TTM Technologies (TTMI) The Stifel 2024 Cross Sector Insight Conference summary

Business transformation and market positioning

• Revenue reached $2.2 billion last year, with 16,000 employees and 24 global facilities.

• Defense market share grew from 15% to 45-46% of revenue over the past decade.

• Expanded non-PCB content in defense, especially radar and RF programs.

• Trimmed commercial footprint by selling the mobility business and closing underperforming assembly facilities.

• Commercial capabilities expanded in Penang, Malaysia.

Aerospace and defense segment

• 94% of aerospace and defense revenue is defense, 6% is commercial aerospace.

• About half of A&D revenue is from radar programs; 7% of total revenue is in space.

• Telephonics acquisition added mission systems and radar capabilities, accelerating AESA radar development.

• Cost synergies achieved, but engineering and product development are the main focus.

• Over 90% of defense business is U.S.-focused, with some exposure to Europe and India.

Data center computing and technology trends

• Data center computing is 21% of sales, driven by AI and cloud demand.

• Supplies high layer count PCBs, mainly for hyperscale data centers and semiconductor test boards.

• Three major hyperscale customers, with increasing proprietary design and procurement.

• AI data center boards have higher ASPs due to complexity and reliability requirements.

• Facility in Penang, Malaysia, is being ramped to support future high layer count board production.