TTM Technologies borrowed $1.6 billion to buy Epiq Solutions in a deal it calls dilutive to 2027 earnings
TTM Technologies closed its $1.1 billion Epiq Solutions purchase on roughly $1.6 billion of new borrowing, and its own guidance calls the deal dilutive to 2027 earnings. Alembic's $236 target and a congressman's Navy-award headlines sit on top of that ledger.
Vincent Jiang · 3 min read
The bulls priced the boom first
Alembic Global Advisors opened coverage on October 5 at Overweight, target $236, 78 percent above that day's $132.71 close, citing AI demand and aerospace-and-defense growth through fiscal 2028 1. Lone Pine Capital added 2.74 million shares in the June quarter, an estimated $512 million stake 2. The six-firm consensus is Moderate Buy at $203 3. The quarter behind them was real: $1.0 billion in sales, up 37.4 percent, on a 1.49 book-to-bill 1.
$1.1 billion out, $1.6 billion borrowed
TTM+2.62% — TTM, up 2.62 percent today closed Epiq Solutions on September 30, $1.1 billion in cash for a maker of AI-enabled software-defined radios used in signals intelligence and electronic warfare 4. It is TTM's third announced deal this year, after Swiss Technology Group in Zurich and ILFA in Hannover 5. The money came from a $300 million incremental term loan A, an $800 million seven-year term loan B and part of $500 million of 6.750 percent senior notes due 2034: roughly $1.6 billion of borrowing tied to a $1.1 billion check 42. The new facilities carry a first-priority claim on substantially all of TTM's assets 6.
New financing tied to the Epiq close totals $1.6B against a $1.1B price
Data
| Value | |
|---|---|
| Term loan B (7-year) | $800M |
| Senior notes due 2034 | $500M |
| Term loan A | $300M |
| Epiq purchase price | $1,100M |
The guidance nobody quotes
TTM's own release calls Epiq immediately accretive to adjusted EBITDA, moderately dilutive to non-GAAP earnings in 2027, accretive in 2028 4. The borrowing lands on a balance sheet that had barely moved in three years: debt sat near $1.0 billion for twelve straight quarters while quarterly revenue climbed from $573 million to $1.0 billion 7.
Revenue climbed 75% in three years on a flat $1.0B debt load
- Revenue
- Total debt
Data
| Revenue | Total debt | |
|---|---|---|
| Q3 '23 | $0.57B | $0.95B |
| Q4 '23 | $0.57B | $1B |
| Q1 '24 | $0.57B | $0.99B |
| Q2 '24 | $0.61B | $0.99B |
| Q3 '24 | $0.62B | $1B |
| Q4 '24 | $0.65B | $1B |
| Q1 '25 | $0.65B | $1B |
| Q2 '25 | $0.73B | $1B |
| Q3 '25 | $0.75B | $1B |
| Q4 '25 | $0.77B | $1B |
| Q1 '26 | $0.85B | $1.02B |
| Q2 '26 | $1B | $1.08B |
Six percent of somebody else's radar
Representative Joe Courtney's October 5 release credits TTM's Stafford Springs plant with 6 percent of a $511 million SPY-6 radar award, after 6 percent of a $1.809 billion award in July, about $139 million combined at full value 8. A federal-award tracker recorded $28.9 million of payments to TTM over the past year 2. A supplier's slice, not a prime's franchise.
Two buys against 241 sales
Insiders filed 243 trades in six months: two purchases, 241 sales 2. Chief Executive Edwin Roks bought 10,000 shares at $111.77 in August, about $1.1 million; one senior vice president alone sold $3.7 million at $142 3. The cadence, two dozen sales per executive, suggests scheduled plans more than a rush for the exits.
The November 4 test
TTMI closed October 9 at $121.01 4, 46 percent under its 52-week high and still 54 times trailing earnings 3, after a 7.7 percent one-day slide on October 8 that tracked the leverage question 2. Needham cut its target from $220 to $175 on September 21 3. Q3 results land November 4 against a $1.10–1.14 billion sales guide 1. The accretion is a 2028 story; the interest bill starts now.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
