Q2 2026 TTM Technologies Inc Earnings Call Transcript
Key Points
- TTM Technologies Inc (TTMI) achieved record quarterly sales of $1 billion, a 37% year-over-year increase, driven by strong demand in data center, networking, and aerospace and defense markets.
- Non-GAAP EPS of $0.99 per diluted share was an all-time high, a 71% improvement year-over-year, with adjusted EBITDA margin expanding 160 basis points to 16.6%.
- The company raised its full-year 2026 guidance to approximately $4.4 billion in sales and non-GAAP EPS approaching $5, reflecting strong demand and successful ramp-up of new technologies.
- Aerospace and defense bookings remain robust with a book-to-bill of 1.3, a total program backlog of $1.7 billion, and a strategic pipeline of over $7 billion in qualified potential business.
- The company is successfully ramping production of its advanced M+N (asymmetrical) printed circuit boards, with yields better than expected, supporting significant growth in the AI data center market.
- Strategic acquisitions of STG and ILFA in Europe are expected to close in Q3, establishing a footprint in the region and adding capabilities in medical and A&D markets.
- The automotive end market experienced a slight year-over-year decline, with expectations for a mid-single-digit decrease in sales for the full year 2026.
- Supply chain issues persist for lower-complexity materials, particularly copper-clad laminates (CCL), as producers shift focus to higher-end products, impacting the automotive segment.
- The company recognized a non-cash pre-tax unrealized loss of $14 million from changes in the fair value of a deal-contingent cross-currency swap related to the STG acquisition.
- Foreign exchange losses increased to $4.9 million in Q2 2026 due to the weakening of the U.S. Dollar, negatively impacting non-operating expenses.
- The ramp-up of the new Syracuse facility for Ultra-HDI products is expected to continue through 2027, with full capacity run rate not expected until 2028, indicating a prolonged period of investment and potential margin pressure.
- The company faces potential margin dilution during the initial stages of the M+N production ramp in Q3, as yields improve gradually through the quarter and into Q4.
Hello and welcome to TTM Technologies second quarter 2000 twenty-six earnings conference call. Please note that this call is being recorded.
I will now hand the call over to Sean Hannon, Vice President of Investor Relations at TTM.
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 Rocks, our President and Chief Executive Officer and Dan Bailey, 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 one 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
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