Tue, May 6, 10:10 AM (7 days ago)
**TTM Technologies, Inc. (TTMI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** TTM Technologies reported a 13.8% increase in net sales, reaching $648.7 million for Q1 2025, up from $570.1 million in Q1 2024. This growth was driven by strong demand in aerospace and defense, data center computing, and networking end markets. - **Profit Margins:** Gross profit increased by $27.3 million to $131.0 million, with a gross margin rate of 20.2%, up from 18.2% in Q1 2024. Operating income surged by $33.2 million to $50.3 million, resulting in an operating margin of 7.7%, compared to 3.0% in the previous year. - **Earnings:** Net income rose to $32.18 million, or $0.32 per share, compared to $10.47 million, or $0.10 per share, in Q1 2024. **Cash Flow:** - **Operating Activities:** Cash flow from operations was negative $10.7 million in Q1 2025, a decline from the positive $43.9 million in Q1 2024, primarily due to timing of cash collections from customers. - **Investing Activities:** Net cash used in investing activities was $63.2 million, mainly for purchases of property, plant, and equipment. - **Financing Activities:** Net cash used in financing activities was $18.8 million, including $17.9 million for share repurchases and $0.9 million for debt repayment. **Trends and Uncertainties:** - **Market Demand:** Strong demand in key markets like aerospace and defense, data center computing, and networking, driven by generative AI, is a positive trend. - **Operational Efficiency:** Improved capacity utilization in Asia and better operational execution contributed to higher margins. - **Foreign Exchange Risks:** Unrealized foreign exchange losses impacted other expenses, highlighting currency risk. **Future Operations Impact:** - **Capital Expenditures:** Expected to be between $230.0 million and $250.0 million for 2025, with $66.0 million allocated to the new plant in Syracuse, NY. - **Share Repurchases:** $23.2 million remaining under the 2023 repurchase program. - **Debt Management:** Compliance with debt covenants and adequate liquidity to meet financial obligations. **Segment Performance:** - **PCB Segment:** Net sales increased by 13.9% to $639.8 million, with operating income up by $26.1 million to $99.5 million. - **RF&S Components Segment:** Net sales rose by 6.6% to $8.8 million, with consistent operating income. **Conclusion:** TTM Technologies demonstrated strong financial performance in Q1 2025, driven by robust demand in key markets and improved operational efficiency. The company is well-positioned to continue its growth trajectory, supported by strategic investments and effective debt management. However, it must navigate foreign exchange risks and ensure sustained operational excellence.