TTM Technologies, Inc.

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. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Sean Hannan, Vice President of Investor Relations. Please go ahead.

Greetings, everyone. Welcome and thank you for joining us today. I'm Sean Hannan, Vice President of Investor Relations for TTM. With me on the call are Edwin Rocks, our President and Chief Executive Officer, and Dan Bailey, our Executive Vice President and Chief Financial Officer. Before we get started, I'd like to remind everybody that today's call contains forward-looking statements, including statements related to the 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. GTM 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 your 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 an earnings presentation that we will refer to during our call. Here is Edwin.

Thank you, Sean. Good afternoon, everyone, and thank you for joining us for our fourth quarter and fiscal 2025 conference call. At TTM Technologies, we are focused on designing and manufacturing complex products and solutions in two strategic directions. The first is advanced interconnect, which includes highly complex splinter circuit boards, substrates, and advanced packaging. The second strategic direction builds on our advanced interconnect technology to design and manufacture sophisticated modules, subsystems, and systems. Examples of this include our in-house developed RF modules, thermal and power management systems, edge and AI processing products, as well as complex subsystems and fully integrated mission systems. We believe the future of electronics lies in speed to market, high reliability, and efficient technology integration. The markets in which we do business continue to demand highly complex technology solutions in an increasingly compact size and footprint. Our strategy is to stay at the cutting edge of advanced interconnect technologies through innovation and continue to move up the value chain into complex modules and subsystems that combine sensors, actuators, RF, and photonics. We engage early with our customers to ensure alignment and product development, which helps optimize their sourcing of leading technologies and streamlines their supply chain. From a demand standpoint, we expect healthy tailwinds due to our participation in two key megatrends currently driving economic growth, artificial intelligence and defense. As stated previously, approximately 80% of our net sales are related to these two megatrends. Our ability to seize these organic growth opportunities requires our continued focus on technological innovation as well as expanding our capacity across our strategic footprint. We are further investing capital and resources to take full advantage of these opportunities today and in the future through our global footprint, which offers our customers manufacturing options across 24 sites located in China, Malaysia, Canada, and the United States. We stand well positioned to support this growth across our end markets and are on track towards our ambition to grow revenues 15 to 20% per year for the next three years and to double our earnings from 25 to 27, which were goals previously shared on January 13th. In our commercial segment, we are highly focused on supporting the demand wave of artificial intelligence in the data center computing and networking end markets. In our aerospace and defense end market, we continue to excel with our leading position in advanced interconnect products as we work to expand our product offerings in integrated electronics, including modules, subsystems, and intermission systems. We are also focused on technological opportunities arising through increased use of automation and AI applications in our medical, industrial, and instrumentation end markets while we remain strategically positioned in high-value automotive solutions. I now begin with an overview of our business highlights from the quarter. Then we'll follow with a summary of our Q4 and fiscal 2025 financial performance and our Q1 and fiscal 2026 sales guidance. We will then open the call for your questions. We delivered an excellent fourth quarter of 2025, and I would like to thank our employees for delivering these results. We achieved sales of 774.3 million above the high end of our guided range and no gap EPS of 70 cents per diluted share met the high end of our guided range. Sales grew 90% year on year, reflecting continued demand strength in our data center computing and networking end markets, driven by the requirements of generative AI while our medical, industrial, and instrumentation and aerospace and defense end markets also experienced solid to strong growth. The company's adjusted EBDA margin was 16.3% in the fourth quarter of 2025, a strong result compared to the 14.7% in the prior year, reflecting continued improvement in execution. No-gap EPS of 70 cents per diluted share was an all-time quarterly record high for TTM, And cash flow from operations were 63 million or 8.1% of sales, which brings fiscal 2025 cash flow from operations to 292 million or 10% of sales. The aerospace and defense end market represented 41% of four quarter 2025 sales. Sales in the aerospace and defense market grew 5% year on year for the fourth quarter and 13% year on year for the full year of 2025. The sales growth in the defense market as a result of positive tailwinds in defense budgets, our strong strategic program alignment, and the key bookings for ongoing programs. During the fourth quarter of 2025, we saw significant A&D bookings related to the APS 153 airborne surveillance radar, LTAM's air defense radar, MRAM air dominance missile, and Javelin anti-armor missile system. In addition, we continue to see an increase in bookings for restricted programs. A&D book to bill was 1.46 for the quarter and 1.04 for the full year of 2025, which increased program backlog to 1.6 billion compared to 1.56 billion a year ago. We expect sales in Q1 2026 from this end market to represent 42% of our total sales. Sales in the data center computing end market represented 20% of fourth quarter 2025 sales. This end market experienced 57% year-on-year growth in the fourth quarter and 36% year-on-year growth in the full year of 2025, which reflects continued demand strength from our data center customers building products for AI applications. The networking end market represented 8% of fourth quarter 2025 sales, Year-on-year growth was 23% for the fourth quarter and 43% for the full year of 2025, as this market continues to become more correlated with the AI-related demand for more complex switching technology. Due to the AI-related correlation between data center computing and networking end markets, we will begin reporting them as a single combined end market in 2026, and consequently, we will be reporting on four end markets going forward. For the fourth quarter of 2025, the combined sales for data center and networking would have represented 36% of total sales, and we expect the first quarter of 2026 to represent 37% of total sales. The medical, industrial, and instrumentation end market represented 14% of fourth quarter 2025 sales. This end market saw year-on-year growth of 28% during the fourth quarter and 22% for the full year of 2025, as medical and industrial areas saw increased demand for AI-enabled robotics and more complex sensing applications, and the instrumentation areas saw increased demand for automated testing equipment and AI applications. For the first quarter of 2026, we expect the medical, industrial, and instrumentation end markets to represent 14% of total sales. Automotive sales represented 9% for the fourth quarter 2025 sales. We will be increasingly selective in this market to focus on higher value add products that carry margin profile consistent with our financial growth. We expect the automotive end market to represent about 8% of total sales in the first quarter of 2026. The overall book-to-bill ratio was 1.35 for the fourth quarter of 2025, with the commercial reporting segment at 1.28, the A&D reporting segment at 1.46, and the RF&S reporting segment at 0.94. At the end of 2025, the 90-day backlog, which is subject to cancellations, was 654.9 million compared to 502.1 million at the end of last year. Now Dan Bailey will summarize our financial performance for the fourth quarter and full year. Dan?