Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors

You're looking at TTM Technologies, Inc. (TTMI) right now, trying to square their strong growth story with the operational realities of a global manufacturer, and honestly, the numbers for the 2025 fiscal year tell a compelling story. The consensus forecast pegs their full-year revenue at nearly $2.94 billion, a jump of over 20% from last year, driven mostly by high-demand sectors like Data Center Computing and Aerospace and Defense, where the program backlog is still substantial. But here's the quick math: while Q3 2025 non-GAAP earnings per share (EPS) hit a record $0.67, investors need to defintely keep an eye on the persistent margin headwinds from the slower-than-expected ramp-up at their new Penang facility. That tension between robust top-line growth fueled by generative AI demand and the execution risk on new capacity is exactly what we need to break down to see if the analyst consensus of a Strong Buy and an average price target of $65.50 is justified.

Revenue Analysis

You need to know where the money is coming from, and for TTM Technologies, Inc. (TTMI), the story is one of strong, targeted growth, especially in high-tech markets. The company's revenue for the trailing twelve months (TTM) ending Q3 2025 hit approximately $2.78 billion, representing a solid 17.88% year-over-year increase.

This isn't just a general upswing; it's a strategic pivot paying off. The primary revenue sources are manufacturing technology solutions, including printed circuit boards (PCBs), radio frequency (RF) components, RF microwave/microelectronic assemblies, and mission systems.

Here's the quick math: Q3 2025 net sales were $752.7 million, a 22% jump from the same quarter in the prior year. That's a serious acceleration. The growth drivers are clear, and they point to the future of technology infrastructure.

The segment contribution to overall revenue tells the most interesting story. The Aerospace and Defense (A&D) sector remains the bedrock, but Data Center Computing and Networking are the new growth engines. In Q3 2025, A&D accounted for 45% of total sales, with net sales of $336.8 million. But the real momentum is elsewhere.

The most significant change in the revenue streams is the massive surge tied to generative artificial intelligence (AI) requirements. This demand fueled exceptional year-over-year growth in two key end markets for Q3 2025:

• Data Center Computing revenue grew by 44%.
• Networking revenue saw a 35% increase.
• The Automotive end market, to be fair, was soft due to inventory adjustments, which slightly offset the gains.

This shift means TTM Technologies, Inc. is defintely becoming a critical supplier for the AI infrastructure build-out, an opportunity that will continue to drive returns. You can see the full breakdown of our analysis on the company's financial health here: Breaking Down TTM Technologies, Inc. (TTMI) Financial Health: Key Insights for Investors.

The table below shows the quarterly revenue progression for 2025, confirming the strong upward trend and the end-market strength.

The Data Center and Networking segments are where the market is moving, and TTM Technologies, Inc. is capturing that demand. The A&D backlog of around $1.46 billion also provides a strong, stable revenue floor.

Profitability Metrics

You need to know if TTM Technologies, Inc. (TTMI) is turning its strong revenue growth into real profit, and the answer is a clear yes for 2025, especially when you look past the raw numbers to the trends. The company is showing solid margin expansion, driven by its strategic focus on high-value markets like Aerospace & Defense.

For the trailing twelve months (TTM) ending in the third quarter of 2025, TTM Technologies, Inc. is running a Gross Margin of 20.21%, an Operating Margin of 8.37%, and a Net Profit Margin of 4.74%. The firm's TTM Net Income hit approximately $132 million, a massive 92.7% increase year-over-year, which is the key takeaway here.

Here's the quick math on the core profitability ratios:

• Gross Profit Margin: 20.21% (TTM). This measures manufacturing efficiency.
• Operating Profit Margin: 8.37% (TTM). This shows profitability from core operations before interest and taxes.
• Net Profit Margin: 4.74% (TTM). This is the final profit after all costs, including interest and taxes.

The trend in profitability is defintely upward, which is what matters most. The company has seen its non-GAAP operating margins remain in the double digits for four consecutive quarters leading up to Q2 2025, reflecting strong operational discipline. This margin expansion is a direct result of strong demand in high-margin segments like Aerospace & Defense (A&D) and Data Center Computing, the latter driven by generative AI infrastructure. For example, Q3 2025 GAAP Net Income surged to $53.1 million, a 270.73% year-over-year jump.

When you compare TTM Technologies, Inc.'s profitability to its most relevant peers, the picture is nuanced. The company operates in a specialized manufacturing niche, particularly high-reliability printed circuit boards (PCBs) and radio frequency (RF) components. While the general manufacturing industry average for Gross Margin is higher, typically in the 25% to 35% range, TTM's margins are more competitive when looking at its primary growth engine, Aerospace & Defense.

Let's look at the A&D segment comparison, which makes up a large portion of TTM Technologies, Inc.'s revenue:

To be fair, TTM Technologies, Inc. is running slightly below the A&D industry average on both Gross and Net Margins, but its rapid growth and operational improvements are closing that gap fast. The Q2 2025 non-GAAP operating margin of 11.1% was up 210 basis points year-over-year, showing enhanced operational efficiency and effective cost management. This margin expansion is key, plus their strong cash flow from operations, which was $141.8 million in Q3 2025, or 18.8% of net sales. This is what funds their strategic expansions. For a deeper look at who is betting on this performance, you can check out Exploring TTM Technologies, Inc. (TTMI) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You want to know if TTM Technologies, Inc. (TTMI) is leaning too hard on borrowed money to fuel its growth. The short answer is no; the company's financial structure is stable, favoring a balanced approach, but it is slightly more leveraged than its direct peers.

As of late 2025, TTM Technologies, Inc. operates with a manageable total debt-to-equity (D/E) ratio of about 0.59. This means for every dollar of shareholder equity, the company uses roughly 59 cents of debt to finance its assets. That is a prudent level of financial leverage (the use of borrowed money to increase potential returns), but it's important to look at the breakdown.

For context, here is the quick math on the company's capital stack:

• Total Debt: Approximately $1.02 Billion USD
• Total Stockholders' Equity: Approximately $1.64 Billion (as of Q2 2025)

The capital structure is heavily weighted toward long-term obligations, which gives management predictability. Short-term debt (including the current portion of long-term debt) was a minimal $12 Million as of the third quarter of 2025, while the bulk of the leverage sits in long-term debt at about $1,013 Million. This is a healthy sign of liquidity management.

Here's the quick math on the debt composition versus industry standards:

When you compare TTM Technologies, Inc.'s D/E ratio of 0.59 to the Electronic Components industry average of 0.31, you see the company is more leveraged than its direct peers. However, the ratio is right in line with the broader Electrical Equipment & Parts sector at 0.60. This suggests TTM Technologies, Inc. is using debt strategically to fund its capital-intensive segments, like its advanced printed circuit board (PCB) facilities, which is a common trade-off for growth in manufacturing.

The company has been proactive in managing its debt maturity profile. In May 2023, TTM Technologies, Inc. completed a significant refinancing, closing a new $350 million senior secured term loan that pushed the maturity out to May 2030. Plus, they secured a new $150 million U.S. asset-based revolving credit facility maturing in May 2028. This move provides long-term stability and greater financial flexibility, which is defintely a good use of debt financing. The expiration of the $375 million senior notes due in 2025, which were issued back in 2017, was a key point of focus for the company's treasury team this year. The company's strong Altman Z-Score of 3.25 (as of October 2025) also indicates a low probability of financial distress, placing it firmly in the 'Safe Zones.'

The balance is clear: TTM Technologies, Inc. uses debt to fund major capital expenditures and strategic expansion, but keeps its overall leverage below the risk threshold. To dive deeper into who is funding this equity, you should check out Exploring TTM Technologies, Inc. (TTMI) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if TTM Technologies, Inc. (TTMI) can cover its short-term bills, and honestly, the answer is a solid, if not spectacular, yes. The company's liquidity position, as of the most recent trailing twelve months (TTM) data, suggests a healthy ability to meet obligations coming due in the near term.

The key ratios tell the story. The Current Ratio, which measures current assets against current liabilities, is sitting at a comfortable 1.94. That means for every dollar of short-term debt, TTM Technologies, Inc. has $1.94 in assets that can be converted to cash within a year. A ratio near 2.0 is defintely a good benchmark for most manufacturing businesses.

The Quick Ratio (or Acid-Test Ratio) gives a more stringent view by excluding inventory-which can be slow to sell-from current assets. TTM Technologies, Inc.'s Quick Ratio is a robust 1.66. This shows that even without selling off its inventory, the company has enough highly liquid assets to cover its immediate liabilities. This is a strong sign of operational efficiency and cash management.

Working Capital Trends and Analysis

Working capital, the difference between current assets and current liabilities, is the lifeblood for funding day-to-day operations and short-term growth. TTM Technologies, Inc. has maintained a substantial positive working capital, measured at a Net Current Asset Value of approximately $641.74 million on a TTM basis. This significant buffer provides flexibility for unexpected costs, capital expenditures, or seizing immediate market opportunities.

This trend in working capital is critical because it directly supports TTM Technologies, Inc.'s strategy, particularly in the Aerospace and Defense (A&D) sector, where long-term contracts and large-scale projects require sustained operational funding. A strong working capital position reduces reliance on short-term borrowing, lowering interest expense and risk.

Cash Flow Statements Overview

Looking at the cash flow statement for the nine months ended September 29, 2025, we see a clear picture of how TTM Technologies, Inc. is generating and using its cash. This is where the rubber meets the road-cash flow is king, not just net income.

• Operating Cash Flow (OCF): This was a strong inflow of $228.95 million. This is the cash generated from the core business, which is the most sustainable and highest-quality source of funding.
• Investing Cash Flow (ICF): The company reported a significant outflow of ($222.69 million). This outflow is primarily due to net purchases of property, plant, and equipment, which signals the company is reinvesting heavily in its physical assets and future capacity.
• Financing Cash Flow (FCF): This showed an outflow of ($19.22 million). This was mainly driven by repurchases of common stock and repayment of long-term debt borrowings, a move that returns capital to shareholders and strengthens the balance sheet.

Here's the quick math: OCF is covering the capital expenditures (CapEx) in investing activities, which is the definition of healthy free cash flow. The net cash position for the period saw a small decrease, but the underlying operational strength is undeniable.

For a deeper dive into who is driving these decisions, you should check out Exploring TTM Technologies, Inc. (TTMI) Investor Profile: Who's Buying and Why?

Potential Liquidity Strengths and Risks

The primary strength is the sheer quality of the OCF, which is more than enough to fund the current high level of CapEx. This suggests a business that is self-funding its growth. The high Current and Quick Ratios also show a low risk of a near-term liquidity crunch. Still, a realist maps the risks.

What this estimate hides is the potential impact of a sudden downturn in the Data Center Computing or Networking segments, which have been strong growth drivers. If a major customer were to delay payments, the Accounts Receivable balance, which saw a negative change of ($51.54 million) in the nine-month period, could quickly become a drag on OCF. However, the current liquidity ratios suggest TTM Technologies, Inc. is well-positioned to absorb such a shock.

Here is a summary of the cash flow trends for the nine months ended September 29, 2025:

The action item is clear: Finance should continue to monitor the Accounts Receivable turnover closely, ensuring the strong OCF isn't masking any emerging collection issues.

Valuation Analysis

You are defintely right to question TTM Technologies, Inc.'s (TTMI) current valuation after its massive run-up. The stock has been on a tear, but the question is whether the price reflects future earnings growth or just market euphoria. The short answer is that, based on traditional metrics, TTM Technologies, Inc. is trading at a premium, suggesting the market is pricing in significant growth from its defense and aerospace segments.

As of November 2025, the stock's performance has been incredible. Over the last 12 months, the stock price has surged by an astounding 192.18%, moving its 52-week range from a low of $15.77 to a high of $71.85. This kind of parabolic move warrants a deep dive into the fundamentals, especially since the last closing price was around $58.45.

Here's the quick math on the key valuation multiples, using trailing twelve months (TTM) data as of November 2025. This is how we gauge if the stock is overvalued or undervalued relative to its own history and peers:

• Price-to-Earnings (P/E): The TTM P/E ratio sits at about 53.89. This is high, especially compared to the forward P/E of 24.63, which is what analysts expect for the next 12 months. A P/E over 50 suggests investors are willing to pay a lot for each dollar of TTM Technologies, Inc.'s current earnings.
• Price-to-Book (P/B): The P/B ratio is currently 4.13. This is a strong indicator of overvaluation when you consider the historical norm for a manufacturing company. It means the stock trades at more than four times the value of its net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which accounts for debt, is at about 19.96x. This is also elevated, particularly when compared to its historical average. What this estimate hides is the market's bullish view on the company's defense segment, which is seen as a more stable, high-margin revenue stream.

The high multiples point to a stock that is currently overvalued on a historical and peer-relative basis. But, in this market, high multiples often signal high growth expectations, not just overvaluation. The market is betting heavily on TTM Technologies, Inc.'s future earnings, especially those tied to the aerospace and defense sector, which you can read more about in the Mission Statement, Vision, & Core Values of TTM Technologies, Inc. (TTMI).

The Wall Street consensus is a good sanity check. Currently, the average analyst rating is a 'Buy' or 'Strong Buy' from the six firms covering the stock. Their average one-year price target is $65.50, suggesting a modest upside from the recent price. However, some analysts have set targets as high as $79.00, indicating a belief in significant continued momentum. The stock does not pay a dividend; its dividend yield and payout ratio are 0.00%, as the company prioritizes reinvesting cash flow back into the business, which is typical for a growth-focused technology manufacturer.

Risk Factors

You're looking at TTM Technologies, Inc. (TTMI)'s strong Q3 2025 numbers-like the record non-GAAP EPS of $0.67 and net sales of $752.7 million-and wondering what could trip up this momentum. That's the right question. While the company is riding a huge wave of demand from generative AI and Aerospace & Defense (A&D), there are clear, near-term risks that you need to factor into your investment thesis.

Operational Headwinds and Margin Drag

The most immediate, internal risk is the slower-than-anticipated ramp-up of the new manufacturing facility in Penang, Malaysia. This isn't a surprise, but it is a consistent drag on profitability. In Q3 2025, the Penang startup costs diluted the non-GAAP gross margin by approximately 195 basis points (bps), though that was an improvement from the 210 bps drag in Q2 2025. Management forecasts this headwind will ease slightly to about 160 bps in Q4 2025, but it's still a real cost. The ramp-up is taking longer than expected, and that's delaying the full margin benefit of this strategic expansion.

Here's the quick math: that 195 bps drag in Q3 2025 meant millions of dollars were shaved off gross profit. Until this facility hits its stride, margin expansion will be tough. You can't just ignore startup costs.

Market Volatility and Customer Concentration

External market conditions present a mixed picture. While Data Center Computing and Networking are soaring, the Automotive segment has been a clear underperformer due to inventory adjustments and softer customer demand. The Automotive segment's contribution to sales dropped to just 11% in Q3 2025, down from prior-year levels, and is expected to fall further to around 9% in the Q4 2025 guidance range of $730 million to $770 million in net sales. This softness is a reminder that TTM Technologies, Inc. (TTMI)'s diversification is a double-edged sword.

Also, don't forget the risk of customer concentration. The company's reliance on a small number of buyers is a perennial concern. The top five customers have historically accounted for a significant portion of revenue-specifically, 41% of total revenues exiting Q3 2024-with one key customer contributing over 10% of the total. Losing even one of those large contracts would create a material revenue shock.

• Automotive weakness is a clear near-term headwind.
• Customer concentration risk is a structural vulnerability.

Financial Risks and Mitigation Strategies

The company's debt structure and the macroeconomic environment introduce financial risks. As of June 30, 2025, TTM Technologies, Inc. (TTMI) carried total debt of approximately $926.1 million. This exposes the company to interest rate risk, especially as the Federal Reserve has kept rates elevated. To be fair, TTM Technologies, Inc. (TTMI) has a mitigation plan in place: they've implemented a swap to hedge $250 million of their variable-rate debt, which helps cap some of the cost exposure from rising rates. Still, a significant portion remains unhedged.

The biggest strategic mitigation, however, lies in their A&D business. The record program backlog of approximately $1.46 billion in Aerospace and Defense provides a crucial, stable foundation that helps buffer the volatility from commercial markets like Automotive. This backlog gives TTM Technologies, Inc. (TTMI) strong revenue visibility and production continuity, which is defintely a key strength in uncertain times. If you want to dive deeper into who is betting on this company, you should check out Exploring TTM Technologies, Inc. (TTMI) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear map of where TTM Technologies, Inc. (TTMI) is heading, and the path is defintely defined by high-margin, high-tech sectors. The direct takeaway is that TTM Technologies is successfully pivoting from a volume-driven Printed Circuit Board (PCB) supplier to a specialized manufacturer, which is translating into strong 2025 financial projections.

Analyst consensus for the full 2025 fiscal year revenue sits at approximately $2.88 billion, representing a significant year-over-year increase. More importantly, the estimated Earnings Per Share (EPS) is projected to be around $2.44, a clear indicator that the company's strategic focus on advanced technology products is paying off in profitability.

Here's the quick math on the near-term outlook, based on current consensus estimates:

The core of this growth is driven by two powerful, non-cyclical forces: Generative Artificial Intelligence (AI) and Aerospace & Defense (A&D). In the third quarter of 2025, the Data Center Computing segment-the engine for AI-saw a massive 44% year-over-year revenue increase, with Networking up 35%. This is where the demand for ultra-high-speed, complex PCBs lives, and TTM Technologies is positioned right in the middle of it. Plus, A&D remains a rock-solid foundation, accounting for 45% of Q3 sales and backed by that hefty $1.46 billion backlog.

Strategic Capacity and Competitive Edge

TTM Technologies' competitive advantage isn't just about what they make, but where they make it and how advanced the technology is. They are the number one PCB player in the U.S., which gives them a critical edge in securing sensitive, long-term government and defense contracts. That's a moat against competitors.

Strategic initiatives are centered on expanding high-tech capacity to meet the AI and A&D demand surge. They are actively ramping up the Penang facility and progressing on the Syracuse ultra-High Density Interconnect (ultra-HDI) plant in New York, which is slated for volume production in the second half of 2026. This expansion is crucial for servicing the next wave of advanced computing needs, including demonstrating capabilities for complex 87-layer boards.

• Focus on advanced technology and engineered products.
• Launch ultra small Radio Frequency (RF) crossover components.
• Diversified footprint limits short-term tariff impacts.

They've also made a clear commitment to their core values, which you can see in the Mission Statement, Vision, & Core Values of TTM Technologies, Inc. (TTMI). What this estimate hides, of course, is the risk of a slowdown in capital expenditure from cloud providers or any unexpected delays in government funding, but the current momentum is strong.