Record Quarterly Revenue
Net sales of $846.0 million in Q1 FY2026, up 30% year-over-year and an all-time quarterly high.
TTM Technologies
· TTMI
April 29th, 2026
Summary
- Earnings Call Date:
- 2026-04-29
- Change Since:
- +52.54%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call presented a strong operational and financial performance: high revenue growth (+30% YoY), significant EPS and adjusted EBITDA expansion, margin improvement, large backlog increase and confident guidance for Q2. Key negatives include elevated capital spending and near-term free cash flow usage, FX losses, and some end-market softness in automotive and supply-chain risks. Overall, the positive growth, margin gains and strong demand signals materially outweigh the cash- and execution-related headwinds.
Company Guidance
TTM guided Q2 FY2026 net sales of $930 million to $970 million and non‑GAAP EPS of $0.82 to $0.88 per diluted share (based on ~107.5 million diluted shares), and said the first‑half growth trajectory should continue into the second half of the year. For Q2 it expects SG&A of ~7.4% of sales and R&D of ~1% of sales, interest expense of ~$10.6 million, interest income of ~$2.5 million, realized foreign‑exchange and other non‑operating expense of ~$6.9 million, and an effective tax rate of 13%–17%. Management also forecast depreciation of ~ $32.1 million, amortization of intangibles of ~ $9.2 million, stock‑based compensation of ~ $11.5 million and noncash interest expense of ~ $0.5 million, and raised full‑year CapEx expectations to roughly $300 million–$320 million to support accelerated capacity expansion.
Strong Non-GAAP EPS and Profitability Expansion
Non-GAAP EPS of $0.75 per diluted share in Q1, a 50% increase year-over-year; GAAP net income of $50.0 million ($0.47/sh) versus $32.2 million ($0.31/sh) prior year.
Adjusted EBITDA Growth and Margin Improvement
Adjusted EBITDA of $132.9 million, up ~33.6% year-over-year, representing a margin of 15.7% versus 15.3% a year ago (improved by ~40 bps).
Gross and Operating Margin Expansion
Gross margin improved to 22.3% (up 150 basis points from 20.8% prior-year) and operating margin rose to 12.8% (up 230 basis points from 10.5%).
Robust End-Market Demand and Mix Tailwinds
Data center & networking sales grew 61% YoY and represented 36% of Q1 sales (expected to be ~42% in Q2); medical, industrial & instrumentation also grew 61% YoY and represented 16% of sales; aerospace & defense represented 40% of sales and grew 11% YoY.
Strong Bookings and Backlog
90-day backlog of $787 million, up from $517 million a year ago (~+52%); overall book-to-bill about 1.41 (commercial 1.65, A&D 1.10).
Improving Operational Ramps (Penang)
Penang yield improvements from ~40% previously to ~70–80%; management expects facility breakeven approaching later in FY2026.
Positive Guidance and Continued Demand Signal
Q2 FY2026 guidance: net sales $930–$970 million and non-GAAP EPS $0.82–$0.88; management expects H1 growth trajectory to continue into H2.
Operator
Good day, and welcome to the TTM Technologies Q1 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Sean Hannan, Vice President of Investor Relations. Please go ahead.
Unknown Executive
Greetings, everyone. Welcome, and thank you for joining us today. I'm Sean Hannan, Vice President of Investor Relations for TTM. With me on the call are Edwin Roks, our President and Chief Executive Officer; and Dan Boehle, our Executive Vice President and Chief Financial Officer. Before we get started, I'd like to remind everybody that today's call contains forward-looking statements including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to 1 or more risks and uncertainties, including the risk factors we provide in our filings with the Securities and Exchange Commission, which we encourage you to review. These forward-looking statements represent management's expectations and assumptions based on currently available information. TTM does not undertake any obligation to publicly update or revise any of these forward-looking statements whether as a result of new information, future events or other circumstances, except as required by law.
We will also discuss on this call certain non-GAAP financial measures such as adjusted EBITDA. A -- such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliations...
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