[10-Q] TTM Technologies Inc Quarterly Earnings Report
TTM Technologies (TTMI) delivered a strong Q2 2025. Net sales rose 20.7% YoY to $730.6 m, driven by Aerospace & Defense (+19%), Data-center Computing and Networking demand tied to AI. Gross margin expanded 90 bp to 20.3%, lifting operating income 59% to $61.8 m and diluted EPS 60% to $0.40. Six-month sales climbed 17.4% to $1.38 bn and net income doubled to $73.7 m.
Cash & capital. Operating cash flow was $87.1 m (-37% FCF after $123.7 m cap-ex, largely Syracuse NY build-out). Cash ended at $448 m (-$56 m YTD); total debt remains high at $926 m. A new $100 m buyback authorization begins, but no Q2 repurchases.
Strategic moves. The firm reorganized into three segments鈥擜&D, Commercial, RF & Specialty Components鈥攊mproving transparency; A&D margin jumped to 13.8%. Post-quarter, TTMI bought a 750k sq ft Wisconsin plant and Penang, Malaysia land to expand advanced PCB capacity and diversify supply chains. Syracuse ultra-HDI facility stays on track for H2 2026 production.
Outlook signals. Backlog of long-term contracts totals $376 m; 59% expected to convert within one year. Management cites sustained defense demand and AI-related commercial strength, but rising inventories, higher SG&A and FX losses offset some gains.
TTM Technologies (TTMI) ha registrato un solido secondo trimestre 2025. Le vendite nette sono aumentate del 20,7% su base annua, raggiungendo 730,6 milioni di dollari, grazie alla domanda nel settore Aerospaziale e Difesa (+19%) e nel Data-center Computing e Networking legata all'IA. Il margine lordo 猫 cresciuto di 90 punti base arrivando al 20,3%, con un aumento del reddito operativo del 59% a 61,8 milioni di dollari e un utile diluito per azione salito del 60% a 0,40 dollari. Le vendite nei primi sei mesi sono aumentate del 17,4% a 1,38 miliardi di dollari e l'utile netto 猫 raddoppiato a 73,7 milioni di dollari.
Liquidit脿 e capitale. Il flusso di cassa operativo 猫 stato di 87,1 milioni di dollari (-37% Free Cash Flow dopo investimenti in capitale per 123,7 milioni di dollari, principalmente per l'espansione a Syracuse, NY). La liquidit脿 finale si 猫 attestata a 448 milioni di dollari (-56 milioni da inizio anno); il debito totale resta elevato a 926 milioni di dollari. 脠 stata autorizzata una nuova tranche di riacquisto azionario da 100 milioni di dollari, ma nel secondo trimestre non sono stati effettuati riacquisti.
Mosse strategiche. L鈥檃zienda si 猫 riorganizzata in tre segmenti鈥擜erospaziale e Difesa, Commerciale, RF e Componenti Speciali鈥攑er migliorare la trasparenza; il margine nel settore A&D 猫 salito al 13,8%. Dopo il trimestre, TTMI ha acquisito uno stabilimento di 750.000 piedi quadrati in Wisconsin e un terreno a Penang, Malaysia, per ampliare la capacit脿 di PCB avanzati e diversificare le catene di approvvigionamento. La struttura ultra-HDI di Syracuse rimane in linea per la produzione nella seconda met脿 del 2026.
Segnali per il futuro. L鈥檕rdine arretrato di contratti a lungo termine ammonta a 376 milioni di dollari; il 59% 猫 previsto venga convertito entro un anno. La direzione evidenzia una domanda difensiva sostenuta e una forte crescita commerciale legata all鈥橧A, ma l鈥檃umento delle scorte, dei costi SG&A e le perdite da cambio hanno parzialmente compensato i guadagni.
TTM Technologies (TTMI) present贸 un s贸lido segundo trimestre de 2025. Las ventas netas aumentaron un 20,7% interanual hasta 730,6 millones de d贸lares, impulsadas por Aerospace & Defense (+19%) y la demanda en Data-center Computing y Networking relacionada con IA. El margen bruto se expandi贸 90 puntos b谩sicos hasta el 20,3%, elevando el ingreso operativo un 59% a 61,8 millones de d贸lares y la utilidad diluida por acci贸n un 60% a 0,40 d贸lares. Las ventas en seis meses crecieron un 17,4% hasta 1.380 millones de d贸lares y la utilidad neta se duplic贸 a 73,7 millones de d贸lares.
Efectivo y capital. El flujo de caja operativo fue de 87,1 millones de d贸lares (-37% de flujo de caja libre tras gastos de capital por 123,7 millones, principalmente para la expansi贸n en Syracuse, NY). El efectivo finaliz贸 en 448 millones de d贸lares (-56 millones en lo que va del a帽o); la deuda total sigue alta en 926 millones de d贸lares. Se autoriz贸 una nueva recompra de acciones por 100 millones de d贸lares, pero no hubo recompras en el segundo trimestre.
Movimientos estrat茅gicos. La empresa se reorganiz贸 en tres segmentos鈥擜&D, Comercial, RF y Componentes Especiales鈥攎ejorando la transparencia; el margen de A&D subi贸 al 13,8%. Tras el trimestre, TTMI compr贸 una planta de 750.000 pies cuadrados en Wisconsin y un terreno en Penang, Malasia, para ampliar la capacidad avanzada de PCB y diversificar las cadenas de suministro. La planta ultra-HDI de Syracuse sigue en camino para producci贸n en la segunda mitad de 2026.
Se帽ales para el futuro. La cartera de contratos a largo plazo suma 376 millones de d贸lares; se espera que el 59% se convierta en ventas dentro de un a帽o. La direcci贸n menciona una demanda sostenida en defensa y fortaleza comercial relacionada con IA, aunque el aumento de inventarios, mayores gastos SG&A y p茅rdidas por tipo de cambio compensan parcialmente las ganancias.
TTM 韰岉伂雴�搿滌鞀�(TTMI)電� 2025雲� 2攵勱赴鞐� 臧曤牓頃� 鞁れ爜鞚� 旮半頄堨姷雼堧嫟. 靾滊Г於滌潃 鞝勲厔 雽�牍� 20.7% 歃濌皜頃� 7鞏� 3,060毵� 雼煬搿�, 頃车鞖办＜ 氚� 氚╈渼靷办梾(+19%)瓿� AI 甏�霠� 雿办澊韯办劶韯� 旎错摠韺� 氚� 雱ろ姼鞗岉偣 靾橃殧臧� 瓴澑頄堨姷雼堧嫟. 齑濎澊鞚惦鞚� 90bp 靸侅姽頃� 20.3%毳� 旮半頄堨溂氅�, 鞓侅梾鞚挫澋鞚� 59% 歃濌皜頃� 6,180毵� 雼煬, 頋劃 欤茧嫻靾滌澊鞚奠潃 60% 歃濌皜頃� 0.40雼煬毳� 旮半頄堨姷雼堧嫟. 6臧滌洈 雸勳爜 毵れ稖鞚� 17.4% 歃濌皜頃� 13鞏� 8觳滊 雼煬, 靾滌澊鞚奠潃 霊� 氚办澑 7,370毵� 雼煬鞐� 雼枅鞀惦媹雼�.
順勱笀 氚� 鞛愲掣 靸來櫓. 鞓侅梾 順勱笀 頋愲鞚� 8,710毵� 雼煬鞓�鞙茧┌(鞛愲掣 歆�於� 1鞏� 2,370毵� 雼煬 頉� FCF電� -37%, 欤茧 雺挫殨 鞁滊煬韥愳姢 頇曥灔), 順勱笀 鞛旍暋鞚� 4鞏� 4,800毵� 雼煬(鞐办磮 雽�牍� -5,600毵� 雼煬)鞛呺媹雼�. 齑� 攵�毂勲姅 鞐爠頌� 雴掛潃 9鞏� 2,600毵� 雼煬 靾橃鞛呺媹雼�. 靸堧鞖� 1鞏� 雼煬 攴滊鞚� 鞛愳偓欤� 毵れ瀰 甓岉暅鞚� 鞁滌瀾霅橃棃鞙茧倶 2攵勱赴鞐愲姅 毵れ瀰鞚� 鞐嗢棃鞀惦媹雼�.
鞝勲灥鞝� 鞗�歆侅瀯. 須岇偓電� 韴獏靹� 頄レ儊鞚� 鞙勴暣 頃车鞖办＜ 氚� 氚╈渼, 靸侅梾, RF 氚� 韸轨垬 攵�頀� 霌� 靹� 臧滌潣 靷梾攵�搿� 鞛幐頄堨溂氅�, 頃车鞖办＜ 氚� 氚╈渼 攵�氍胳潣 毵堨鞚� 13.8%搿� 靸侅姽頄堨姷雼堧嫟. 攵勱赴 鞚错泟 TTMI電� 鞙勳姢旖橃嫚鞐� 75毵� 韽夒癌頂柬姼 攴滊鞚� 瓿奠灔瓿� 毵愲爤鞚挫嫓鞎� 韼橂偔鞐� 攵�歆�毳� 毵れ瀰頃� 觳嫧 PCB 靸濎偘電ル牓鞚� 頇曥灔頃橁碃 瓿店笁毵濎潉 雼り皝頇旐枅鞀惦媹雼�. 鞁滊煬韥愳姢鞚� 齑堦碃氚�霃� 鞚疙劙旎る劌韸�(ultra-HDI) 鞁滌劋鞚� 2026雲� 頃橂皹旮� 靸濎偘 瓿勴殟鞐� 彀 鞐嗢澊 歆勴枆 欷戩瀰雼堧嫟.
鞝勲 鞁犿樃. 鞛リ赴 瓿勳暯 鞛旉碃電� 齑� 3鞏� 7,600毵� 雼煬鞚措┌, 鞚� 欷� 59%臧� 1雲� 鞚措偞鞐� 毵れ稖搿� 鞝勴櫂霅� 瓴冹溂搿� 鞓堨儊霅╇媹雼�. 瓴届榿歆勳潃 氚╈渼靷办梾 靾橃殧臧� 歆�靻嶋悩瓿� AI 甏�霠� 靸侅梾 攵�氍胳澊 臧曥劯毳� 氤挫澊瓿� 鞛堧嫟瓿� 鞏戈笁頄堨溂雮�, 鞛碃 歃濌皜鞕� SG&A 牍勳毄 靸侅姽, 頇橃啇鞁れ澊 鞚茧秬 鞚挫澋鞚� 靸侅噭頃橁碃 鞛堨姷雼堧嫟.
TTM Technologies (TTMI) a pr茅sent茅 un solide deuxi猫me trimestre 2025. Les ventes nettes ont augment茅 de 20,7 % en glissement annuel pour atteindre 730,6 millions de dollars, soutenues par l'a茅rospatiale et la d茅fense (+19 %) ainsi que par la demande en informatique et r茅seaux de centres de donn茅es li茅e 脿 l'IA. La marge brute s'est 茅largie de 90 points de base 脿 20,3 %, faisant grimper le r茅sultat d'exploitation de 59 % 脿 61,8 millions de dollars et le BPA dilu茅 de 60 % 脿 0,40 dollar. Les ventes sur six mois ont augment茅 de 17,4 % 脿 1,38 milliard de dollars et le b茅n茅fice net a doubl茅 脿 73,7 millions de dollars.
Tr茅sorerie et capital. Le flux de tr茅sorerie op茅rationnel s'est 茅lev茅 脿 87,1 millions de dollars (-37 % de FCF apr猫s 123,7 millions de dollars d'investissements, principalement pour le d茅veloppement de Syracuse, NY). La tr茅sorerie a termin茅 脿 448 millions de dollars (-56 millions depuis le d茅but de l'ann茅e) ; la dette totale reste 茅lev茅e 脿 926 millions de dollars. Une nouvelle autorisation de rachat d'actions de 100 millions de dollars a 茅t茅 lanc茅e, mais aucun rachat n'a eu lieu au T2.
Mouvements strat茅giques. L'entreprise s'est r茅organis茅e en trois segments 鈥� A&D, Commercial, RF & Composants Sp茅cialis茅s 鈥� pour am茅liorer la transparence ; la marge A&D a bondi 脿 13,8 %. Apr猫s le trimestre, TTMI a acquis une usine de 750 000 pieds carr茅s dans le Wisconsin et un terrain 脿 Penang, Malaisie, pour augmenter la capacit茅 de PCB avanc茅s et diversifier les cha卯nes d'approvisionnement. L'installation ultra-HDI de Syracuse reste sur la bonne voie pour une production au second semestre 2026.
Signaux pour l'avenir. Le carnet de commandes 脿 long terme s'茅l猫ve 脿 376 millions de dollars ; 59 % devraient se concr茅tiser en un an. La direction souligne une demande soutenue dans la d茅fense et une forte dynamique commerciale li茅e 脿 l'IA, mais la hausse des stocks, des SG&A et des pertes de change compense en partie les gains.
TTM Technologies (TTMI) lieferte ein starkes zweites Quartal 2025 ab. Der Nettoumsatz stieg im Jahresvergleich um 20,7 % auf 730,6 Mio. USD, angetrieben durch Luft- und Raumfahrt & Verteidigung (+19 %) sowie die Nachfrage nach Data-Center-Computing und Networking im Zusammenhang mit KI. Die Bruttomarge verbesserte sich um 90 Basispunkte auf 20,3 %, was das Betriebsergebnis um 59 % auf 61,8 Mio. USD und den verw盲sserten Gewinn je Aktie um 60 % auf 0,40 USD anhob. Der Umsatz in den ersten sechs Monaten stieg um 17,4 % auf 1,38 Mrd. USD, der Nettogewinn verdoppelte sich auf 73,7 Mio. USD.
Barmittel und Kapital. Der operative Cashflow betrug 87,1 Mio. USD (-37 % Free Cashflow nach Investitionen von 123,7 Mio. USD, haupts盲chlich f眉r den Ausbau in Syracuse, NY). Der Kassenbestand lag bei 448 Mio. USD (-56 Mio. USD seit Jahresbeginn); die Gesamtverschuldung bleibt mit 926 Mio. USD hoch. Eine neue Aktienr眉ckkaufgenehmigung 眉ber 100 Mio. USD wurde erteilt, im zweiten Quartal fanden jedoch keine R眉ckk盲ufe statt.
Strategische Ma脽nahmen. Das Unternehmen reorganisierte sich in drei Segmente 鈥� Luft- & Raumfahrt, Gewerblich, RF & Spezialkomponenten 鈥� zur besseren Transparenz; die Marge im Luft- & Raumfahrtsegment stieg auf 13,8 %. Nach Quartalsende erwarb TTMI eine 750.000 Quadratfu脽 gro脽e Anlage in Wisconsin und ein Grundst眉ck in Penang, Malaysia, um die Kapazit盲t f眉r fortschrittliche Leiterplatten zu erweitern und die Lieferketten zu diversifizieren. Die Ultra-HDI-Anlage in Syracuse bleibt im Zeitplan f眉r die Produktion in der zweiten H盲lfte 2026.
Ausblickssignale. Der Auftragsbestand langfristiger Vertr盲ge bel盲uft sich auf 376 Mio. USD; 59 % sollen innerhalb eines Jahres umgesetzt werden. Das Management verweist auf eine anhaltende Nachfrage im Verteidigungsbereich und eine starke kommerzielle Entwicklung im Zusammenhang mit KI, aber steigende Lagerbest盲nde, h枚here SG&A-Kosten und Wechselkursverluste schm盲lern einige Gewinne.
- 20.7% YoY revenue growth with diversified end-market strength, notably AI-driven data-center computing.
- Gross and operating margin expansion to 20.3% and 8.5%, respectively, boosting diluted EPS 60%.
- A&D segment margin improved to 13.8%, evidencing successful higher-mix strategy.
- $448 m cash provides liquidity; net leverage manageable around 1.1脳 EBITDA.
- Strategic capacity investments in Wisconsin, New York and Malaysia enhance domestic supply and geographic diversification.
- Free cash flow negative $36.3 m YTD due to elevated $123.7 m cap-ex.
- Total debt remains high at $926 m, carrying $22.6 m interest expense YTD.
- FX translation loss of $8 m in H1 pressured other income.
- Working-capital build: receivables +10%, inventories +11%, raising execution risk if demand slows.
Insights
TL;DR Strong top-line beat, margin expansion and segment clarity make TTMI鈥檚 quarter incrementally bullish.
Revenue growth above 20% plus 90 bp GM lift shows execution in both defense and AI-oriented commercial markets. Operating leverage pushed EPS up 60%鈥攚ell ahead of typical mid-cycle PCB peers. Cash burn stems from strategic cap-ex rather than operations; liquidity is ample at $448 m with net leverage ~1.1脳 EBITDA. New $100 m repurchase adds optionality. Risks remain: $926 m debt, negative FCF and FX swings. Overall, the print supports multiple expansion.
TL;DR Defense backlog, facility additions and 14% segment margins validate TTMI鈥檚 pivot to higher-value mission systems.
The A&D segment now contributes 45% of sales and posted 13.8% margin, up 450 bp YoY, reflecting mix shift toward RF mission systems. The Syracuse and Wisconsin builds will boost secure domestic capacity, matching DoD reshoring goals; Penang hedges China risk. Integration and cost-overrun execution will be critical. While cap-ex suppresses free cash flow near-term, long-cycle defense visibility offsets volatility seen in commercial PCBs.
TTM Technologies (TTMI) ha registrato un solido secondo trimestre 2025. Le vendite nette sono aumentate del 20,7% su base annua, raggiungendo 730,6 milioni di dollari, grazie alla domanda nel settore Aerospaziale e Difesa (+19%) e nel Data-center Computing e Networking legata all'IA. Il margine lordo 猫 cresciuto di 90 punti base arrivando al 20,3%, con un aumento del reddito operativo del 59% a 61,8 milioni di dollari e un utile diluito per azione salito del 60% a 0,40 dollari. Le vendite nei primi sei mesi sono aumentate del 17,4% a 1,38 miliardi di dollari e l'utile netto 猫 raddoppiato a 73,7 milioni di dollari.
Liquidit脿 e capitale. Il flusso di cassa operativo 猫 stato di 87,1 milioni di dollari (-37% Free Cash Flow dopo investimenti in capitale per 123,7 milioni di dollari, principalmente per l'espansione a Syracuse, NY). La liquidit脿 finale si 猫 attestata a 448 milioni di dollari (-56 milioni da inizio anno); il debito totale resta elevato a 926 milioni di dollari. 脠 stata autorizzata una nuova tranche di riacquisto azionario da 100 milioni di dollari, ma nel secondo trimestre non sono stati effettuati riacquisti.
Mosse strategiche. L鈥檃zienda si 猫 riorganizzata in tre segmenti鈥擜erospaziale e Difesa, Commerciale, RF e Componenti Speciali鈥攑er migliorare la trasparenza; il margine nel settore A&D 猫 salito al 13,8%. Dopo il trimestre, TTMI ha acquisito uno stabilimento di 750.000 piedi quadrati in Wisconsin e un terreno a Penang, Malaysia, per ampliare la capacit脿 di PCB avanzati e diversificare le catene di approvvigionamento. La struttura ultra-HDI di Syracuse rimane in linea per la produzione nella seconda met脿 del 2026.
Segnali per il futuro. L鈥檕rdine arretrato di contratti a lungo termine ammonta a 376 milioni di dollari; il 59% 猫 previsto venga convertito entro un anno. La direzione evidenzia una domanda difensiva sostenuta e una forte crescita commerciale legata all鈥橧A, ma l鈥檃umento delle scorte, dei costi SG&A e le perdite da cambio hanno parzialmente compensato i guadagni.
TTM Technologies (TTMI) present贸 un s贸lido segundo trimestre de 2025. Las ventas netas aumentaron un 20,7% interanual hasta 730,6 millones de d贸lares, impulsadas por Aerospace & Defense (+19%) y la demanda en Data-center Computing y Networking relacionada con IA. El margen bruto se expandi贸 90 puntos b谩sicos hasta el 20,3%, elevando el ingreso operativo un 59% a 61,8 millones de d贸lares y la utilidad diluida por acci贸n un 60% a 0,40 d贸lares. Las ventas en seis meses crecieron un 17,4% hasta 1.380 millones de d贸lares y la utilidad neta se duplic贸 a 73,7 millones de d贸lares.
Efectivo y capital. El flujo de caja operativo fue de 87,1 millones de d贸lares (-37% de flujo de caja libre tras gastos de capital por 123,7 millones, principalmente para la expansi贸n en Syracuse, NY). El efectivo finaliz贸 en 448 millones de d贸lares (-56 millones en lo que va del a帽o); la deuda total sigue alta en 926 millones de d贸lares. Se autoriz贸 una nueva recompra de acciones por 100 millones de d贸lares, pero no hubo recompras en el segundo trimestre.
Movimientos estrat茅gicos. La empresa se reorganiz贸 en tres segmentos鈥擜&D, Comercial, RF y Componentes Especiales鈥攎ejorando la transparencia; el margen de A&D subi贸 al 13,8%. Tras el trimestre, TTMI compr贸 una planta de 750.000 pies cuadrados en Wisconsin y un terreno en Penang, Malasia, para ampliar la capacidad avanzada de PCB y diversificar las cadenas de suministro. La planta ultra-HDI de Syracuse sigue en camino para producci贸n en la segunda mitad de 2026.
Se帽ales para el futuro. La cartera de contratos a largo plazo suma 376 millones de d贸lares; se espera que el 59% se convierta en ventas dentro de un a帽o. La direcci贸n menciona una demanda sostenida en defensa y fortaleza comercial relacionada con IA, aunque el aumento de inventarios, mayores gastos SG&A y p茅rdidas por tipo de cambio compensan parcialmente las ganancias.
TTM 韰岉伂雴�搿滌鞀�(TTMI)電� 2025雲� 2攵勱赴鞐� 臧曤牓頃� 鞁れ爜鞚� 旮半頄堨姷雼堧嫟. 靾滊Г於滌潃 鞝勲厔 雽�牍� 20.7% 歃濌皜頃� 7鞏� 3,060毵� 雼煬搿�, 頃车鞖办＜ 氚� 氚╈渼靷办梾(+19%)瓿� AI 甏�霠� 雿办澊韯办劶韯� 旎错摠韺� 氚� 雱ろ姼鞗岉偣 靾橃殧臧� 瓴澑頄堨姷雼堧嫟. 齑濎澊鞚惦鞚� 90bp 靸侅姽頃� 20.3%毳� 旮半頄堨溂氅�, 鞓侅梾鞚挫澋鞚� 59% 歃濌皜頃� 6,180毵� 雼煬, 頋劃 欤茧嫻靾滌澊鞚奠潃 60% 歃濌皜頃� 0.40雼煬毳� 旮半頄堨姷雼堧嫟. 6臧滌洈 雸勳爜 毵れ稖鞚� 17.4% 歃濌皜頃� 13鞏� 8觳滊 雼煬, 靾滌澊鞚奠潃 霊� 氚办澑 7,370毵� 雼煬鞐� 雼枅鞀惦媹雼�.
順勱笀 氚� 鞛愲掣 靸來櫓. 鞓侅梾 順勱笀 頋愲鞚� 8,710毵� 雼煬鞓�鞙茧┌(鞛愲掣 歆�於� 1鞏� 2,370毵� 雼煬 頉� FCF電� -37%, 欤茧 雺挫殨 鞁滊煬韥愳姢 頇曥灔), 順勱笀 鞛旍暋鞚� 4鞏� 4,800毵� 雼煬(鞐办磮 雽�牍� -5,600毵� 雼煬)鞛呺媹雼�. 齑� 攵�毂勲姅 鞐爠頌� 雴掛潃 9鞏� 2,600毵� 雼煬 靾橃鞛呺媹雼�. 靸堧鞖� 1鞏� 雼煬 攴滊鞚� 鞛愳偓欤� 毵れ瀰 甓岉暅鞚� 鞁滌瀾霅橃棃鞙茧倶 2攵勱赴鞐愲姅 毵れ瀰鞚� 鞐嗢棃鞀惦媹雼�.
鞝勲灥鞝� 鞗�歆侅瀯. 須岇偓電� 韴獏靹� 頄レ儊鞚� 鞙勴暣 頃车鞖办＜ 氚� 氚╈渼, 靸侅梾, RF 氚� 韸轨垬 攵�頀� 霌� 靹� 臧滌潣 靷梾攵�搿� 鞛幐頄堨溂氅�, 頃车鞖办＜ 氚� 氚╈渼 攵�氍胳潣 毵堨鞚� 13.8%搿� 靸侅姽頄堨姷雼堧嫟. 攵勱赴 鞚错泟 TTMI電� 鞙勳姢旖橃嫚鞐� 75毵� 韽夒癌頂柬姼 攴滊鞚� 瓿奠灔瓿� 毵愲爤鞚挫嫓鞎� 韼橂偔鞐� 攵�歆�毳� 毵れ瀰頃� 觳嫧 PCB 靸濎偘電ル牓鞚� 頇曥灔頃橁碃 瓿店笁毵濎潉 雼り皝頇旐枅鞀惦媹雼�. 鞁滊煬韥愳姢鞚� 齑堦碃氚�霃� 鞚疙劙旎る劌韸�(ultra-HDI) 鞁滌劋鞚� 2026雲� 頃橂皹旮� 靸濎偘 瓿勴殟鞐� 彀 鞐嗢澊 歆勴枆 欷戩瀰雼堧嫟.
鞝勲 鞁犿樃. 鞛リ赴 瓿勳暯 鞛旉碃電� 齑� 3鞏� 7,600毵� 雼煬鞚措┌, 鞚� 欷� 59%臧� 1雲� 鞚措偞鞐� 毵れ稖搿� 鞝勴櫂霅� 瓴冹溂搿� 鞓堨儊霅╇媹雼�. 瓴届榿歆勳潃 氚╈渼靷办梾 靾橃殧臧� 歆�靻嶋悩瓿� AI 甏�霠� 靸侅梾 攵�氍胳澊 臧曥劯毳� 氤挫澊瓿� 鞛堧嫟瓿� 鞏戈笁頄堨溂雮�, 鞛碃 歃濌皜鞕� SG&A 牍勳毄 靸侅姽, 頇橃啇鞁れ澊 鞚茧秬 鞚挫澋鞚� 靸侅噭頃橁碃 鞛堨姷雼堧嫟.
TTM Technologies (TTMI) a pr茅sent茅 un solide deuxi猫me trimestre 2025. Les ventes nettes ont augment茅 de 20,7 % en glissement annuel pour atteindre 730,6 millions de dollars, soutenues par l'a茅rospatiale et la d茅fense (+19 %) ainsi que par la demande en informatique et r茅seaux de centres de donn茅es li茅e 脿 l'IA. La marge brute s'est 茅largie de 90 points de base 脿 20,3 %, faisant grimper le r茅sultat d'exploitation de 59 % 脿 61,8 millions de dollars et le BPA dilu茅 de 60 % 脿 0,40 dollar. Les ventes sur six mois ont augment茅 de 17,4 % 脿 1,38 milliard de dollars et le b茅n茅fice net a doubl茅 脿 73,7 millions de dollars.
Tr茅sorerie et capital. Le flux de tr茅sorerie op茅rationnel s'est 茅lev茅 脿 87,1 millions de dollars (-37 % de FCF apr猫s 123,7 millions de dollars d'investissements, principalement pour le d茅veloppement de Syracuse, NY). La tr茅sorerie a termin茅 脿 448 millions de dollars (-56 millions depuis le d茅but de l'ann茅e) ; la dette totale reste 茅lev茅e 脿 926 millions de dollars. Une nouvelle autorisation de rachat d'actions de 100 millions de dollars a 茅t茅 lanc茅e, mais aucun rachat n'a eu lieu au T2.
Mouvements strat茅giques. L'entreprise s'est r茅organis茅e en trois segments 鈥� A&D, Commercial, RF & Composants Sp茅cialis茅s 鈥� pour am茅liorer la transparence ; la marge A&D a bondi 脿 13,8 %. Apr猫s le trimestre, TTMI a acquis une usine de 750 000 pieds carr茅s dans le Wisconsin et un terrain 脿 Penang, Malaisie, pour augmenter la capacit茅 de PCB avanc茅s et diversifier les cha卯nes d'approvisionnement. L'installation ultra-HDI de Syracuse reste sur la bonne voie pour une production au second semestre 2026.
Signaux pour l'avenir. Le carnet de commandes 脿 long terme s'茅l猫ve 脿 376 millions de dollars ; 59 % devraient se concr茅tiser en un an. La direction souligne une demande soutenue dans la d茅fense et une forte dynamique commerciale li茅e 脿 l'IA, mais la hausse des stocks, des SG&A et des pertes de change compense en partie les gains.
TTM Technologies (TTMI) lieferte ein starkes zweites Quartal 2025 ab. Der Nettoumsatz stieg im Jahresvergleich um 20,7 % auf 730,6 Mio. USD, angetrieben durch Luft- und Raumfahrt & Verteidigung (+19 %) sowie die Nachfrage nach Data-Center-Computing und Networking im Zusammenhang mit KI. Die Bruttomarge verbesserte sich um 90 Basispunkte auf 20,3 %, was das Betriebsergebnis um 59 % auf 61,8 Mio. USD und den verw盲sserten Gewinn je Aktie um 60 % auf 0,40 USD anhob. Der Umsatz in den ersten sechs Monaten stieg um 17,4 % auf 1,38 Mrd. USD, der Nettogewinn verdoppelte sich auf 73,7 Mio. USD.
Barmittel und Kapital. Der operative Cashflow betrug 87,1 Mio. USD (-37 % Free Cashflow nach Investitionen von 123,7 Mio. USD, haupts盲chlich f眉r den Ausbau in Syracuse, NY). Der Kassenbestand lag bei 448 Mio. USD (-56 Mio. USD seit Jahresbeginn); die Gesamtverschuldung bleibt mit 926 Mio. USD hoch. Eine neue Aktienr眉ckkaufgenehmigung 眉ber 100 Mio. USD wurde erteilt, im zweiten Quartal fanden jedoch keine R眉ckk盲ufe statt.
Strategische Ma脽nahmen. Das Unternehmen reorganisierte sich in drei Segmente 鈥� Luft- & Raumfahrt, Gewerblich, RF & Spezialkomponenten 鈥� zur besseren Transparenz; die Marge im Luft- & Raumfahrtsegment stieg auf 13,8 %. Nach Quartalsende erwarb TTMI eine 750.000 Quadratfu脽 gro脽e Anlage in Wisconsin und ein Grundst眉ck in Penang, Malaysia, um die Kapazit盲t f眉r fortschrittliche Leiterplatten zu erweitern und die Lieferketten zu diversifizieren. Die Ultra-HDI-Anlage in Syracuse bleibt im Zeitplan f眉r die Produktion in der zweiten H盲lfte 2026.
Ausblickssignale. Der Auftragsbestand langfristiger Vertr盲ge bel盲uft sich auf 376 Mio. USD; 59 % sollen innerhalb eines Jahres umgesetzt werden. Das Management verweist auf eine anhaltende Nachfrage im Verteidigungsbereich und eine starke kommerzielle Entwicklung im Zusammenhang mit KI, aber steigende Lagerbest盲nde, h枚here SG&A-Kosten und Wechselkursverluste schm盲lern einige Gewinne.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form
For the quarterly period ended
Or
For the transition period from ____________ to____________
Commission File Number:
(Exact name of registrant as specified in its charter)
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(I.R.S. Employer Identification No.) |
(Address of principal executive offices)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Trading symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of July 31, 2025, there were outstanding
TTM TECHNOLOGIES, INC.
Form 10-Q
For the Quarter Ended June 30, 2025
TABLE OF CONTENTS
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PART I: FINANCIAL INFORMATION |
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Item 1. Financial Statements (unaudited) |
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Consolidated Condensed Balance Sheets as of June 30, 2025 and December 30, 2024 |
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Consolidated Condensed Statements of Operations for the quarter and two quarters ended June 30, 2025 and July 1, 2024 |
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Consolidated Condensed Statements of Comprehensive Income for the quarter and two quarters ended June 30, 2025 and July 1, 2024 |
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Consolidated Condensed Statements of Stockholders' Equity for the two quarters ended June 30, 2025 and July 1, 2024 |
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Consolidated Condensed Statements of Cash Flows for the two quarters ended June 30, 2025 and July 1, 2024 |
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Notes to Consolidated Condensed Financial Statements |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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Item 4. Controls and Procedures |
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PART II: OTHER INFORMATION |
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Item 1. Legal Proceedings |
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Item 1A. Risk Factors |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3. Defaults Upon Senior Securities |
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Item 4. Mine Safety Disclosures |
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Item 5. Other Information |
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Item 6. Exhibits |
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SIGNATURES |
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2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
TTM TECHNOLOGIES, INC.
Consolidated Condensed Balance Sheets
As of June 30, 2025 and December 30, 2024
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June 30, 2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Accounts receivable, net |
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Contract assets |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, plant, and equipment, net |
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Operating lease right-of-use assets |
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Goodwill |
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Definite-lived intangibles, net |
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Deposits and other non-current assets |
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Total assets |
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$ |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Short-term debt, including current portion of long-term debt |
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Accounts payable |
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Contract liabilities |
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Accrued salaries, wages, and benefits |
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Other current liabilities |
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Total current liabilities |
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Long-term debt, net of discount and issuance costs |
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Operating lease liabilities |
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Other long-term liabilities |
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Total long-term liabilities |
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Commitments and contingencies (Note 14) |
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Equity: |
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Common stock, $ |
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Treasury stock – common stock at cost; |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total stockholders’ equity |
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Total liabilities and stockholders' equity |
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$ |
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$ |
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See accompanying notes to consolidated condensed financial statements.
3
TTM TECHNOLOGIES, INC.
Consolidated Condensed Statements of Operations
For the Quarter and Two Quarters Ended June 30, 2025 and July 1, 2024
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For the Quarter Ended |
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For the Two Quarters Ended |
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June 30, 2025 |
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Net sales |
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Cost of goods sold |
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Gross profit |
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Operating expenses: |
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Selling and marketing |
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General and administrative |
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Research and development |
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Amortization of definite-lived intangibles |
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Restructuring charges |
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Total operating expenses |
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Operating income |
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Other (expense) income: |
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Interest expense |
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Other, net |
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Total other expense, net |
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Income before income taxes |
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Income tax provision |
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Net income |
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$ |
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Earnings per share: |
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Basic earnings per share |
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Diluted earnings per share |
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See accompanying notes to consolidated condensed financial statements.
4
TTM TECHNOLOGIES, INC.
Consolidated Condensed Statements of Comprehensive Income
For the Quarter and Two Quarters Ended June 30, 2025 and July 1, 2024
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For the Quarter Ended |
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For the Two Quarters Ended |
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June 30, 2025 |
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July 1, 2024 |
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June 30, 2025 |
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July 1, 2024 |
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Net income |
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$ |
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Other comprehensive income (loss), net of tax: |
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Pension obligation |
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Other comprehensive (loss) income, net of tax |
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Comprehensive income, net of tax |
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$ |
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$ |
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$ |
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See accompanying notes to consolidated condensed financial statements.
5
TTM TECHNOLOGIES, INC.
Consolidated Condensed Statements of Stockholders’ Equity
For the Two Quarters Ended June 30, 2025 and July 1, 2024
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Common Stock |
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Treasury Stock |
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Additional |
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Amount |
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Shares |
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Amount |
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Capital |
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Earnings |
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Loss |
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Equity |
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(In thousands) |
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Balance, December 30, 2024 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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|
|
— |
|
|
|
|
||
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Issuance of common stock for |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Issuance of common stock for |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Repurchases of common stock |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance, March 31, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Issuance of common stock for |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance, June 30, 2025 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
|
|
Common Stock |
|
|
Treasury Stock |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Earnings |
|
|
Loss |
|
|
Equity |
|
||||||||
|
|
(Unaudited) |
|
|||||||||||||||||||||||||||||
|
|
(In thousands) |
|
|||||||||||||||||||||||||||||
Balance, January 1, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Issuance of common stock for |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Issuance of common stock for |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Repurchases of common stock |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance, April 1, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Issuance of common stock |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Repurchases of common stock |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Balance, July 1, 2024 |
|
|
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
See accompanying notes to consolidated condensed financial statements.
6
TTM TECHNOLOGIES, INC.
Consolidated Condensed Statements of Cash Flows
For the Two Quarters Ended June 30, 2025 and July 1, 2024
|
|
For the Two Quarters Ended |
|
|||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||
|
|
(Unaudited) |
|
|||||
|
|
(In thousands) |
|
|||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation of property, plant, and equipment |
|
|
|
|
|
|
||
Amortization of definite-lived intangible assets |
|
|
|
|
|
|
||
Amortization of debt discount and issuance costs |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
|
|
|
( |
) |
|
Stock-based compensation |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
( |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
( |
) |
|
|
|
|
Contract assets |
|
|
( |
) |
|
|
( |
) |
Inventories |
|
|
( |
) |
|
|
( |
) |
Prepaid expenses and other current assets |
|
|
( |
) |
|
|
( |
) |
Accounts payable |
|
|
|
|
|
|
||
Contract liabilities |
|
|
( |
) |
|
|
|
|
Accrued salaries, wages, and benefits |
|
|
( |
) |
|
|
( |
) |
Other current liabilities |
|
|
|
|
|
( |
) |
|
Net cash provided by operating activities |
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Net purchases of property, plant, and equipment and other assets |
|
|
( |
) |
|
|
( |
) |
Proceeds from sale of property, plant, and equipment and other assets |
|
|
|
|
|
|
||
Proceeds from sale of Shanghai E-MS (SH E-MS) property |
|
|
|
|
|
|
||
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Repurchases of common stock |
|
|
( |
) |
|
|
( |
) |
Repayment of long-term debt borrowings |
|
|
( |
) |
|
|
( |
) |
Net cash used in financing activities |
|
|
( |
) |
|
|
( |
) |
Effect of foreign currency exchange rates on cash and cash equivalents |
|
|
|
|
|
( |
) |
|
Net decrease in cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Cash and cash equivalents at beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents at end of period |
|
$ |
|
|
$ |
|
||
Supplemental cash flow information: |
|
|
|
|
|
|
||
Cash paid, net for interest |
|
$ |
|
|
$ |
|
||
Cash paid, net for income taxes |
|
|
|
|
|
|
||
Supplemental disclosure of non-cash investing activities: |
|
|
|
|
|
|
||
Property, plant, and equipment recorded in accounts payable and other current liabilities |
|
$ |
|
|
$ |
|
||
See accompanying notes to consolidated condensed financial statements.
7
TTM TECHNOLOGIES, INC.
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(Dollars and shares in thousands, except per share data)
(1) Nature of Operations and Basis of Presentation
TTM Technologies, Inc. (the Company or TTM) is a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (PCB). The Company provides time-to-market and volume production of advanced technology products and offers a one-stop design, engineering, and manufacturing solution to customers. This solution allows the Company to align technology developments with the diverse needs of the Company’s customers and to enable them to reduce the time required to develop new products and bring them to market.
The Company serves a diversified customer base in various markets throughout the world, including aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, and networking. The Company’s customers include original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), distributors, and government agencies (both domestic and allied foreign governments).
The accompanying unaudited consolidated condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s most recent Annual Report on Form 10-K. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated condensed financial statements and accompanying notes. Due, in part, to the conflicts between Russia and Ukraine, as well as other global regions and the imposition of, or changes to, tariffs by the United States as well as retaliatory tariffs or measures by other countries, the global economy and financial markets have been volatile in recent periods. As such, the Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. The actual results the Company experienced may differ materially and adversely from its estimates. The Company uses a 52/53 week fiscal calendar with the fourth quarter ending on the Monday nearest December 31.
Recently Issued Accounting Standards Not Yet Adopted
In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on accounts receivable and contract assets. The ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the timing of the adoption and the impact of this ASU on its consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is permitted. ASU 2024-03 should be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures, but expects additional disclosures upon adoption.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The update will be effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements not yet issued or made available for issuance. The Company will adopt ASU 2023-09 in its 2025 fiscal year Form 10-K. This ASU will impact only the Company's disclosures with no impacts to the results of operations, cash flows, and financial condition.
8
(2) Share Repurchase Program
On May 8, 2025, the Company's Board of Directors authorized a new share repurchase program (2025 Repurchase Program), under which the Company may repurchase up to $
During the quarter ended June 30, 2025, the Company did
(3) Significant Customers and Concentration of Credit Risk
Financial instruments that are potentially subject to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable.
The Company had cash and cash equivalents held by its foreign subsidiaries of $
In the normal course of business, the Company extends credit to its customers. Some customers to whom the Company extends credit are located outside the United States. The Company performs ongoing credit evaluations of customers, does not require collateral, and considers the credit risk profile of the entity from which the receivable is due in further evaluating collection risk. As of June 30, 2025,
The Company’s customers include both OEMs and EMS companies. The Company’s OEM customers often direct a significant portion of their purchases through EMS companies. While the Company’s customers include both OEM and EMS providers, the Company measures customer concentration based on OEM companies, as they are the ultimate end customers.
For the quarter and two quarters ended June 30, 2025,
9
(4) Revenues
As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations for long‑term contracts was $
For contracts in which anticipated total costs exceed the total expected revenue, an estimated loss is recognized in the period when identifiable. A provision for the entire amount of the estimated loss is recorded on a cumulative basis. The estimated remaining costs to complete for loss contracts as of June 30, 2025 and December 30, 2024 were $
Revenue recognized for the two quarters ended June 30, 2025 from amounts recorded as contract liabilities as of December 30, 2024 was $
Revenue from products and services transferred to customers over time and at a point in time accounted for
Disaggregated revenue by principal end markets within reportable segments was as follows:
|
|
For the Quarter Ended |
|
|||||||||||||||||||||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||||||||||||||||||||||||
|
|
Aerospace and Defense (A&D) |
|
|
Commercial |
|
|
RF and Specialty Components (RF&S Components) |
|
|
Total |
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Total |
|
||||||||
|
|
(In thousands) |
|
|||||||||||||||||||||||||||||
End Markets (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace and Defense |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||||
Automotive |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Data Center Computing |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Medical/Industrial/Instrumentation |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Networking |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
|
|
For the Two Quarters Ended |
|
|||||||||||||||||||||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||||||||||||||||||||||||
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Total |
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Total |
|
||||||||
|
|
(In thousands) |
|
|||||||||||||||||||||||||||||
End Markets (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aerospace and Defense |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||||
Automotive |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Data Center Computing |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Medical/Industrial/Instrumentation |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Networking |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
10
(5) Composition of Certain Consolidated Condensed Financial Statement Captions
|
|
As of |
|
|||||
|
|
June 30, 2025 |
|
|
December 30, 2024 |
|
||
|
|
(In thousands) |
|
|||||
Inventories: |
|
|
|
|
|
|
||
Raw materials |
|
$ |
|
|
$ |
|
||
Work-in-process |
|
|
|
|
|
|
||
Finished goods |
|
|
|
|
|
|
||
Inventories |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Property, plant, and equipment, net: |
|
|
|
|
|
|
||
Land and land use rights |
|
$ |
|
|
$ |
|
||
Buildings and improvements |
|
|
|
|
|
|
||
Machinery and equipment |
|
|
|
|
|
|
||
Furniture and fixtures and other |
|
|
|
|
|
|
||
Construction-in-progress |
|
|
|
|
|
|
||
Property, plant, and equipment, gross |
|
|
|
|
|
|
||
Less: Accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
Property, plant, and equipment, net |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Other current liabilities: |
|
|
|
|
|
|
||
Income taxes payable |
|
$ |
|
|
$ |
|
||
Sales return and allowances |
|
|
|
|
|
|
||
Warranty |
|
|
|
|
|
|
||
Accrued facility operating costs |
|
|
|
|
|
|
||
Interest |
|
|
|
|
|
|
||
Housing fund |
|
|
|
|
|
|
||
Operating leases |
|
|
|
|
|
|
||
Accrued professional fees |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Other current liabilities |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Other long-term liabilities: |
|
|
|
|
|
|
||
Deferred income taxes |
|
$ |
|
|
$ |
|
||
Customer deposits |
|
|
|
|
|
|
||
Finance leases |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Other long-term liabilities |
|
$ |
|
|
$ |
|
||
11
(6) Goodwill
In connection with the Company’s assessment of its operating segments, effective during the quarter ended June 30, 2025, the Company determined that its operating segments were also its reporting units and reallocated its PCB goodwill between A&D and Commercial based on the estimated relative fair values of the reporting units. In addition, management performed a goodwill impairment assessment for each segment and concluded no impairment indicators as of June 30, 2025.
Goodwill by reportable segment was as follows:
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Total |
|
||||
|
|
(In thousands) |
|
|||||||||||||
As of June 30, 2025 and December 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Goodwill |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Accumulated impairment losses |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
Carrying amount |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
(7) Definite-lived Intangibles
The components of definite-lived intangibles were as follows:
|
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|
Weighted |
|
||||
|
|
(In thousands) |
|
|
(In years) |
|
||||||||||
As of June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
Technology |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Total |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
As of December 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
Technology |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Total |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|||
Definite-lived intangibles are amortized using the straight-line method of amortization over the useful life. Amortization expense was $
Estimated aggregate amortization for definite-lived intangible assets for the next five years and thereafter is as follows:
|
|
(In thousands) |
|
|
Remaining 2025 |
|
$ |
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
Thereafter |
|
|
|
|
Total |
|
$ |
|
|
12
(8) Long-term Debt and Letters of Credit
Long-term debt was as follows:
|
|
As of |
|
|||||||||||||||
|
|
June 30, 2025 |
|
|
December 30, 2024 |
|
||||||||||||
|
|
Interest Rate |
|
Principal |
|
|
Interest Rate |
|
Principal |
|
||||||||
|
|
(In thousands, except interest rates) |
|
|||||||||||||||
Senior Notes due |
|
|
|
% |
|
$ |
|
|
|
|
% |
|
$ |
|
||||
Term Loan due |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asia ABL Revolving Loan due |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Unamortized debt issuance costs |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
||
Less: Unamortized debt discount |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
||
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Current maturities |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
||
Long-term debt, less current maturities |
|
|
|
|
|
$ |
|
|
|
|
|
|
$ |
|
||||
Debt Covenants
Borrowings under the Senior Notes due 2029 and Term Loan Facility due 2030 (Term Loan Facility) are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments, dispositions, and restricted payments.
Under the occurrence of certain events, the U.S. Asset-Based Lending Credit Agreement (U.S. ABL) and Asia Asset-Based Lending Credit Agreement (Asia ABL) (collectively, the ABL Revolving Loans) are subject to various financial covenants, including leverage and fixed charge coverage ratios.
Debt Issuance Costs and Debt Discount
Remaining unamortized debt issuance costs and debt discount were as follows:
|
|
As of |
||||||||||||||||||||||||
|
|
June 30, 2025 |
|
December 30, 2024 |
||||||||||||||||||||||
|
|
Debt |
|
|
Debt |
|
|
Effective |
|
Debt |
|
|
Debt |
|
|
Effective |
||||||||||
|
|
(In thousands, except interest rates) |
||||||||||||||||||||||||
Senior Notes due March 2029 |
|
$ |
|
|
$ |
— |
|
|
|
|
% |
|
$ |
|
|
$ |
— |
|
|
|
|
% |
||||
Term Loan due May 2030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
|
$ |
|
|
$ |
|
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
||||||
The above debt issuance costs and debt discount are recorded as a reduction of the debt and are amortized into interest expense using an effective interest rate over the duration of the debt.
Remaining unamortized debt issuance costs for the ABL Revolving Loans of $
As of June 30, 2025, the remaining weighted average amortization period for all unamortized debt issuance costs and debt discount was
13
(9) Income Taxes
The Company’s effective tax rate is impacted by the mix of foreign and U.S. income, tax rates in China and Hong Kong, the U.S. federal income tax rate, apportioned state income tax rates, the generation of credits, and deductions available to the Company as well as changes in valuation allowances and certain non-deductible items. No tax benefit was recorded on the losses incurred in certain foreign jurisdictions as a result of corresponding increases in the valuation allowances in these jurisdictions.
During the quarter and two quarters ended June 30, 2025, the Company’s effective tax rate was impacted by a net discrete benefit of $
The Company has various foreign subsidiaries formed or acquired to conduct or support its business outside the U.S. The Company expects its earnings attributable to most foreign subsidiaries may be repatriated back to the U.S. and so a deferred tax liability has been recorded for foreign withholding taxes and the estimated federal/state tax impact on any repatriation. For those other companies with earnings currently being reinvested outside of the U.S., no deferred tax liability on undistributed earnings has been recorded.
One Big Beautiful Bill Act (OBBBA)
On July 4, 2025, the OBBBA was enacted, introducing amendments to U.S. tax laws with various effective dates from 2025 to 2027. The OBBBA includes provisions such as the permanent extension of certain provisions of the Tax Cuts and Jobs Act that were set to expire at the end of 2025 and modifications to the international tax framework. Topic 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Therefore, the Company’s tax provisions for the quarter and two quarters ended June 30, 2025, do not incorporate the effects of these tax law changes. The Company is in the process of evaluating and estimating the impact of the OBBBA on its consolidated condensed financial statements and will complete its assessment during the third quarter of 2025.
14
(10) Segment Information
During the quarter ended June 30, 2025, in connection with the Company's change in organizational structure to enhance clarity in sector performance, accountability, and operating costs, the Company’s management finalized its assessment of the Company's operating segments and concluded that the Company now has three reportable segments: A&D, Commercial, and RF&S Components. In prior periods, the Company had two reportable segments: PCB and RF&S Components. As a result, certain prior period amounts have been reclassified to conform with this new presentation.
The reportable segments shown below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker (CODM), who is the President and Chief Executive Officer, to assess performance and to allocate resources.
The A&D reportable segment consists of PCBs, value-added assemblies, microelectronics, RF/microwave components and assemblies, and integrated mission systems. These highly engineered electronics products include the manufacture and test of customer‑supplied designs as well as long-term contracts to design, develop, manufacture, and test new products. The products in the A&D reportable segment support surveillance, intelligence, communications, and other critical missions for customers in the aerospace and defense industry. The Commercial reportable segment consists of PCBs using customer-supplied engineering and design plans supporting customers in the automotive, medical, industrial, and instrumentation, networking, and data center computing end markets. The RF&S Components reportable segment consists of TTM designed RF components for commercial customers in the telecommunications, industrial and instrumentation markets, as well as commercial off-the-shelf (COTS) components for certain aerospace and defense customers.
Reconciliations of net sales and segment operating income were as follows:
|
|
For the Quarter Ended June 30, 2025 |
|||||||||||||||||||
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Eliminations |
|
|
Total |
|||||||
|
|
(In thousands, except margin rates) |
|||||||||||||||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Segment sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net Sales |
|
|
Cost of Goods Sold |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Operating Margin |
|||||||
A&D |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
|
% |
|||
Commercial |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
RF&S Components |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Total segment |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Eliminations |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Amortization of definite-lived intangibles (1) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Consolidated |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other, net |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|||||
15
|
|
For the Quarter Ended July 1, 2024 |
|||||||||||||||||||
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Eliminations |
|
|
Total |
|||||||
|
|
(In thousands, except margin rates) |
|||||||||||||||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Segment sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net Sales |
|
|
Cost of Goods Sold |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Operating Margin |
|||||||
A&D |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
|
% |
|||
Commercial |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
RF&S Components |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Total segment |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Eliminations |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Gain on sale of property, plant, and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition-related and other charges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Amortization of definite-lived intangibles (1) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Consolidated |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|||||
|
|
For the Two Quarters Ended June 30, 2025 |
|||||||||||||||||||
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Eliminations |
|
|
Total |
|||||||
|
|
(In thousands, except margin rates) |
|||||||||||||||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Segment sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net Sales |
|
|
Cost of Goods Sold |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Operating Margin |
|||||||
A&D |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
|
% |
|||
Commercial |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
RF&S Components |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Total segment |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Eliminations |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Amortization of definite-lived intangibles (1) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Consolidated |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other, net |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|||||
16
|
|
For the Two Quarters Ended July 1, 2024 |
|||||||||||||||||||
|
|
A&D |
|
|
Commercial |
|
|
RF&S Components |
|
|
Eliminations |
|
|
Total |
|||||||
|
|
(In thousands, except margin rates) |
|||||||||||||||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Segment sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Net Sales |
|
|
Cost of Goods Sold |
|
|
Operating Expenses |
|
|
Operating Income |
|
|
Operating Margin |
|||||||
A&D |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
|
% |
|||
Commercial |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
RF&S Components |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Total segment |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|||
Eliminations |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Gain on sale of property, plant, and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition-related and other charges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Amortization of definite-lived intangibles (1) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Consolidated |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
||||
Other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|||||
Depreciation expense by reportable segment was as follows:
|
|
For the Quarter Ended |
|
|
For the Two Quarters Ended |
|
||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||
|
|
(In thousands) |
|
|||||||||||||
A&D |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
||||
RF&S Components |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment total |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The Company markets and sells its products in approximately
|
|
For the Quarter Ended |
|
|
For the Two Quarters Ended |
|
||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||
|
|
(In thousands) |
|
|||||||||||||
United States |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Taiwan |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
17
(11) Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss, net of tax, were as follows:
|
|
Foreign |
|
|
Pension |
|
|
Cash Flow |
|
|
Total |
|
||||
|
|
(In thousands) |
|
|||||||||||||
Balance as of December 30, 2024 |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
Amounts reclassified from accumulated |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Net year to date other comprehensive |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
Balance as of June 30, 2025 |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
||
(12) Earnings Per Share
The reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share is as follows:
|
|
For the Quarter Ended |
|
|
For the Two Quarters Ended |
|
||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||
|
|
(In thousands, except per share amounts) |
|
|||||||||||||
Net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic weighted average shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of performance-based |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
PRUs, RSUs, and stock options to purchase
18
(13) Fair Value Measures
The Company measures at fair value its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability.
The carrying amount and estimated fair value of the Company’s financial instruments were as follows:
|
|
As of |
|
|||||||||||||
|
|
June 30, 2025 |
|
|
December 30, 2024 |
|
||||||||||
|
|
Carrying Amount |
|
|
Fair Value |
|
|
Carrying Amount |
|
|
Fair Value |
|
||||
|
|
(In thousands) |
|
|||||||||||||
Derivative assets, current |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Derivative assets, non-current |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities, current |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities, non-current |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Senior Notes due March 2029 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Term Loan due May 2030 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
ABL Revolving Loans |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other loan |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The fair value of the derivative instruments was determined using pricing models developed based on the 1-month Chicago Mercantile Exchange (CME) Term Secured Overnight Financing Rate (SOFR) swap rate and other observable market data, including quoted market prices, as appropriate using Level 2 inputs. The values were adjusted to reflect non-performance risk of both the counterparty and the Company, as necessary.
The fair value of the long-term debt was estimated based on quoted market prices or discounting the debt over its life using current market rates for similar debt as of June 30, 2025 and December 30, 2024, which are considered Level 2 inputs.
As of June 30, 2025 and December 30, 2024, the Company’s other financial instruments included cash and cash equivalents, accounts receivable, contract assets, accounts payable, and contract liabilities. The carrying amount of these instruments approximates fair value.
The majority of the Company’s non-financial assets and liabilities, which include goodwill, intangible assets, inventories, and property, plant, and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or as indicated by the annual test in the case of goodwill) such that a non-financial instrument is required to be evaluated for impairment, based upon a comparison of the non-financial instrument’s fair value to its carrying value, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value.
(14) Commitments and Contingencies
Legal Matters
The Company is subject to various legal matters, which it considers normal for its business activities. While the Company currently believes that the amount of any reasonably possible loss for known matters would not be material to the Company’s financial condition, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on the Company’s financial condition or results of operations in a particular period. The Company has accrued amounts for its loss contingencies which are probable and estimable as of June 30, 2025 and December 30, 2024 and included as a component of other current liabilities. However, these amounts are not material to the consolidated condensed financial statements of the Company.
Supplier Finance Program Obligations
The Company has agreements with financial institutions to facilitate payments to certain suppliers. Liabilities associated with these agreements are recorded in accounts payable on the consolidated condensed balance sheets and amounted to $
19
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q (Report) contains forward-looking statements regarding future events or our future financial and operational performance. Forward-looking statements include statements regarding markets for our products; trends in net sales, gross profits, and estimated expense levels; liquidity and anticipated cash needs and availability; and any statement that contains the words “anticipate,” “believe,” “plan,” “forecast,” “foresee,” “estimate,” “project,” “expect,” “seek,” “target,” “intend,” “goal,” and other similar expressions. The forward-looking statements included in this Report reflect our current expectations and beliefs, and we do not undertake publicly to update or revise these statements, even if experience or future changes make it clear that any projected results expressed in this Report or future quarterly reports to stockholders, press releases, or company statements will not be realized. In addition, the inclusion of any statement in this Report does not constitute an admission by us that the events or circumstances described in such statement are material. Furthermore, we wish to caution and advise readers that these statements are based on assumptions that may not materialize and may involve risks and uncertainties, many of which are beyond our control, that could cause actual events or performance to differ materially from those contained or implied in these forward-looking statements. These risks and uncertainties include the risks identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 30, 2024, as updated by our other filings with the Securities and Exchange Commission (SEC), and described elsewhere in this Report. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated condensed financial statements and the related notes and the other financial information included in this Report, as well as the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended December 30, 2024, filed with the SEC.
COMPANY OVERVIEW
We are a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards (PCB). We focus on providing time-to-market and volume production of advanced technology products and offer a one-stop design, engineering, and manufacturing solution to our customers. This solution allows us to align technology development with the diverse needs of our customers and to enable them to reduce the time required to develop new products and bring them to market. We serve a diversified customer base consisting of approximately 1,400 customers in various markets throughout the world, including aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, and networking. Our customers include original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), distributors, and government agencies (both domestic and allied foreign governments).
RECENT DEVELOPMENTS
On July 9, 2025, we announced the acquisition of a 750,000-square-foot facility in Eau Claire, Wisconsin, as well as land rights for an additional future manufacturing site in Penang, Malaysia. We believe the Eau Claire, Wisconsin facility comes equipped with the necessary infrastructure to support advanced technology PCB manufacturing and enhances our ability to support future high-volume U.S. production of advanced technology PCBs across key markets, particularly data center computing and networking for generative artificial intelligence (AI) applications. In addition, we acquired land rights for ten acres in Penang to establish a new production site that we anticipate will align with customers’ increasing interests in supply chain diversification beyond China. The future Penang facility will be in close proximity to our existing facility and will enable us to deliver cost-competitive, high-quality advanced technology PCB manufacturing to commercial markets such as data center computing, networking, and medical, industrial, and instrumentation. Together, these new investments support our strategy to offer regionally optimized, globally connected manufacturing solutions for our customers.
We previously announced we are in the process of constructing a new advanced technology PCB manufacturing facility in Syracuse, New York. We expect that our new facility will bring advanced technology capability for our domestic high-volume production of ultra‑high‑density interconnect (HDI) PCBs in support of national security requirements. The external construction of our facility is largely complete and we continue to make progress on the internal fabrication. We have equipment orders in place and, assuming no delays in delivery, expect installation to begin in the third quarter of 2025 with production expected to commence in the second half of 2026.
20
FINANCIAL OVERVIEW
Our customers include both OEMs and EMS providers. We sell to OEMs both directly and indirectly through EMS providers. For such indirect sales, we measure customers based on OEM companies as they are the ultimate end customers. Sales to our ten largest customers collectively accounted for 53% and 54% of our net sales for the quarter and two quarters ended June 30, 2025, respectively. Sales to our ten largest customers collectively accounted for 54% of our net sales for both the quarter and two quarters ended July 1, 2024.
The percentage of our net sales attributable to each of the principal end markets we served was as follows:
|
|
For the Quarter Ended |
|
For the Two Quarters Ended |
||||||||||||||||
|
|
June 30, 2025 |
|
July 1, 2024 (1) |
|
June 30, 2025 (1) |
|
July 1, 2024 (1) |
||||||||||||
End Markets (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Aerospace and Defense |
|
|
45 |
|
% |
|
|
45 |
|
% |
|
|
47 |
|
% |
|
|
47 |
|
% |
Automotive |
|
|
11 |
|
|
|
|
14 |
|
|
|
|
11 |
|
|
|
|
13 |
|
|
Data Center Computing |
|
|
21 |
|
|
|
|
21 |
|
|
|
|
21 |
|
|
|
|
20 |
|
|
Medical/Industrial/Instrumentation |
|
|
15 |
|
|
|
|
14 |
|
|
|
|
14 |
|
|
|
|
14 |
|
|
Networking |
|
|
8 |
|
|
|
|
6 |
|
|
|
|
7 |
|
|
|
|
6 |
|
|
Total |
|
|
100 |
|
% |
|
|
100 |
|
% |
|
|
100 |
|
% |
|
|
100 |
|
% |
We derive revenues primarily from the sale of PCBs, engineered systems using customer-supplied engineering and design plans, as well as our long-term contracts related to the design and manufacture of highly sophisticated intelligence, surveillance, and communications solutions, and RF microwave/microelectronics components, assemblies, and subsystems. Orders for products generally correspond to the production schedules of our customers and are supported with firm purchase orders. Our customers have continuous control of the work in progress and finished goods throughout the PCB and engineered systems manufacturing process, as these are built to customer specifications with no alternative use, and there is an enforceable right of payment for work performed to date. As a result, we recognize revenue progressively over time based on the extent of progress towards completion of the performance obligation. We recognize revenue based on a cost method as it best depicts the transfer of control to the customer which takes place as we incur costs. Revenues are recorded proportionally as costs are incurred.
We also manufacture certain components, assemblies, subsystems, and completed systems which service our RF and Specialty Components (RF&S Components) customers and certain aerospace and defense customers. We recognize revenue at a point in time upon transfer of control of the products to our customer. Point in time recognition was determined as our customers do not simultaneously receive or consume the benefits provided by our performance and the asset being manufactured has alternative uses to us.
Net sales consist of gross sales less an allowance for returns, which typically have been approximately 2% of gross sales. We provide our customers a limited right of return for defective PCBs including components, assemblies, and subsystems. We record an estimate for sales returns and allowances at the time of sale based on historical results and anticipated returns.
Cost of goods sold consists of materials, labor, outside services, and overhead expenses incurred in the manufacture and testing of our products. Shipping and handling fees and related freight costs and supplies associated with shipping products are also included as a component of cost of goods sold. Many factors affect our gross margin, including capacity utilization, product mix, production volume, supply chain costs, and yield.
Selling and marketing expenses consist primarily of salaries, labor-related benefits, and commissions paid to our internal sales force, independent sales representatives, and our sales support staff, as well as costs associated with marketing materials and trade shows.
General and administrative costs primarily include the salaries for executive, finance, accounting, information technology, and human resources personnel, as well as expenses for accounting and legal assistance, incentive compensation expense, and gains or losses on the sale or disposal of property, plant, and equipment.
Research and development expenses consist primarily of salaries and labor-related benefits paid to our research and development staff, as well as material costs.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our consolidated condensed financial statements included in this Report have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities.
21
See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the fiscal year ended December 30, 2024 for further discussion of critical accounting policies and estimates. There have been no material changes to our critical accounting policies and estimates since December 30, 2024.
CONSOLIDATED OPERATING RESULTS
Selected financial highlights are presented in the table below:
|
|
For the Quarter Ended |
|
|
For the Two Quarters Ended |
|
||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||
|
|
(In thousands, except margin rates) |
|
|||||||||||||
Net sales |
|
$ |
730,621 |
|
|
$ |
605,137 |
|
|
$ |
1,379,289 |
|
|
$ |
1,175,250 |
|
Cost of goods sold |
|
|
582,512 |
|
|
|
487,910 |
|
|
|
1,100,208 |
|
|
|
954,304 |
|
Gross profit |
|
|
148,109 |
|
|
|
117,227 |
|
|
|
279,081 |
|
|
|
220,946 |
|
Gross margin |
|
|
20.3 |
% |
|
|
19.4 |
% |
|
|
20.2 |
% |
|
|
18.8 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
21,316 |
|
|
|
19,798 |
|
|
|
42,587 |
|
|
|
40,092 |
|
General and administrative |
|
|
49,719 |
|
|
|
38,604 |
|
|
|
93,493 |
|
|
|
82,274 |
|
Research and development |
|
|
7,009 |
|
|
|
8,547 |
|
|
|
15,073 |
|
|
|
15,868 |
|
Amortization of definite-lived intangibles |
|
|
6,888 |
|
|
|
10,256 |
|
|
|
13,777 |
|
|
|
21,685 |
|
Restructuring charges |
|
|
1,408 |
|
|
|
1,036 |
|
|
|
2,122 |
|
|
|
4,974 |
|
Total operating expenses |
|
|
86,340 |
|
|
|
78,241 |
|
|
|
167,052 |
|
|
|
164,893 |
|
Operating income |
|
|
61,769 |
|
|
|
38,986 |
|
|
|
112,029 |
|
|
|
56,053 |
|
Operating margin |
|
|
8.5 |
% |
|
|
6.4 |
% |
|
|
8.1 |
% |
|
|
4.8 |
% |
Total other expense, net |
|
|
(16,244 |
) |
|
|
(8,454 |
) |
|
|
(25,513 |
) |
|
|
(11,452 |
) |
Income tax provision |
|
|
(3,995 |
) |
|
|
(4,180 |
) |
|
|
(12,808 |
) |
|
|
(7,783 |
) |
Net income |
|
$ |
41,530 |
|
|
$ |
26,352 |
|
|
$ |
73,708 |
|
|
$ |
36,818 |
|
The following discussion and analysis is for the quarter and two quarters ended June 30, 2025, compared to the quarter and two quarters ended July 1, 2024, unless otherwise stated.
Net Sales
Total net sales increased $125.5 million, or 20.7%, to $730.6 million for the quarter ended June 30, 2025, from $605.1 million for the quarter ended July 1, 2024. The primary driver of this increase was strong demand in our aerospace and defense, data center computing, and networking end markets, the latter two being driven by generative AI. In addition, our medical, industrial, and instrumentation end market was also stronger as inventories and demand have normalized in this end market.
Total net sales increased $204.0 million, or 17.4%, to $1,379.3 million for the two quarters ended June 30, 2025, from $1,175.3 million for the two quarters ended July 1, 2024. The primary drivers of the increase were as discussed in the paragraph above.
Gross Profit and Margin Rate
Gross profit increased $30.9 million to $148.1 million for the quarter ended June 30, 2025, from $117.2 million for the quarter ended July 1, 2024, primarily due to higher sales. Gross margin rate increased to 20.3% for the quarter ended June 30, 2025, from 19.4% for the quarter ended July 1, 2024. This increase was primarily due to improved operational execution, favorable product mix, and increased volume of PCB shipments as compared to the second quarter of 2024.
Gross profit increased $58.1 million to $279.1 million for the two quarters ended June 30, 2025, from $220.9 million for the two quarters ended July 1, 2024, primarily due to higher sales. Gross margin rate increased to 20.2% for the two quarters ended June 30, 2025, from 18.8% for the two quarters ended July 1, 2024. The increase was primarily due to improved operational execution, favorable product mix, and increased volume of PCB shipments as compared to the same period of 2024.
Operating Expenses
Operating expenses increased $8.1 million to $86.3 million for the quarter ended June 30, 2025, from $78.2 million for the quarter ended July 1, 2024, primarily due to the absence of gains on the sale of assets primarily related to the sale of two buildings vacated with the closure of our Anaheim and Santa Clara plants of $14.4 million that occurred in the quarter ended July 1, 2024, partially offset by the absence of the write down of our Hong Kong building of $6.1 million that occurred in the quarter ended July 1, 2024. Higher incentive compensation expense also contributed to the increase in operating expenses, partially offset by a decrease in amortization of definite-lived intangibles.
22
Operating expenses increased $2.2 million to $167.1 million for the two quarters ended June 30, 2025, from $164.9 million for the two quarters ended July 1, 2024, primarily due to the absence of gains on the sale of assets primarily related to the sale of two buildings vacated with the closure of our Anaheim and Santa Clara plants of $14.4 million that occurred in the two quarters ended July 1, 2024, partially offset by the absence of the write down of our Hong Kong building of $6.1 million that occurred in the two quarters ended July 1, 2024. In addition, increased stock-based compensation and incentive compensation expense contributed to the higher operating expenses, partially offset by a decrease in amortization of definite-lived intangibles.
Operating Income and Margin Rate
Operating income increased $22.8 million to $61.8 million for the quarter ended June 30, 2025, from $39.0 million for the quarter ended July 1, 2024. Operating margin rate increased to 8.5% for the quarter ended June 30, 2025, from 6.4% for the quarter ended July 1, 2024. The primary drivers of these increases are discussed above in the variance explanations for Gross Profit and Margin Rate and Operating Expenses.
Operating income increased $56.0 million to $112.0 million for the two quarters ended June 30, 2025, from $56.1 million for the two quarters ended July 1, 2024. Operating margin rate increased to 8.1% for the two quarters ended June 30, 2025, from 4.8% for the two quarters ended July 1, 2024. The primary drivers of these increases are discussed above in the variance explanations for Gross Profit and Margin Rate and Operating Expenses.
Total Other Expense, Net
Total other expense, net increased $7.8 million to $16.2 million for the quarter ended June 30, 2025, from $8.5 million for the quarter ended July 1, 2024, primarily as a result of unrealized foreign exchange losses during the quarter ended June 30, 2025. We utilize the Chinese Renminbi (RMB) and Malaysian Ringgit (MYR) at our China and Malaysia facilities, respectively, for employee‑related and other costs of running our operations in foreign countries. There was an unrealized loss from foreign exchange of $5.7 million during the quarter ended June 30, 2025, compared to $0.1 million during the quarter ended July 1, 2024. This unrealized loss was related to the translation of our China and Malaysia balance sheets from their local currencies into the U.S. dollar functional currency, which experienced devaluation against the RMB and MYR during the quarter ended June 30, 2025 as compared to the quarter ended July 1, 2024.
Total other expense, net increased $14.1 million to $25.5 million for the two quarters ended June 30, 2025, from $11.5 million for the two quarters ended July 1, 2024, primarily as a result of unrealized foreign exchange losses during the two quarters ended June 30, 2025. There was an $8.0 million unrealized loss from foreign exchange during the two quarters ended June 30, 2025, compared to a $4.2 million unrealized gain from foreign exchange during the two quarters ended July 1, 2024. This unrealized loss was related to the translation of our China and Malaysia balance sheets from their local currencies into the U.S. dollar functional currency, which experienced devaluation against the RMB and MYR during the two quarters ended June 30, 2025 as compared to the two quarters ended July 1, 2024.
Income Taxes
Income tax expense decreased $0.2 million to $4.0 million for the quarter ended June 30, 2025, from $4.2 million for the quarter ended July 1, 2024, primarily due to an income tax benefit from the deduction of stock-based compensation, partially offset by accruals for potential assessments in various jurisdictions and the finalization of China and Canada corporate income tax returns.
Income tax expense increased $5.0 million to $12.8 million for the two quarters ended June 30, 2025, from $7.8 million for the two quarters ended July 1, 2024, primarily due to an increase in income before income taxes for the two quarters ended June 30, 2025 and accruals for potential assessments in various jurisdictions, partially offset by an income tax benefit from the deduction of stock‑based compensation.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing amendments to U.S. tax laws with various effective dates from 2025 to 2027. The OBBBA includes provisions such as the permanent extension of certain provisions of the Tax Cuts and Jobs Act that were set to expire at the end of 2025 and modifications to the international tax framework. Income Taxes (Topic 740): Improvements to Income Tax Disclosures requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. Therefore, our tax provisions for the quarter and two quarters ended June 30, 2025, do not incorporate the effects of these tax law changes. We are in the process of evaluating and estimating the impact of the OBBBA on our consolidated condensed financial statements and will complete our assessment during the third quarter of 2025.
Our effective tax rate is primarily impacted by the mix of foreign and U.S. income, tax rates in China and Hong Kong, the U.S. federal income tax rate, apportioned state income tax rates, the generation of credits and deductions available to us as well as changes in valuation allowances and certain non-deductible items. We had a net deferred income tax liability of $41.8 million and $42.9 million as of June 30, 2025 and July 1, 2024, respectively.
23
SEGMENT OPERATING RESULTS
Basis of Presentation
During the quarter ended June 30, 2025, in connection with our change in organizational structure to enhance clarity in sector performance, accountability, and operating costs, our management finalized its assessment of our operating segments and concluded that we now have three reportable segments: Aerospace and Defense (A&D), Commercial, and RF&S Components. As a result, certain prior period amounts have been reclassified to conform with this new presentation. See Part I, Item 1, Note 10, Segment Information, of the Notes to Consolidated Condensed Financial Statements in this Report for further information.
Selected segment financial highlights, with reconciliations to operating income, are presented in the table below:
|
|
For the Quarter Ended |
|
|
For the Two Quarters Ended |
|
||||||||||
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
|
June 30, 2025 |
|
|
July 1, 2024 |
|
||||
|
|
(In thousands, except margin rates) |
|
|||||||||||||
Segment sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
A&D |
|
$ |
327,569 |
|
|
$ |
274,507 |
|
|
$ |
637,712 |
|
|
$ |
554,265 |
|
Commercial |
|
|
395,624 |
|
|
|
323,255 |
|
|
|
728,329 |
|
|
|
607,058 |
|
RF&S Components |
|
|
10,078 |
|
|
|
9,083 |
|
|
|
18,898 |
|
|
|
17,416 |
|
Total |
|
$ |
733,271 |
|
|
$ |
606,845 |
|
|
$ |
1,384,939 |
|
|
$ |
1,178,739 |
|
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
A&D |
|
$ |
45,282 |
|
|
$ |
25,500 |
|
|
$ |
86,059 |
|
|
$ |
59,973 |
|
Commercial |
|
|
60,069 |
|
|
|
49,670 |
|
|
|
103,718 |
|
|
|
79,753 |
|
RF&S Components |
|
|
2,863 |
|
|
|
2,052 |
|
|
|
4,455 |
|
|
|
3,713 |
|
Total |
|
|
108,214 |
|
|
|
77,222 |
|
|
|
194,232 |
|
|
|
143,439 |
|
Segment operating margin rate: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
A&D |
|
|
13.8 |
% |
|
|
9.3 |
% |
|
|
13.5 |
% |
|
|
10.8 |
% |
Commercial |
|
|
15.2 |
% |
|
|
15.4 |
% |
|
|
14.2 |
% |
|
|
13.1 |
% |
RF&S Components |
|
|
28.4 |
% |
|
|
22.6 |
% |
|
|
23.6 |
% |
|
|
21.3 |
% |
Total |
|
|
14.8 |
% |
|
|
12.7 |
% |
|
|
14.0 |
% |
|
|
12.2 |
% |
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restructuring |
|
|
(1,408 |
) |
|
|
(1,036 |
) |
|
|
(2,122 |
) |
|
|
(4,974 |
) |
Gain on sale of property, plant, and equipment |
|
— |
|
|
|
14,420 |
|
|
— |
|
|
|
14,420 |
|
||
Acquisition-related and other charges |
|
— |
|
|
|
(10,184 |
) |
|
— |
|
|
|
(10,072 |
) |
||
Stock-based compensation |
|
|
(9,188 |
) |
|
|
(6,580 |
) |
|
|
(17,975 |
) |
|
|
(13,367 |
) |
Other corporate expenses |
|
|
(26,625 |
) |
|
|
(22,265 |
) |
|
|
(43,658 |
) |
|
|
(47,037 |
) |
Amortization of definite-lived intangibles (1) |
|
|
(9,224 |
) |
|
|
(12,591 |
) |
|
|
(18,448 |
) |
|
|
(26,356 |
) |
Operating income |
|
$ |
61,769 |
|
|
$ |
38,986 |
|
|
$ |
112,029 |
|
|
$ |
56,053 |
|
Segment operating income, as reconciled in Part I, Item 1, Note 10, Segment Information, of the Notes to Consolidated Condensed Financial Statements in this Report, and segment operating margin rate (segment operating income divided by segment sales) are presented in conformity with Accounting Standards Codification (ASC) Topic 280, Segment Reporting. These measures are reported to the CODM, who is the President and Chief Executive Officer, for purposes of making decisions about allocating resources to the segments and assessing their performance. For these reasons, these measures are excluded from the definition of non‑GAAP financial measures under the SEC's Regulation G and Item 10(e) of Regulation S-K.
A&D
Segment Sales
Segment sales for the A&D reportable segment increased $53.1 million, or 19.3%, to $327.6 million for the quarter ended June 30, 2025, from $274.5 million for the quarter ended July 1, 2024. The primary drivers of this increase were improved spending in previous defense budgets, our strong strategic program alignment, and key bookings for ongoing franchise programs, including
24
restricted programs. These increases were driven by increased sales related to missiles and munitions as well as strong demand in our Mission Systems and Specialty Assembly businesses.
Segment sales for the A&D reportable segment increased $83.4 million, or 15.1%, to $637.7 million for the two quarters ended June 30, 2025, from $554.3 million for the two quarters ended July 1, 2024. The primary drivers of the increase were as discussed in the paragraph above.
Segment Operating Income and Margin Rate
Segment operating income for the A&D reportable segment increased $19.8 million to $45.3 million for the quarter ended June 30, 2025, from $25.5 million for the quarter ended July 1, 2024. Segment operating margin rate for the A&D reportable segment increased to 13.8% for the quarter ended June 30, 2025, from 9.3% for the quarter ended July 1, 2024. The primary drivers of these increases were higher sales volume as discussed above, and improved operational execution.
Segment operating income for the A&D reportable segment increased $26.1 million to $86.1 million for the two quarters ended June 30, 2025, from $60.0 million for the two quarters ended July 1, 2024. Segment operating margin rate for the A&D reportable segment increased to 13.5% for the two quarters ended June 30, 2025, from 10.8% for the two quarters ended July 1, 2024. The primary drivers of these increases were higher sales volume as discussed above, and improved operational execution.
Commercial
Segment Sales
Segment sales for the Commercial reportable segment increased $72.4 million, or 22.4%, to $395.6 million for the quarter ended June 30, 2025, from $323.3 million for the quarter ended July 1, 2024. The primary driver of this increase was strong demand in our data center computing and networking end markets driven by generative AI. In addition, our medical, industrial, and instrumentation end market was also stronger as inventories and demand have normalized in this end market with growth in the industrial and instrumentation areas.
Segment sales for the Commercial reportable segment increased $121.3 million, or 20.0%, to $728.3 million for the two quarters ended June 30, 2025, from $607.1 million for the two quarters ended July 1, 2024. The primary driver of this increase was strong demand in our data center computing and networking end markets driven by generative AI, as well as normalized demand in our medical, industrial, and instrumentation end market.
Segment Operating Income and Margin Rate
Segment operating income for the Commercial reportable segment increased $10.4 million to $60.1 million for the quarter ended June 30, 2025, from $49.7 million for the quarter ended July 1, 2024. However, segment operating margin rate for the Commercial reportable segment slightly decreased to 15.2% for the quarter ended June 30, 2025, from 15.4% for the quarter ended July 1, 2024. The primary driver of the increase in segment operating income was higher sales volume as discussed above, while the segment operating margin rate slightly decreased due to ramp-up costs in connection with our fabrication plant in Penang, Malaysia, as well as product mix change.
Segment operating income for the Commercial reportable segment increased $24.0 million to $103.7 million for the two quarters ended June 30, 2025, from $79.8 million for the two quarters ended July 1, 2024. Segment operating margin rate for the Commercial reportable segment increased to 14.2% for the two quarters ended June 30, 2025, from 13.1% for the two quarters ended July 1, 2024. The primary drivers of these increases were higher sales volume as discussed above, and improved operational execution.
RF&S Components
Segment Sales
Segment sales for the RF&S Components reportable segment increased $1.0 million, or 11.0%, to $10.1 million for the quarter ended June 30, 2025, from $9.1 million for the quarter ended July 1, 2024. The primary driver of this increase was strong demand across the networking and medical, industrial, and instrumentation end markets.
Segment sales for the RF&S Components reportable segment increased $1.5 million, or 8.5%, to $18.9 million for the two quarters ended June 30, 2025, from $17.4 million for the two quarters ended July 1, 2024. The primary driver of this increase was strong demand across the networking and medical, industrial, and instrumentation end markets.
Segment Operating Income and Margin Rate
Segment operating income for the RF&S Components reportable segment increased $0.8 million to $2.9 million for the quarter ended June 30, 2025, from $2.1 million for the quarter ended July 1, 2024. Segment operating margin rate for the RF&S Components
25
reportable segment increased to 28.4% for the quarter ended June 30, 2025, from 22.6% for the quarter ended July 1, 2024. The primary drivers of these increases were higher sales volume as discussed above, and improved operational execution.
Segment operating income for the RF&S Components reportable segment increased $0.7 million to $4.5 million for the two quarters ended June 30, 2025, from $3.7 million for the two quarters ended July 1, 2024. Segment operating margin rate for the RF&S Components reportable segment increased to 23.6% for the two quarters ended June 30, 2025, from 21.3% for the two quarters ended July 1, 2024. The primary drivers of these increases were higher sales volume as discussed above, and improved operational execution.
Liquidity and Capital Resources
Our principal sources of liquidity have been cash provided by operations, the issuance of debt, and borrowings under our revolving credit facilities. Our principal uses of cash have been to finance capital expenditures, finance acquisitions, fund working capital requirements, repay debt obligations, and repurchase common stock. We anticipate that financing capital expenditures, financing acquisitions, funding working capital requirements, servicing debt, and repurchasing common stock will be the principal demands on our cash in the future.
Cash flow provided by operating activities during the first two quarters of 2025 was $87.1 million as compared to cash flow provided by operating activities of $85.8 million in the same period in 2024. The increase in cash flow was primarily due to an increase in net income of $36.9 million partially offset by increased investment in working capital largely driven by the timing of collections and advance payments and increased inventories related to ramping production levels.
Net cash used in investing activities during the first two quarters of 2025 was $123.5 million, primarily resulting from the use of $123.7 million for net purchases of property, plant, and equipment and other assets. Net cash used in investing activities during the first two quarters of 2024 was approximately $52.5 million, primarily resulting from the use of $88.8 million for purchases of property, plant and equipment and other assets. This was partially offset by the receipt of $29.6 million of proceeds from the sale of property, plant, and equipment and other assets primarily related to the sale of two buildings vacated by the closure of our Anaheim and Santa Clara plants and $6.7 million of proceeds from the sale of property associated with our Shanghai E‑MS subsidiary.
Net cash used in financing activities during the first two quarters of 2025 was $19.8 million, reflecting the use of $17.9 million for repurchases of our common stock and $1.9 million for the repayment of long-term debt borrowings. Net cash used in financing activities during the first two quarters of 2024 was $37.1 million, reflecting the use of $34.5 million for repurchases of common stock and $2.6 million for the repayment of long-term debt borrowings.
As of June 30, 2025, we had cash and cash equivalents of approximately $448.0 million, of which approximately $137.7 million was held by our foreign subsidiaries, primarily in China, and $201.4 million of available borrowing capacity under our revolving credit facilities. Should we choose to remit cash to the United States from our foreign locations, we may incur tax obligations which would reduce the amount of cash ultimately available to the United States. However, we believe there would be no material tax expenses not previously accrued for the repatriation of this cash.
Our total 2025 capital expenditures are expected to be in the range of $235.0 million to $255.0 million, of which approximately $66.0 million relate to construction of our new plant in Syracuse, New York.
Share Repurchases
On May 8, 2025, our Board of Directors authorized a new share repurchase program (2025 Repurchase Program), under which we may repurchase up to $100.0 million in value of our common stock from time to time through May 7, 2027. We did not repurchase any shares of our common stock during the quarter ended June 30, 2025. During the two quarters ended June 30, 2025, under our previous two-year repurchase program that expired on May 3, 2025, we repurchased approximately 0.7 million shares of our common stock for a total cost of $17.9 million (including commissions). As of June 30, 2025, the remaining amount in value available to be repurchased under the 2025 Repurchase Program was $100.0 million.
Long-term Debt and Letters of Credit
As of June 30, 2025, we had $917.1 million of outstanding debt, net of discount and issuance costs, composed of $497.0 million of Senior Notes due 2029, $338.0 million under the Term Loan Facility due 2030 (Term Loan Facility), $80.0 million under the Asia Asset-Based Lending Credit Agreement (Asia ABL), and $2.1 million of other loans.
Pursuant to the terms of the Senior Notes due 2029 and Term Loan Facility, we are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments, dispositions, and restricted payments. Under the U.S. Asset-Based Lending Credit Agreement (U.S. ABL) and Asia ABL (collectively, the ABL Revolving Loans), we are also subject to various financial covenants, including leverage and fixed charge coverage ratios. As of June 30, 2025, we were in compliance with the covenants under the Senior Notes due 2029, Term Loan Facility, and ABL Revolving Loans.
26
Based on our current level of operations, we believe that cash generated from operations, cash on hand, and cash from the issuance of term and revolving debt will be adequate to meet our currently anticipated capital expenditure, debt service, and working capital needs for the next 12 months. Additional information regarding our indebtedness, including information about the credit available under our debt facilities, interest rates, and other key terms of our outstanding indebtedness, is included in Part I, Item 1, Note 8, Long‑term Debt and Letters of Credit, of the Notes to Consolidated Condensed Financial Statements included in this Report.
Supplier Finance Program Obligations
We have agreements with financial institutions to facilitate payments to certain suppliers. Liabilities associated with these agreements are recorded in accounts payable on the consolidated condensed balance sheets and amounted to $12.8 million and $17.2 million as of June 30, 2025 and December 30, 2024, respectively.
Contractual Obligations and Commitments
As part of our ongoing operations, we enter into contractual arrangements that obligate us to make future cash payments. These obligations impact our liquidity and capital resource needs. Our estimated future obligations consist of long-term debt obligations, interest on debt obligations, derivative liabilities, purchase obligations, and leases. As of June 30, 2025, there were no material changes outside the ordinary course of business since December 30, 2024 to our contractual obligations and commitments and the related cash requirements.
Seasonality
We tend to experience modest seasonal softness in the first and third quarters due to holidays and vacation periods in China and North America, respectively, which limit production leading to stronger revenue levels in the second and fourth quarters.
Recently Issued Accounting Standards
For a description of recently adopted and issued accounting standards, including the respective dates of adoption and the expected effects on our results of operations and financial condition, see Part I, Item 1, Note 1, Nature of Operations and Basis of Presentation, of the Notes to Consolidated Condensed Financial Statements included in this Report.
27
Item 3. Quantitative and Qualitative Disclosures About Market Risk
In the normal course of business operations, we are exposed to risks associated with fluctuations in interest rates and foreign currency exchange rates. We address these risks through controlled risk management that includes the use of derivative financial instruments to economically hedge or reduce these exposures. We do not enter into derivative financial instruments for trading or speculative purposes. As of June 30, 2025, we did not have any material commodity contracts in place and believe our exposure to commodity price risk is not material.
We have not experienced any losses to date on any derivative financial instruments due to counterparty credit risk.
Interest Rate Risks
Our business is exposed to risk resulting from fluctuations in interest rates. Our interest expense is more sensitive to fluctuations in the general level of Term Secured Overnight Financing Rate (SOFR) interest rates than to changes in rates in other markets. Increases in interest rates would increase interest expense relating to our outstanding variable rate borrowings and increase the cost of debt. Fluctuations in interest rates can also lead to significant fluctuations in the fair value of our debt obligations.
In March 2023, we entered into a four-year pay-fixed, receive-floating (1-month Chicago Mercantile Exchange (CME) Term SOFR), interest rate swap arrangement with a notional amount of $250.0 million for the period beginning April 1, 2023 and ending on April 1, 2027. Under the terms of the interest rate swap, we pay a fixed rate of 3.49% against a portion of our Term SOFR-based debt and receive floating 1-month CME Term SOFR during the swap period.
At inception, we designated the interest rate swap as a cash flow hedge and the fair value of the interest rate swap was zero. As of June 30, 2025, the fair value of the interest rate swap was recorded as a net asset in the amount of $0.2 million, of which $1.1 million is included as a component of prepaid expenses and other current assets and $0.9 million is included as a component of other long-term liabilities. As of December 30, 2024, the fair value of the interest rate swap was recorded as an asset of $3.1 million, of which $1.8 million is included as a component of prepaid expenses and other current assets and $1.3 million is included as a component of deposits and other non-current assets. No ineffectiveness was recognized for the quarter and two quarters ended June 30, 2025. During the quarter and two quarters ended June 30, 2025, the interest rate swap decreased interest expense by $0.6 million and $1.1 million, respectively. During the quarter and two quarters ended July 1, 2024, the interest rate swap decreased interest expense by $1.2 million and $2.3 million, respectively.
See Liquidity and Capital Resources and Long-term Debt and Letters of Credit appearing in Part I, Item 2 of this Quarterly Report on Form 10-Q for further discussion of our financing facilities and capital structure. As of June 30, 2025, approximately 81.2% of our total debt was based on fixed rates. Based on our borrowings as of June 30, 2025, an assumed 100 basis point change in variable rates would cause our annual interest cost to change by $1.7 million.
Foreign Currency Exchange Rate Risks
In the normal course of business, we are exposed to risks associated with fluctuations in foreign currency exchange rates related to transactions that are denominated in currencies other than our functional currencies, as well as the effects of translating amounts denominated in a foreign currency to the U.S. Dollar as a normal part of our financial reporting process. Most of our foreign operations have the U.S. Dollar as their functional currency. However, one of our China facilities utilizes the Renminbi (RMB), which results in recognition of translation adjustments included as a component of accumulated other comprehensive loss. Our foreign exchange exposure results primarily from employee-related and other costs of running our operations in foreign countries, foreign currency denominated purchases, and translation of balance sheet accounts denominated in foreign currencies. We do not engage in hedging to manage this foreign currency risk. However, we may consider the use of derivatives in the future. Our primary foreign exchange exposure is to the RMB and Malaysian Ringgit (MYR).
Debt Instruments
The fiscal calendar maturities of our debt instruments for the next five years and thereafter were as follows:
|
|
As of June 30, 2025 |
|||||||||||||||||||||||||||||||||||
|
|
Remaining |
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
Thereafter |
|
|
Total |
|
|
Fair |
|
|
Weighted |
|||||||||||
|
|
(In thousands, except interest rates) |
|||||||||||||||||||||||||||||||||||
US$ Variable Rate (1) |
|
$ |
1,732 |
|
|
$ |
3,465 |
|
|
$ |
4,331 |
|
|
$ |
83,465 |
|
|
$ |
2,599 |
|
|
$ |
328,309 |
|
|
$ |
423,901 |
|
|
$ |
424,761 |
|
|
|
6.39 |
|
% |
US$ Fixed Rate |
|
|
168 |
|
|
|
350 |
|
|
|
404 |
|
|
|
363 |
|
|
|
500,419 |
|
|
|
445 |
|
|
|
502,149 |
|
|
|
479,159 |
|
|
|
4.01 |
|
|
Total |
|
$ |
1,900 |
|
|
$ |
3,815 |
|
|
$ |
4,735 |
|
|
$ |
83,828 |
|
|
$ |
503,018 |
|
|
$ |
328,754 |
|
|
$ |
926,050 |
|
|
$ |
903,920 |
|
|
|
|
|
|
28
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, under the supervision and with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934, as amended (Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our CEO and CFO have concluded that, as of June 30, 2025 such disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosures.
In designing and evaluating our disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their desired control objectives, and our management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Changes in Internal Control over Financial Reporting
We continue to expand our implementation of an enterprise resource planning (ERP) system on a worldwide basis, which is expected to improve the efficiency of the financial reporting and related transaction processes. We are in the process of rolling out the ERP system to our remaining locations to standardize the ERP system.
There were no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
29
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become a party to various legal proceedings arising in the ordinary course of our business. There can be no assurance that we will prevail in any such litigation. We believe that the amount of any reasonably possible or probable loss for known matters would not be material to our financial statements; however, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on our financial condition, results of operations, or cash flows in a particular period.
Item 1A. Risk Factors
There have been no material changes in our risk factors as previously disclosed in Part I, Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended December 30, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
On May 8, 2025, our Board of Directors authorized a new share repurchase program, under which we may repurchase up to $100.0 million in value of our outstanding shares of common stock from time to time through May 7, 2027. Our previous two-year repurchase program expired on May 3, 2025.
We did not repurchase any shares of our common stock during the quarter ended June 30, 2025.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Rule 10b5-1 Trading Plans
During the quarter ended June 30, 2025, none of our directors and/or officers (as defined in Rule 16a-1(f) under the Exchange Act)
30
Item 6. Exhibits
Exhibit |
|
|
|
Filed/Furnished |
Number |
|
Exhibit Description |
|
Herewith |
|
|
|
|
|
31.1 |
|
CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
31.2 |
|
CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
32.1* |
|
CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
32.2* |
|
CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
X |
|
|
|
|
|
101.INS |
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
|
|
|
|
|
|
|
101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
|
|
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
|
|
* Furnished herewith. The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q (Report) are not deemed filed with the Commission and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Report, irrespective of any general incorporation language contained in such filing.
31
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
TTM Technologies, Inc. |
|
|
|
|
|
/s/ Thomas T. Edman |
|
|
|
Dated: August 4, 2025 |
|
Thomas T. Edman |
|
|
President and Chief Executive Officer |
|
|
(Principal Executive Officer) |
|
|
|
|
|
/s/ Daniel L. Boehle |
|
|
|
Dated: August 4, 2025 |
|
Daniel L. Boehle |
|
|
Executive Vice President and Chief Financial Officer |
|
|
(Principal Financial Officer and Principal Accounting Officer) |
32
Source:
FAQ
How did TTMI's Q2 2025 earnings compare to last year?
What is the status of TTMI's share repurchase program?
How much debt does TTMI have?
Why was free cash flow negative despite higher earnings?
Which segments drove the margin improvement?
What portion of TTMI's revenue is recognized over time?
