TTM Technologies (TTMI) investor relations material

Business overview and strategy

• Focused on technology solutions from mission systems to microelectronics, with 75% of business in complex printed circuit boards.

• Diversified from printed circuit boards into integrated electronics, subsystems, and radar systems, with aerospace and defense now about half of revenues.

• Growth driven by acquisitions and a shift toward value-added, engineered products, especially in long-cycle aerospace and defense programs.

• Reduced exposure to cyclical commercial markets by exiting commoditized and seasonal businesses like mobility and EMS.

• Five end markets: aerospace/defense, data center computing, networking, medical/industrial/instrumentation, and automotive.

Market performance and growth drivers

• Aerospace and defense represent 46% of 2024 net sales, with 90% of that segment in defense.

• Defense revenue grew 21% year-over-year in Q2 and 15% year-to-date, outpacing the 3–5% industry CAGR.

• Backlog in aerospace and defense is nearly $500 million, stretching out about two years.

• Data center computing and networking, driven by generative AI, now comprise about 27% of revenues and are experiencing strong growth.

• Automotive is challenged, with flat or slightly down outlook, while medical, instrumentation, and industrial automation are growing above benchmarks.

Technology, capacity, and global footprint

• Investing in advanced PCB technologies for data centers and AI, including high-density interconnect boards.

• Expanding capacity in Asia (China and Penang, Malaysia) and the US, with new facilities to support both commercial and defense markets.

• Penang facility ramping up to $200 million annual revenue; new land secured for further expansion.

• Building a Syracuse, NY facility for high-volume ultra-high-density PCBs for military applications, targeting $100 million in revenue.

• Acquired a 750,000 sq ft US facility to prepare for potential onshoring of AI board manufacturing.