TTM Technologies, Inc.

Good afternoon. Thank you for standing by. Welcome to the TTM Technologies, Inc. Third Quarter 2025 Financial Results Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. As a reminder, this conference is being recorded today, October 29, 2025. Dan Bailey, TTM's Chief Financial Officer, will now review TTM's disclosure statement.

Before we get started, I'd like to remind everyone that today's call contains forward-looking statements, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the risk factors we provide in our filings with the Securities and Exchange Commission, which we encourage you to review. These forward-looking statements represent management's expectations and assumptions based on currently available information. TTM does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events, or other circumstances. except as required by law. We will also discuss on this call certain non-GAAP financial measures, such as adjusted EBITDA. Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliations between GAAP and non-GAAP measures included in a company's earnings release, which is available on the investor relations section of TTM's website at investors.ttm.com. We have also posted on the website and Ernie's presentation that we will refer to during our call. I will now hand the call over to Edwin Rox, our new president and chief executive officer. Edwin, welcome to the CTM team and to your first quarterly conference call with us. Please go ahead.

Thank you, Dan, for welcoming me. Good afternoon, everyone, and thank you for joining us for our third quarter 2025 conference call. I want to thank Tom Edmund for his leadership of the company for more than a decade, and I look forward to engaging with our shareholders in the future. Before we review results, I want to reaffirm our strategic foundation. At TTM Technologies, we believe the future of electronics lies in speed, reliability, and integration. With over 17,000 employees across 22 factories, we already deliver millions of printed circuit boards every year. But our roadmap goes further. We continue to move up the value chain into highly complex modules and subsystems that combine sensors, actuators, RF, and photonics for markets where reliability and performance matter most. Aerospace, defense, data centers, telecom, instrumentation, and medical systems. From AI-driven PCB design to mission-critical subsystems, TTM's mission is in our name, time to market, delivering complex, high-performance solution at global scale. I know you want to hear whether I make any strategic changes And all I will say about that now is that we're currently in the middle of our disciplined annual strategic review, and we'll go before the board for approval next month. This plan will guide our future conversations, but as you'll hear throughout the comments today, TTM is performing well and is aligned perfectly with key growth industries. So I'm happy to be here and excited about the opportunities for continued growth and excellence ahead. And I'll begin with a review of our business highlights from the quarter and a discussion of our third quarter results, followed by an update of our current geopolitical environment and an update of our planned expansions. Then we'll follow with an overview of our Q3 2025 financial performance and our Q4 guidance. We will then open a call to your questions. We delivered an excellent third quarter of 2025, and I would like to thank our employees for their part in delivering these results. For the fourth quarter in a row, TTM achieved sales and no gap EPS above the high end of the guided range. Sales grew 22% year on year, reflecting continued demand strength in our data center computing and networking end markets driven by the requirements of generative AI. Our medical industrial instrumentation and aerospace and defense end markets also experience double-digit year-on-year sales growth. As you know, the company reports sales in five strategic end markets. Aerospace and defense is a focused end market which we deliver a mix of approximately 50-50 between PCBs and integrated electronics products. Sales in our aerospace and defense markets were better than expected this quarter at 45% of total sales, resulting from a pull forward of sales that were originally expected in the fourth quarter. Demand in this end market continues to be strong and book to build increased to very close to one for the third quarter, keeping program backlog steady at approximately $1.46 billion. Three of the remaining four end markets, data center computing, networking, and medical industrial instrumentation are experiencing sales growth directly or indirectly related to the growing requirements of AI. Nearly all of data center computing and networking and approximately 25 of medical, industrial, and instrumentation. In total, approximately 80% of our total sales in the quarter related to two very strong industries, aerospace and defense and AI. We are well positioned in both areas and offer highly innovative technologically advanced products to meet our customers' needs. We are focused on working diligently with our customers and suppliers to support the continued growth demand in each. The company's adjusted EBDA margin was 16.1%, which is comparable to 16.3% in the same quarter a year ago, reflecting continued solid execution. Non-GAAP EPS of 67 cents reflect the solid consecutive quarterly record for TTM. And cash flows from operations were $141.8 million, or 18.8% of sales, which brings the year-to-date cash flow from operation to $229 million, or 10.7% of sales. To reiterate comments made over the past two quarters regarding the potential impact of tariffs, With our diversified supplier-based and global manufacturing footprint, we do not expect a significant short-term impact of tariffs, whether through direct impact to sales or direct impact to materials and equipment purchases. And while it's possible that there could be an indirect impact, such as overall end market demand weakness and economic slowdown, we have not seen that impacting our key end markets, as I mentioned. In Penang, we continue to make progress with our customer qualifications and training the local workforce. Third quarter sales match the second quarter at $5 million and we expect to see growth in the fourth quarter. We are focused on improving and sustaining yields to support our customers' production cycles and it remains one of our top priorities. Customer interest in our Penang facility remains strong, and our confidence in our growth in Malaysian production is evident in our long-term plans for a second production facility announced last quarter. We will align the timing of construction of our planned second facility with the longer-term customer demand, and as of now, we have not broken ground. Progress on our ultra-HDi PCB manufacturing facility in Syracuse, New York, continues as planned. Equipment is arriving and we are beginning to install and test equipment setups. As a reminder, we expect volume production to start in the second half of 2026. The aerospace end market represented 45% of third quarter 2025 sales compared to 45% in the second quarter and 45% in the third quarter 2024. Sales in this market grew 20% year-on-year to a record high and were significantly better than expected, partially due to timing of sales that were originally planned in the fourth quarter. The solid demand in the defense market is a result of positive tailwinds in defense budgets, our strong strategic program alignment, and key bookings for ongoing programs. We maintain a solid A&D program backlog of about $1.46 billion at the end of the quarter compared to $1.49 billion a year ago. Bookings in the aerospace and defense markets ship over a longer period of time than our commercial markets and provide good visibility into future sales growth. During the quarter, we saw significant bookings related to the MRAM missile program, the passive detection and reporting system for the US Army, and the APS-153 radar system for the MH-60R helicopter. We expect sales in Q4 from this end market to represent 42% of our total sales. Sales in data center computing end markets represented 23% of third quarter 2025 sales compared to 21% in the second quarter and 20% of third quarter 2024 sales. This end market saw 44% year-on-year growth, which was better than expected, and a record high due to continued demand strength from our data center customers building products for Gen AI applications. We expect this growth rate to continue, increasing this end market to 28% of the fourth quarter sales. The medical, industrial, and instrumentation end market represented 14% of third quarter 2025 sales compared to 15% in the second quarter and 14% in third quarter of 2024. This end market saw year-on-year growth of 22% during the third quarter of 2025 as the medical and industrial segments saw increased demand for robotics and in the instrumentation segments saw increased demand for automated test equipment and gen AI applications. For the fourth quarter, we expect the medical industrial instrumentation and market to represent 14% of total sales. Automotive sales represented 11% of third quarter 2025 sales compared to 11% in the second quarter and 14% in the third quarter of 2024. The year-over-year decline for automotive was primarily due to continued inventory adjustments and soft demand at several customers. We expect the automotive end market to represent about 9% of total sales in the fourth quarter. Networking represented 7% of third quarter 2025 sales compared to 8% in the second quarter and 7% of third quarter 2024 sales. Year-on-year growth was 35% as this market continues to show strong growth driven by AI-related demand and new products. In Q4, we expect this market to represent 7% of total sales. At the end of Q3, our 90-day backlog, which is subject to cancellations, was $610.4 million compared to $534.5 million in the third quarter of last year. As I mentioned earlier, Our aerospace and defense program backlog was $1.46 billion at the end of Q3 this year, compared to $1.49 billion at the end of third quarter 2024. Our overall book-to-bill ratio was 1.15 for the third quarter of 2025, with the commercial segment at 1.29, the AMD segment at 0.99, and the RF&S segment at 0.95. Now Dan will review our financial performance for the third quarter.