TTM Technologies: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Oct. 22, 2026, TTM Technologies (NASDAQ:TTMI) announced record quarterly sales of $1.2 billion and raised its full-year guidance. Expanding artificial intelligence infrastructure and solid defense electronics demand continue to accelerate customer adoption.

This operational momentum provides clear visibility into long-term commercial and government program pipelines. Three key takeaways from management's comments highlight what lies ahead for the business.

1. Capital Expansion Targets Surging Data Center Demand

TTM Technologies is expanding facility capacity to support its high-density N+M printed circuit board architecture, an advanced interconnect technology that packs more components into smaller spaces for artificial intelligence hardware.

Last week, we announced an additional $400 million planned investment that is expected to begin in the fourth quarter of 2026 and continue into early 2028, and this would primarily support revenue production focused on the 2028 period.
-- Edwin Roks, President and Chief Executive Officer

2. Strategic Acquisitions Expand Mission Systems Capabilities

The company is moving up the aerospace and defense value chain by combining optical, radio frequency radar, and signal processing capabilities into complete mission subsystems. It is expanding its offerings through the acquisition of Epiq Solutions and MKS Inc.'s optics division, Ophir.

We expect the potential combined offerings of Epiq Solutions and Ophir can advance a common strategy moving up the defense value chain and bringing together complementary software-defined radios and infrared capabilities. Both are keys to expanding our role in mission-critical sensing modalities such as surveillance, reconnaissance, communications, and electronic warfare.
-- Edwin Roks, President and Chief Executive Officer

3. Operating Leverage Drives Profitability to New Records

Higher sales volumes alongside execution improvements boosted adjusted EBITDA, a metric measuring operating profitability before non-cash and capital charges.

Adjusted EBITDA was $242.3 million in the third quarter of 2026, a record quarterly adjusted EBITDA margin of 20.1% and up 400 basis points year-over-year.
-- Daniel Boehle, Executive Vice President and Chief Financial Officer

Looking Ahead

Revenue growth across commercial and defense lines continues to accelerate as new facility investments enter active production. The company leverages multiyear program alignment and a record $2 billion aerospace and defense backlog, which represents signed customer orders awaiting manufacturing, to protect operating margins.

Looking to the preliminary full year 2027 forecast, we are providing our initial net sales forecast to be in the range of approximately $6.5 billion to $6.75 billion.
-- Daniel Boehle, Executive Vice President and Chief Financial Officer

Sustained order momentum in data center computing and military hardware reinforces long-term structural tailwinds for differentiated interconnect technologies. Management continues to prioritize internal cash flow to fund organic growth initiatives while integrating key international acquisitions.

From a demand standpoint, product development with our partners, bookings and backlog, and broader signals in both AI and defense remain strong and are expected to provide very healthy growth momentum for the remainder of this year and as we look in 2027.
-- Edwin Roks, President and Chief Executive Officer

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.