TTM Technologies (TTMI) Jefferies Global Industrials Conference 2026 summary

Business transformation and strategy

• Transitioned from a traditional PCB manufacturer to an integrated specialty electronics platform, focusing on complex packaging, modules, and systems, with ongoing geographic expansion into Europe.

• 80% of business is aligned with megatrends in AI, data centers, networking, and aerospace and defense, supported by recent acquisitions like Epiq and Swiss Technology Group AG.

• Epiq acquisition enhances software-defined radio and RF spectrum capabilities, rounding out sensor and communications offerings and enabling broader system integration.

• Defense business is experiencing strong growth, driven by alignment with Department of War priorities such as air and missile defense, munitions acceleration, and restricted programs.

• Relationships with both established primes and emerging neo-primes are fostering agility and accelerating market entry for new defense technologies.

Market growth, technology, and end markets

• Data center and networking segments are experiencing rapid, sustained growth, with new multi-layer PCB technologies ramping up revenue significantly.

• Medical, instrumentation, industrial, and automotive markets are also key contributors, with miniaturization and flexible PCB technologies supporting long-cycle businesses.

• Ultra-high density interconnect (UHDI) technology is being deployed in the U.S. for defense applications, enabling higher functionality and smaller form factors in critical systems.

• Moore's law limitations are addressed by integrating chips efficiently, positioning the company as the "nervous system" for high-bandwidth, low-latency solutions.

• AI is being leveraged both in product development (e.g., machine learning for defense systems) and manufacturing (e.g., workflow optimization, automated inspection), improving cycle times and quality.

Financial performance, capacity, and outlook

• Defense business grew mid-double digits in the most recent quarter, with a $1.7 billion backlog and a pipeline of $7 billion, supported by multi-year contracts.

• Book-to-bill ratios are strong, with Q2 at 1.3 for A&D, indicating multi-year demand and a healthy supply chain.

• Margins are expected to rise from 16.5% to 18% this year, with further increases anticipated as the business scales and AI drives efficiency.

• Capacity expansion is managed through disciplined brownfield and selective greenfield investments, ensuring technology upgrades and readiness for defense and commercial demand.

• M&A strategy focuses on global expansion, especially in Europe, and acquiring capabilities in communication and sensing to complement existing strengths.