TTM Technologies, Inc.

Good day, and welcome to the TTM Technologies Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. 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. 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 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 the 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 first quarter 2026 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 printed 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 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 on product developments and speed to market while also enabling optimal management of their complex supply chains. From a demand standpoint, we are experiencing healthy multi-year tailwinds due to our participation in two key megatrends currently driving economic growth, artificial intelligence and defense. We previously stated that approximately 80% of our net sales are related to these two megatrends and that this puts us in a unique position to benefit our investors. Our ability to seize these organic growth opportunities requires our continuous 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 we are tracking well ahead of our previously communicated plan to grow revenues 15% to 20% per year for the next three years and to double our earnings from 2025 to 2027, which were goals that were reiterated on our February 4th earnings call. In our commercial segments, we are highly focused on supporting the demand wave of artificial intelligence in the data center and networking end market where customer demand has materially accelerated. We are also focused on evolving opportunities in the use of automation and AI in our medical, industrial, and instrumentation end markets, while we remain strategically positioned in automotive, where our highly valuable solution designs are positioned to benefit from competitor consolidation and have additional transfer application into other markets. In our aerospace and defense end markets, we continue to excel with our leading position in advanced interconnect products, and we work to expand our product offerings in integrated electronics, including modules, subsystems, and full mission systems. Recently, we were proud to be a participant in the success of Artemis II mission with our microelectronics, PCBs, and assemblies for both the space launch vehicle and the Orion crew capsule. As for this current state of the defense budget, as well as the geopolitical environment considering the conflict in Iran, our solutions are ever-present in the categories of advanced radar systems, advanced jamming systems, missiles and decoys, electronic surveillance systems, and satellite and ground-based communication systems. In the commercial aerospace market, we recently won an award from an innovative electric autonomous aerospace company for light passenger travel to provide the sense and avoid radar system for their autonomous aircraft. I'll now begin with an overview of our business highlights from the quarter. Then we'll follow up with a summary on our Q1 fiscal 2026 financial performance and our Q2 and fiscal 2026 guidance. We will then open the call to your questions. We delivered an excellent first quarter of 2026, and I would like to thank our employees for delivering these results. We achieved sales of 846 million and non-GAAP EPS of 75 cents per diluted share, both above our guidance issued in early February and both all-time quarterly highs. Sales grew 30% year-on-year, reflecting continued demand strength in our data center and networking end market, driven by the requirements of AI, while our medical, industrial and instrumentation and aerospace and defense end markets also experienced strong growth. The company adjusted EBDA margin was 15.7% in the first quarter of 2026, compared to 15.3% in the prior year, largely reflecting positive mixed impacts. Non-GAAP EPS of 75 cents per diluted share was a 50% improvement year-on-year. The aerospace and defense end market represented 40% of first quarter 2026 sales. Sales in the aerospace and defense market grew 11% year-on-year for the first quarter. The sales growth in defense market continues to be a result of positive tailwinds in defense budgets, our strong strategic program alignment, and key bookings for ongoing programs. During the first quarter of 2026, we saw significant A&D bookings related to the L-TAMS air defense radar, APS-153 maritime surveillance radar, and a transportable radar surveillance system for ballistic missile detection and tracking. In addition, we continue to see an increase in bookings for restricted programs, and we also have first booking that was confirmed to support Golden Dome. A&D booked bill was 1.1 for the quarter, which led to a program backlog of 1.6 billion, similar to a level a year ago. We expect second quarter 2026 from this end market to represent 36% of our total sales, while still delivering both year-on-year and sequential growth. Sales in the data center and networking end market represented 36% of our first quarter 2026 sales. This end market experienced 61% year-on-year growth in the first quarter, above our growth expectation and reflecting continued demand strength from our data center and networking customers, building out the AI data centers. For the second quarter of 2026, we expect this end market to represent 42% of net sales. The medical-industrial instrumentation end market represented 16% of the first quarter 2026 sales. This end market saw year-on-year growth of 61% during the first quarter, aided by healthy demand of AI-enabled robotics in medical, automated test equipment for AI applications in instrumentation. A notable example win in the quarter was for a major continuous glucose monitoring custom product with our involvement on both the current and next generation, which will feature and materialize a smaller footprint and more powerful performance. For the second quarter of 2026, we expect medical, industrial, and instrumentation end markets to represent 14% of total sales growing both sequentially and year on year. Automotive sales represented 8% of the first quarter of 2026 sales, We continue to be very selective in this market to focus on higher value-add products that carry margin profiles consistent with our financial goals, as we also believe long-term business cycles should migrate back towards advanced capabilities. We are also supporting our T01 automotive customers as they transition some of their more advanced capabilities towards products serving ancillary end markets. We expect the automotive end market to represent about 8% of our total sales in the second quarter of 2026. The overall book-to-bill ratio was 1.41 for the first quarter of 2026, with the commercial reporting segment at 1.65 and the A&D reporting segment at 1.10. At the end of the first quarter of 2026, the 90-day backlog, which is subject to cancellations, was $787 million compared to $517 million a year ago. Now, Dan Bailey will summarize our financial performance for the first quarter. Dan?