0000950170-25-102042
SEC filingTTMI reported Q2 2025 revenue growth of 20.7% to $730.6M, driven by aerospace/defense and AI-related demand, with gross margin expanding 90bps.
TTMI delivered strong second-quarter results with net sales of $730.6 million, up 20.7% from $605.1 million in the prior-year quarter, driven by robust demand across aerospace and defense, data center computing (powered by generative AI), and networking end markets. Gross profit rose to $148.1 million (20.3% margin) from $117.2 million (19.4%), reflecting improved operational execution, favorable product mix, and higher PCB shipment volumes. Operating income increased 58.5% to $61.8 million, with operating margin expanding to 8.5% from 6.4%, aided by sales leverage and lower amortization of intangibles. Net income grew 57.6% to $41.5 million. For the first half of fiscal 2025, revenue climbed 17.4% to $1.38 billion, operating income nearly doubled to $112.0 million, and net income rose to $73.7 million from $36.8 million.
Aerospace & Defense: Segment sales rose 19.3% to $327.6 million, driven by higher spending on missiles, munitions, and Mission Systems. Operating margin surged to 13.8% from 9.3% on volume and operational improvements.
Commercial: Sales increased 22.4% to $395.6 million, led by AI-related data center and networking demand. Operating income grew to $60.1 million, but margin contracted slightly to 15.2% (vs. 15.4%) due to ramp-up costs at the new Penang facility and product mix shifts.
RF&S Components: Revenue grew 11.0% to $10.1 million, with operating margin expanding to 28.4% from 22.6%, benefiting from higher volumes and execution.
Overall, segment operating income rose 40.2% to $108.2 million, with total segment margin improving to 14.8% from 12.7%.
Management highlighted strategic capacity investments, including a new facility in Wisconsin and land rights in Penang, to support long-term growth in advanced technology PCBs. The Syracuse, New York plant is on track for production in the second half of 2026. Capital expenditures are expected between $235 million and $255 million for fiscal 2025. Operating cash flow of $87.1 million in the first half supports ongoing investments, and the company maintains $448.0 million in cash and $201.4 million in available credit. The $100 million share buyback program (authorized May 2025) remains untapped. While no specific revenue guidance was provided, the company expects continued momentum in defense and AI-driven commercial markets.
As of June 30, 2025, TTM held $448.0M in cash and equivalents, a decrease of $55.9M from year-end 2024, primarily due to capex and buybacks. Total debt (net of discounts and issuance costs) stood at $917.1M, roughly flat versus $918.2M at December 30, 2024. Shareholders' equity increased to $1,636.9M from $1,563.8M, driven by net income and stock-based compensation, partially offset by share repurchases. Inventory rose to $250.3M from $225.0M, reflecting higher raw materials and work-in-progress.
Remaining performance obligations (RPO) for long-term contracts totaled $375.7M as of June 30, 2025, with 59% expected to be recognized within 12 months (approx. $221.7M). The company also disclosed estimated losses on loss contracts of $32.7M. Off-balance-sheet supplier finance program obligations were $12.8M, recorded in accounts payable. No other material purchase commitments were explicitly noted.
TTM reorganized into three reportable segments effective Q2 2025: A&D, Commercial, and RF&S Components. Segment operating margins for Q2 2025 were: A&D 13.8% (up from 9.3% in Q2 2024), Commercial 15.2% (down from 15.4%), and RF&S Components 28.4% (up from 22.6%). A&D revenue grew 19.1% YoY to $325.1M, Commercial grew 22.4% to $395.5M, and RF&S grew 11.3% to $10.0M. Geographically, the U.S. accounted for 52.2% of total net sales in Q2 2025 ($381.6M), with no other country exceeding 10% (Taiwan was 13.9% in Q2 2024 but fell below 10% in 2025).