Earnings beat, stock plunges. TTMI reported Q4 2025 diluted EPS of $0.70 versus the $0.68 consensus estimate, a beat of 2.6%. The electronic components maker posted GAAP net income of $50.7 million. million on revenue of $774.3 million. Despite the modest earnings beat, shares collapsed 11.2% to $87.91 on volume of 2.3 million shares—more than double the typical daily turnover—signaling investor concern over the company’s forward trajectory.
Revenue growth decelerates sharply. Q4 revenue of $774.3 million rose just 2.9% sequentially from Q3’s $752.7 million, a marked slowdown from the 3.0% Q2-to-Q3 gain and the 12.6% Q1-to-Q2 jump. Gross profit reached $165.9 million against cost of revenue of $608.5 million, yielding a gross margin of 21.4%. Operating income of $81.0 million translated to a 10.5% operating margin, while EBITDA of $111.7 million represented a 14.4% margin. The deceleration in top-line momentum likely explains the market’s harsh reaction despite the earnings beat.
Cash flow turns negative. Free cash flow swung to negative $6.5 million in Q4, driven by operating cash flow of $62.9 million offset by capital expenditures of $69.4 million. The company ended the quarter with $501.2 million in cash against total debt of $916.2 million, maintaining a net debt position of $415.0 million. Working capital stood at $893.2 million, providing a cushion as the business navigates the current demand environment. The balance sheet remains solid with total assets of $3.84 billion and stockholders’ equity of $1.76 billion.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.