TTMI Q2 Earnings Call Highlights AI Demand

TTM Technologies, Inc. TTMI entered the second half of 2026 with artificial intelligence and defense demand supporting a stronger outlook. The call centered on the N+M printed circuit board ramp, backlog and capacity investments.

TTMI’s second-quarter 2026 adjusted earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 92 cents. Revenues of $1 billion also beat the consensus mark of $964.60 million by 1.10%, while adjusted EBITDA margin reached 16.6%.

TTM Technologies, Inc. Price, Consensus and EPS Surprise

TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote

TTMI Raises 2026 Expectations

Executive Vice President and CFO Daniel Boehle guided third-quarter net sales to $1.10-$1.14 billion and adjusted earnings to $1.21-$1.27 per share. The forecast excludes pending acquisitions.

Boehle raised the full-year view to approximately $4.4 billion in net sales, with adjusted earnings approaching $5 per share. He expects another sequential sales increase in the fourth quarter.

President and CEO Edwin Roks said TTM is well ahead of its earlier plan for at least $4 billion in 2026 sales. He maintained expectations for 15%-20% organic growth in 2027 and 2028.

TTM Builds Around the N+M Ramp

Roks said TTM has begun the production launch of its N+M asymmetrical interconnect boards. The company has delivered tens of millions of dollars of product, with initial yields better than expected.

Boehle said about $600 million of N+M revenue is planned for the second half, with one-third in the third quarter and two-thirds in the fourth. Margin improvement will depend partly on yield gains.

A Needham analyst pressed management on the earnings impact, while a Truist Securities analyst asked about 2027. Roks said N+M has uses outside data centers and could reach the analyst’s roughly $1 billion estimate next year, though planning continues.

TTMI’s Defense Backlog Strengthens

Roks said aerospace and defense sales rose 14% and represented 37% of quarterly revenues. Segment book-to-bill reached 1.3, while program backlog increased to $1.7 billion from $1.5 billion a year earlier.

TTM booked business tied to the APS-153 maritime surveillance radar, ATP Sensor System, Golden Dome and restricted priority programs. Roks said the qualified strategic pipeline exceeded $7 billion.

The Syracuse Ultra-HDI facility will begin its volume ramp in the third quarter, with expansion continuing through 2027 toward full capacity in 2028. Roks also highlighted pricing, supply-chain and manufacturing initiatives intended to improve margins.

TTM Broadens Growth Beyond AI

Data center and networking revenues increased 91% and represented 40% of quarterly sales. Roks expects the category to reach 49% of third-quarter sales and more than double for full-year 2026.

Medical, industrial and instrumentation revenues grew 33%. Roks said performance from TTM’s five largest medical customers more than doubled internal expectations, supported by glucose monitoring, surgical robotics and electrophysiology applications.

Automotive sales declined marginally and represented 8% of revenues. Roks said TTM remains selective, focusing on higher-value programs, while lower-complexity material availability is creating pressure.

TTMI Q&A Tests Capacity and Supply

A B. Riley Securities analyst asked whether advanced data-center materials faced the same supply pressure as automotive products. Roks said suppliers are prioritizing higher-end materials, leaving greater constraints in lower-complexity products.

A Truist Securities analyst questioned whether capacity could limit growth. Roks said brownfield expansions provide faster additions, while Boehle noted that the expected 2026 capital-spending range increased by about $45 million.

A Needham analyst asked about Penang. Roks said the facility is approaching breakeven, targeted for late in the third quarter or the fourth, and is supporting medical, industrial and instrumentation products alongside N+M demand.

TTM Keeps Expansion Disciplined

Roks expects the acquisitions of Swiss Technology Group and ILFA to close in the third quarter. The businesses should add less than 5% to sales and be moderately accretive to adjusted EBITDA while establishing TTM’s European footprint.

The closing message combined growth investment with balance-sheet restraint. Roks said a 0.9-times net leverage ratio supports organic expansion and acquisitions, while management plans more detail on its updated long-term plan next quarter.

TTMI’s Zacks Signals Stay Mixed

TTMI carries a Zacks Rank #4 (Sell), reflecting unfavorable earnings-estimate revision trends and weaker near-term performance potential under the Zacks framework. Its Growth Score of A is favorable.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Value Score of D, Momentum Score of C and VGM Score of C make the style profile mixed. Style Scores complement the Zacks Rank, and the Rank can change as analysts revise estimates following the results.

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