Executive Summary

Q1 2025 was a clean beat: revenue $648.7M (+14% Y/Y) and non-GAAP EPS $0.50 both above the high end of guidance, with non-GAAP operating margin at 10.5% (+340 bps Y/Y) and book-to-bill of 1.10 . Versus consensus, revenue beat by ~$27M and EPS beat by ~$0.11 (S&P Global)*.
Strength was broad in A&D (47% of sales), Data Center Computing (21%), and Networking (8%), with AI-related demand cited as a key driver; Automotive remained soft (11%) .
Q2 2025 guidance implies stable-to-better run-rate: revenue $650–$690M and non-GAAP EPS $0.49–$0.55; opex, tax, and OI&E guide provided; A&D mix guided to ~45% in Q2 with continued AI momentum in commercial markets .
Strategic execution milestones: Penang ramp underway (Q1 rev ~$2.2M; breakeven targeted by end of Q3 at $30–$35M run-rate), Syracuse build largely complete externally with production expected mid-2026; A&D backlog remains robust at ~$1.55B, offering multi-quarter visibility .
Capital allocation adds support: $100M new share repurchase authorization announced shortly after the quarter end, providing flexibility alongside net leverage ~1.3x LTM EBITDA and $411M cash on hand at Q1 end .

What Went Well and What Went Wrong

What Went Well
- Record first-quarter non-GAAP EPS ($0.50) and the third consecutive quarter of double-digit non-GAAP operating margin (10.5%) on demand strength and solid execution: “revenues and non-GAAP EPS above the high end of the guided range” .
- Strong end-market mix: A&D 47% with ~$1.55B program backlog; Data Center Computing 21% and Networking 8% benefitting from generative AI demand; company book-to-bill 1.10 .
- Improved seasonality and margins vs prior years: management emphasized strategy to reduce Q4→Q1 seasonality via higher A&D mix and divestiture of consumer mobility; Y/Y non-GAAP operating margin +340 bps .
What Went Wrong
- Cash usage from operations (-$10.7M) and negative FCF (-$73.9M) driven by working capital build and timing of receivables/EMS transitions .
- Automotive remained weak (11% of sales; continued inventory and demand softness) and is expected to remain challenged near term .
- Penang still a near-term drag: Q1 Penang revenue ~$2.2M with ~$(11.5)M operating loss at the site; breakeven requires steep ramp to $30–$35M by end of Q3 .

Financial Results

Revenue, EPS, and Margins vs Prior Periods and Estimates

Metric	Q3 2024	Q4 2024	Q1 2025	Q1 2025 vs Est.
Revenue ($M)	$616.5	$651.0	$648.7	$621.4* (cons.) → Beat by ~$27.3M*
GAAP Diluted EPS	$0.14	$0.05	$0.31	—
Non-GAAP EPS	$0.41	$0.60	$0.50	$0.395* (cons.) → Beat by ~$0.105*
GAAP Gross Margin	21.1%	19.4%	20.2%	—
Non-GAAP Operating Margin	11.8%	10.1%	10.5%	—

Note: Consensus values retrieved from S&P Global.*

End-Market Mix (Revenue %)

Mix	Q3 2024	Q4 2024	Q1 2025
Aerospace & Defense	46%	47%	47%
Automotive	14%	11%	11%
Data Center Computing	19%	22%	21%
Medical/Industrial/Instrumentation	14%	13%	13%
Networking	7%	7%	8%

Select KPIs and Cash Flow

KPI	Q1 2025
Book-to-bill	1.10
A&D Program Backlog	~$1.55B
90-day Backlog (ex-hubs)	$517.5M
PCB Utilization (APAC / NA)	58% / 35%
Top 5 Customers (% of Sales)	45%
Adj. EBITDA ($M, % of Sales)	$99.5M; 15.3%
Cash from Ops ($M)	$(10.7)
Free Cash Flow ($M)	$(73.9)
Cash & Equivalents ($M)	$411.3

Non-GAAP reconciliation exclusions include amortization, SBC, unrealized commodity hedge gains, restructuring/other charges, non-cash interest, and unrealized FX; the company revised historical non-GAAP metrics to exclude unrealized FX beginning Q1’25 .

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Revenue ($M)	Q1 2025	$600–$640 (issued 2/5/25)	$648.7 actual	Beat above high end
Non-GAAP EPS	Q1 2025	$0.37–$0.43 (issued 2/5/25)	$0.50 actual	Beat above high end
Revenue ($M)	Q2 2025	—	$650–$690	New
Non-GAAP EPS	Q2 2025	—	$0.49–$0.55	New
SG&A (% Sales)	Q2 2025	—	~8.9%	New
R&D (% Sales)	Q2 2025	—	~1.2%	New
Interest Expense / Income ($M)	Q2 2025	—	~$11.4 / ~$3.0	New
Effective Tax Rate	Q2 2025	—	13%–17%	New
Depreciation / Amortization ($M)	Q2 2025	—	~$28.1 / ~$9.2	New
Stock-based Compensation ($M)	Q2 2025	—	~$8.5	New
Non-cash Interest ($M)	Q2 2025	—	~$0.5	New
A&D Mix (as % of Sales)	Q2 2025	—	~45%	New
Data Center Computing Mix	Q2 2025	—	~21%	New
MII Mix	Q2 2025	—	~15%	New
Automotive / Networking Mix	Q2 2025	—	11% / 8%	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
AI / Data Center & Networking	Q3: DCC 19% (+20% Y/Y); Networking recovery; visibility into Q4 . Q4: DCC 22% (record); pull-ins from Q1; expect 21% in Q1 .	DCC 21%, Networking 8%; AI remains key driver; expect sequential growth; no unusual pull-ins .	Positive, sustained AI-driven demand
A&D Budget/Backlog	Q3: A&D backlog $1.49B; book-to-bill 1.26 . Q4: record A&D backlog $1.56B; book-to-bill 1.14 .	Backlog ~$1.55B; defense book-to-bill 0.96; strong ops execution; missile defense/Radar opportunities discussed .	Stable-high backlog; policy tailwinds
Penang Ramp	Q3: Penang drag ~180 bps on margin; breakeven mid-’25; ramp into Q1/Q2’25 . Q4: Q1 revenue guide included startup costs .	Q1 rev ~$2.2M; site op loss ~$11.5M; breakeven by end Q3 at $30–$35M .	On track; steep near-term ramp
Syracuse Facility	Q3: Groundbreaking; initial low-rate production 2026 . Q4: Build continues; minimal 2025 P&L impact .	External construction largely complete; equipment install summer; production mid-2026; smaller P&L headwind vs Penang .	Progressing to 2026 start
Tariffs / Supply Chain	Q3: Mitigation via multi-geo CMs; direct PCB China→US small share . Q4: Seasonality smoothing via mix .	Direct revenue exposure 3–4%; materials/equipment imports exposure managed; no major behavior shifts; modeling continues .	Managed; watching auto/MII sensitivity
FX / Non-GAAP Policy	Q3: FX loss ($17.8M) in non-GAAP; change coming . Q4: Announced removal of unrealized FX from non-GAAP from Q1’25; provided recast .	Q1 non-GAAP excludes unrealized FX per policy; reconciliations provided .	Cleaner non-GAAP comparability

Management Commentary

Strategic positioning: “Revenues grew 14% year on year due to demand strength in our Aerospace and Defense, Data Center Computing and Networking end markets, the latter two being driven by generative AI.”
Margin execution: “Non-GAAP operating margins were 10.5%, up 340 basis points year on year, and were double digit for the third consecutive quarter...”
A&D visibility and operational execution: “Demand in our aerospace and defense market… remains strong… book-to-bill… 1.10… program backlog of approximately $1.55 billion.”
Tariffs: “We do not expect significant direct impact to revenue as only 3% to 4% of our revenues represent direct imports from China into the U.S. by our customers… We have not seen significant changes in customer behavior.”
Capacity investments: “Penang… expect the revenue ramp to accelerate and reach breakeven levels towards the end of the third quarter… Syracuse… equipment installation to begin in the summer with production slated for the middle of 2026.”

Q&A Highlights

Penang specifics: Q1 Penang revenue ~$2.2M; site operating loss ~$(11.5)M; breakeven targeted by end-Q3 at $30–$35M revenue .
A&D backlog: Slight sequential dip ($1.56B to $1.55B) with defense book-to-bill 0.96; bookings remained stronger than expected for a seasonally slow quarter .
Customer behavior and tariffs: No meaningful pull-ins or behavioral shifts in DCC/Networking; MII bookings strong in North America; modeling/mitigation ongoing .
Competitive dynamics: Penang first-mover advantage but competitors adding capacity in Thailand; TTM focused on high-layer count PCB sweet spot .
Scale/footprint: TTM is largest PCB producer in North America; Syracuse will be the only scaled advanced PCB capability domestically .
Defense spending catalysts: Missile defense and radar content (e.g., “Golden Dome for America”) seen as positives; typical 18–24 month lag from budget to revenue .

Estimates Context

Q1 2025 vs Wall Street (S&P Global): Revenue $648.7M vs $621.4M consensus*; non-GAAP EPS $0.50 vs $0.395 consensus*; beats on both metrics . Values retrieved from S&P Global.*
Q2 2025 guidance vs consensus: Revenue guide $650–$690M vs $668.4M consensus*; EPS guide $0.49–$0.55 vs $0.5225 consensus*; effectively in-line at midpoints. Values retrieved from S&P Global.*

Period	Metric	Company	Consensus
Q1 2025	Revenue ($M)	$648.7	$621.4*
Q1 2025	Non-GAAP EPS	$0.50	$0.395*
Q2 2025	Revenue ($M)	$650–$690	$668.4*
Q2 2025	Non-GAAP EPS	$0.49–$0.55	$0.5225*
FY 2025	Revenue ($M)	—	$2,884.97*
FY 2025	EPS	—	$2.4375*

Values retrieved from S&P Global.*

Key Takeaways for Investors

AI end-market exposure remains a key upside driver (DCC and Networking) with strong demand signals into Q2; A&D backlog (~$1.55B) underpins visibility and reduces seasonality risk .
Q1 beat and Q2 guidance in-line at midpoints support the improving earnings power narrative; three consecutive quarters of double-digit non-GAAP operating margins is notable for the cycle .
Near-term swing factors: Penang ramp (steep but on track to breakeven by end-Q3) and working capital normalization (Q1 cash outflow should revert as receivables timing normalizes) .
Auto remains a headwind; portfolio mix and A&D/data center strengths should offset, but monitor any tariff-related second-order effects in MII and Auto .
Policy catalysts: U.S. defense spending trajectory and missile defense initiatives (radar content) align with TTM strengths; Syracuse adds scarce ultra-HDI domestic capacity by mid-2026 .
Capital allocation: New $100M buyback authorization offers downside support and flexibility alongside solid liquidity (cash $411M at Q1 end) and modest leverage (~1.3x) .
Non-GAAP policy change (exclude unrealized FX) improves comparability; focus on core operating progress and end-market momentum when assessing earnings quality .

Additional relevant updates post-quarter:

New RF&S component launches (hybrid couplers, transformers, termination) expand product breadth in Telecom, T&M, and Mil-Aero .
Founder/Director retirement announcement and corporate governance continuity noted .

TTM TECHNOLOGIES INC (TTMI)·Q1 2025 Earnings Summary