TTM Technologies, Inc. (TTMI) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 30, 2026. TTM Technologies, Inc. is a global manufacturer of advanced technology products, including mission systems, RF components, and printed circuit boards (PCBs). The company serves aerospace and defense, automotive, data center, and medical markets. During this quarter, the company strategically realigned its reporting structure, consolidating RF&S Components into the Aerospace and Defense (A&D) segment, resulting in two reportable segments: A&D and Commercial.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Sales | $845.98 million | $648.67 million |
| Gross Profit | $181.18 million | $130.97 million |
| Gross Margin | 21.4% | 20.2% |
| Operating Income | $72.45 million | $50.26 million |
| Operating Margin | 8.6% | 7.7% |
| Net Income | $49.99 million | $32.18 million |
| Diluted EPS | $0.47 | $0.31 |
| Cash and Equivalents | $410.05 million | $411.26 million |
| Operating Cash Flow | $21.74 million | ($10.66 million) |
| Total Debt (Net) | $915.69 million | $916.15 million |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 30.4% year-over-year, driven primarily by a 48.8% surge in the Commercial segment (led by AI data center demand) and an 11.2% increase in the A&D segment.
- Margin Expansion: Gross margin improved to 21.4% due to higher sales volume, favorable product mix, and operational execution, partially offset by ramp-up costs at the Penang, Malaysia facility.
- Operating Expenses: Increased by $28.0 million, largely due to higher stock-based compensation ($24.4 million vs. $8.8 million prior year) driven by stock price appreciation and vesting of performance grants.
- Cash Flow: Operating cash flow turned positive ($21.7 million) compared to a use of cash ($10.7 million) in the prior year, despite a significant increase in investing activities ($106.8 million) for capital expenditures.
- Segment Realignment: The company now reports two segments (A&D and Commercial) instead of three, with prior periods recast to conform.
Outlook, Commentary, and Risks
- Capital Expenditures: Total 2026 CapEx is expected to range between $300.0 million and $320.0 million, primarily for capacity expansion.
- New Facility: Construction is complete on a new advanced technology PCB facility in Syracuse, New York. Volume production is expected to commence in the second half of 2026 to support national security requirements.
- Share Repurchases: The company did not repurchase any shares in Q1 2026. The full $100.0 million authorization under the 2025 Repurchase Program remains available through May 2027.
- Risks: Management cites global economic volatility, geopolitical conflicts (Russia/Ukraine, Middle East), and tariff changes as ongoing risks. Foreign exchange losses impacted other income due to strengthening RMB and MYR.
- Accounting Updates: The company is evaluating the impact of new FASB standards regarding government grants and internal-use software, with adoption expected in future periods.
Investor Verification Checklist
- Verify the sustainability of the 30% revenue growth, specifically the contribution from AI data center build-outs in the Commercial segment.
- Monitor the ramp-up costs and operational efficiency of the new Penang, Malaysia fabrication plant and the upcoming Syracuse, NY facility.
- Assess the impact of elevated stock-based compensation on future operating margins as performance targets are met.
- Review the company's exposure to foreign currency fluctuations (RMB, MYR) given the recent losses reported in "Other, net."
- Confirm the timeline for volume production at the Syracuse facility to ensure it meets the projected H2 2026 start date.