TTM Technologies, Inc. Reports First Quarter 2025 Results

SANTA ANA, Calif., April 30, 2025 (GLOBE NEWSWIRE) -- TTM Technologies, Inc. (NASDAQ: TTMI) (“TTM”), a leading global manufacturer of technology solutions, including mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (“PCB”s) today reported results for the first quarter 2025, which ended on March 31, 2025. First Quarter 2025 Highlights Net sales were $648.7 million, up 14% year on yearGAAP net income of $32.2 million, or $0.31 per diluted shareNon-GAAP net income of $52.4 million, or $0.50 per diluted share, a record high for a first quarterCash usage from operations of $10.7 million due to an increase in working capitalBook to bill of 1.10 for the first quarterA&D program backlog $1.55 billion First Quarter 2025 GAAP Financial Results Net sales for the first quarter of 2025 were $648.7 million, compared to $570.1 million in the first quarter of 2024. GAAP operating income for the first quarter of 2025 was $50.3 million compared to GAAP operating income for the first quarter of 2024 of $17.1 million. GAAP net income for the first quarter of 2025 was $32.2 million, or $0.31 per diluted share, compared to GAAP net income for the first quarter of 2024 of $10.5 million, or $0.10 per diluted share. First Quarter 2025 Non-GAAP Financial ResultsOn a non-GAAP basis, net income for the first quarter of 2025 was $52.4 million, or $0.50 per diluted share. This compares to non-GAAP net income of $29.1 million, or $0.28 per diluted share, for the first quarter of 2024. Adjusted EBITDA in the first quarter of 2025 was $99.5 million, or 15.3% of sales compared to adjusted EBITDA of $70.5 million, or 12.4% of sales for the first quarter of 2024. “We delivered a strong quarter with revenues and non-GAAP EPS above the high end of the guided range. Revenues grew 14% year on year due to demand strength in our Aerospace and Defense, Data Center Computing and Networking end markets, the latter two being driven by generative AI,” said Tom Edman, CEO of TTM. “Non-GAAP operating margins were 10.5%, up 340 basis points year on year, and were double digit for the third consecutive quarter, reflecting continued solid execution, particularly in a normally challenging first quarter. Finally, non-GAAP EPS was a record high for a first quarter at $0.50 per diluted share,” concluded Mr. Edman. Business Outlook For the second quarter of 2025, TTM estimates that revenues will be in the range of $650 million to $690 million, and non-GAAP net income will be in the range of $0.49 to $0.55 per diluted share. With respect to the Company’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share excludes primarily the future impact of restructuring actions, impairment charges, unusual gains and losses including but not limited to unrealized foreign exchange translation, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, a reconciliation of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP has not been provided because the Company is unable to provide such reconciliation without unreasonable effort. For the same reasons, TTM is unable to address the probable significance of the information. Live Webcast/Conference CallTTM will host a conference call and webcast to discuss first quarter 2025 results and the second quarter 2025 outlook on Wednesday, April 30, 2025, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements. Access to the conference call is available by clicking on the registration link TTM Technologies, Inc. first quarter 2025 conference call. Registering participants will receive dial in information and a unique PIN to join the call. Participants can register at any time up to the start of the conference call. The conference call will also be simulcast on the company’s website, and can be accessed by clicking on the link TTM Technologies Inc. first quarter 2025 webcast. The webcast will remain accessible for one week following the live event. To Access a Replay of the WebcastThe replay of the webcast will remain accessible for one week following the live event on TTM’s website at TTM Technologies Inc. first quarter 2025 webcast. About TTMTTM Technologies, Inc. is a leading global manufacturer of technology solutions, including mission systems, RF components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced PCBs. TTM stands for time-to-market, representing how TTM's time-critical, one-stop design, engineering and manufacturing services enable customers to reduce the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com. Forward-Looking Statements The preliminary financial results included in this press release represent the most current information available to management. The company’s actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures, final adjustments, completion of the review by the company’s independent registered accounting firm, and other developments that may arise between now and the disclosure of the final results. This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM's current expectations, and TTM does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, general market and economic conditions, including interest rates, currency exchange rates, and consumer spending, demand for TTM's products, market pressures on prices of TTM's products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM's dependence upon a small number of customers, and other factors set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC. About Our Non-GAAP Financial MeasuresTo supplement our consolidated condensed financial statements presented on a GAAP basis, this release includes information about TTM’s adjusted EBITDA, non-GAAP net income, non-GAAP earnings per diluted share and non-GAAP operating margins, all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance. A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable to similar non-GAAP financial measures used by other companies. TTM compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliations below to the most directly comparable GAAP financial measure. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. - Tables Follow - TTM TECHNOLOGIES, INC.Selected Unaudited Financial Information(In thousands, except per share data) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONSFirst Quarter 2025 2024 Net sales$648,668 $570,113 Cost of goods sold 517,696 466,394 Gross profit 130,972 103,719 Operating expenses: Selling and marketing 21,271 20,294 General and administrative 43,774 43,670 Research and development 8,064 7,321 Amortization of definite-lived intangibles 6,889 11,429 Restructuring charges 714 3,938 Total operating expenses 80,712 86,652 Operating income 50,260 17,067 Interest expense (11,464) (12,324)Other, net 2,195 9,326 Income before income taxes 40,991 14,069 Income tax provision (8,813) (3,603) Net income$32,178 $10,466 Earnings per share: Basic$0.32 $0.10 Diluted 0.31 0.10 Weighted-average shares used in computing per share amounts: Basic 101,866 101,952 Diluted 104,530 104,098 Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share: Weighted-average shares outstanding 101,866 101,952 Dilutive effect of performance-based stock units, restricted stock units and stock options 2,664 2,146 Diluted shares 104,530 104,098 SELECTED BALANCE SHEET DATAMarch 31, 2025 December 30, 2024Cash and cash equivalents$411,260 $503,932 Accounts receivable, net 496,216 448,611 Contract assets 378,215 381,382 Inventories 246,837 224,985 Total current assets 1,584,348 1,606,744 Property, plant and equipment, net 888,086 869,957 Operating lease right-of-use assets 78,076 78,252 Other non-current assets 904,089 917,541 Total assets 3,454,599 3,472,494 Short-term debt, including current portion of long-term debt$3,800 $3,795 Accounts payable 395,127 406,221 Total current liabilities 764,536 809,054 Long-term debt, net of discount and issuance costs 913,846 914,359 Total long-term liabilities 1,103,062 1,099,616 Total stockholders' equity 1,587,001 1,563,824 Total liabilities and stockholders' equity 3,454,599 3,472,494 SUPPLEMENTAL DATAFirst Quarter 2025 2024 Gross margin 20.2% 18.2%Operating margin 7.7% 3.0% End Market Breakdown: First Quarter 2025 2024 Aerospace and Defense 47% 46%Automotive 11% 13%Data Center Computing 21% 21%Medical/Industrial/Instrumentation 13% 14%Networking 8% 6% Stock-based Compensation: First QuarterAmount included in: 2025 2024 Cost of goods sold$2,673 $2,029 Selling and marketing 932 868 General and administrative 4,872 3,595 Research and development 310 295 Total stock-based compensation expense$8,787 $6,787 RECONCILIATIONS1First Quarter 2025 2024 Non-GAAP gross profit reconciliation2: GAAP gross profit$130,972 $103,719 Add back item: Amortization of definite-lived intangibles 2,335 2,336 Stock-based compensation 2,673 2,029 Unrealized gain on commodity hedge (776) (752)Other charges - (162)Non-GAAP gross profit$135,204 $107,170 Non-GAAP gross margin 20.8% 18.8% Non-GAAP operating income reconciliation3: GAAP operating income$50,260 $17,067 Add back items: Amortization of definite-lived intangibles 9,224 13,765 Stock-based compensation 8,787 6,787 Unrealized gain on commodity hedge (776) (752)Restructuring, acquisition-related and other charges 714 3,826 Non-GAAP operating income$68,209 $40,693 Non-GAAP operating margin 10.5% 7.1% Non-GAAP net income and EPS reconciliation4: GAAP net income$32,178 $10,466 Add back items: Amortization of definite-lived intangibles 9,224 13,765 Stock-based compensation 8,787 6,787 Non-cash interest expense 531 518 Unrealized gain on commodity hedge (776) (752)Unrealized loss (gain) on foreign exchange 2,214 (4,277)Restructuring, acquisition-related and other charges 714 3,738 Income taxes5 (440) (1,136)Non-GAAP net income$52,432 $29,109 Non-GAAP earnings per diluted share$0.50 $0.28 Adjusted EBITDA reconciliation6: GAAP net income$32,178 $10,466 Add back items: Income tax provision 8,813 3,603 Interest expense 11,464 12,324 Amortization of definite-lived intangibles 9,224 13,765 Depreciation expense 26,863 24,696 Stock-based compensation 8,787 6,787 Unrealized gain on commodity hedge (776) (752)Unrealized loss (gain) on foreign exchange 2,214 (4,277)Restructuring, acquisition-related and other charges 714 3,900 Adjusted EBITDA$99,481 $70,512 Adjusted EBITDA margin 15.3% 12.4% Free cash flow reconciliation: Operating cash flow$(10,655) $43,895 Capital expenditures, net (63,220) (49,296)Free cash flow$(73,875) $(5,401) 1 This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the financial information in our consolidated condensed statements of operations. Prior year results have been revised to exclude the impact of unrealized loss (gain) on foreign exchange from non-GAAP net income, non-GAAP EPS, and adjusted EBITDA - refer to the revised historical non-GAAP financial information in the Form 8-K filed on February 5, 2025 for further information. 2 Non-GAAP gross profit and gross margin measures exclude amortization of definite-lived intangibles, stock-based compensation, unrealized gain on commodity hedge, and other charges. 3 Non-GAAP operating income and operating margin measures exclude amortization of definite-lived intangibles, stock-based compensation, unrealized gain on commodity hedge, restructuring, acquisition-related costs, and other charges. 4 This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures -- which add back amortization of definite-lived intangibles, stock-based compensation, non-cash interest expense, unrealized gain on commodity hedge, unrealized loss (gain) on foreign exchange, restructuring, acquisition-related costs, and other charges as well as the associated tax impact of these charges and discrete tax items -- provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations. 5 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate. 6 Adjusted EBITDA is defined as earnings before income tax provision, interest expense, amortization of definite-lived intangibles, depreciation expense, stock-based compensation, unrealized gain on commodity hedge, unrealized loss (gain) on foreign exchange, restructuring, acquisition-related costs, and other charges. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America. Contact:Sameer Desai,Vice President, CorporateDevelopment & Investor RelationsSameer.desai@ttmtech.com714-327-3050

TTM Technologies, Inc. Reports First Quarter 2025 Results

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