factors for success are innovation in PCB technology, operational efficiency, supply chain resilience, and continued expansion in high-growth sectors like aerospace and artificial intelligence (AI).
Quarter in Detail: Financial and Operational Progress
The quarter featured a sharp rise in both revenue and profitability. Revenue (GAAP) was up 20.8% over prior-year levels, delivering a $62.12 million GAAP revenue upside to analyst expectations. Non-GAAP net income rose 51% year-over-year, setting a quarterly record for non-GAAP earnings per share. Gross and operating margins (GAAP) improved year over year, driven by strength in high-value segments and continued operational efficiency. Adjusted EBITDA was $109.7 million—Adjusted EBITDA increased 29.7% year-over-year.
A key highlight was the performance of the Aerospace & Defense segment. This segment delivered a 19% increase in revenue to $327.6 million year-over-year, making up 45% of total company sales. Segment operating income (GAAP) rose to $45.3 million from $25.5 million in Q2 2024. Management noted that backlog in the defense segment stayed high at $1.55 billion as of Q1 2025, supporting continued visibility for future quarters. Although the sequential backlog declined slightly from record Q4 bookings in Q1 2025, this was characterized as a normal pattern for the season.
TTM also posted strong results in its AI and data infrastructure businesses. Data center computing made up 21% of revenue, with growth tied to generative AI demand, while the networking segment expanded to 8% of total revenue as customers invested in next-generation infrastructure. Medical, industrial, and instrumentation markets combined for 15% of sales, reflecting normalization of inventory levels and ongoing investment in semiconductor testing equipment.
The automotive segment saw a drop to 11% of the sales mix, down from 14% in Q2 2024. This reflects continued inventory correction and weaker demand from automotive manufacturers, trends also mentioned throughout the year. Operating expenses (GAAP) rose by 10.4% year over year, reaching $86.340 million, and stock-based compensation costs grew 39% to $9.19 million. Despite these expense increases and aggressive capital spending, TTM produced $37.6 million in free cash flow. The company continues to invest heavily in facilities, with recent purchases in Wisconsin and new projects in Penang, Malaysia, aimed at supporting customer diversification and reducing risk from geopolitical factors.
Looking Ahead: Guidance and Watch Items
TTM's management provided guidance for Q3 2025, expecting revenue between $690 million and $730 million and non-GAAP EPS of $0.57 to $0.63 per share. At the midpoints, this outlook implies steady top- and bottom-line results and brackets a possible modest pullback from Q2 2025, which aligns with normal seasonality in several core markets. No changes to the company's approach in excluding volatile items, such as foreign exchange and restructuring, were noted for forward guidance.
Management highlighted ongoing strength in defense and AI infrastructure. Expansion projects in Wisconsin and Penang aim to reinforce supply chain flexibility but come with higher capital expenditures.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
