Circuit-board maker TTM Technologies beat every line and still fell 27.7% on its record quarter

A record quarter, repriced 27.7% by the close

TTM Technologies▲+7.55% — TTM Technologies, up 7.55 percent today, the Santa Ana, California company that is North America's largest printed circuit board maker, put up the best quarter in its history↗ before the open on October 22 ². Net sales were $1.20 billion, up 60% year on year ¹⁴. Non-GAAP earnings of $1.46 a share beat the $1.26 consensus, and adjusted EBITDA margin crossed 20% for the first time ¹⁴.

Boards for AI servers drove it: data center and networking revenue rose 115%, to 41% of sales, on a company-wide book-to-bill of 2.13 ¹. The stock closed at $73.89, down 27.7%, the sharpest fall in the day's AI-hardware rout ³⁴.

In line was the trigger, and the tape did the rest

The December guide was the problem. Revenue of $1.42 to $1.44 billion sits just under the $1.44 billion consensus, with EPS of $1.77 to $1.83 centered on the $1.80 estimate ¹⁴. A stock up roughly 48% for the year needed acceleration, and management offered continuity ¹⁴.

The day punished continuity everywhere: Meta▼−0.68% — Meta, down 0.68 percent today lifted the bottom of its 2026 capital-spending range by $5 billion, to $135 to $145 billion, on quarterly free cash flow of minus $2.12 billion↗ ⁶⁷; Lam Research▲+0.67% — Lam Research, up 0.67 percent today capped its December guide at $8.6 billion, saying supply constraints cost it revenue, with China at 35% of sales and guided lower ⁵; the Nasdaq fell 2.6%, its worst session since June ⁶.

The record was real; the market stopped paying in advance for the next one.

The growth is borrowed, and the schedule is public

The funding story sits in the balance sheet. Total debt reached $1.64 billion at September 28, from $916 million at year-end, after a $500 million senior-notes issue in September↗ and the September 30 close of Epiq Solutions, the aerospace and defense electronics maker TTM bought with borrowed money ¹⁹.

Net leverage is 2.8x pro-forma EBITDA; chief executive Edwin Roks says operating cash flow gives TTM confidence it can "comfortably handle the leverage," and expects the ratio back within 1.5 to 2.0x by the Ophir Optics closing ¹. Nine months of free cash flow came to $35.7 million, on $3.05 billion of sales ¹.

Three deals remain pending and none is in guidance: Ophir at $650 million, priced at 10.3x expected 2027 EBITDA, plus the ILFA and Merlin board plants, both due to close this quarter ¹.

The 2027 forecast against the leverage

The fork is already on the calendar. TTM's first 2027 forecast, $6.5 to $6.75 billion of revenue and EPS of $8.10 to $8.90 against a $7.86 consensus, is more than double 2025's sales and leaves the stock near 11x forward earnings, against a five-year average near 16x ¹⁴.

Against it stand $728 million of new debt this year and three closings that add borrowings before they add cash ¹. The receipts that settle it are dated: the ILFA and Merlin closings this quarter, the leverage print when Ophir closes, and the fourth-quarter report, the first chance to see whether cash flow follows the records.