Will TTM Technologies' (TTMI) Aerospace Backlog Offset Margin Pressures in Next Phase of Growth?

• Earlier this week, TTM Technologies announced it will report second-quarter 2025 earnings after market close, following a previous quarter where revenue grew 13.8% year on year and surpassed analyst estimates.
• An important insight is that while strong backlogs in aerospace and defense are supporting growth, the company faces ongoing margin pressures from start-up costs, facility consolidation, and challenges in automotive and other end-markets.
• To understand how the sizeable aerospace and defense backlog plays into TTM Technologies' outlook, we’ll explore the implications for its investment narrative.

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TTM Technologies Investment Narrative Recap

Owning shares of TTM Technologies requires confidence in its ability to transform a record US$1.56 billion aerospace and defense backlog into future growth, all while managing near-term margin pressures from start-up costs and sector headwinds. The upcoming Q2 2025 earnings release, following a strong revenue beat last quarter, is set to be the key short-term catalyst, but the update is unlikely to materially change the biggest current risk: operational and margin challenges tied to new facility ramp-ups and ongoing consolidation.

Among recent announcements, the launch of the US$200 million Penang, Malaysia manufacturing plant directly ties into TTM's efforts to meet increased demand in data center and networking markets, a driver that could ease supply chain risks and help improve efficiencies over time.

Yet, despite this progress, investors should be aware that continued facility ramp-up difficulties or disruptions could still ...

Read the full narrative on TTM Technologies (it's free!)

TTM Technologies' narrative projects $3.0 billion revenue and $236.3 million earnings by 2028. This requires 5.9% yearly revenue growth and a $158.3 million earnings increase from $78.0 million today.

Uncover how TTM Technologies' forecasts yield a $43.50 fair value, a 10% downside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community members place fair values for TTM Technologies between US$35.84 and US$43.50 per share. You will see automotive end-market weakness is still an open question for the company’s future, so be sure to consider differing viewpoints.

Explore 2 other fair value estimates on TTM Technologies - why the stock might be worth as much as $43.50!

Build Your Own TTM Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TTM Technologies research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free TTM Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TTM Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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