TTM Technologies Q3 2025 Earnings Report

TTM Technologies EPS Results

• Actual EPS: $0.67
• Consensus EPS: $0.61
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: $0.41

TTM Technologies Revenue Results

• Actual Revenue: $752.74 million
• Expected Revenue: $711.91 million
• Beat/Miss: Beat by +$40.83 million
• YoY Revenue Growth: +22.10%

TTM Technologies Announcement Details

• Quarter: Q3 2025
• Date: 10/29/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, October 29, 2025
• Conference Call Time: 4:30PM ET

TTM Technologies (NASDAQ:TTMI) (NASDAQ: TTMI) is a global manufacturer of technology solutions for electronic devices and systems. The company primarily produces printed circuit boards (PCBs), including high-density interconnect, flexible and rigid-flex boards, radio-frequency and microwave circuits, and other advanced PCB technologies.

TTM also provides engineering, prototype development, testing and assembly services that support the design and production of electronic products. Its solutions are used in aerospace and defense, data center computing, automotive, medical, industrial, instrumentation and other communications-related applications.

The company serves customers through manufacturing and engineering operations in North America and Asia. TTM was formed in 1998 through the combination of Pacific Circuits and Power Circuits, and expanded its RF and microwave capabilities through the acquisition of Anaren in 2018. Thomas T. Edman has served as TTM Technologies’ president and chief executive officer.

TTM Technologies Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q3 results beat guidance — net sales rose 22% year‑over‑year to $752.7M and the company reported a record non‑GAAP EPS of $0.67 with adjusted EBITDA margin of 16.1%.
• Positive Sentiment: Demand is concentrated in aerospace & defense and AI‑driven data center/networking, which together accounted for ~80% of sales; A&D backlog remains robust at about $1.46B and data center sales grew 44% year‑over‑year.
• Negative Sentiment: Penang ramp continues to pressure margins — Q3 Penang costs reduced EBITDA by ~195 bps (Q4 expected ~160 bps impact) as the facility works on yields and customer qualifications.
• Positive Sentiment: Strong cash generation and balance sheet — Q3 operating cash flow was $141.8M, cash and equivalents totaled $491.1M, and net debt / LTM EBITDA was ~1.0, supporting capex and M&A optionality.
• Neutral Sentiment: Management reiterated Q4 guidance of $730M–$770M in sales and non‑GAAP EPS of $0.64–$0.70, noting the outlook includes Penang startup costs and expected continued strength in AI and A&D end markets.

Presentation

[Operator]

Good afternoon. Thank you for standing by. Welcome to the TTM Technologies, Inc. Third Quarter 2025 financial results conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star one one again. As a reminder, this conference is being recorded today, October 29, 2025. Dan Boehle, TTM's Chief Financial Officer, will now review TTM's disclosure statement.

[Dan Boehle, CFO at TTM Technologies]

Before we get started, I'd like to remind everyone that today's call contains forward-looking statements, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the risk factors we provide in our filings with the Securities and Exchange Commission, which we encourage you to review. These forward-looking statements represent management's expectations and assumptions based on currently available information. TTM does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events, or other circumstances, except as required by law. We will also discuss on this call certain non-GAAP financial measures, such as adjusted EBITDA.

[Dan Boehle, CFO at TTM Technologies]

Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliations between GAAP and non-GAAP measures included in the company's earnings release, which is available on the Investor Relations section of TTM's website at investors.ttm.com. We have also posted on the website an earnings presentation that we will refer to during our call. I will now hand the call over to Edwin Roks, our new President and Chief Executive Officer. Edwin, welcome to the TTM team and to your first quarterly conference call with us. Please go ahead.

[Edwin Roks, CEO and President at TTM Technologies]

Thank you, Dan, for welcoming me. Good afternoon, everyone, and thank you for joining us for our third quarter 2025 conference call. I want to thank Tom Edman for his leadership of the company for more than a decade, and I look forward to engaging with our shareholders in the future. Before we review results, I want to reaffirm our strategic foundation. At TTM Technologies, we believe the future of electronics lies in speed, reliability, and integration. With over 17,000 employees across 22 factories, we already deliver millions of printed circuit boards every year. Our roadmap goes further. We continue to move up the value chain into highly complex modules and subsystems that combine sensors, actuators, RF components, and photonics for markets where reliability and performance matter most: aerospace, defense, data centers, telecom, instrumentation, and medical systems.

[Edwin Roks, CEO and President at TTM Technologies]

From AI-driven PCB design to Mission-Critical Subsystems, TTM's mission is in our name: time to market, delivering complex, high-performance solutions at global scales. I know you want to hear whether I make any strategic changes, and all I will say about that now is that we're currently in the middle of our disciplined annual strategic review and will go before the board for approval next month. This plan will guide our future conversations, but as you'll hear throughout the comments today, TTM is performing well and is aligned perfectly with key growth industries. I'm happy to be here and excited about the opportunities for continued growth and excellence ahead. I'll now begin with a review of our business highlights from the quarter and a discussion of our third quarter results, followed by an update of our current geopolitical environment and an update of our planned expansions.

[Edwin Roks, CEO and President at TTM Technologies]

We will follow with an overview of our Q3 2025 financial performance and our Q4 guidance. We will then open a call to your questions. We delivered an excellent third quarter of 2025, and I would like to thank our employees for their part in delivering these results. For the fourth quarter in a row, TTM achieved sales and non-GAAP EPS above the high end of the guided range. Sales grew 22% year-on-year, reflecting continued demand strength in our data center computing and networking end markets, driven by the requirements of Generative AI. Our Medical/Industrial/Instrumentation, and Aerospace & Defense end markets also experienced double-digit year-on-year sales growth. As you know, the company reports sales in five strategic end markets. Aerospace & Defense is a focused end market, which we deliver a mix of approximately 50/50 between PCBs and integrated electronics products.

[Edwin Roks, CEO and President at TTM Technologies]

Sales in our Aerospace & Defense markets were better than expected this quarter at 45% of total sales, resulting from a pull forward of sales that were originally expected in the fourth quarter. Demand in this end market continues to be strong, and book-to-bill increased to very close to one for the third quarter, keeping program backlogs steady at approximately $1.46 billion. Three of the remaining four end markets, Data Center Computing, Networking, and Medical/Industrial/Instrumentation, are experiencing sales growth directly or indirectly related to the growing requirements of AI. Nearly all of data center computing and networking, and approximately 25% of Medical/Industrial/Instrumentation. In total, approximately 80% of our total sales in the quarter related to two very strong industries: Aerospace and Defense, and AI. We are well positioned in both areas and offer highly innovative, technologically advanced products to meet our customers' needs.

[Edwin Roks, CEO and President at TTM Technologies]

We are focused on working diligently with our customers and suppliers to support the continued growth demand in each. The company's adjusted EBITDA margin was 16.1%, which is comparable to 16.3% in the same quarter a year ago, reflecting continued solid execution. Non-GAAP EPS of $0.67 reflect a solid consecutive quarterly record for TTM. Cash flows from operations were $141.8 million, or 18.8% of sales, which brings the year-to-date cash flow from operations to $229 million, or 10.7% of sales. To reiterate comments made over the past two quarters regarding the potential impact of tariffs, with our diversified supplier base and global manufacturing footprint, we do not expect a significant short-term impact of tariffs, whether through direct impact to sales or direct impact to materials and equipment purchases.

[Edwin Roks, CEO and President at TTM Technologies]

While it's possible that there could be an indirect impact, such as overall end market demand weakness and economic slowdown, we have not seen that impacting our key end markets, as I mentioned. In Penang, we continue to make progress with our customer qualifications and training the local workforce. Third quarter sales matched the second quarter at $5 million, and we expect to see growth in the fourth quarter. We are focused on improving and sustaining yields to support our customers' production cycles, and it remains one of our top priorities. Customer interest in our Penang facility remains strong, and our confidence in our growth in Malaysian production is evident in our long-term plans for a second production facility announced last quarter. We will align the timing of construction of our planned second facility with the longer-term customer demand, and as of now, we have not broken ground.

[Edwin Roks, CEO and President at TTM Technologies]

Progress on our ultra-HDI PCB manufacturing facility in Syracuse, New York, continues as planned. Equipment is arriving, and we are beginning to install and test equipment setups. As a reminder, we expect volume production to start in the second half of 2026. The aerospace end market represented 45% of third quarter 2025 sales, compared to 45% in the second quarter and 45% in the third quarter of 2024. Sales in this market grew 20% year-on-year to a record high and were significantly better than expected, partially due to the timing of sales that were originally planned in the fourth quarter. The solid demand in the defense market is a result of positive tailwinds in defense budgets, our strong strategic program alignment, and key bookings for ongoing programs.

[Edwin Roks, CEO and President at TTM Technologies]

We maintain a solid A&D program backlog of about $1.46 billion at the end of the quarter, compared to $1.49 billion a year ago. Bookings in the Aerospace & Defense markets ship over a longer period of time than our commercial markets and provide good visibility into future sales growth. During the quarter, we saw significant bookings related to the AMRAAM missile program, the passive detection and reporting system for the U.S. Army, and the APS-153 radar system for the MH-60R helicopter. We expect sales in Q4 from this end market to represent 42% of our total sales. Sales in data center computing end markets represented 23% of third quarter 2025 sales, compared to 21% in the second quarter and 20% of third quarter 2024 sales.

[Edwin Roks, CEO and President at TTM Technologies]

This end market saw 44% year-on-year growth, which was better than expected and a record high due to continued demand strength from our data center customers building products for GenAI applications. We expect this growth rate to continue, increasing this end market to 28% of the fourth quarter of sales. The Medical/Industrial/Instrumentation end market represented 14% of third quarter 2025 sales, compared to 15% in the second quarter and 14% in third quarter of 2024. This end market saw year-on-year growth of 22% during the third quarter of 2025, as the Medical and Industrial segments saw increased demand for Robotics, and in the instrumentation segment saw increased demand for automated test equipment and GenAI applications. For the fourth quarter, we expect the Medical/Industrial/Instrumentation end market to represent 14% of total sales.

[Edwin Roks, CEO and President at TTM Technologies]

Automotive sales represented 11% of third quarter 2025 sales, compared to 11% in the second quarter and 14% in the third quarter of 2024. The year-over-year decline for Automotive was primarily due to continued inventory adjustments and soft demand at several customers. We expect the automotive end market to represent about 9% of total sales in the fourth quarter. Networking represented 7% of third quarter 2025 sales, compared to 8% in the second quarter and 7% of third quarter 2024 sales. Year-on-year growth was 35%, as this market continues to show strong growth driven by AI-related demand and new products. In Q4, we expect this market to represent 7% of total sales. At the end of Q3, our 90-day backlog, which is subject to cancellations, was $610.4 million, compared to $534.5 million in the third quarter of last year.

[Edwin Roks, CEO and President at TTM Technologies]

As I mentioned earlier, our Aerospace & Defense program backlog was $1.46 billion at the end of Q3 this year, compared to $1.49 billion at the end of third quarter 2024. Our overall book-to-bill ratio was 1.15 for the third quarter of 2025, with the commercial segment at 1.29, the A&D segment at 0.99, and the RFNS segment at 0.95. Now, Dan, we'll review our financial performance for the third quarter. Dan?

[Dan Boehle, CFO at TTM Technologies]

Thanks, Edwin, and good afternoon, everyone. Highlights of our third quarter financial results were included in the press release distributed today and are summarized on slide seven of the earnings presentation posted on our website. For the third quarter, net sales were $752.7 million, compared to $616.5 million in the third quarter of 2024. The 22% year-over-year increase was due to growth in our aerospace and defense, Data Center Computing, Networking, and Medical/Industrial/Instrumentation end markets, partially offset by a slight decline in our Automotive end market. On a GAAP basis, gross margin for the third quarter of 2025 was 20.8%, compared to GAAP gross margin for the third quarter of 2024 of 21.1%. On a GAAP basis, operating income for the third quarter of 2025 was $71.9 million, or 9.6%, compared to GAAP operating income for the third quarter of 2024 of $51 million, or 8.3%.

[Dan Boehle, CFO at TTM Technologies]

On a GAAP basis, net income in the third quarter of 2025 was $53.1 million, or $0.50/diluted share. This compares to GAAP net income for the third quarter of 2024 of $14.3 million, or $0.14/diluted share. In the third quarter of 2025, the aerospace and defense segment recorded $336.8 million in net sales and $52.9 million in segment operating income, compared to $279.5 million in net sales and $40.3 million in segment operating income in the year-ago quarter. In the third quarter of 2025, the commercial segment recorded $408.9 million in net sales and $60 million in segment operating income, compared to $329.4 million in net sales and $51.1 million in segment operating income in the year-ago quarter.

[Dan Boehle, CFO at TTM Technologies]

In the third quarter of 2025, the RF and specialty components segment recorded $10.4 million in net sales and $3.1 million in segment operating income, compared to $9.8 million in net sales and $2.4 million in segment operating income in the year-ago quarter. The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP performance excludes M&A-related costs, restructuring costs, certain non-cash expense items, such as amortization of intangibles, impairment of goodwill, stock compensation, gains on the sale of property, unrealized gains or losses on foreign exchange, and other unusual or infrequent items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and facilitate comparisons with expectations and prior periods. Gross margin in the third quarter was 21.5%, compared to 22% in the third quarter of 2024.

[Dan Boehle, CFO at TTM Technologies]

The year-over-year decrease was primarily due to ramp-up costs in connection with our fabrication plant in Penang, Malaysia. Selling and marketing expense was $20.5 million in the third quarter, or 2.7% of net sales, versus $18.9 million, or 3.1% of net sales a year ago. Third quarter general and administrative expense was $42.1 million, or 5.6% of net sales, compared to $36.4 million, or 5.9% of net sales in the same quarter a year ago. The dollar increase was primarily driven by an increase in the incentive compensation accrual and outside services. In the third quarter of 2025, Research and Development was $6.9 million, or 0.9% of net sales, compared to $7.7 million, or 1.3% of net sales in the same quarter last year. Interest expense was $9.9 million in the third quarter of 2025, compared to $11.3 million in the same quarter last year.

[Dan Boehle, CFO at TTM Technologies]

During the third quarter of 2025, there was $1.8 million of realized foreign exchange loss below the operating income line, compared to $1.6 million of realized foreign exchange loss in the third quarter of 2024. Interest and other income totaled $2.5 million at the third quarter of 2025. This compares to interest and other income totaling $3.6 million in the same quarter of last year. Our effective tax rate was 15% in the third quarter, resulting in a tax expense of $12.5 million. This compares to a rate of 10.6% or a tax expense of $6.7 million in the same quarter of last year. Third quarter 2025 net income was $71 million, or $0.67/diluted share. This compares to third quarter 2024 net income of $56.8 million, or $0.55/diluted share.

[Dan Boehle, CFO at TTM Technologies]

Adjusted EBITDA for the third quarter of 2025 was $120.9 million, or 16.1% of net sales, compared with third quarter 2024 adjusted EBITDA of $100.6 million, or 16.3% of net sales. Depreciation for the quarter was $27.6 million. Net capital spending for the quarter was $99.2 million. Cash flow from operations in the third quarter of 2025 was $141.8 million, or 18.8% of net sales. Cash and cash equivalents at the end of the third quarter of 2025 totaled $491.1 million, and our net debt divided by last 12 months' EBITDA was 1.0. Now I will turn to our guidance for the fourth quarter of 2025.

[Dan Boehle, CFO at TTM Technologies]

We project net sales for the fourth quarter of 2025 to be in the range of $730 million-$770 million, and non-GAAP earnings to be in the range of $0.64-$0.70/diluted share, which is inclusive of operating costs associated with starting up our Penang facility. The EPS forecast is based on a diluted share count of approximately 106 million shares, which includes the dilutive effect of outstanding stock options and other stock awards. We expect SG&A expense to be about 8.9% of net sales in the fourth quarter and R&D to be about 1% of net sales. We expect interest expense of approximately $10.2 million and interest income of approximately $2.7 million. We estimate our effective tax rate will be between 11% and 15%.

[Dan Boehle, CFO at TTM Technologies]

Further, we expect to record depreciation of approximately $28.1 million, amortization of intangibles of approximately $9.2 million, stock-based compensation expense of approximately $12.3 million, and non-cash interest expense of approximately $0.5 million. Finally, I'd like to announce that we will be participating in the Stifel Midwest One-on-One conference in Chicago, Illinois, on November 6, the Bank of America Leveraged Finance Conference in Boca Raton, Florida, on December 2, the UBS Global Industrials and Transportation Conference in Palm Beach, Florida, on December 3, and the UBS Technology Conference in Scottsdale, Arizona, on December 4. That concludes our prepared remarks. Now I'd like to turn it over for questions. Cherie?

[Operator]

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, press star one one again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Jim Ricchiuti with Needham & Co. Your line is open.

[Jim Ricchiuti, Senior Analyst at Needham & Co]

Hi, thank you. First off, Edwin, welcome. Best of luck to you. I wanted to start off just on the data center market. Can you talk about two questions? One, how far out does your visibility extend into this market? The follow-up really deals with whether you have been able to bring on additional capacity to be able to satisfy the demand from your customers from your two main facilities in China.

[Edwin Roks, CEO and President at TTM Technologies]

Yeah, Jim. First of all, thank you for your question and thank you for your nice comments here. Good to meet you again. Yeah, the visibility is pretty okay. I would say our visibility is between 6-9 months. We are already dealing with the top players there, so it's going relatively smooth. If I look at the capacity, Jim, I think when we are in the middle of, let's say, our strategic planning, we are sort of, let's say, over the coming years, we're good regarding capacity, both in North America and Asia Pacific. Well balanced, by the way, between these two continents. That's what I want to mention here.

[Jim Ricchiuti, Senior Analyst at Needham & Co]

Dan, can you update us? Maybe Dan, you could take this one, just the margin headwind that you experienced in Penang and how you think about that in Q4 going forward.

[Edwin Roks, CEO and President at TTM Technologies]

Yeah, happy to update you about Penang. First of all, Penang remains a key part of our China +1 strategy, and we're making very good progress there, I would say. Like Tom mentioned last quarter, we are very much focused on our own yields. Before we start ramping up, we want to ramp steadily with our customers. The good news, Jim, is that we have five customers lined up, and we are basically qualifying these customers before the end of the year, and that's still progressing very well. The training aspect is key. We're working a lot with local staff now. The training aspect is key. We are still planning also for that second facility in Penang. I must say I'm pleased with the progress over the last quarter. I know we were a bit optimistic in the past, but I think we should be okay going forward.

[Dan Boehle, CFO at TTM Technologies]

Jim, I'll jump in and address your question with regards to the headwind on the profit. In Q3, it was about 195 basis points to the bottom line, which is an improvement from Q2, which was about 210 basis points. In Q4, we're forecasting with increased revenue about 160 basis points impact to the bottom line, which is comparable to Q4 of last year, actually, when you look at it year-over-year.

[Jim Ricchiuti, Senior Analyst at Needham & Co]

Thank you.

[Edwin Roks, CEO and President at TTM Technologies]

You're welcome. Thank you for the question.

[Dan Boehle, CFO at TTM Technologies]

You're welcome.

[Operator]

Thank you. One moment for our next question. That will come from the line of Mike Crawford with B. Riley Securities. Your line is open.

[Mike Crawford, Senior Managing Director and Head of the Discovery Group at B. Riley Securities]

Thank you. Just more broadly, could you help characterize your PCB manufacturing capacity share globally in China and in the U.S.?

[Edwin Roks, CEO and President at TTM Technologies]

Yeah, Mike, good question. First of all, in the U.S., we are still the number one player. Globally, it's always a bit more tricky to mention it, but of course, we are typically a high-end player. If you look at overall, I think we're about the number six or seven of the world. That's basically where we are. If you concentrate on data center, it's about the number three or four with some typical competition, but about the number three or four.

[Mike Crawford, Senior Managing Director and Head of the Discovery Group at B. Riley Securities]

Okay. Thank you. The follow-up is in Penang, I believe you're starting out with something like maybe 15 layer boards, but where are you moving to density in China for data center applications?

[Edwin Roks, CEO and President at TTM Technologies]

Yeah, absolutely. You will not see us. We still have, of course, capacity, let's say, below the 16 layers, but our focus is, let's say, beyond that. Yeah, going to a lot of layers. One of our typical things happening right now is that we are demonstrating 87 layers. This is going very, very rapidly. Also, on the effect micro-VFs to be better, higher resolution, let's say, we're making really, really good progress. Working with customers on different aspects of the roadmap, be it more on the material side, more like asymmetrical designs like in PCBs where you put the power on one side and the signal on the other side, or, let's say, be it at the pitch where you try to minimize the pitch. We want to be a leader there.

[Edwin Roks, CEO and President at TTM Technologies]

I can tell you, let's say, from my personal perspective here, we will invest a lot more in R&D and get more progress there to continue to be that top player.

[Mike Crawford, Senior Managing Director and Head of the Discovery Group at B. Riley Securities]

Excellent. Thank you very much.

[Operator]

Thank you. As a reminder, if you would like to ask a question, please press star one one. Our next question comes from the line of William Stein with Truist Securities. Your line is open.

[William Stein, Managing Director and Senior Technology Analyst at Truist Securities]

Great. Thanks for taking my question. Congrats on great results tonight. Edwin, for investors who have not met you or had much experience with you, maybe you can share with us a little bit about your background, what led you to TTM. I understand you have some connections to the board of directors, what led you to the company? Maybe talk a little bit about how your experience and background leads you to succeed at TTM.

[Edwin Roks, CEO and President at TTM Technologies]

Okay. Happy to do that as well. Good to meet you, by the way, and thank you for your nice words here. Yeah, my background is I'm an engineer, and of course, I did business school as well. 15 years at Philips, 20 years at Dulce and Teledyne, nine years, let's say, leading the largest segment in Teledyne, the fastest growing segment in Teledyne. The last two years, I was the CEO of Teledyne, working closely with the Executive Chairman, and by the way, the new CEO as well. Still really good relations with Teledyne, and Teledyne will do great. For me, it was time to do something else after 20 years, and TTM was a really good fit. My background is physics and electronics and mostly semiconductor physics.

[Edwin Roks, CEO and President at TTM Technologies]

With TTM being a player in the backend, let's say, where the backend players in silicon, the packagers, the PCB players, everybody comes together in that backend, is absolutely a key thing to focus on. I still have great respect for the guys who are making the most complex chips, but nowadays, it's all about the backend. How can you integrate these chips, let's say, in a very compact, heterogeneous package? That's very exciting, and that's my main motivation to be part of TTM. A fantastic company, excellent leadership, and again, good relation with the Board of Directors. I knew a few Board of Directors members, let's say, from my previous work, but again, this is a great company to be part of. Hopefully, that answered your question.

[William Stein, Managing Director and Senior Technology Analyst at Truist Securities]

That helps. Thank you. One more, if I can follow up. I don't know that these metrics are still entirely relevant because you're growing much faster now because of AI data center and also because defense is doing very well and margins have been moving up. At the last analyst day, the company had a 4%-6% top line organic growth view and 11%-13% operating margin target. Those were sort of the targets that the prior management team established. I can't imagine you're going to give us new targets on this call, but I wonder if you can help us think about at least which metrics are most important to you. What are you trying to maximize?

[William Stein, Managing Director and Senior Technology Analyst at Truist Securities]

Like from a, let's say, from an outsider's perspective, just looking at the financials, what metrics and what levels should we think so that we're aligned with your way of thinking for the future of the company?

[Edwin Roks, CEO and President at TTM Technologies]

Yeah, great question. Thank you. First of all, we want to grow. The strategic plan, let's say, and even looking at already at next year, it's all about growth. Of course, growth in a very qualitative manner. We want to make sure that our gross margin stays very, very healthy. That's basically the number one metric where you say where you can see if you're competitive. That's the key thing here. Of course, we like to generate cash. You saw our great cash position this quarter. Year to date, we're at a really nice level. This gives us the possibility not only, let's say, to do acquisitions, and we can do that both in a horizontal way or vertical way, let's say, buying more PCB factories or buying, let's say, up the chain, but also we can invest in our facilities, and that's what we do.

[Edwin Roks, CEO and President at TTM Technologies]

We are planning to invest hundreds of millions, let's say, in our facilities in Penang and Syracuse, and of course, also investing in China again. That's going well. The top metric for me is always cash. It's always growth. It's gross margin. Of course, our EBITDA should be healthy. Bottom line should be healthy. Again, we are set up to grow. That's my answer here.

[William Stein, Managing Director and Senior Technology Analyst at Truist Securities]

Great. Thank you.

[Operator]

Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Rox for any closing remarks.

[Edwin Roks, CEO and President at TTM Technologies]

Thank you, Cherie. I'd like to close by summarizing the points I made earlier. First, we delivered strong sales growth in Q3 of 22% year-on-year, driven by increases in our Data Center Computing, Networking, Medical/Industrial/Instrumentation, and Aerospace & Defense markets, with record highs in A&D and data center markets. Second, our adjusted EBITDA of 16.1% reflected strong operating performance, leading to a record quarterly non-GAAP EPS of $0.67. Third, we had solid cash flow from operations of 18.8% of sales, enabling us to invest in our projected continued growth. In closing, I would like to thank all employees of TTM, our customers, our suppliers, and our shareholders for your continued support. Thank you very much. Goodbye.

[Operator]

This concludes today's program. Thank you all for participating. You may now disconnect.

Participants

Executives

• Dan Boehle, CFO
• Edwin Roks, CEO and President

Analysts

• William Stein, Managing Director and Senior Technology Analyst at Truist Securities
• Jim Ricchiuti, Senior Analyst at Needham & Co
• Mike Crawford, Senior Managing Director and Head of the Discovery Group at B. Riley Securities