TTM Technologies, Inc. (TTMI) Income Statement

The sequential acceleration from 30.4% to 37.4% YoY growth indicates that the company is benefiting from both the Telephonics acquisition and organic strength in high-layer-count PCBs for AI applications. The revenue base has expanded from $570M in 2024Q1 to over $1B in 2026Q2, a 75% increase in just six quarters, which appears to be driven by a mix of defense program ramps and new data center architectures. Investors should monitor whether this pace is sustainable, as the defense backlog provides visibility but data center demand can be cyclical.

The 290 basis point expansion in gross margin over the past six quarters suggests that the strategic pivot toward defense and specialty RF products is yielding structural improvements, despite the competitive nature of the PCB industry. The margin expansion has been steady, with only minor fluctuations, which may indicate that the company is gaining pricing power in niche applications. However, the absolute gross margin remains below peers like Armstrong World (40.6%), highlighting the inherent cost structure of manufacturing, but the trend is positive and could continue as RF&S becomes a larger revenue share.

The operating margin expanded from 3.0% to 10.9% over the same period, indicating that fixed costs are being spread over a larger revenue base, and SG&A has not grown proportionally. SG&A as a percentage of revenue declined from 11.2% in 2024Q1 to 8.7% in 2026Q2, suggesting disciplined cost control despite the integration of Telephonics. This leverage is a key driver of the EPS growth, which surged 92.5% YoY in 2026Q2, and suggests that incremental revenue is highly profitable at the operating line.

The high COGS ratio reflects the capital-intensive nature of PCB manufacturing, with copper-clad laminates and specialized labor being the primary inputs. SG&A has remained relatively stable in absolute terms, growing from $64M in 2024Q1 to $87.6M in 2026Q2, but declining as a percentage of revenue, indicating that management is leveraging its overhead. R&D is minimal at $8M, suggesting that the company relies on engineering embedded in production rather than separate R&D, which is typical for this industry. The key cost risk is input price volatility, which could compress margins if not passed through to customers.

The 2024Q4 quarter appears to have been a trough, likely due to restructuring charges or inventory write-downs, as operating margin fell to 1.4% from 8.3% in the prior quarter. This was followed by a strong rebound in 2025Q1, with operating income rising to $50.3M, and the company has since sustained double-digit operating margins. This inflection suggests that management took decisive actions to rationalize costs and pivot toward higher-margin products, and the subsequent quarters have validated that strategy. The lasting impact is a structurally higher margin profile, with operating margin now consistently above 8%.