TTM Technologies (TTMI)

Generated: October 24, 2026

Yellow Dot

Statistics

Metric	Value
Last Close	$80.11
Blended Price Target	-
Blended Margin of Safety	- Fairly Valued
Rule of 40 (Next)	44.9%
Rule of 40 (Current)	55.8%
FCF-ROIC	3.8%
Sales Growth Next Year	41.1%
Sales Growth Current Year	52.0%
Sales 3-Year Avg	18.8%
Industry	Electronic Components

Analysis

TTM Technologies is a materially stronger business than a conventional printed-circuit-board fabricator. Its recent performance shows powerful demand from aerospace and defense, advanced computing, and high-frequency communications, while its expanding mix of complex assemblies and mission systems improves strategic relevance. Third-quarter 2026 revenue rose 60% year over year to $1.2 billion, with a 2.13 book-to-bill ratio and $2.0 billion of aerospace-and-defense program backlog.^[7]

The outlook is durable but not perfectly predictable. TTM sells into customer programs rather than subscriptions, so revenue remains exposed to production schedules, customer inventory decisions, and industry cycles. Its moat is based on qualification, engineering know-how, manufacturing scale, and trusted supply relationships—not network effects. Leadership appears execution-focused, but the business remains operationally complex and acquisition-integrated. Overall, TTM is a high-quality specialized manufacturer with improving durability, though less recurring and less asset-light than the strongest industrial compounders.

What the Company Does

TTM designs and manufactures technologically advanced interconnect products, including printed circuit boards and substrates, as well as radio-frequency components, RF/microwave assemblies, and mission systems. Customers use these products in aerospace and defense, data-center computing, automotive, medical, industrial, and wireless communications applications.^[7]

The company makes money by supplying engineered hardware, manufacturing capacity, and increasingly integrated assemblies to original-equipment manufacturers and defense customers. Recent disclosures describe a diversified portfolio rather than a single dominant product category; aerospace and defense represented 34% of third-quarter 2026 sales, with the remainder spread across commercial and industrial end markets.^[7]

Revenue Recurrence & Predictability

TTM’s revenue is primarily contractual, program-based, and transactional rather than subscription-based. Aerospace-and-defense programs can create meaningful visibility because designs require qualification and remain in production for extended periods, but revenue is generally recognized as products ship and can fluctuate with customer schedules.

The company does not disclose a recent percentage of revenue that is recurring or highly predictable. Backlog and book-to-bill provide useful forward indicators, but they are not equivalent to guaranteed revenue. The third-quarter 2026 book-to-bill ratio of 2.13 and $2.0 billion aerospace-and-defense program backlog indicate strong demand visibility, while the remaining business retains greater exposure to short-cycle electronics markets.^[7]

Revenue Growth Durability

TTM can likely sustain above-market growth for several years if current demand persists in aerospace and defense, advanced computing, and high-performance communications. Third-quarter 2026 sales reached a record $1.2 billion, following record first- and second-quarter sales, while management projected fourth-quarter revenue of $1.42 billion to $1.44 billion.^[7]^[8]

The main growth levers are defense production, content growth in complex electronic systems, data-center and computing infrastructure, RF and microwave demand, and capacity expansion. Structural tailwinds include defense modernization and supply-chain localization. Headwinds include customer concentration in major programs, semiconductor and electronics cycles, qualification delays, capacity constraints, and the possibility that unusually strong recent growth normalizes as comparisons become more difficult.

Economic Moat

TTM’s moat is strongest where products are technically demanding, safety-critical, or difficult to qualify. Aerospace, defense, RF, and advanced interconnect applications require process control, reliability documentation, engineering collaboration, and customer approvals. These factors raise switching costs and favor established suppliers with proven production histories.

The company also benefits from scale across facilities, technologies, and geographies, but it does not possess a classic network-effect or structural low-cost moat. Manufacturing remains capital-intensive and globally competitive. The moat appears to be widening modestly as TTM gains exposure to complex assemblies and defense programs, although acquisitions, integration demands, and aggressive competition can limit the benefit of scale.

Management & Leadership

TTM is not generally characterized as founder-led. The current leadership structure reflects a professional management team overseeing a global manufacturing platform and a portfolio shaped partly by acquisitions. Recent operating execution has been strong: third-quarter 2026 revenue, adjusted EBITDA, and operating cash flow all reached substantial or record levels, according to the company’s release.^[7]

Publicly available search results do not provide a sufficiently current, reliable insider-ownership figure for this analysis. Capital allocation has emphasized capacity, technology breadth, and strategic portfolio development rather than a purely organic model. That approach can expand capabilities, but it also makes disciplined integration and balance-sheet management important leadership tests.

Key Risks

The largest risk is operational complexity. TTM runs a global network of specialized manufacturing sites, and a disruption involving labor, equipment, utilities, materials, logistics, cybersecurity, or geopolitics could impair production. Advanced products also require costly process consistency, and capacity expansion can create execution risk if demand arrives later than expected.

Demand is not uniformly durable. Commercial electronics, automotive, wireless, and computing customers can reduce orders quickly when inventories rise or end markets weaken. Aerospace and defense provide better program visibility but still depend on government budgets, procurement timing, contract execution, and customer concentration. A large backlog supports visibility but does not eliminate cancellation, delay, or margin risk.

Technological change and competition remain persistent threats. Customers may redesign products, shift sourcing, or demand lower prices, while competitors can add capacity in lower-cost regions. Acquisitions create another risk: expected synergies may be delayed, and integration could distract management from manufacturing performance and customer service.

Sources

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