TTM Technologies NASDAQ: TTMI reported second-quarter 2026 revenue of $1 billion, its first quarterly sales result at that level, as demand tied to artificial intelligence data centers, networking, medical products and aerospace and defense programs increased.
Revenue rose 37% from $731 million in the prior-year quarter. Non-GAAP net income increased to $106.9 million, or $0.99 per diluted share, from $60.8 million, or $0.58 per share, a year earlier. GAAP net income was $83 million, or $0.77 per diluted share, compared with $41.5 million, or $0.40 per share, in the 2025 period.
“We delivered an excellent second quarter of 2026,” President and Chief Executive Officer Edwin Roks said, citing continued demand in artificial intelligence and defense-related markets. Roks said the company believes about 80% of its net sales are tied to those two megatrends.
Margins Improve as Mix Shifts
Adjusted EBITDA was $166.8 million, equal to 16.6% of sales, compared with $109.7 million, or 15.0% of sales, in the prior-year quarter. The adjusted EBITDA margin improved 160 basis points year over year and 90 basis points sequentially, which management attributed largely to product mix.
Non-GAAP gross margin rose to 21.9% from 20.9% a year earlier, driven by higher volume and favorable mix in data center and networking as well as aerospace and defense. Non-GAAP operating margin increased to 13.8% from 11.1%, supported by gross-margin gains and operating leverage from selling, general and administrative expense discipline.
Chief Financial Officer Dan Boehle said second-quarter GAAP results included a $14 million non-cash, pre-tax unrealized loss related to a cross-currency swap used to economically hedge the Swiss franc-denominated purchase price for the pending acquisition of Swiss Technology Group AG. The company could not apply hedge accounting because the transaction had not closed, he said.
Cash flow from operations totaled $96.4 million, compared with $97.8 million a year earlier, while free cash flow increased to $46 million from $37.6 million. Roks said the company ended the quarter with a net leverage ratio of 0.9 times.
AI Data Center Demand Drives Growth
Data Center and Networking accounted for 40% of second-quarter sales and grew 91% from a year earlier, exceeding management’s expectations. The growth reflected customer investment in AI data centers, Roks said.
TTM has begun early-stage full-volume production of N+M, or asymmetrical interconnect printed circuit boards. Roks said the company had already delivered “tens of millions” of dollars of the technology and that yields were progressing well. Boehle said TTM expects approximately $600 million in N+M revenue during the second half, with about one-third expected in the third quarter and two-thirds in the fourth quarter.
Management said the N+M production ramp and improving yields are expected to support adjusted EBITDA margins in the third and fourth quarters. For the third quarter, Data Center and Networking is expected to account for 49% of sales. TTM expects full-year sales in that market to more than double from 2025.
The Medical, Industrial & Instrumentation market represented 50% of second-quarter sales and grew 33% year over year, aided by medical demand, including continuous glucose monitoring products and automated test equipment supporting AI solutions. Management said its five largest medical customers have outperformed its internal expectations by more than twofold year to date. The company expects full-year sales in the market to grow 35% to 40%.
Automotive represented 8% of second-quarter sales and declined marginally year over year. Roks said the company was being selective in automotive, emphasizing higher-value products with margin profiles aligned with its financial goals. TTM cited some supply constraints for lower-complexity materials as copper-clad laminate producers prioritize more advanced products, though management said its higher-end supply chain remained adequately supported.
Defense Backlog and European Expansion
Aerospace and Defense represented 37% of second-quarter revenue and grew 14% from a year earlier. The segment’s book-to-bill ratio was 1.3, and program backlog reached $1.7 billion, up from $1.5 billion a year earlier. Roks said the company’s qualified strategic pipeline exceeded $7 billion.
During the quarter, TTM booked business related to the AN/APS-153 Multi-Mode Maritime Surveillance Radar, the ATP Sensor System, Golden Dome and other programs. Management expects Aerospace and Defense sales to grow in the low- to mid-teens for the full year.
TTM expects to begin initial volume ramp-up for Ultra-HDI products at its Syracuse facility in the third quarter. The ramp is expected to extend through 2027, with the facility reaching full-capacity run rate in 2028.
The company also expects its acquisitions of Switzerland-based Swiss Technology Group AG and Germany-based ILFA GmbH to close in the third quarter, subject to remaining approvals. Roks said the transactions will create TTM’s initial European footprint and add long-cycle businesses primarily serving medical and aerospace and defense customers. Management expects the acquisitions to contribute less than 5% of incremental sales and to be moderately accretive to adjusted EBITDA, though its guidance excludes their impact.
Outlook Raised for 2026
For the third quarter, TTM projected revenue of $1.10 billion to $1.14 billion and non-GAAP earnings of $1.21 to $1.27 per diluted share. The company expects SG&A expense to be about 7% of sales and research and development spending to be about 1% of sales.
Based on first-half performance and third-quarter guidance, TTM raised its full-year outlook to approximately $4.4 billion in revenue and non-GAAP earnings approaching $5 per diluted share. Management said it expects a sequential increase in sales in the fourth quarter and remains confident in its previously stated goal of 15% to 20% organic revenue growth in 2027 and 2028.
About TTM Technologies (NASDAQ:TTMI)
TTM Technologies, Inc is a leading global manufacturer of printed circuit boards (PCBs) and related electronic components. The company's product portfolio spans rigid, flexible and rigid-flex circuit boards, as well as advanced substrates, backplanes, hybrid circuits and integrated antenna modules. In addition to PCB fabrication, TTM offers comprehensive system‐level services, including design support, surface mount technology (SMT) assembly, cable and wire harness assembly, and complete box-build solutions to address end-to-end customer requirements.
Serving a broad array of end markets, TTM Technologies supports customers in the communications, computing, automotive, aerospace and defense, industrial, and medical sectors.
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