PCB manufacturing company TTM Technologies (NASDAQ: TTMI) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 20.7% year on year to $730.6 million. On top of that, next quarter’s revenue guidance ($710 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its non-GAAP profit of $0.58 per share was 11% above analysts’ consensus estimates.

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“We delivered a strong quarter with revenues and non-GAAP EPS above the high end of the guided range with non-GAAP EPS at a quarterly record high. Revenues grew 21% year on year due to demand strength in our Aerospace and Defense, Medical, Industrial and Instrumentation, Data Center Computing, and Networking end markets, with the increased demand in the latter two being driven by the requirements of generative AI,” said Tom Edman, CEO of TTM.

Company Overview

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.

With $2.65 billion in revenue over the past 12 months, TTM Technologies is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

As you can see below, TTM Technologies grew its sales at a mediocre 4.4% compounded annual growth rate over the last five years. This shows it couldn’t generate demand in any major way and is a tough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. TTM Technologies’s annualized revenue growth of 5.5% over the last two years is above its five-year trend, suggesting some bright spots.

This quarter, TTM Technologies reported robust year-on-year revenue growth of 20.7%, and its $730.6 million of revenue topped Wall Street estimates by 9%. Company management is currently guiding for a 15.2% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

TTM Technologies was profitable over the last five years but held back by its large cost base. Its average operating margin of 5% was weak for a business services business.

On the plus side, TTM Technologies’s operating margin rose by 4.2 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q2, TTM Technologies generated an operating margin profit margin of 8.5%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

TTM Technologies’s EPS grew at a solid 10.5% compounded annual growth rate over the last five years, higher than its 4.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of TTM Technologies’s earnings can give us a better understanding of its performance. As we mentioned earlier, TTM Technologies’s operating margin expanded by 4.2 percentage points over the last five years. On top of that, its share count shrank by 2.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For TTM Technologies, its two-year annual EPS growth of 19.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q2, TTM Technologies reported adjusted EPS at $0.58, up from $0.39 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects TTM Technologies’s full-year EPS of $2.09 to grow 7.2%.

Key Takeaways from TTM Technologies’s Q2 Results

We were impressed by how significantly TTM Technologies blew past analysts’ revenue, EPS, and EBITDA expectations this quarter. We were also excited its revenue and EPS guidance for next quarter outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 1.3% to $49.39 immediately following the results.

TTM Technologies may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.