Financial Trends -- 7/10
One of the strongest top-line and margin trajectories in TTMI's history. Revenue YoY accelerating to
+30.4% in Q1'26 (fastest in the dataset), led by data-center/commercial demand. Non-GAAP gross margin
+350bps YoY and operating margin +570bps YoY on genuine operating leverage. Earnings accelerating;
share count and debt essentially flat. On operations alone this is a 9. The single material weakness:
free cash flow fell from $176M (2022) to under $18M (2025) and is modestly negative on a trailing
basis as net capex more than doubled to fund a capacity build. The mandatory negative-FCF penalty caps
the score at 6; a one-point judgment add for the flat balance sheet and rising operating cash lands it
at 7.
Weight: 25%
Margins
Expanding
Op margin +570bps YoY | Positive
FCF
Negative
Capex build, -2 penalty | Blemish
Share Count
Flat
~+2.9% YoY | Below penalty bar
Quarterly Revenue Trajectory ($k)
Clear revenue acceleration: +4.7% (Q1'24) to +30.4% (Q1'26).
Revenue YoY is the fastest in the dataset in Q1'26. The Commercial segment (data-center compute)
is the driver, growing from $332.7M (Q1'25) to $495.0M (Q1'26), +48.8% YoY, while Aerospace &
Defense grows steadily at mid-single to low-double digits.
Gross Profit ($k)
Gross profit dollars grew +38.3% YoY with margin expansion, not compression.
Non-GAAP gross margin expanded +150bps YoY in Q1'26 (and ~350bps versus Q1'24), evidence of real
operating leverage as volume ramps in higher-mix data-center and advanced-PCB work.
Annual Financial Summary (FY ends late December)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net Sales ($k) | $2,248,740 | $2,495,046 | $2,232,567 | $2,442,753 | $2,906,345 |
| Rev YoY | — | +11.0% | -10.5% | +9.4% | +19.0% |
| Non-GAAP Gross Margin | 17.0% | 18.9% | 19.6% | 20.4% | 21.3% |
| Adj EBITDA ($k) | $275,608 | $343,085 | $298,193 | $352,509 | $456,304 |
| Adj EBITDA Margin | 12.3% | 13.8% | 13.4% | 14.4% | 15.7% |
| Non-GAAP Net Income ($k) | $138,034 | $181,183 | $139,540 | $178,390 | $258,970 |
| Diluted Shares ($k) | 108,153 | 103,866 | 102,744 | 104,098 | 105,453 |
Key trends
- Revenue re-accelerating: From $2.25B (2021) to $2.91B (2025), with the 2023 dip (-10.5%) fully recovered and YoY re-accelerating to +30.4% in Q1'26 on data-center/AI demand
- Non-GAAP net income compounding: $138M (2021) to $259M (2025), +52.7% YoY in Q1'26
- Margin expansion: Non-GAAP gross margin +430bps (17.0% to 21.3%) and Adj EBITDA margin +340bps (12.3% to 15.7%) over five years
- Share count roughly flat: Diluted shares ~108M (2021) to ~105M (2025); only ~+2.9% YoY dilution in Q1'26, below the penalty threshold
Segment Revenue ($k, Quarterly)
Commercial is now the larger and faster-growing engine.
The Commercial segment (data-center & networking-led) grew from $332.7M (Q1'25) to $495.0M
(Q1'26), +48.8% YoY, overtaking Aerospace & Defense, which grew steadily to $351.7M. The mix
shift toward higher-value data-center work is driving the margin expansion.
Free Cash Flow ($k)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Net Capex | ($96,874) | ($159,737) | ($152,871) | ($273,940) |
| Free Cash Flow | $175,999 | $27,547 | $84,023 | $17,942 |
| FCF YoY | — | -84.3% | +205.0% | -78.6% |
FCF is the clear blemish -- declining and negative on a trailing basis.
Annual FCF fell from $176.0M (2022) to $84.0M (2024) to just $17.9M (2025) as net capex more than
doubled to $273.9M, and quarterly FCF swung to -$73.9M (Q1'25) and -$85.1M (Q1'26) on capacity-build
outlays. Operating cash generation is healthy and rising, but the company does not yet self-fund its
growth. This triggers the mandatory negative-FCF penalty (-2) and the hard cap at 6.
Blemishes & Penalty Modifiers
| Blemish | Detail | Penalty |
|---|---|---|
| Negative / Declining FCF | FCF fell from $176M (2022) to $18M (2025), negative on a trailing basis, as net capex doubled to $274M for a multi-year capacity build (Syracuse, Eau Claire, Penang) | -2, cap at 6 |
| Mild Share Dilution | Diluted shares ~+2.9% YoY (107.1M vs 104.1M) -- below the 10% penalty threshold | None |
| Debt Growth | Long-term debt essentially flat (~$912-914M) for 3+ years while revenue grew ~30% -- debt is not growing faster than revenue | None |
The cash drain is investment-led, not operational deterioration.
Operating cash flow and EBITDA are rising while debt stays flat, so business quality is improving.
But per the rubric, a company that cannot yet self-fund its growth does not earn financial-strength
credit on cash flow -- hence the negative-FCF penalty and the score near the cap.
Score Rationale
Score of 7/10 reflects a near-textbook operating profile held back by one material blemish. On operating fundamentals alone this is a 9; the mandatory negative-FCF penalty caps it at 6, and a one-point judgment add lands it at 7.
Supports the high underlying grade:
- Revenue YoY accelerating to +30.4% in Q1'26, the fastest in the dataset, led by data-center/commercial demand
- Non-GAAP gross margin +350bps YoY and operating margin +570bps YoY on genuine operating leverage
- Non-GAAP net income accelerating (+52.7% YoY in Q1'26), Adj EBITDA margin +340bps over five years
- Share count and long-term debt essentially flat -- no dilution or leverage penalty
Blemish (the reason it is not an 8-9):
- FCF fell from $176M (2022) to under $18M (2025) and turned modestly negative on a trailing basis
- Net capex more than doubled to $274M to fund a multi-year capacity build
- Company is not yet self-funding its growth -- composite quality gate: positive and growing FCF = NO
Data sourced from Daloopa (company_id: 7157). Fiscal year ends late December. All financials in USD thousands unless noted.