Executive Summary

Q3 2025 delivered broad-based strength with revenue $752.7M (+22% y/y), non-GAAP EPS $0.67 (record), and adjusted EBITDA $120.9M (16.1% margin); both revenue and EPS exceeded S&P Global consensus and came in above the high end of guidance . Q3 revenue beat vs S&P: $752.7M vs $711.9M*; EPS beat: $0.67 vs $0.6025*.
AI demand was the primary driver (Data Center Computing +44% y/y; Networking +35% y/y), while A&D remained 45% of sales with pull-forward from Q4; auto was soft on inventory adjustments .
Q4 2025 guidance: revenue $730–$770M and non-GAAP EPS $0.64–$0.70, with expense and rate guardrails (SG&A ~8.9% of sales; R&D ~1%; tax 11–15%); consensus revenue at ~$753M* sits near the midpoint .
Key catalysts: sustained AI-led upside, resilient A&D backlog (~$1.46B) with specific program wins (AMRAAM, PDRS, APS-153), improving Penang ramp (lower bps drag), and progress on Syracuse ultra-HDI facility (H2’26 volume) .

What Went Well and What Went Wrong

What Went Well
- AI-driven demand accelerated: Data Center Computing +44% y/y; Networking +35% y/y; management expects Data Center to reach ~28% of Q4 sales, indicating continued momentum .
- A&D outperformance and visibility: 45% of Q3 sales (record high), strong bookings and ~$1.46B backlog; some Q4 sales pulled into Q3, but demand and program alignment remain strong .
- Record profitability and cash generation: non-GAAP EPS $0.67 (record), adjusted EBITDA $120.9M (16.1% margin), and cash from operations $141.8M (18.8% of sales) . CEO: “revenues and non-GAAP EPS above the high end of the guided range… driven primarily by the requirements of generative AI” .
What Went Wrong
- Gross margin diluted slightly y/y on ramp costs: non-GAAP gross margin 21.5% vs 22.0% y/y; management cited Penang ramp as the main headwind .
- Automotive weakness: 11% of sales vs 14% y/y due to inventory adjustments and soft demand at several customers; expected to decline to ~9% in Q4 .
- FX and startup impacts persist: realized FX loss and continuing Penang startup drag, though improving (≈195 bps drag in Q3 vs ≈210 bps in Q2; forecast ≈160 bps in Q4) .

Financial Results

Summary vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	616.5	730.6	752.7
GAAP EPS ($)	0.14	0.40	0.50
Non-GAAP EPS ($)	0.55	0.58	0.67
GAAP Gross Margin (%)	21.1%	20.3%	20.8%
Operating Margin (%)	8.3%	8.5%	9.6%
Adjusted EBITDA ($M)	100.6	109.7	120.9
Adjusted EBITDA Margin (%)	16.3%	15.0%	16.1%
Cash from Operations ($M)	65.1	97.8	141.8

Versus S&P Global consensus and guidance

Metric	Q3 2025 Consensus*	Q3 2025 Actual	Surprise	Q4 2025 Consensus*	Q4 2025 Guidance
Revenue ($M)	711.9*	752.7	Beat	753.0*	730–770
Primary EPS ($)	0.6025*	0.67	Beat	0.6825*	0.64–0.70
EBITDA ($M)	109.2*	120.9	Beat	119.9*	N/A

Values retrieved from S&P Global.*

Segment performance

Segment	Net Sales Q3’24 ($M)	Net Sales Q3’25 ($M)	Δ y/y	Segment Op Inc Q3’24 ($M)	Segment Op Inc Q3’25 ($M)	Δ y/y
Aerospace & Defense	279.5	336.8	+20.5%	40.3	52.9	+31.3%
Commercial	329.4	408.9	+24.2%	51.1	60.0	+17.4%
RF & Specialty Components	9.8	10.4	+6.8%	2.4	3.1	+28.8%
Intersegment Elims	(2.2)	(3.5)	—	—	—	—
Total	616.5	752.7	+22.1%	93.8	116.0	+23.7%

End-market mix

End Market (% of Sales)	Q3 2024	Q3 2025
Aerospace & Defense	45%	45%
Automotive	14%	11%
Data Center Computing	20%	23%
Medical/Industrial/Instrumentation	14%	14%
Networking	7%	7%

Key KPIs

KPI	Q3 2025	Prior/Context
90-day backlog ($M)	$610.4	$534.5 LY
A&D program backlog ($B)	~$1.46	~$1.49 LY
Book-to-bill	1.15 overall; 1.29 Commercial; 0.99 A&D; 0.95 RF&S	—
Cash & Equivalents ($M)	$491.1	$448.0 at 6/30/25
Net Debt / LTM EBITDA	1.0x	—
Penang sales run-rate	~$5M in Q3 (flat q/q)	Growth expected in Q4

Notes on non-GAAP: Beginning Q1’25, unrealized FX gains/losses are excluded from non-GAAP net income, EPS, and adjusted EBITDA; prior periods restated for consistency .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Revenue ($M)	Q3 2025	$690–$730 (7/30)	$752.7 Actual	Above guidance
Non-GAAP EPS ($)	Q3 2025	$0.57–$0.63 (7/30)	$0.67 Actual	Above guidance
Revenue ($M)	Q4 2025	N/A	$730–$770	New
Non-GAAP EPS ($)	Q4 2025	N/A	$0.64–$0.70	New
SG&A (% sales)	Q4 2025	N/A	~8.9%	New
R&D (% sales)	Q4 2025	N/A	~1%	New
Interest expense ($M)	Q4 2025	N/A	~10.2	New
Interest income ($M)	Q4 2025	N/A	~2.7	New
Tax rate	Q4 2025	N/A	11–15%	New
D&A ($M)	Q4 2025	N/A	Deprec. ~28.1; Amort. ~9.2	New
Stock-based comp ($M)	Q4 2025	N/A	~12.3	New
Diluted shares (M)	Q4 2025	N/A	~106	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1’25, Q2’25)	Current Period (Q3’25)	Trend
AI/Technology demand	Q1: AI driving Data Center & Networking growth . Q2: Record Data Center with AI demand noted .	AI remains primary driver; Data Center +44% y/y; Networking +35% y/y; visibility 6–9 months .	Strengthening, sustained visibility
A&D programs/backlog	Q1 backlog ~$1.55B . Q2 record A&D revenue .	A&D 45% of sales; backlog ~ $1.46B; bookings on AMRAAM, PDRS, APS-153; some Q4 pull-forward .	Solid, timing benefit in Q3
Regional diversification (Penang)	Q2: Acquired Wisconsin facility; land rights in Penang .	Penang revenue ~$5M; yield ramp improving; 5 customers to qualify by year-end; bps impact easing; second facility timing aligned to demand .	Progressing; headwind moderating
Syracuse ultra-HDI plant	—	Equipment installation/testing underway; volume production H2’26 .	On track, strategic capacity
Tariffs/Macro	—	Diversified footprint limits short-term tariff impact; no observed demand hit in key end markets .	Managed risk
Automotive	—	11% of sales (vs 14% LY); inventory corrections and soft demand; guiding ~9% in Q4 .	Softening

Management Commentary

Strategic positioning: “Revenues grew 22% year on year reflecting continued demand strength in our Data Center Computing and Networking end markets, driven primarily by the requirements of generative AI… Medical, Industrial and Instrumentation and Aerospace and Defense also experienced double-digit… growth” .
Profitability and cash: “Adjusted EBITDA margins were a healthy 16.1%… cash flow from operations was… 18.8% of revenues” .
AI and A&D mix: “Approximately 80% of our total sales in the quarter related to two very strong industries: aerospace and defense, and AI” .
Penang ramp: “In Q3, [Penang] was about 195 bps to the bottom line… improving from Q2’s ~210 bps; forecasting ~160 bps in Q4” .
Capacity/technology: “In the U.S., we are still the number one [PCB player]… globally number six or seven; Data Center about number three or four” . “We are demonstrating 87 layers… making really, really good progress” .

Q&A Highlights

Data Center visibility and capacity: Visibility 6–9 months; capacity balanced across North America and Asia; serving top players .
Penang impact improving: Startup headwind improved to ~195 bps in Q3 from ~210 bps in Q2; forecast ~160 bps in Q4 as yields improve and customer qualifications progress (five customers targeted by year-end) .
Competitive position: #1 PCB player in U.S.; globally ~#6–7 overall; ~#3–4 in Data Center .
Technology roadmap: Demonstrating 87-layer boards; focus on higher-density designs and R&D to sustain leadership .
Financial guardrails for Q4: Detailed SG&A, R&D, interest, tax, D&A, SBC, and share count guidance provided to frame non-GAAP EPS range .

Estimates Context

Q3 2025: TTMI beat S&P Global consensus on revenue ($752.7M vs $711.9M*) and EPS ($0.67 vs $0.6025*), with EBITDA also above consensus ($120.9M vs $109.2M*) .
Q4 2025: Revenue guidance $730–$770M brackets consensus ~$753.0M*; EPS guidance $0.64–$0.70 brackets consensus ~$0.6825*, suggesting a “meet to modest beat” setup if AI/A&D strength persists . Values retrieved from S&P Global.*

Key Takeaways for Investors

AI remains the core upside engine: Data Center and Networking growth exceeded expectations and should remain elevated into Q4, supporting sustained revenue outperformance .
A&D provides durable ballast and visibility: Large, diversified backlog and program wins underpin stability; Q3 benefited from pull-forward into the quarter .
Profitability resilient despite ramp costs: Adjusted EBITDA margin at 16.1% with improving Penang headwinds indicates scope for operating leverage as yields rise .
Cash generation improving: $141.8M operating cash (~18.8% of sales) enhances flexibility for capacity, R&D, and potential M&A amid secular growth drivers .
Q4 guide consistent with consensus: Guidance brackets Street on both revenue and EPS; execution on AI programs and A&D timing are the swing factors .
Medium-term catalysts: Syracuse ultra-HDI ramp (H2’26), Penang second facility timing optionality, and technology leadership (e.g., 87-layer boards) position TTMI for structurally higher mix and margins .
Watch list: Automotive softness risk, FX and startup drags, and any macro/tariff spillovers—management currently sees limited direct tariff impact due to diversified footprint .

Appendix: Additional Data

End markets and segments (detail)

Item	Q3 2024	Q3 2025
End Market Mix: A&D	45%	45%
End Market Mix: Automotive	14%	11%
End Market Mix: Data Center	20%	23%
End Market Mix: M/I/I	14%	14%
End Market Mix: Networking	7%	7%
Segment Sales: A&D ($M)	279.5	336.8
Segment Sales: Commercial ($M)	329.4	408.9
Segment Sales: RF&S ($M)	9.8	10.4
Segment Op Inc: A&D ($M)	40.3	52.9
Segment Op Inc: Commercial ($M)	51.1	60.0
Segment Op Inc: RF&S ($M)	2.4	3.1

Other relevant press releases: recognition awards (Oct 31) underscore domain leadership and industry engagement in Asia, indirectly supporting employer brand and ecosystem credibility .

Disclosures on non-GAAP methodology changes: From Q1’25, unrealized FX is excluded from non-GAAP; historicals revised for comparability .

Citations:

Q3 2025 press release and tables .
8-K and exhibits .
Q3 2025 earnings call transcript .
Q2 2025 press release (results and guidance) .
Q1 2025 press release .
Other Q3 2025 press release (awards) .

TTM TECHNOLOGIES INC (TTMI)·Q3 2025 Earnings Summary