TTM Technologies (NASDAQ:TTMI) reported record third-quarter 2026 revenue and non-GAAP earnings, citing continued demand from data center and networking customers, aerospace and defense programs, and other end markets.
Third-quarter net sales rose 60% from a year earlier to $1.2 billion, compared with $753 million in the prior-year period. GAAP net income was $84.8 million, or $0.79 per diluted share, versus $53.1 million, or $0.50 per share, a year earlier. On a non-GAAP basis, net income totaled $157.8 million, or $1.46 per diluted share, up from $71 million, or $0.67 per share, in the third quarter of 2025.
“Our third quarter sets another new record with over $1.2 billion in revenue,” President and Chief Executive Officer Edwin Roks said, adding that the company expects a strong finish to the year as shipments of its N+M products increase in the Data Center & Networking market.
Margins Improve as Product Mix Shifts
TTM’s third-quarter adjusted EBITDA was a record $242.3 million, producing an adjusted EBITDA margin of 20.1%, up from 16.1% a year earlier. Non-GAAP gross margin increased 303 basis points year over year to 24.8%, which Chief Financial Officer Dan Boehle attributed primarily to higher sales volume, favorable mix in data center, networking and aerospace and defense, and execution improvements at the company’s Penang facility.
GAAP operating income increased to $162.3 million from $71.9 million in the year-earlier quarter. Cash flow from operations was $154.7 million, while free cash flow was $74.8 million, compared with $42.6 million a year ago.
During the analyst question-and-answer session, Boehle said the company expects gross and EBITDA margins to increase by more than 200 basis points in 2027 as N+M products account for a larger share of the sales mix. Roks said the products command higher value because of their complexity, while Boehle said their gross margins are “significantly higher” than TTM’s corporate average.
Data Center Demand Drives Growth
Data Center & Networking represented 41% of third-quarter sales and grew 115% year over year. TTM said the growth reflected the ramp of high-technology N+M asymmetrical printed circuit boards and continuing customer demand tied to data center and networking applications.
Roks said N+M products made up about 30% of Data Center & Networking activity during the quarter and are expected to reach roughly 50% of that business in 2027. The company has three major N+M programs, with two performing well and one shifting later due to a customer program schedule rather than technical or manufacturing issues, he said.
For the fourth quarter, TTM expects Data Center & Networking to account for approximately 49% of sales. The company said it anticipates full-year 2026 sales in the market will more than double from 2025.
Aerospace & Defense represented 34% of third-quarter sales and grew 21% year over year. The segment recorded a book-to-bill ratio of approximately 1.6 and ended the quarter with a record $2 billion program backlog, up from just under $1.5 billion a year earlier. TTM cited bookings associated with Surface Ship Surveillance, SPY-6 radar, APS-143 maritime surveillance radar, Golden Dome and restricted programs.
The company said it has visibility into roughly 65% of projected aerospace and defense revenue for 2027. Medical, industrial and instrumentation sales represented 18% of quarterly revenue and rose 97% year over year, aided by pricing adjustments and instrumentation demand related to automatic test equipment supporting AI solutions. Automotive revenue accounted for 7% of sales and increased 11%.
Overall company book-to-bill was 2.1, including 2.5 in the commercial reporting segment and 1.6 in aerospace and defense. The company’s 90-day backlog, which is subject to cancellations, rose 111% year over year to $1.3 billion.
Capacity Investments and Acquisition Activity
TTM announced an additional planned $400 million capacity investment, beginning in the fourth quarter of 2026 and continuing into early 2028. Roks said the investment is primarily directed toward N+M capacity and is expected to support production in 2028. It is in addition to more than $1.3 billion of capacity investments or commitments planned across data center and networking and aerospace and defense between 2025 and 2029.
The company said it intends to use a brownfield-expansion approach and expects to fund organic investments from operating cash flow. It is also developing an innovation center in Eau Claire, Wisconsin, focused on technologies including mSAP, SAP, passives and advanced optics.
TTM completed its acquisition of Swiss Technology Group AG, now called TTM GS Swiss, and said it is nearing the closing of its planned ILFA acquisition. It also completed the acquisition of Epiq Solutions on Sept. 30 and announced plans to acquire two U.K. printed circuit board companies held under Merlin PCB Group.
The company’s proposed $650 million cash acquisition of Ophir Optics from MKS is expected to close in the second quarter of 2027, subject to approvals and customary closing conditions. Ophir provides infrared thermal imaging and laser-optics products for defense, homeland security and industrial applications. TTM expects to fund the transaction with cash on hand and borrowings under its revolving credit facility.
Roks said the transaction is expected to be immediately accretive to adjusted EBITDA margins and non-GAAP diluted earnings per share. The company expects net leverage at closing to remain below two times adjusted trailing-12-month EBITDA. Boehle said TTM plans to prioritize strengthening its balance sheet and reducing leverage after its current set of larger acquisitions closes.
Guidance Raised for 2026; Preliminary 2027 Outlook Issued
For the fourth quarter, TTM projected revenue of $1.42 billion to $1.44 billion and non-GAAP earnings of $1.77 to $1.83 per diluted share. The forecast includes recently closed transactions and associated financing but excludes pending acquisitions.
For full-year 2026, the company raised its sales outlook to approximately $4.47 billion to $4.49 billion and projected non-GAAP earnings of $4.97 to $5.03 per diluted share.
TTM also issued preliminary 2027 guidance for revenue of approximately $6.5 billion to $6.75 billion and non-GAAP earnings of $8.10 to $8.90 per diluted share. The initial 2027 outlook includes recently closed acquisitions and associated financing costs, while excluding pending acquisitions such as Ophir Optics.
About TTM Technologies (NASDAQ:TTMI)
TTM Technologies, Inc is a manufacturer of technology solutions and printed circuit boards (PCBs), which are used to connect and support electronic components in a wide range of products. The company produces conventional rigid PCBs as well as high-density interconnect, flexible and rigid-flex circuit boards, and other advanced circuit technologies.
TTM also provides radio-frequency and microwave/microelectronic assembly capabilities, including components and assemblies used in communications, radar and other high-frequency applications.
