Incorporated in 1978, TTM Technologies [TTMI] plays an important role in advanced electronics manufacturing, supplying sectors including aerospace, networking, defense and automotive. It has strong partnerships with industry leaders like Arista Networks [ANET], which it supplies with essential parts for its high-performance cloud networking equipment, and RTX [RTX].
Nonetheless, until now, TTM has largely escaped the notice of investors.
Part of that is because its core business is fiendishly technical.
The company manufactures printed circuit boards (PCBs), microwave assemblies, radio frequency (RF) components and mission-critical systems.
Its operations are split into RF and Systems (RFandS) and PCB segments, offering products such as rigid-flex PCBs, high-density interconnect boards, RF components, integrated circuit substrates and custom assemblies. The company also provides value-added services including PCB design, testing and rapid-turnaround production. TTM’s offerings extend to communication suites, radar systems and thermal management solutions, serving government agencies, electronics manufacturing service providers and original equipment manufacturers (OEMs).
As we’ll unpack in this stock focus, in recent weeks a series of factors have led to TTM seeing a surge of analyst interest.
With the share price up 118.79% year-to-date, what’s moving the needle for TTMI stock? Let’s start with their Q2 earnings.
Q2 Earnings
TTM reported at the very end of July.
Q2 revenues beat the Zacks Consensus Estimate by 9.4% and rose 21% year-over-year. The Q3 consensus is $710.5m, implying 15.2% year-over-year growth but a 2.8% sequential decline, which may account for a post-earnings dip in the share price.
Q2 non-GAAP EPS was $0.58, beating estimates by 11.5% and up 48.7% year-over-year. The Q3 consensus is $0.55, implying 34% growth. Non-GAAP earnings for Q3 are projected at $0.57–0.63 per share.
Segment revenues in Q2 were: Aerospace and Defense at $327.6m, representing 44.8% of the total and up 19.3% year-over-year; Commercial at $395.6m, 54.1% of the total and up 22.4%; and RFandS Components at $10.1m, 1.4% of the total and up 11%.
By end market, the Q2 revenue mix consisted of 45% Aerospace and Defense; 21% Data Center Computing; 15% Medical/Industrial/Instrumentation; 11% Automotive; and 8% Networking, with Data Center and Networking growth fueled by artificial intelligence (AI) demand, which made up 30% of total revenues.
Canny Acquisitions
On the earnings call, CEO Tom Edman highlighted that “we acquired a facility in Wisconsin and land rights in Penang as we continue to support the regional diversification of our customers’ PCB supply chains”.
The Wisconsin facility, First Principles Partners wrote in Seeking Alpha, “aligns with the growing demand for PCB use in the defense sector and generative AI and data center computing. Given the emerging workloads such as 5G and AI, the acquisitions are opening a supply chain for multi-layer PCB designs that meet the flexibility needed for next-generation applications.”
In combination with the Penang land purchase, it shows how “the company is positioning itself for flexibility, an improved supply chain and scale as global demand for PCBs increases by a CAGR of 4.24%.”
Advanced Electronics: TTMI vs FLEX vs FN
Let’s see how TTM compares to two peers in the broader space.
Flex [FLEX] is a global leader in contract manufacturing, offering services across various industries, among them automotive, healthcare and consumer electronics. Flex’s extensive global footprint and diverse service offerings make it a significant competitor in the contract manufacturing industry.
Meanwhile, Fabrinet [FN] specializes in precision optical, electro-optical and electro-mechanical manufacturing services for OEMs in sectors like data communications, telecommunications, medical devices and automotive technologies. Fabrinet’s focus on high-complexity, low-volume production and its strategic partnerships position it as a key player in the advanced manufacturing sector.
| TTM | FLEX | FN |
Market Cap | $5.59bn | $21.53bn | $13.01bn |
P/S Ratio | 2.14 | 0.86 | 3.89 |
Estimated Sales Growth (Current Fiscal Year) | 15.41% | 3.28% | 17.30% |
Estimated Sales Growth (Next Fiscal Year) | 5.49% | 3.70% | 14.96% |
Source: Yahoo Finance
Flex offers the lowest P/S ratio at 0.86, suggesting a potentially undervalued position relative to its revenue. Fabrinet's P/S ratio of 3.89 reflects its specialization in high-complexity manufacturing services, which may justify a premium valuation. TTM Technologies, with a P/S ratio of 2.14, positions itself between Flex and Fabrinet, indicating a balanced valuation in the electronics manufacturing sector.
TTMI Stock: The Investment Case
The Bull Case for TTMI
TTM Technologies has demonstrated robust financial performance, with Q2 2025 revenues reaching $730.6m, compared to $605.1m in the year-ago quarter. The company projects Q3 revenues between $690m and $730m. Of the four analysts surveyed by Yahoo Finance in September, one rates the stock a ‘strong buy’ while three rate it a ‘buy’, with price targets ranging from $55 to $65. TTM’s strategic focus on AI-driven data center infrastructure and defense sectors positions it well for future growth. The company’s recent stock performance reflects investor confidence.
Earlier this week, Needham lifted its price target on TTMI stock to $65 from $56, keeping a ‘buy’ rating.
Needham cited growing confidence in TTM’s H2 2025 and 2026 growth, driven by AI data center and defense markets. Revenue has already climbed 14.24%.
It sees 2026 consensus estimates for TTM’s Data Center Computing segment as conservative. The firm also highlighted upside potential in TTM’s Aerospace and Defense segment for 2026.
The Bear Case for TTMI
Despite strong revenue growth, TTM Technologies faces challenges such as a high P/E ratio of 60.84, indicating potential overvaluation. Additionally, the CEO’s plans to retire by the end of 2025 may prompt some uncertainty. While TTM’s focus on high-reliability applications is promising, the competitive landscape and macroeconomic factors could impact future performance.
Conclusion
TTM Technologies’ strong revenue growth, strategic focus on AI-driven infrastructure and robust stock performance support a bullish outlook. However, high valuation, moderate debt and leadership transition risks temper the upside, making careful monitoring essential.
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