TTM Technologies (TTMI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 7.7% year-over-year to $616.5M, driven by growth in aerospace & defense and data center computing, partially offset by declines in automotive, medical, industrial, and instrumentation markets.

• GAAP net income was $14.3M ($0.14/diluted share), reversing a net loss of $37.1M in Q3 2023; non-GAAP net income was $42.7M ($0.41/diluted share).

• Cash flow from operations was $65.1M for Q3 and $150.8M for the first nine months; cash and equivalents at quarter-end totaled $469.5M.

• Book-to-bill ratio was 1.20, and aerospace & defense program backlog reached a record $1.49B.

• Strategic focus on transforming the business to be less cyclical and more differentiated, with significant investments in advanced manufacturing and facility consolidation.

Financial highlights

• Q3 2024 net sales were $616.5M, up from $572.6M in Q3 2023, with GAAP operating income of $51M (vs. a $10.2M loss in Q3 2023, which included a $44.1M goodwill impairment).

• Non-GAAP net income was $42.7M ($0.41/diluted share), slightly down from $44.9M ($0.43/diluted share) in Q3 2023.

• Adjusted EBITDA was $84.4M (13.7% of net sales), nearly flat year-over-year, including a $17.8M foreign exchange loss.

• Free cash flow was $24.2M, with capital expenditures of $40.9M in the quarter.

• Net leverage ratio improved to 1.4x from 1.5x year-over-year.

Outlook and guidance

• Q4 2024 net sales projected at $610–$650M; non-GAAP EPS expected at $0.44–$0.50, including Penang facility startup costs.

• SG&A expected at ~9.5% of net sales, R&D at ~1.3%, interest expense ~$12.1M, and effective tax rate between 10–14%.

• Penang facility expected to reach break-even by mid-2025, with revenue ramp accelerating in Q1 and Q2 2025.

• Syracuse expansion to have minimal P&L impact in 2025; production ramp expected in 2026.

• Capital expenditures for 2024 expected in the range of $175M–$195M.