[Management View]
TTM Technologies reported $752.7 million in net sales for Q3 2025, a 22% YoY increase, driven by Aerospace and Defense, data center computing, networking, and medical/industrial/instrumentation markets. Strategic priorities include growth, gross margin improvement, and cash generation. Facility expansions in Penang and Syracuse are progressing, with a focus on advanced PCB technology and customer qualifications.

[Outlook]
Management projects Q4 2025 net sales between $730 million and $770 million, with non-GAAP EPS guidance of $0.64 to $0.70 per diluted share. Aerospace and Defense sales are expected to represent 42% of Q4 sales, while data center computing is projected to grow to 28%. Long-term plans include investments in R&D, facility expansions, and potential M&A activities.

[Financial Performance]
TTM achieved record non-GAAP EPS of $0.67 in Q3 2025, with adjusted EBITDA of $120.9 million (16.1% of net sales). GAAP net income was $53.1 million, up significantly from $14.3 million in Q3 2024. Gross margin slightly decreased to 20.8% (GAAP) and 21.5% (non-GAAP) due to ramp costs at the Penang facility. Cash flow from operations was $141.8 million, representing 18.8% of net sales.

[Q&A Highlights]
Question 1: How far does visibility extend into the data center market, and has additional capacity been added in China?
Answer: Visibility in the data center market extends six to nine months, supported by established relationships with top-tier customers. Capacity is well-balanced between North America and Asia Pacific, ensuring smooth operations.

Question 2: Can you update on Penang's margin headwind and progress?
Answer: Penang remains central to the China-plus-one strategy. Margin headwind improved to 195 basis points in Q3, down from 210 basis points in Q2, and is forecasted to further improve to 160 basis points in Q4. Five customers are being qualified, with steady ramping planned. Long-term plans for a second Penang facility are aligned with demand.

Question 3: What is TTM's PCB manufacturing capacity share globally, in China, and the US?
Answer: TTM is the number one PCB manufacturer in the US, ranked six or seven globally, and third or fourth in the data center market.

Question 4: What advancements are being made in PCB density and technology?
Answer: TTM is demonstrating 87-layer PCBs and advancing stacked micro via adoption, asymmetric designs, and material innovation. R&D investments will focus on maintaining leadership in high-resolution and advanced PCB technologies.

Question 5: What led Edwin Rox to join TTM, and what metrics are most important for the company’s future?
Answer: Edwin Rox’s background in physics, electronics, and semiconductor physics aligns with TTM’s focus on integrating chips into compact heterogeneous packages. Key metrics include growth, gross margin, cash generation, and healthy EBITDA.

[Sentiment Analysis]
Analysts expressed optimism about TTM’s growth trajectory, particularly in AI and Aerospace markets. Management maintained a confident and forward-looking tone, emphasizing strategic investments and operational improvements.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|----------------------------|-----------------|-----------------|------------|
| Net Sales | $752.7M | $616.5M | +22% |
| GAAP Net Income | $53.1M | $14.3M | +271% |
| Non-GAAP EPS | $0.67 | $0.55 | +22% |
| Adjusted EBITDA | $120.9M | $100.6M | +20% |
| Gross Margin (GAAP) | 20.8% | 21.1% | -0.3% |
| Cash Flow from Operations | $141.8M | $100.6M | +41% |

[Risks and Concerns]
1. Automotive market softness due to inventory adjustments and weak customer demand.
2. Ramp costs at the Penang facility continue to impact margins.
3. Potential indirect effects of tariffs and economic slowdowns on end-market demand.

[Final Takeaway]
TTM Technologies delivered robust Q3 2025 results, driven by Aerospace and Defense and AI-related markets. The company is strategically positioned for growth, supported by facility expansions, advanced PCB technology, and strong customer relationships. While challenges persist in the automotive market and Penang ramp costs, management’s focus on innovation, operational efficiency, and strategic investments underscores confidence in sustained performance and market leadership.