TTM Technologies Beats Q2 Earnings Estimates, Shares Fall on Weak View

TTM Technologies TTMI shares fell 8.3% to close at $43.34 on Friday. Since reporting second-quarter 2025 results on Wednesday (July 30), TTMI shares have dropped 11.1%. Year to date, shares have appreciated 75.1%, outperforming the broader Zacks Computer and Technology sector’s return of 9.1%. The post result drop in TTMI’s share price can be attributed to a weak third-quarter 2025 view. 

TTM Technologies now expects revenues between $690 million and $730 million. The high-end of the guidance range is lower than $730.6 million reported in second-quarter 2025.  The revenue figure beat the Zacks Consensus Estimate by 9.38% and increased 21% year over year. The Zacks Consensus Estimate for third-quarter 2025 revenues is currently pegged at $710.5 million, suggesting 15.2% growth from the figure reported in the year-ago quarter, but implies a 2.8% sequential decline.

For third-quarter 2025, TTMI expects non-GAAP earnings between 57 cents and 63 cents per share. The company reported second-quarter 2025 non-GAAP earnings of 58 cents per share, which beat the Zacks Consensus Estimate by 11.54% and jumped 48.7% year over year. The consensus mark for third-quarter 2025 earnings is pegged at 55 cents per share, unchanged over the past 30 days and suggesting 34.15% growth from the figure reported in the year-ago quarter.

TTMI’s Q2 Top-Line Details

Revenues from Aerospace & Defense, Commercial, and RF&S Components were $327.6 million (44.8% of total revenues), $395.6 million (54.1% of total revenues) and $10.1 million (1.4% of total revenues), respectively. Year over year, Aerospace & Defense, Commercial, and RF&S Components revenues increased 19.3%, 22.4% and 11%, respectively.

In the reported quarter, as a percentage of revenues, TTM Technologies’ generated 45% of total revenues from Aerospace and Defense end markets, 21% from Data Center computing, 15% from Medical, Industrial & Instrumentation, 11% from Automotive, and 8% from Networking. Growth in Data Center Computing and Networking was supported by rising demand driven by Generative AI applications (30% of revenues).

Top five customers accounted for 41% of revenues in the reported quarter. Backlog was $496.8 million with Book to Bill of 0.89.

TTMI’s Operating Details

In the second quarter of 2025, TTM Technologies reported a non-GAAP gross margin of 20.9%, which expanded 90 basis points (bps) year over year.

Selling and marketing expenses increased 7.7% year over year to $21.3 million. General and administrative expenses jumped 29% year over year to $49.7 million. However, research and development expenses declined 18% year over year to $7 million. 

Adjusted EBITDA increased 29.6% year over year to $109.7 million in the reported quarter.

Non-GAAP operating income surged 49.3% year over year to $81.4 million. As a percentage of revenues, the operating margin expanded 210 bps year over year to 11.1%.

TTMI’s Balance Sheet & Cash Flow

As of June 30, 2025, TTM Technologies’ cash and cash equivalents were $448 million, while total debt was $917.1 million. Net leverage was at 1.2X at the end of the second quarter.

In the reported quarter, net cash provided by operating activities was $97.8 million, while free cash flow was $37.6 million.

TTMI’s Zacks Rank & Stocks to Consider

TTM Technologies currently carries a Zacks Rank #2 (Buy).

MKS Inc. MKSI, DoorDash DASH and Lumentum LITE are better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MKS shares have declined 11.2% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.

DoorDash shares have appreciated 48% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.

Lumentum shares are up 27% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.

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This article originally published on Zacks Investment Research (zacks.com).

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