TTM Technologies' Q4 2024: Discrepancies in A&D Revenue Mix and Penang Facility Performance

These are the key contradictions discussed in TTM Technologies' latest 2024Q4 earnings call, specifically including: Aerospace and Defense (A&D) revenue mix and visibility, Penang facility ramp-up and capacity expectations, and Penang expansion impact on financials:



Strong Financial Performance and Revenue Growth:
- TTM Technologies reported revenues of $651 million for Q4 2024, a 14% year-on-year increase.
- The growth was driven by demand strength from the Aerospace and Defense, Data Center Computing, and Networking end markets, particularly due to Generative AI applications.

Aerospace and Defense Market Performance:
- The Aerospace and Defense market represented 47% of revenues for Q4 2024, with revenues growing 16% year-on-year to a record high.
- The strong performance was due to positive defense budgets, supplemental funding from conflicts in Ukraine and the Middle East, and strategic program alignment.

Data Center Computing and Networking Growth:
- The Data Center Computing market contributed 22% of total sales for Q4 2024, with 44% year-on-year growth.
- Growth was attributed to strength from data center customers building products for Generative AI applications, causing higher-than-expected revenues in Q4.

Operational and Strategic Initiatives:
- TTM achieved a book-to-bill ratio of 1.09 for Q4, with the Aerospace and Defense book-to-bill at 1.14.
- The strong bookings and reduced seasonality in operating margins were due to strategic transactions in the Aerospace and Defense end market, including the acquisitions of Anaren and Telephonics.