TTM Technologies, Inc. ($TTMI)

Good morning, everybody. Packed room. Good to see. It's been a long time since I was actually sitting on your side of the equation, and I'm now thrilled to be part of a really terrific team here at TTM Technologies. My name is Sean Hannan. I'm the Vice President of Investor Relations here. Very excited to kick off this day. We've got a lot of great presentations. A couple of quick housekeeping things. So our restrooms for people that don't know right behind this corridor here. All right. We're going to have 3 presentations. We're going to have a break and we're going to add another 3 presentations, and Edwin will close with a couple of quick comments. And then we'll have some lunch. And hopefully, a number of you will be able to join us for that. Now if we can kick to the agenda here. Yes. Thank you. It's a good point. So first thing, just to call out our disclaimers. For those that have not read them, please reference on our website. www.ttm.com. For our overview today, here's how we're going to walk through the presentation. So first, what we're going to do is we're going to have an introductory presentation from Edwin, who is Edwin Roks, our President and Chief Executive Officer. He'll talk through the overall company strategy, where are we going. Our second presentation is going to come from Catherine Gridley. Now, some of you might ask why did I just put on these sunglasses that might look a little bit goofy at the moment. And here's the reason. We're starting off with aerospace and defense today to talk about first because most of our audience here and a lot of our shareholders are either technology or generalists. And -- we all go through life. We have our own lens of learning things of how we think about things. And I'm going to encourage you to take off the sunglasses look at a different lens as we look at our business because we have this fantastic aerospace and defense business that we really want to underscore here. Following Cathie will be Greg Fortier, who's also part of our aerospace and defense business, then we'll have our break. We'll move on. We'll talk within our commercial business that will be led by Doug Soder, who's here in our audience somewhere, there's Doug. And then following Doug will be Rob Farrell, who heads up our data center networking business. This gets to a lot of the themes that people tend to focus on being AI, et cetera. And of course, concluding with presentations, will be our EVP and Chief Financial Officer; Dan Boehle, who's up here to my right, your left. So that being said, thanks again, everybody, for joining us. And let me see if I can hand over the microphone to Edwin Roks, our President and Chief Executive Officer. Thanks very much, everybody.

Thank you, Sean. And yes, good to see a lot of familiar phases, also new faces great. Welcome at our Analyst Day, our Investor Day. And I think it's a good opportunity for you, not to just see Sean and Dan and myself, which you see all the time. but also have a chance to speak with the business leaders. And by the way, the full executive team is here. So hopefully, it will be a good discussion going forward. So yes, happy to give you an update on where we are with the company this year. But before I do that, let me introduce our new logo. So we thought it was time for a refreshment here going from the 90s to the 20s. And again, the logo that work out for the last decade, but I thought the refreshment will be helpful. So you still we still have the us, but the [indiscernible] now going up, and that's where we are going. So not only, let's say, that we need sunglasses for -- because the sun is shining for us but also, let's say, the Sushis going up. So that's a good story. We like the new logo. You see we have the TTM Technologies. We also have the single T, which is an interesting way to present us. If I look at TTM at a glance, and again, all of you -- and including me, by the way, we like to look forward. But still, I'd like to show where we were at the end of 2025. So first of all, we are a technology company. We are a high-tech company. We are a global sensing interconnect and decision support company. And you see that in all the presentations we gave in this morning. We're capitalizing on megatrends. And that's AI and defense in our case. So 80% of our business is basically driven by these by these megatrends. And again, AI is not just data centers and networking, AI is everywhere [indiscernible]. Then a very balanced portfolio with highly engineered products. We love things which are difficult. -- we can do it, and we're pretty unique in these things. But again, it's very balanced. If you look at the end markets, and I'll show you later on. And if you look at the products, it's a very balanced portfolio. It all starts with a good understanding of your end markets. If you don't understand your end markets, forget it. In our case, these are 6 end markets, the data center networking, A&D medical, industrial instrumentation should be in that as well and automotive. And then last but not least, and it's very important for investors. Yes, we have a proven track record and a consistent performance. And that's what you hope to see in the foreseeable future. If I look at the metrics of the end of 2025, we closed 2025 at $2.9 billion of revenue, 19,000 employees and about 25 facilities. So a nice footprint. If you look at our reporting segments, we report in 2 segments: our aerospace and defense, which is 46% of our revenue in 2025. and our commercial business, which is 54%. And then if you look at the individual businesses, our defense, we don't carve out, but if you look at the fence, -- we have, of course, the defense portion, we have the aerospace and man portion, and we have the space portion, which is growing very nicely, by the way. If you look at the outpace and defense, the growth is high single digits for that that business. And that's how we predict in the foreseeable future, high single digit. If you look at the commercial business, data center and networking, you will see this year that we likely are going to double that business. That's why you see the 2 arrows going up -- it's a very, very nice business. And we're riding the wave, let's say, and we're steering the wave, and I will show you later on, but that's what we expect there. Then our medical, industrial and instrumentation business we expect to grow about 25% to 30% going forward. And then our automotive business, where we are very, very picky on what we do. We picked a higher-margin business in automotive -- we will not do the boards of 6 layers or the 4 layers that we do the ADAS systems and so on, where we make our margin. So that business, although in Q1 was almost flat, just minus 2%. We expect decline of, let's say, a 10% year-over-year. So that's where we are. That's where we were in '25. Again, the $2.9 billion is a nice number, but you see better numbers at the end of this presentation. Our strategy is pretty simple, easy to explain. It goes in 2 directions. First of all, the interconnect solutions. If you think about chips as being the brains and knowing that Moore's Law is getting to an end. So every 2 years, a doubling of the amount of transistors is not happening anymore. You have -- you don't have a lot of choices. You basically -- you have to combine these chips. You have to combine the brains. And that's exactly what we do. We are the nervous system. We consider ourselves a nervous system. We connect the brands to make a very small, efficient and power efficient solution. So consider us the nervous system. And that's what we do with, let's say, our printed circuit boards, where we go up and Doug will talk more about that, but we go up to, let's say, 150 layers. That's not trivial, yes. These are not the layers, let's say I grew up it with 4 layers of 6 layers. Now these are 150 layers. Substrates and netoposers, very close to the semiconductor technology and heterogeneous packaging. So these are the things we do in interconnect solutions. And that's a big, big part of our business. And then making use of these interconnect solutions, we make our integrated products. So in this case, printed circuit both assemblies and not the straightforward assemblies, not met components. No, these are very special components so that we add more value to our customers and make more margin there. Our integrated modules, our subsystems and sometimes included with cooling and power and then going to full system architectures where we make full radar systems, for instance. And at the bottom of this slide, you see the -- you see a lineup of different solutions. So the PCBAs, the modules, the assembly and then finally, a full integration in the nose [indiscernible]. Thinking about our end markets, and I will not go in all the details of this slide that we've done in the different presentations. But if you look at data centers and networking, we do a lot in data centers. we don't do only the switching. We do most of the boards in data centers. We have content there. So that's a very, very healthy business for us. The medical business, one good example is surgical robotics. There's a lot of robotics happening. You will also see today an example of glucose measurement, these type of things. That's where you see our solutions. Industrial. Industrial is also about factory automation. It's a lot about, let's say, robotics as well. So that's happening there. Instrumentation, think about semiconductor test, also a lot of AI-driven businesses. Then on the defense side, Unmanned Systems, about 50% of our aerospace and defense, which is [indiscernible] related -- so you will see a lot of radar solutions. And then our space business, which is all about radiation hardness and making sure that these things stay alive. When you go in space, you have to deal with very low, very high temperatures, you have to deal with a lot of radiation. And these components, they should stay alive. So that's a thing there. So satellite communication, missile defense, a lot of these type of applications. And then last but not least, automotive. You saw we never stepped away from automotive. It has a lot of synergy with robotics. ADAS is still a very interesting business. So these are our end markets, 8 end markets. And of course, there are a lot of adjacencies as well. Then the wave, and again, if Dan and I do these investor meetings, we already get that -- we always have to mimic this thing. Now we have it on the slide. It makes it a lot easier. This is the wave we're driving. I would not say we just writing. No, we're driving that wave, correct? It's data centers and networking and you have to be in it, yes. If you want to grow, you have to be in it. But at the same time, I'm so happy that the underlying businesses are also nice, nicely growing. And you see some step-ups also in that line below it. And these are the acquisitions. So we have some very nice acquisitions lined up. We will grow that business in multiple directions. Again, Aerospace, sorry, artificial intelligence, let's say, driving that wave, but then the underlying business is very, very important, gives us the stability, because the wave will go down. When it to go down, we don't know. Yes, you can read any report and they will give different answers, but it will go down. And we don't want to rely on that. We just want to make sure that we have a buffer to make sure we keep growing. I know you're not interested in this, looking back, but -- and I know that well, by the way, but still do it. This is showing the 90% year-over-year growth from 24 to 25, which is nicely in line with basically what we said before in January, the 15% to 20% over the coming 3 years that's still accurate, 90% growth, $2.9 billion. But again, '26 will be a lot better. And then looking at the earnings, the same thing. We don't like to look back, but it's still a pretty good trajectory. And here, we said basically that in '27, we will double the $2.46. And that's -- we're well on track and that you will see later, let's say, in [indiscernible] slides. Then this pendulum. And again, this is not to bring you into a sleepy mode. But this is basically explaining what we do regarding capital resource deployment. You have to do all these 3 things. It was very difficult, by the way, to make that pendulum going in 3 directions, but please consider that is going in 3 directions, okay? So first of all, the organic growth. Organic growth has to do with new technologies. We have to make sure we can keep interesting technologies and work very, very close with our customers, and that's what we do. We have very close relations. We don't listen to the customers just and say, okay, we do what they want us to do. Of course, we do that, but it's a dialogue. We have a common road map, and these are the relations we have. So new technologies. And the second thing is capacity expansion. And you will see that from a lot of speakers, by the way, beyond the speakers, also our COO, is here, Jim Wallls, and he can talk also to these things. So capacity expansion is a lot of happening there. Second thing is M&A. We love the chain M&A. We love, let's say, global expansion. You will see some things about Europe. So think about global expansion there. And we love business diversification, again, to make sure we don't rely on 1 business. We are, let's say, mitigated there. And then you have to make sure that you keep the organization simple, you keep it lean. So operational excellence is a key thing. This is not just about yield and about throughput time and all these things. No, it's about having a stable supply chain. -- having, let's say, doing a lot of simplification, think about 80/20 and a lot of simplification, let's say, take our headquarters, yes. A very lean headquarters, a very efficient headquarters. So -- this is how we operate. Again, the pendulum is going in all these 3 directions every day. Then talking about our footprint. First of all, our headquarters is in Santana. By the way, in the coming months, we will move probably 3 miles and we go to Irvine, but we're still in Santana in Southern California. And then if you look at the global footprint, starting with the U.S. and Canada, by the way, North America. We have 18 sites there and nicely distributed over the country and a very efficient way, let's say, to expand and make sure that we can manage it both on the defense side and the commercial side. And then looking at our Asia Pacific side we have our 6 sites in China -- sorry, 5 sites in China and the site in Malaysia, which is presented here. And then, of course, what to come -- and you hear my bad accent. I'm originally from Europe, from the Netherlands. So you can imagine that we will be expanding in Europe, and that's going to happen. So that's in the pipeline. My last slide, I don't want to take too much stuff to your time because I'd like to make sure that you hear from the business unit leaders. As a summary here, we are a very advanced technology leader, and that's how we present ourselves. We want to make sure we're a technology leader. You cannot be -- I don't believe in fast follow us, by the way. You're never a fast follower, you're a follower. In this case, we want to be a leader and we have to be a leader. We're capitalizing on the mega trends. Like I said, the 80%, and that's a very important thing. The trusted business relationships -- these are big customers we deal with. We have a lot of customers, but also very, very big customers. So we have very, very strong relations, not only for the business now, but in the future. High barriers to entry. We love difficult stuff. We love difficult stuff because nobody else can do it. There are not that many companies who can make 150 layers. There are not that many companies who can do Ampoxin, there are not many companies who can do advanced data systems. It's very difficult. A global manufacturing footprint is key. Like I said, the diversification is key. We don't rely on 1 business. This is not a session just about data centers and networking. That's why Cathy's directly after me to talk about aerospace and defense, it's a super, super important business for us. We're financially strong and disciplined. If you look at our balance sheet is very healthy. Our leverage is very healthy. We can do a lot of things. And again, our strategy starts with interconnect and then using our interconnect to go into integration, a very simple strategy, easy to understand -- and that's we'll try to keep it that way that everybody understands our strategy. So with that, let me hand it over to Cathie to talk about Aerospace and Defense.

Thank you, Edwin. Good morning, everybody. Really -- appreciate the opportunity to talk to you today. It's quite a full room. And actually, that's pretty exciting for us. I think. Sure. Apparently, I need to shout. So I will do a bit better job of projecting here. So first of all, let me introduce myself. I am Cathie Gridley, I'm the Executive Vice President and President of our Aerospace and Defense sector. I joined TTM in 2019. And Today, I'm going to talk to you a bit with an overview on our [indiscernible] sector. I give you a bit of an idea about our strategy for growth and make sure that it's clear to you what our differentiation here is in this market. Also going to introduce Greg [indiscernible] who is going to speak to you and showcase our integrated electronics business. Greg is Senior Vice President and President of our Integrated Electronics business. So first, let me give you a nice at-a-glance overview of A&D. So this is a nearly $1.5 billion aerospace and defense sector. That puts us in the U.S. around 35 in ranking in terms of A&D businesses and defense businesses in the United States. We are delivering products in A&D across the spectrum of electronics. From the foundation of electronics, which is the printed circuit board and really the foundation of our company. all the way through to mission-critical systems and integration. We do that in radars, surveillance and comms. But first, I'm going to talk a little bit about the history. How did we get into integrated electronics and it really is core to our Aerospace and Defense business. So in 2018, we acquired Anaren. Interim was that first move as we've evolved from the printed circuit board into integrated electronics. With the Anaren acquisition, we brought RF microwave capability, electronic modules and specialty components. Wind the clock forward a bit, we get to Telephonics. So we acquired Telefonix in 2022. And with Telefonix, we really moved up the chain further into full system development, design and integration. When we added this, the other thing we added was a significant amount of engineering that allows us to really work more closely with our customers for the integration of our products, all the way from the work that we do on the Board all the way through these modules, specialty components and moving on up into full systems integration. We address 3 markets. So the biggest market, submarket in A&D that we address is defense. So that is about 90% of our portfolio. We have a long history and heritage here. We are on over 480 programs, and I'm going to talk about that in a bit more detail. We also address commercial aerospace. Right now, that is predominantly Boeing and Airbus platforms, but we see that growing into commercial advanced air mobility, so I think air taxi. And Greg is going to talk a little bit more about that opportunity. And then space. So space is easily the largest growing market that we address. We have had 40 years of putting product into space. We are well respected and trusted for our radiation hardened capability. We have been on pretty much every major space mission. If it goes into space, there's a high probability. TTM is going with it. So Edwin mentioned our 18 facilities in North America. Of those 18, 16 of them are qualified for aerospace and defense product. this footprint and what we do with it is a significant differentiator for TTM. With that footprint, not only are we able to flex and rapidly grow our capacity, which is a critical requirement for defense right now. we also offer a dual source strategy and capability for our customers, especially on national security products. One of the reasons that this is so important our customers need that supply chain resiliency. And certainly, supply chain is top of mind right now for all of our customers. TTM offers that to them through our footprint. So while other companies are able to provide one location and customers are required to go out and find multiple competitors in order to create that dual source. TTM offers that internally. So we give them that certainty of supply and the ability to flex and ebb as they need us to in order to protect national security requirements. We have trusted customer relationships, and that is how we are able to get earlier engagement with our customers, get a seat at the table from the beginning as they are designing and developing their platforms. We're able to talk to them at all levels from the printed circuit board all the way up through integration onto the platform because we have that capability. We've invested significantly in the resources, and we have the culture that our customers are looking for from customer relationships. Our customers regularly refer to us as the benchmark for how to provide support to them and to treat them from a relationship perspective in this industry. And then finally, the makeup of our organization. So from an A&D perspective, we have 2 key areas that we look at from a sort of product orientation. We have interconnect solutions, which is led by Tom Claret, who is in the room, SVP and President of that business; and then Greg Fortier runs our integrated electronics. And I'm going to talk just a little bit more about these 2 pieces of the portfolio. So a little bit of this should look familiar to you. But before I dive into this chart, I think it's really important for this room to understand when you hear about electronics, especially in the A&D industry, you think about TTM. TTM Technologies is at the root and the foundation. -- of all electronics when it comes to that printed circuit board. And let me tell you why. So there's a significant amount of discussion about chips. Chips are very, very important. There's no question about that, a lot of investment, a lot of dialogue, a lot of concern about supply chain as it relates to chips and investment in chips. But there is an expression that we have that puts the Board in its proper context, and that is that chips don't float, they go on a board. So when you see the construct of this business and you look at the printed circuit board and you think about substrate, interposer and heterogeneous packaging, these are all critical elements that enable that chip and that is what TTM brings in its Interconnect Solutions business. The arrow that you see there in the middle is there on purpose. The position that we have with our customers, the long history that we have, this critical attribute of the electronics ecosystem gives us that early engagement has developed a gate of relationships with our customers and makes us incredibly credible with our customers as we move into integrated products. They understand the criticality of how that board integrates up the chain RF microwave, microelectronics modules all the way up to mission systems. And this is what TTM does. Where we bring those printed circuit board assemblies, the integrated modules, which is becoming more and more important in the supply chain of our defense customers. As you think about what they do and how they operate, they need companies is that company who can integrate in that value chain. And I'm going to talk about that more in a minute. The formula at the bottom. So this is really the value proposition of our Aerospace and Defense business. That is an end-to-end formula, where you take a PCB and you combine it with specialty components, you get a module. You take that module and you integrate it with software, which we design and can integrate. Put it into an integrated chassis. And ultimately, you get to a mission system, and we are able to operate in that entire value stream end to end wherever our customers need us to, ultimately being able to provide a system like you see there, which is our multi-mode radar on the MH-60 Romeo Seahawk helicopter. A system, by the way, that some pilots in the Navy have referred to as a real differentiator for them in the field. So it's the look back. Sorry, Edwin, I'm going to had to have a look back, right? let's look back for just a minute. So this is a pretty compelling story what we did in 2025 in our Aerospace and Defense business. You can see the revenue number. That's a pretty great number, right? So 13% year-over-year growth. really proud of that number. But really, what is compelling here is what we did on EBITDA. So in 2025, we put up $221 million of EBITDA and a year-over-year growth of 22%. So what does that tell you? -- nearly double the growth in EBITDA that we did in revenue. And both of those numbers are pretty awesome, but it really tells you that our customers are recognizing the value that TTM is bringing through the suite of products and the solutions that we're providing to them, giving us the 17.2% EBITDA margin, which was 120 basis points growth year-over-year in 2025. But once you get through all that, which is pretty great. I'll say that a few more times is the bottom part. And that's the real story because that's the look ahead, right? So 1.04 book-to-bill tells you that we booked more than we built in 2025, a clear indicator of a growing business. Our backlog, $1.6 billion. The reason that, that number is so important, so that is sort of the heart of an A&D business. So there is multiyear content in there, gives us great visibility into what we need to do for our supply chain, great visibility into how we need to invest for capacity and is yet another indicator of the confidence that our customers have and the trust they have in us to book that kind of business with us going forward. And then you see the $7.2 billion pipeline, and that pipeline is growing. There's such a strong demand in defense for what TTM does. We are well positioned to address it, and that's going to continue to grow. All the indications from the Department of War and from our customer base tells us that there are critical programs coming our way and accelerating, you can hear and read about them every single day. So let me talk just a little bit about our strategy. So I've talked just a bit about the tiers, but the pyramid on the right-hand side really gives you that depiction. So that pyramid reflects that ecosystem of electronics and defense. We play at all 4 tiers. So we have the PCB, the true foundation and heritage of our business as well as the foundation of electronics is Tier 4. We are in a market-leading position there. the #1 in U.S. defense for that Tier 4 PCB manufacturer. We then move up the chain into modules and assemblies, through to subsystems and then all the way to mission systems with the knowledge and know-how to integrate at every level. When you think about our customer base and that vertical up the value chain arrow, what's happening in our customer base right now, certainly on the defense side is that their demand is growing, which means our demand is growing. But as they are looking at the capabilities that they have stood up in-house for development, design, prototyping and low rate production, they too need to free up capacity. So they look to their supply chain. And when we think about our competition, our biggest competition really is the primes themselves. Not because we go head-to-head with them, we don't. -- but they keep it in-house. First in that early phase of the life cycle, but then they keep it in-house when they don't have a trusted source to go to for further integration of the chain. And in an environment where their capacity is under pressure, TTM is absolutely at the ready. We have that trusted relationship, that deep relationship. We are in the room with them with our technologies and our capability. And we are the trusted source that they are able to outsource to when they go through that make-buy decision making. -- because we can integrate at any level of the chain. So we can be proactive with them and design the development, especially in interconnect solutions, and we can react very rapidly when they want to outsource as they need to free up their capacity. -- and focus on the next-gen technology. So if you look at the horizontal arrow, so horizontal can be moving across the mission areas. So we're very strong in radar. More than 50% of our content is oriented toward radar, including radar systems. We have comms, we have surveillance, but that horizontal also refers to, as Edwin mentioned, international opportunity for expansion. We are incredibly well respected here in the United States. We have a very strong position. We are very well known in terms of our opportunity to support U.S. defense requirements. But if you think about what is happening in Europe, and the European focus on their defense industrial base, who is better positioned than TTM to support them in that growth initiative that they have. So we will replicate our domestic market position in Europe, among other regions of the world. We're accelerating our investment in packaging. Edwin talked about this, and I'll talk about that a bit more and test capability. So when you build products in the department of war and for the Department of War and when you build these kinds of products, often companies in the supply chain just deliver the product, leave the end customer to do the test. You need to deliver a product that you know will work for them every time. So we are improving and investing in our test capabilities so that we can bring more of that test element to our customers. And I'm going to talk about just a bit more of that deepening of the customer engagement. So this is where we need to have earlier engagement with their engineering organization TTM often finds ourselves as an extension of their engineering bench. We bring the engineering capability to them and the expertise in the areas where we are the subject matter experts, and they bring us in the room like a partner. We are a partner. They call us a strategic partner. That is where you want to be in this industry in this value chain in electronics. So I'm going to take a couple of slides here to talk about 2 of the domains, so defense and space. Just to sort of orient you. The picture up here that you can see is there for a reason. So that is not just a pretty picture. That is the current integrated bowl space. So you have satellites talking to aircraft, you have ships talking to ground stations, you have autonomous aircraft flying throughout that, all talking to each other and all interconnected. Electronically, digitally enabled. And that is the entire domain in which TTM operates and was built to support. And that is going to continue to be not the future battle space, the current modern battle space. And when you think about the 5 mission areas that are over on the right-hand side, these are all mission areas that are being heavily invested in right now from a defense perspective, and TTM is playing in all of those domains. From an enabling technologies perspective, I'm not going to go through all of those. We have a lot of really amazing engineers who are subject matter experts in those areas. I think the things that are really important to understand about those enabling technologies. These are not futuristic for TTM. These are the enabling technologies that bring us in the room. These are the enabling technologies that we have, that we deploy or are ready to deploy for our customer base, and it is because of those that we get a seat at the table with our customers. And if you think about what we do on the right-hand side, so I'm going to talk about Counter-UAS for just a minute, which is unmanned aerial systems. So in that domain, if you think about what's going on in the world, some of the conflicts that are out there, drones, have become a key element of that, and not just individual drones, swarms of drones. And this creates a particularly big problem statement for national security and for defense. There are a lot of radars in the world that can probably handle identification of one drone or a couple of drones individually. But the real problem statement is that entire drone swarm. And TTM is solving this capability gap for the Department of Defense, bringing solutions forward on how to identify those drones in that big sworm individually. It's a pretty exciting opportunity for us. something that we are further investing in. So now I'm going to talk about space. Again, very large, very growing domain. Similar picture on the left-hand side, as you saw before. I think the important thing to remember here is that space. And yes, we've -- TTM as a company a lot of missions into space. This is not just about exploration anymore, right? This is a contested war-fighting domain. And is providing content and focusing on those 4 critical mission areas on the right, all of which are satellite-enabled. And TTM has the long-standing history of rad hard capability -- we've been putting product into space for 40 years. We are trusted by our customers. And the key thing to understand about when you're putting product into space, it must work every time. it must meet all of the requirements of that incredibly steer environment, radiation, wildly variable temperatures, and we are able to do that, and we are trusted to put content up in space. When we talk about the enabling technologies, the thing to take away here is you see some of these are similar to the last slide. So when we invest and develop an enabling technology, that is applicable to one domain, we are able to port it to multiple domains. So we're able to leverage that capability and replicate it into multiple domains. We get a position on one program that gives us the experience and the capability to insert it into additional programs, and we have been doing that on a very regular basis for quite a long time. So from a differentiation perspective, what makes TTM stand out. And I think I've given you a few good reasons why TTM stands out, but I'm going to talk through it just in a little bit more detail. But first, I'm going to talk about the image that's on the left-hand side, again, put there by design. So that is the DDG51 Harley Burke, which is a 1 of the, if not the most capable surface combatants in the world. And the reason why I put that platform on the screen here is because I think it's important to understand just for a moment, how the defense department looks at something like that. So that's a ship. It's also a platform. It's a platform for a lot of systems, a lot of highly technical electronic systems. TTM on that platform supports many systems, not the least of which is the 56 radar system. Maybe you've seen a press release about TTM and the SPY 6 radar system. This is one of our largest programs. It's a highly complex program where we provide not just printed circuit boards, but a huge amount of content from a technology perspective, enabling that 56 radar. In general, we have 12 facilities that are providing technical highly sophisticated technology into that platform and over $25 million worth of content on that 1 ship. When we think about differentiation, so I talked about our vertical integration. And again, the importance of being able to operate at any vertical, any tier in that supply chain. And we have the diverse product portfolio. Our customers are looking for suppliers in the supply chain who are able to manage more of that supply chain. The days of the primes wanting to take on large behemoth global supply chain infrastructure. And then came to an end with COVID. So in COVID, I think the defense industry really learned as did a number of industries, the companies who could manage more of the supply chain to them, for them was a real asset to them. and TTM is that company. Because of how we operate up the chain, we understand the complexities of going further upstreaming in the supply chain and being able to take on more of that supply chain management on their behalf. -- and we do it on a regular basis. We do it every day. We have very strong supplier relationships that are a foundation and a differentiator for TTM. We have the multi-decade relationships with the customers that I talked about, and that also translates into the supply chain. So our operations organization does an exceptional job of building supplier relationships and managing those relationships for the long term. The visibility that we have into our pipeline, the visibility that we have into our bookings allows us to translate that into demand for them, which is what they need in order to shore up their capacity and to anticipate the opportunities that TTM is bringing to them through the supply chain. We have a deep history of innovation first, and we've been doing that for decades. We are at the cutting edge of technology and technology advancement, and we're bringing that to our customers every day. We are not a follower. We have board to system design capability. So I think I've talked about that a bit already. and then the deep program portfolio. And I think that this is the most underappreciated differentiator that we have. So our footprint in the Department of War and the program base that we have there, our ability to see into the future to understand through the communications from our customers the President's budget, from the Department of War and the signals that are being sent about national security programs. That is what gives us line of sight to our future opportunity, our future potential, where we need to be investing and where we need to be positioning ourselves. So then we talk about investments, and I've talked about what gives us line of sight into capacity. -- and talk a little bit about the picture on the right, and so I'm particularly proud of that picture. So that is our most recent greenfield project began in the middle of 2024 and is about 1 month away from being production-ready, so that is our 212,000 square foot high-tech, ultra high-density interconnect capability. That is on the first floor. The second floor is reserved for our expansion into advanced packaging. The important part about that project and the reason why it's on the screen is because that was a multifaceted collaboration with our prime customers, the Department of War and TTM in order to onshore a capability that was not found in production in the United States. And this is a clear example of TTM's ability to rapidly for the U.S., stand up capacity, the equipment and the capability to get into production in less than 24 months. On a capability and a requirement that the U.S. Department of Defense did not have access to at a production level until the stand up of this facility. And yet that is not the only investment that we are making in capacity and capability. So we have Sterling, Virginia. So Sterling, Virginia is the #1 PCB provider for munitions in the United States. And we are expanding that footprint and expanding the equipment there in order to ramp up to capacity to meet the demand of munitions acceleration. Cipla Falls, Wisconsin, which is our largest A&D facility. We are adding equipment and ramping up expansion there in order to meet defense demand, but not just defense demand, also reshoring. We have many customers that are coming to us looking to get capacity from us in the United States for reshoring. And we are doing that in Chipa falls among other locations. And then finally, we have Farmingdale, New York. So Farmingdale came to us with the Telefonix acquisition. This is the heart of our systems integration, our design of systems, our test and integration capability. We completed an expansion there where we are ready to ramp up and meet new system production and sustainment, which is a long-term revenue stream for us on our products. you think sustainment that is aftermarket, that is fielded equipment comes back for regular repair and maintenance. It is a growing statement of work for TTM. So just those 4 facilities and the investment that we've made in the capacity there is enabling the potential for $500 million in additional revenue growth. And we think that will be sort of incremental by 2028 from an available capacity perspective. And I'm going to name a couple of programs here because I think it's really important to understand the magnitude of this demand wave. This is all in the public domain. You can all hear about this, right? Munitions acceleration. This is exactly where TTM is poised and positioned to respond from a capacity perspective. We are the #1 PCB provider on munitions in the United States. And then there's Golden Dome, and Greg Fortier is going to talk to you about that more in detail. We are found inside the programs that are all in the framework of Golden Dom. And then in general, this is not just about and revenue opportunity. That's important. -- me wrong, but it's also a national security imperative and TTM is leaning into the national security imperative, and bringing the additional capacity and the additional capability, preparing for the onshoring that is required to enable the Department of Defense. So from a program perspective, why does this matter? So we are embedded in the programs that matter. And that is a position that is not given it is earned. And we have earned the privilege to be on these programs through our exceptional performance, our operational execution, the technology that we bring to our customers. And once you are on these programs and embedded in these programs, as long as you perform the way TTM performs, you are incredibly difficult to displace. And not only are you difficult to displace your customers don't want to displace you because we are performing, we are providing them with certainty, the assurance that they are going to get the high-quality products that they need on time every time. And that is what TTM brings to them. I mentioned munitions. So we are on over 30 munition programs. We are in 20 of the top 25 by spend in the Department of War. We are providing them with the highly sophisticated electronics required for the guidance and precision that is needed with those munitions. We're also very proud to accompany Artemis II and to be a part of that mission. So we had 5 TTM facilities that provided product on ARTEMIS 2, all highly sophisticated technology, radiation hardened capability. Key to that mission. -- and enabling that mission. We're very proud to be a part of that. And we will continue to put product into space as that domain grows. And then finally, we have the F-35 Lightning, which deserves its own slide. But before I get there, I think it's important to reiterate, we are on 480 programs. We get clear line of sight into the future of those programs. We understand the spend profile. We are on the major national security programs that stand the test of time. You might be able to say they're a little administration agnostic. And we will continue to be for years to come. And if we talk about the F-35, I really like this slide because this slide sort of encapsulates -- what is so important and what differentiates TTM. So at the center, you have the F-35 Lightning, probably the most sophisticated, most electronically enabled aircraft in the world. And this is a sample of the systems in that aircraft that TTM is providing product to. And you can see here, there are some colorful dots on the screen. -- that we're providing in some cases, well, in all cases, as shown, interconnect solutions. And in some of these systems, we're also providing microelectronics and RF microwave capability and integrated electronics into those systems. Now we don't build those systems. Our customers do, but we enable every single one of them with a highly sophisticated technology that we are providing to these customers. What's really compelling, I think, is the numbers and the walk down on the side. So over 2,000 TTM parts are on that aircraft, that's on each aircraft, not the program. We have 7 integrator customers that we are supporting with our technology for that program. even customers who trust TTM to bring them our products and our technology to enable that aircraft. We have 8 TTM facilities that are providing products on that aircraft. And then what sort of encapsulates why having a nearly $1.5 billion A&D business is so key to TTM. 2040 for full rate production of that aircraft and then at least 2080 for that aircraft to be in service. So that is more than 50 years where TTM is going to be continuing to provide products and support that aircraft. That is a very compelling place for TTM to operate with nearly half of its business. And with that, I think I'm going to throw over to Greg Fortier, so he can share a bit more about integrated electronics.

Well, good morning. If I could just ask a show of hands quickly. Aerospace and defense analysts in the room versus commercial? So very few aerospace and defense. I only ask you that because I'm going to start with the aerospace and defense continuum and just try to explain how the aerospace and defense markets are prosecuted from left to right, and then that will weave its way through the rest of the presentation and show you how TTM is uniquely positioned where we actually work in the left to right, continuum, but we start with the right and go to left to enable speed and execution. My name is Greg Fortier. Honored to be here today as the President of Integrated Electronics and certainly honored to be Talking about that continuum. So if you start on the left side of the defense acquisition system, Aerospace Defense acquisition has continuum. You'll start with requirements analysis, market research, science and technology. You take 1 step to the right what we call the 3D phase, which is design, develop and delivery of those products and weapon systems, progress 1 more step to the right, talk about test and evaluation. A lot of these teams, Cathie has already hit -- but that test and evaluation phase is so critical because you're evaluating whether these products are executing what they're designed to do and then the speed at which you can get through that phase is where you get to the final phase, which is the user phase. And I personally been 30 years in the defense acquisition continuum, I have been in every phase of that and certainly been on the user side for the better part of 10 years. And I could tell you in the combat operations in an armed scout helicopter. When you're pulling the trigger, the last thing you're worried about is whether an integrated electronic or part of your weapon system or what the munition is going to work, right? You just need it to work and it works every time. And certainly, the TTM products do that in spades. So -- many of these products, as I said, were used by myself and others at TTM over the better part of the last couple of decades. They're being used today in global conflicts across the world, whether that's Ukraine, Iran, et cetera. My purpose here today is really twofold. First is to just outline how the integrated electronics business maps itself through the value chain and across each of what I'll talk about 4 domains. Cathy talked about domains in the context of space and defense. I talk about domains within the context of the land domain, the maritime domain, the air domain and then the space domain and how we map across that, both in the defense space and also in the commercial space. And then I'm also going to close with some use cases taken at first glance may seem a bit singular in nature, but they actually present unique growth opportunities both in the short term for TTM's integrated electronics business as well as the long term, and they also provide multimarket applicability and derivatives along the way. I hope you take away 4 things from today, and they're really bunched in 2 groups, right? The first how the fundamentals of growth at TTM are leading to product offerings that are really 3 things, right? The first of which is producible and that speaks largely to our tremendous operational capability and capacity to produce products at scale, at speed. The second is reliable. We have that engineering document that Cathie just spoke about in acquisitions and the like within the business. engineering document to both design early and upfront and that continuum from the left to the right, but also to be the first to the white board, first of the chalkboard. -- to ensure an accurate design to ensure a quick test to get speed of delivery. And then last but not least, high quality. We don't have the luxury of providing products that don't work. These products, a lot of these products are in space for a long, long time. They need to work for a long time. every time to ensure overall success. The last 2 takeaways are really about the business itself and it's about how balanced the business is how stable the business is in the sense that it's sole source, 90% of the business currently is sole source, and it's a great foundation from which to build. But that balance and that stability also provides us incredible visibility into not only what's in the near term, but also in the long term, allows us to make investments appropriately so that we can lean forward into the next 5 to 10 years, all the while understanding real short-term growth as we prosecute things 5 to 10 years down the road. So with that, Interent Electronics is 1/4 of the business at TTM. I talked about the continuum left to right, we actually start right to left with a series of fundamentals. So we start with the user. And for those that have followed the defense space and the aerospace and defense space, -- we've been talking about acquisition reform for a long, long time. We have now seen the extantiations of about 10 years' worth of work where the companies that are most successful, the companies that are going to grow are the companies that get with the user first understand the mission set, both across the Department of War, commercially and the like for military customers and then work our way backwards. So I understand the mission set, ask ourselves the question, what does the customer need, what do they need to achieve, whatever they're trying to achieve. In doing so, you understand very quickly the technical challenges, the technical complexity and the integration challenges because largely, a lot of what today is, and we've seen this in the most recent geopolitical conflicts is how do you integrate enduring systems with future systems? How are you agile enough to respond to evolving threats and then really where the integration happens is where all the magic happens. And then I've talked about it a little bit already, but the testing strategy also will get product to the field as quickly as possible. The third is capitalizing on the relationships that Cathie talked about. So we spend a lot of time at TTM, certainly in integrated electronics. We spent a lot of time in trailers in the middle of the desert, testing things out. We spent a lot of time in labs. We spend a lot of time in hardware in the loop environments where we're first understanding how these modules, subsystems and systems will integrate in the larger context of what we're trying to accomplish. That forges relationships. It forges trust, and allows us to, quite frankly, answer the questions before they're asked of our first customer and then the end customer, understanding their needs as well. So it gives us a unique competitive advantage along the way. And if we do all those things, if we start on the right side, and we work our way left and we build the trust, we have the relationships, then we understand how to sell the product appropriately and get it to market and then see the kind of growth that is expected of us. The business itself, really in 3 pieces, components. -- largely microelectronics and microwave components out of Syracuse, New York. These subsystems are seated in 2 areas, Denver, Colorado and Safra Springs. 30% of the business is components, 30% of system -- the businesses subsystems -- and then lastly, radar surveillance and comms. -- depending on what train station you use here in New York City, you can get there in either 56 minutes or maybe an hour or 10 minutes of Grand Central out to Farmingdale, and that's where all of our 40% of our business to include our aftermarket and sustainment business, which is very profitable, that feeds into the overall content of what we're trying to get across here. We do this work every day. at every site to support every 1 of these domains. Cathie has already articulated really our current positions have done so very well. I'll highlight the growth areas. I'll start at the bottom in these domains at the land, the maritime, the air in the space. The arrows on the right show where we see the largest growth opportunities. And I can say that very confidently because President's Budget '27 has $235 billion dedicated to just 7 budget lines. So let me just read those budget lines and then you can see how they can map to the domains appropriately. Drone dominance, $74 billion golden fleet. We talked -- we hear a lot about Golden Done, but Golden fleet, $65 billion, autonomy, $54 billion, Golden Dome, $17 billion brand-new air traffic control system, which is not a defense space, but it's critically important for her abroad or in the homeland, $12 billion command-and-control networks, which is, quite frankly, the future of of any armed conflict. The conflicts we're in. I was in 20-plus years ago. You could have fixed sites, you could have fixed bases -- those days are gone. I think we've seen that, right? So the maritime domain is critical as well as command and control soldiers at the edge, sailors at the edge, marines at the edge, having the command-and-control capability at $10 billion. And then industrial base enhancement -- while it's only $3 billion, we're watching this very closely because this is the area where the Department of War understands that they can allocate funds, they can place investments appropriately across the budgetary environment to procure equipment and pure systems However, they do want to develop that organically. So we can get -- be a part of some of that. We feel like we can insert ourselves at multiple levels at the component subsystem level, the Board level to execute that accordingly. So just 7 budget lines, $235 billion of investment, a very clear signal and present budget '27 and beyond. Obviously, defense programs run out 3 to 5 years and beyond. So it's not just all 235 in 1 year, but certainly worth taking our time, both in the counter UAS space that Cathie spoke about, the edge compute space and then look no further than probably the hardest mission in the world is to the underwater unmanned vehicles to demine the sea, discern what is a mine, what is not a mine, and we're seeing that play out real time in the Strait of Hormuz. So that's not going anywhere anytime soon. Also important to highlight space, and I'll talk a little bit about that on the next chart with Golden Dome. But power management and cooling, make no mistake about it. As the world evolves, as things get more complex as integrated electronics are demanded more of power management and cooling is at the forefront of all of that and our radiation hardened and radiation and tolerant products have stood the test of time, as I've said, Cathie said 4-plus decades. So 2 case studies, 1 of which is is Golden Dome, 1 of which is kind of the next generation, if you will. This is a story about product quality, right? It's a story about speed of delivery, for sure. But more importantly, it's about the speed of relevance and how our products, our integrated electronics are going to enable this system, which is in essentially 3 layers underneath the circle is what they call the underlayer -- if you have not heard that term before. above that in the golden dome, if you will, is the upper layer and then the space layer along the way. So we're embedded at every phase. We're embedded at every franchise program, and we're embedded at each of the technological key components. And if you study Iron Dome and the instantiation of Iron Dome back in 2006 and what it took to get that system up to speed in the first couple of years, you can see a parallel, although the architectures are different. You can see a parallel in how we're going to prosecute this how it's going to be instantiated and how it starts out at the very beginning to prosecute all of the data necessary to make critical decisions. And then, oh, by the way, the integrated Battle Command System something that I'm very familiar with and formal life in Huntsville, ties all of this together from the radars to the munitions to the speed of relevance to the speed of delivery because this is a world where a mistake happens in seconds, and you don't have minutes to respond appropriately. So we're very, very excited about Golden Dome. -- even more excited that I took a phone call a few months ago and said, get to this location to start talking about Golden Domasapp and got there on site and received our first order very, very quickly, the first of many orders, and we are executing that order as we speak in multiple different layers and multiple different contents. So deeply embedded in this don't feel like this is going away anytime soon. And I've said it once or twice, I'll say it again, speed of differentiation in terms of prosecution of the overall system but speed of getting the components and only capable because of our 16 factories only capable because of the operational excellence and the ability to manage the supply chain and all of the themes that Cathie has already talked about. And then I'll close with Sensor radar. So I started with a show of hands about aerospace events. Show of hands, if you're ready to get into an advanced emobility taxi to cruise around New York City. -- no hands raised. I will tell you, perhaps safer than the pilots flying your regional jet in between JFK and DCA given the fact that they're probably 22 years old with a couple of hundred hours of experience. all that said, not to scare you. Sensio radar is coming down the path, okay? Is it coming in 5 years? I don't know, did anybody think they were getting in an autonomous vehicle 5 years ago or 7 years ago or 10 years ago. it will come. And when it comes with TTM, we'll be ready. And TTM will be ready, quite frankly, because we are at the cutting edge of sensing radar. We're at the cutting edge of the critical path discerning the critical path having the engineers at that continuum as I started with, requirements, analysis, science and technology, developing the technologies, designing, developing, delivering, getting it into the proper hands, prototyping it appropriately and then moving it on to the user. So this is a 3D story for us, if you will, and no pun intended with the radar, but a 3D story. -- where we sense and avoid radars being built right now in Farmingdale, we'll be flying in the National Airspace next year. That doesn't mean we're all getting in an advance of our mobility vehicle next year, but what it means is we're gathering the data, we're understanding the data. We're reducing the data. We're flying, we're testing, we're fixing. We're flying, we're testing, we're fixing through that cycle. Again, happy to report that we've received the first order here in this market as well. So leaning forward. What this has also done really as we've leaned forward as TTMs continue to lean forward for decades now is -- you set the conditions with the technology and then you say, okay, this technology sits on this path to serve sense and avoid market, advance our mobility. But oh, look at these derivative markets that can pop up. And this is exactly where brand-new air traffic control system will come into play, exactly where a counter UAS system will come in play. Because Counter-US is not just putting counter UAS systems on a vehicle that's riding around the Ukraine or some other place that our sons and daughters of America will be sent someday to prosecute conflicts. It's also about fixed sites, counter UAS state side, it's about how do we protect LaGuardia, JFK, do we put a geo-fence around Yankee Stadium, the Super Bowl, the World Series, how about critical infrastructure, Department of Energy, layered defense and depth, all of the different fundamentals and concepts that apply leading the way with identifying the critical path, applying it to derivative markets along the way. So I will close, and I think we're just about time here, but I'll close with a few just integrated electronics. When you think integrated electronics at TTM, I think fundamentally sound, balanced, stable, forward-looking differentiated across 480 different programs and then plugged into that entire continuum where we're uniquely positioned for future growth. And with that, I'll turn it over to Cathie.

Yes. So I think I'm going to bring us home to a break here. And I'm going to close this out like this. So why do we win? We are aligned to the investments, the large investments in the domains in aerospace and defense. We are leaning in where we need to based on our understanding of those investments. We are trusted. We are very trusted. We have seats at the tables with companies whose names you know very well in the defense industry. We have early engagement with them so that we can understand where they're going and what their priorities are. But not only that, so that we can influence with our subject matter expertise and our know-how, especially when it comes to the foundation of electronics and the printed circuit board to help them design better and faster and get products to market more quickly. We are bringing them enabling technologies that are emerging in the defense community as well as advanced air mobility, which is going to be a great new market for us. We are differentiated in technology, we are supporting a very durable competitive position. And one of the things that is not here, but is really important to note is how incredibly unique TTM is from an aerospace and defense perspective, in particular, because we have this amazing commercial business ranked in the world with some of the finest capability, process know-how, process development, leading in material selection and material implementation and utilization, and we are able to port that capability and that know-how into the U.S. on behalf of the Department of War and our A&D customers in a way that no other company in the world can do. We have a mix that have sustainable strong margins, and that is a clear indication of the value that our customers see and the products that we are bringing and in the integration know-how, which is a real value add and a real differentiator for TTM. We are unique in this aerospace and defense industry. We are nearly $1.5 billion ranking us amongst the top A&D companies in the U.S., and we are definitely here to stay, and we're growing. Thank you very much.

Okay. So everybody, what we're going to do is, Greg, if I can invite you up to the stage as well, -- we do have a little bit of extra time for some questions here before the intermission. So what we'll try and do is we'll try and be specific to aerospace and defense. And for any questions coming back to Edwin's presentation, let's hold that to the end in terms of the overarching picture. So myself and [indiscernible] will walk around, [indiscernible] is our Vice President corporate marketing, hand out some microphones for questions. Please identify yourself, the company that you're with and one question and see if we can keep it to that, please. Thank you.

All right. So thanks for the presentation right over here. Steve Fox from Fox Advisors. I'm not an aerospace analyst, so bear with me. But A lot of interest and concepts there. I was wondering if you can talk more about the onshoring potential, like how quickly it happens, what areas is it happening and maybe how it accelerates or does it over the next few years?

Sure. So first of all, we are already feeling orders for onshoring and reshoring, particularly in the interconnect solutions. So on the PCB side of the house. We are seeing it probably more heavily on the commercial aerospace side. There -- if you understand the A&D industry, right, so they are dual-use products and commercial off-the-shelf products and so on and so forth. And what is happening is certainly from a national security perspective is -- we need to have that manufacturing capability here at home. And that is becoming more and more of a priority on the hill. It's becoming more and more of a priority for the Department of War. And so we are seeing an acceleration of that onshoring -- so it's as much about us being able to stand up capacity as it is about our customers getting lined up to reshore that product. some cases, we have to get qualified in products that were previously manufactured outside the United States, but we are seeing that accelerating.

It's Will Stein from Truist. Good to see you again. I was a little bit surprised, maybe I missed it, but I think I didn't hear any mention of the neo PRIMEs. And I'm hoping you can talk about your position with them and how working with those customers might be different, I suspect, significantly different from the traditional supply chain that exist.

Yes. It's a great question. Well, I appreciate you asking it, not left out for any other reason than sort of this general encapsulation of primes. But it is a really good question. So we are seeing a great deal of interest there. It took us a little bit of time to make sure that they understood who we were and the impact that we have on this industry. And we're now seeing a significant acceleration in that interest competition for capacity, no question. they move very, very quickly. But there is an education process that needs to happen there as well. So we are seeing traction. We've got, in our strategy in terms of customer relationship development -- so I mentioned we have decades of relationships with the primes that everyone recognizes the names of. With these neo PRIMEs, we are establishing a very similar structure and rigor for that customer relationship development. but they do want to move very, very quickly. And we are at the ready to address them. But they're definitely in the frame for us.

Jim Ricchiuti with Needham. Thank you both for the presentation, for the detailed presentation. I wanted to go back, Cathie, to the pipeline. Can you give us a sense of what that $7.2 billion pipeline might have looked like a year or so ago? And can you talk to how we think about the big pieces to that, whether it's Golden Dome, replenishment, which we're all hearing about on the munitions side, space drones, counter UAS, Give us some flavor for that, if you could.

Sure. I can certainly answer part of that. So -- so in the spirit of full disclosure, when we were looking at our pipeline even a year or 2 ago, the way that, that demand was coming to us, we did not have as much of the rigor and discipline around the development of that pipeline. And so I can't give you a simple equation. It was this, and it's now this. But what I can tell you is that as we've been looking at that pipeline, which is a multiyear set of opportunities, the discipline that we've applied to what we're looking at has come from this bow wave of massive demand. And so it's grown pretty dramatically just in the last year as we've put that discipline in place and we're looking more closely at that pipeline. It does have attributes of Golden Dome as attributes of UAS. It also has attributes of many of the programs that I talked about. And we don't talk about the specifics because we're send that kind of a signal to anybody out there related to what our pipeline is. But it is a very strong complement of defense opportunities, mostly. So I put in line of sight to my guy who manages my pipeline for me. heavily oriented to defense probably nicely weighted towards programs where we already have a position, so I think recurring and sustainable and then new business as well. So I think that's probably the best way that I can characterize that for you. I can also share that the $7.2 billion pipeline that we had at the end of the year has already significantly grown just up through May.

Yes. And if I could just double click on the new business aspect, right? Integrated Electronics specifically, is bidding and qualifying new deals and different deals because we can because we're uniquely positioned. We're very stable. -- and we have excessive demand on some of the franchise programs that we can go after new things. So you can only see that number grow, not contract.

This is Brett Lyle from [indiscernible] Capital. I had a question regarding space. I was wondering if you could help us understand the customer sets that you have in more detail and get a better understanding of how you see the growth opportunity evolving in the many years to come as commercialization in space evolves?

Yes. So what I didn't actually talk -- it's a great question. I appreciate it. So we are addressing both national security space, which we've been doing for a long time and commercial space. And I'm not going to be able to give you a list of the specific customers that we address, but I think they're probably recognizable names to you. We are seeing a rapid acceleration in commercial space. which I think is not unexpected, right? It is the history of our capability in radiation-hardened. We are migrating that to radiation tolerant -- and just for the audience benefit, right, if you think about rad hard goes way, way, way, way out in space, so [indiscernible] rad-tolerant, this is how you take cost out. This is how you take weight out and more of that commercial LEO domain. And so we have migrated our products from a microelectronics perspective and what we're doing with our PCBs to better address that rad-tolerant lower cost, lower rate domain. And it is -- there is a decent amount of defense space acceleration, but commercial is where the real growth is coming.

Thank you for the question, Sahej Singh from Stifel on behalf of Ruben Roy. I really appreciate the continuum that you laid out and the fact that you guys are approaching it from the right a bit of a 2-parter here. The first is, is it fair then to assume that the contracts that you are bidding on and winning are mostly firm fixed price, meaning margin accretive opportunities pointing to the 8-K that you guys filed earlier today. Second part of that question is then with the advanced packaging facilities or opportunities that may be in the pipeline, how should we think of that? Is that more time and materials? Is that more firm fixed price? How does that work? And when do we expect that to start contributing?

Yes. So great question. Greg might be able to add a little bit of color here or even Tom [indiscernible]. But I think the first question that you asked is the answer is, that's accurate. So largely bid in a firm fixed price way, set that price, have a contract that runs over a period of time. with whatever those conditions may be. When it comes to the way that we are looking at integrated electronics, you want to add a little bit of color.

Absolutely. So the first thing to understand is that the government, specifically Department of War is buying much differently than they've ever bought before -- and we've all heard about OTAs, right? You've heard about CSOs as well. That's exactly what I was getting at in my presentation, when I talk about uniquely positioned for specifically the counter UAS space as well as some of the other assembly type space where we can now put our modules, subsystems and sometimes systems on marketplaces, right? So specifically in Army Aviation, program aviation element is put out a marketplace that you can bid and is exactly what you just said, right? It's much more accretive work. It's all about speed, right? So years ago, and this is not an exaggeration, but Huntsville, Alabama used to tout the contract agencies to be proud about a 600-day process to award a contract, right? We're seeing that now turned in 30 to 45 days. again, starting with the right side or just saying, "Hey, we have this capability. We're going to put it on your marketplace and then you can go procure this either commercially or not across that entire continuum as we've talked about. So yes, there is no other option other than to be more accretive. I will say some of our programs are still subject to certified cost and pricing, as you're well aware. So we balance that appropriately. But back to the pipeline question specifically, -- these are the things we're adding to the pipeline. These are the things that are growing, and these are the conditions that we're setting to grow the business.

And if you think about the importance of operational execution, right? So Jim Walsh and his ops organization yield is 1 of their critical metrics. And that goes to your earlier question about fixed price contracting and setting those prices in advance. And that is one of the best ways that we can improve our margin position when it comes to one or contracted work. So let me talk about advanced packaging. So we already do advanced packaging today in our CRC facility. The new facility that I showed you the picture of was built immediately next door to that facility in part for that very reason, right? So we have the subject matter expertise in the type of packaging that we do today in Syracuse, lower rate, lower volumes, right? But we are investing to stand up that capability at scale. We've had a lot of requests from our customer base to move more rapidly into that footprint. And so we are underway on the advancement of that investment and the stand-up of that capability at scale on the second floor of the new Syracuse building. So it's coming.

[indiscernible] Johnson here from B. Riley on behalf of Mike Crawford. Just double tapping on the $500 million in incremental revenue you guys were referring to for the 4 new North American facilities, how should we think about that $500 million split across those facilities?

Yes. So it's projected, right? That's the kind of capacity that we are creating with our investments. So I think that's what we really need to think about is. So we're seeing demand signals coming to us, and we're seeing the requirements of the Department of War and our customers. And so we're creating that kind of potential capacity. I wouldn't split it over facilities. Certainly, Syracuse is the largest of the facilities is brand new, and that will generate the most opportunity for us. But as I say, those were examples that sort of correlated to that kind of capacity.

Okay. So everybody, I think that we're pretty much on schedule here. We're going to have about a half hour break. And what I'm going to encourage everybody to do is find your way around the room. We have more executives here than just the presenters. We have our full direct report team to Edwin and a lot of very bright folks who can provide a lot of insight. So we have our own little organization for how we're going to break out as teams throughout the room. I encourage you use a bio break, grab a snack, grab a coffee and have some good conversation. We'll reconvene at 10:30 Eastern. And for the webcast, we'll go to break now. Thanks, everybody. [Break]

Okay, everybody, we're going to get started again relatively soon, just a couple of minutes. So if I can ask folks to try and disaggregate and get to your seats, that would be extremely helpful. Thanks. Okay. Everybody, thanks for joining us back after break now. And for webcast participants, thank you for coming back as well. Up here on the stage with me is our Executive Vice President and the Head of our Commercial Business, Doug Soder. Doug will talk through all of the exciting opportunities and business aspects of what it is that we're doing in our commercial markets. And as indicated a little bit earlier, he'll be followed up by Rob Farrell, who heads up our Data Center Networking Business; and then Dan Boehle, who is our Executive Vice and Chief Financial Officer. So that being said, let me see if I can hand over the podium to Doug. Thanks so much, Doug, for joining us.

Thanks, Sean. Hey, welcome back, and thanks for being here today. It's really a pleasure for me to be able to spend the next part of our meeting this morning, giving you an update and an overview on the commercial sector, our business and our strategy. So let me dive right in. Commercial sector at a glance. Look, I think the first point I want to make is that we are a leader of advanced interconnect solutions across diverse end markets and with leading customers in each of those markets. We're a global leader in data center and network, as many of you know. We're also #1 in medical and we're #1 in industrial and instrumentation. And as Edwin said, we've taken a more targeted niche approach to attractive opportunities in automotive. Our business is characterized by deep and long-standing customer relations. Many of these customers, we've been working with for a decade or decades. But on the other hand, in some of the markets, we're also working with start-ups and newer customers. So it's a nice blend of new and old, but we have a very strong reputation in each of these end markets. And a key aspect I'll be talking about is our unique global footprint, which really allows us to support our customers how they need to be supported based on their different requirements for products and services. And the last point I would make here is if you look at Prismark's 25 ranking of top players in terms of revenue in this business, TTM was the only PCB company on that list in the top 5 last year. And for that matter, we're the only U.S. company in the top 10. So looking back at 2025, we also enjoyed a very strong year in terms of profitable growth and also comparisons across the business. You can see about $1.6 billion in revenue, and that was up 24% year-on-year. I'll talk about how that was comprised across the end markets in a moment. EBITDA, $304 million, up 26%. And we had margin expansion, EBITDA margin, growing 29 basis points. As importantly as those numbers, though, we booked over $1.8 billion. So we really set ourselves up coming into 2026 with good strength and momentum. And just to give you a reference, we deal with over 700 active OEM customers across these end markets. So taking a deeper look at that commercial sector business and our end markets, you can see that balance we talked about. And really, this gives you, on the left, a sense of how the end markets break out in terms of revenue percentage of the total of TTM's total revenue. Data center networking, very big, very important, but balanced relatively, 30% last year. Our medical, industrial instrumentation at 14% and auto at 10%. If you look at the right-hand side of the slide, a little more detail to dive into. The Data Center Networking business, about $900 million last year. And you can see the strong year-on-year performance in that business, up 40% year-on-year. When you look at our serviceable available market on a global basis, it's clearly a fast-growing market, about $10 billion, and we're at about 9% market share. Areas of focus for us are both data center and networking switching as well as high compute AI servers and general purpose servers. Often lost in the shadows of that exciting network data center business is our medical industrial instrumentation business. And I want you to look closely at these numbers, $400 million last year. That business, under Anthony Sandeen, grew 22% last year. So it's a really exciting business for us. And it is characterized by a very high count of customers. So there's a lot of diversification in this business across the various aspects of MII. Here we have about 18% of serviceable available market. It's about a $2.3 billion market. So a lot of opportunity for us. We really like this part of the business. We're involved in things like on the medical side, patient monitoring, test and diagnostic equipment. You get into industrial automation and robotics and semiconductor test, to name a few of the areas where we are participating. And then you see the automotive business there at about $300 million last year, down slightly year-on-year. And areas of focus here are where we can bring our technology to bear, in areas like ADAS, electrification, high-voltage management systems, et cetera. So let me talk here a bit on this next slide about our strategy. And really, a key point I want you to understand is when we look at this business, we are really looking for ways where we can differentiate the commercial sector to deliver market outperformance and sustainable growth. Differentiation is really the key for us. We're looking to find these unique runways where we can have long-term profitable growth, but also, as I was talking to some of you during the break, minimize our exposure to commoditization. That's really the key here. And we're looking to things -- looking to use things like our product expertise, our processing expertise, that global footprint I manage. There's long-term relations where we can be differentiated. And the strategy itself is very simple, 4 basic building blocks: targeted end market and customer engagements, focused advanced technology leadership, global footprint management for differentiated outcomes. What does that mean? It means a lot of things. And we've got a very special and unique global footprint. We're in North America. We're in China, we're in Southeast Asia. So that gives us a lot of opportunities with those -- that plant count that was mentioned before to support our customers in a variety of ways. We can support customers that want to develop in the U.S. and migrate production to Asia. We can support customers that need small lots built very quickly for prototyping and NPI and other plants to do production. We can use multiple plants to support very large production programs. And we can provide those regional opportunities for customers focused on geo-diversity, supply chain resiliency and China-plus solutions. And then the last thing, and I'll touch about on this later, is a disciplined approach to how we invest for capacity and capability. Megatrends. Obviously, the main one for the commercial sector that we're involved in right now is this artificial intelligence. And I think as exciting as it has been and is, it's very exciting to recognize that we're in the early stages of this game. But some other ones that you should be aware of is factory automation and robotics. This is important for the MII business, as is the demographic and an aging global demographic, which is really fueling a lot of advancements in med tech, and that's creating a lot of opportunities for our medical business as well. So I talked about our main markets. I'm just going to use these next couple of slides to focus in on a couple of the very important markets that we're involved in. And the first is data center networking. And I want to make a couple of key points here to dispel some misunderstandings about our business. The first is that we're a global leader, but we're really processing unit agnostic or chip agnostic. We're really working across multiple data center ecosystems with customers that are hyperscalers, AI developers, AI infrastructure companies and networking companies. Our boards work with all of these chips. And that's an important point that I think we really need you to understand. Where do our products go? They're going in these high compute AI servers, switches in the data center as well as enterprise, general purpose servers, and then backplane, mid-plane chassis. If you look at following a slide pattern Cathy used enabling technologies at the bottom, some of the advanced technology products that we're supporting customers in this space with now include N+M PCBs. These are asymmetric hybrid high-layer count products. Rob is going to talk more about that in his section. High and ultra-high-layer count PCBs, which I'll mention more about in a few slides. And then HDI stacked microvias. Another area of expertise that's really important for our long-term success is the fact that we have been long recognized as a material expert. So when we talk about early engagement selling, we -- it often starts around materials where our customers are asking us to share results from a very comprehensive test library we've built over the years. We're looking at that with them at what material or, in some case, combination materials are going to best allow them to achieve their performance requirements as well as their cost requirements. And then a couple of other points I highlight here, early engagement with customers as they're looking into optical packaging and products in the near-term horizon. And then in certain cases, we're also bringing TTM proprietary IP solutions to bear to help that same challenges that they may be dealing with. So that's the data center networking. Medical. I mentioned number one, here again, we are bringing our technology to bear to enable these state-of-the-art med tech advancements. And these are things like patient monitoring, implantables, surgical robotics, and then big test and diagnostic pieces of equipment. So in this market, the types of products that we are bringing to support our customers are advanced tech PCBs. Also something we haven't talked too much about today are what we call [ Rigid Flex ]. These are boards that are a combination of hard, rigid product as well as flexible circuitry. And then the other thing is miniature to large format. This is an array of an nonpatient monitoring product. And that array has about 24 boards on it. So if you look at that big diagnostic piece of equipment, you would see large PCBs in that. But we're doing miniature to large in this medical space, HDI, stacked microvias, again, the materials. And something I didn't mention on the last slide is the high-mix factory. So when you get into the medical and industrial instrumentation business, these customers typically are dealing with large portfolios of part numbers and, generally speaking, lower volumes than we see in data center networking. The reality is, as much as competitors try to do it, that type of product does not play well in a mass production factory. What TTM has done over the years has built a very capable portfolio of plants around the world that focus on high-mix factories. This really provides value to this set of customers, and it gives us a capability and advantage that a lot of our competitors do not have. Industrial instrumentation, also a #1 position. And here we're supporting innovation in things like industrial automation, network analyzers and other type of analytical equipment, semiconductor tests. Something you may not know. We're involved in the oil and gas industry in terms of downhole drilling controls, also utility management systems. Very diverse set of customers across this space, but a very nice piece of business for us. Here again you're looking at advanced tech PCBs, similar to what we've seen. And then I won't go through it all, but you're taking advantage of these high-mix factories again. So looking at a couple of the tenets in that strategy. First, advanced technology. Really, in this arena, it all starts with early engagement and early collaboration with our customers. That's what we need to do to be successful on these strategic programs. And what we've done is built a global technology solutions sales force, so to speak, that's positioned around the world. And this is essential for these early engagement conversations that happen in areas like material selection and design validation. So that's where it all starts, with those FAEs, as field applications and other engineers from our factories. We also have technology labs. We have one in Asia, in China, one in the United States. And we're going to be building an innovation center in that Eau Claire facility in the future. The advantage of these labs is that we can do analytics and testing to really back up some of the early concepts that are being considered with our customers. And then we use that unique footprint to address the prototyping and the NPI into production ramp. Some examples of product technology that has gone or is going through this process would be asymmetric N+M PCBs, the high-layer count, the optical product and then co-op development. And I'll talk a little bit about each of those here. So we've mentioned N+M numerous times, but this is a very exciting part of our business at this stage in the business cycle. This is something that went through that exact process I described several years back. And we are now entering into mass production with N+M technology. And these are boards, just to give you a sense, that are going to be 36 to 50-layer type constructions. If you look to the right, you see this ultra-high layer mid-plane and back plane. So this is a product that's quickly gaining some interest across the commercial sector. We're really dealing with companies that are in both the data center networking as well as the MII side who have a need for higher layer count. And I'll tell you a little bit more about that product and how it's produced, why it's attractive to us in the next slide. And then on the bottom, you see some examples of product technologies that I would say are in the development, various stages of the early development, the optical side and then packaging. Just to give you a little more sense of what we're doing here, we're supporting customers who are looking at moving beyond current packaging solutions, moving beyond chip on wafer on substrate towards chip on wafer on PCB, and even looking beyond that in the future to how they can go direct chip attached to the PCB. And that's a longer-term process. But it gives you a sense at any -- of the pipeline at any point in time is going to have product that's going into production now to products that are 2, 3, 4, 5 years out. I wanted to spend a little more time on this ultra-high layer count backplane because it's a great example of that focused technology development I spoke about in the beginning, where we're leveraging differentiated TTM processing and product leadership capabilities to support our customers, but in a way that it creates a natural differentiation and competitive advantage as well. When you're doing something like I'm about to describe, you're going to have one of these product families like Edwin described where you may have a handful of companies in the world that can produce this type of technology. These are customers that are looking to go beyond what a traditional Max PCB layer count has been considered around 60. And these are customers that are needing 80, 100, even up to 150 layers for their particular end-use applications. So what's important, large format capability, high layer count, that materials knowledge and processing expertise I spoke of, and then something called sintered paste. This is key to this process. Sintered paste is a conductive -- electronically -- electrical conductive paste that also has thermal management properties. And so when you're looking at something like this, you got to bring all of those areas of expertise to bear for the customer. When I talk about large format, you're talking about boards that could be over 1.5 inch thick. So you're getting into a situation where you can't use traditional conventional processing capabilities to build that board in a normal way. Example, you can't drill something 1.5 inch thick in a conventional PCB factory. You can't plate it. So what we're doing in this case, and you can see it if you look carefully, you're taking relatively high layer count subs or subsections in and of themselves. And then we're connecting them ultimately with that sintered paste. Sounds simple, except there's tens of thousands, maybe 100,000 connection points. You need precision placement of the paste and then expertise in bonding that together so that it comes out and performs electrically. Obviously, you're going to limit the field of competition when you're doing something like this. And it's very attractive to TTM to be involved in these types of conversations. Why is the customer doing it? In many cases, they're looking to get rid of a massive heavy cables. It cleans up the packaging. It eliminates reliability risks and effectively gives them an improved total cost of ownership. So something to keep your eye on in the future across these commercial sector markets. Next, I want to look at our footprint. We talked about that unique footprint. And before I get into the commercial footprint itself, I want to talk about a couple of points that I think illustrate our commitment and maybe our somewhat unique approach to how we are building a commercial sector footprint that supports our customers and the growth we see. The first point is we've invested $1 billion in this commercial sector footprint over the recent few years. Secondly, several conversations I had, when people think about capacity additions now, it seems to all focus on greenfields, big greenfield factories and lots of them. And certainly, that's one aspect of adding capacity. But our approach is a little more nuanced, and it's really about choosing the best path to effectively deploy CapEx based on the needed scale and timing. And so what we've done, in some cases under the radar, is quite effectively increased our capacity and capability with different approaches that aren't necessarily greenfield. We did Penang, we're excited about Syracuse, and we'll look at future greenfields in the future. But we're also doing things like adding significant capacity within an existing footprint or adjacent to that factory. That gives you a couple of advantages if you have the space to do it. You're going to leverage a proven management team, you're going to leverage a proven workforce, and you're going to get that capacity and capability to market a lot faster than a greenfield. Another approach is a brownfield, so to speak. This is where we're looking at finding existing buildings. Maybe they have electronics infrastructure or not, but they're suitable to be converted into PCB production. Eau Claire is a perfect example. The advantage here is we get a lot of footprint that we think is well suited for PCB manufacturing, and we get it to market for our customers in half the time or less than a greenfield. And then there's a greenfield. So I just wanted to make that distinction because there's always talk about new factories, and that's just one part of the equation. And we'll talk about how we're deploying some of these alternatives in a few slides. But in the meantime, the commercial sector footprint. In the United States and Canada, we have Toronto, Logan, San Jose. These are well-proven factories that support our customers of quick turn, NPI and high mix production across all of our end markets. Eau Claire, very excited about that, will be the largest independent advanced interconnect plant in the United States when we bring it to market. In China, we've got 4 mainstay production plants, Dongguan and Guangzhou. These are the plants where we will be introducing the N+M in mass production. And they do a variety of other advanced tech PCB products. [ Huiyang ] is an interesting plant capable of doing, really across the board, our advanced tech product technologies, but they're also one of those high mix factories. And so very successful at providing quick turn and MPI support to customers in our MII business. And then [ Junsang ] has historically been an auto specialty plant. But over the last 5 years, we've developed a very nice capability to support non-auto advanced tech PCB production. And then in Southeast Asia, Penang. You're all familiar with Penang. And that's really focused on customers in data center networking and MII for high-tech PCBs. And we've taken the step to secure land nearby so that we have the opportunity, when appropriate, to be able to build a second factory that would focus on advanced tech PCBs. Now speaking of Penang, I wanted to draw your attention to an interesting similarity from the movie, the scene, The Matrix. If you look in the upper right-hand corner, that came from that movie. That main picture is the main production viewing hall in the Penang plant. It's over 400 meters long. It's quite impressive. And aside from the movie reference here, I think it also speaks to the scale of that factory and the high-tech state-of-the-art nature of that factory. It's really quite a showpiece with a lot of automation and really an exciting addition to the TTM footprint. So you bring it together, I've talked about that technology development, I've talked about the footprint. And when you look at what I'm going to refer to as the N+M scale-up, which is what we are doing right now, this is a great example of how the commercial sector executes our strategy. It is a result of that focused technology engagement process. It is a result of global footprint execution. It's also a result of those other elements I mentioned, the targeting of the right customers in the right end market and selecting the right scale-up solution for our customers for this opportunity at this point in time. And the scale-up that we're using here is really that build-out within existing factories, Dongguan, Guangzhou, and then brownfielding next to those factories where we're able to bring a lot of additional capacity firepower to play, but under the leadership of those 2 very long-term successful plants in TTM. We are anticipating $450 million of capital investments in N+M when you look back the period '25, '26 and into next year. $300 million was really to develop the capability and to bring it up to production in '25 and '26. And then another $150 million to expand that capacity capability next year. We're currently estimating a revenue opportunity over the future for N+M at $4.5 billion. And this again has started with customers across those multiple data center ecosystems, but we're also seeing the interest expand-now to MII customers. Now I talked about those scale-up options and speed, and I think, hopefully, this next set of pictures can put some of my words into perspective for you. Several of us were in Dongguan back in March, 2 months ago. And that brownfield building we acquired right next to Dongguan, that's what it looked like 2 months ago. This is what it looked like yesterday. 270 advanced tech drills, fully operational, supporting the N+M ramp. That's how we bring capacity and capability to bear quickly and effectively for our customers at large scale. Okay. Before I hand it off to Rob, I just want to talk about 2 success stories from the MII business. And what's interesting is the way that these teams created these success stories were different even though they're both medical customers. On the left, the side you see right now, this is a surgical robotics company. It's a company we've had a long-term relationship with. And it's always started at that early engagement, those engineering collaboration discussions. What we've also done is leverage that footprint. We use 4 different plants to support this customer for prototyping, for NPI, for multiple plant production solutions. The other thing that we've done is that we've been able to run NPI in their main preferred production plant so that we can qualify and accelerate the FDA qualifications that they need to go through. FDA doesn't want the product qualified in one plant and then produced in another. So we're able to bring that flexibility to bear, to do quick turn for this customer. And it's an advantage to them. And it really allows them to shorten the -- what can be a long and pretty arduous process dealing with the FDA. You put it all together, that early engagement, the footprint management, the flexibility of the footprint, this is a company where we have about 75% market share. The second example is a company doing these types of products, glucose monitoring devices. We've been working with this customer for about 20 years. And again, it starts with that engineering engagement and collaboration. We've shipped over 300 million devices to this customer. So quick turn and production, again, in the production factories to shorten FDA qual cycles. It's really about technology leadership with this customer. And in this case, HDI and miniaturization are important. And this is impressive. The next generation is going to be half as big. So those are the kind of challenges that we're working with this particular customer. And again, coincidentally, we have about 75% share with this customer. But it's -- we've been dealing with these people for almost 20 years. And it's really just in the last year that we've increased that share to 75%. So that's a real testament to the confidence and the faith that they put in TTM. So at this point, I'm going to turn it over to Rob, and then I'll come back up for some concluding comments. Thank you.

Thank you, Doug. Those are tough facts to follow. Sometimes you get in your little business unit, you don't get a chance to appreciate what's going on around you. So it was fun to sit through that. So I'm going to take you through a little bit about technology. Doug touched on it today, a little bit about just mass kind of landscape of the data center environment. So I couldn't help but reflect a little bit. I got some really good questions at the breakout. And I started reflecting through where -- kind of my role in this. And I came in to be President 4 years ago and was asked to do something entirely different than what we're having to do today. And today, honestly, is really exciting. Hopefully, you guys get a sense of that and kind of where we're going and all the work that's been put in to make us successful. So first of all, I'd like to talk just a little bit about kind of a macro chart here. This is the 4 largest data center estimated CapEx over the next 3 to 4 years. I want to make a couple of comments on this. One is this does not take into account the build-out that's going to occur in China. So you're going to have a second wave of data centers that's going to come into the market that's going to obviously impact us and all of our customers. It doesn't include companies like OpenAI, others that you probably are tracking as far from a spend. So this is just kind of just one area, one indicator of what the industry is going to experience here over the next few years. It has been exciting here in the last 3 years, and it's going to be, I think, just equally exciting as this build-out continues. I personally think that there's still a little bit more in this from a growth standpoint. You're going to have build-outs, plus you're going to have to start seeing some of the replacements that's going to have to occur in the industry as some of these systems start to get a little bit older as you get into the out years. So it's something that we're going to monitor, something that we're watching. When you look to what's driving this, there's really 3 main areas here. The industry has changed a lot. Speed to market is way different than it was 3 or 4 years ago. It's probably twice as fast as it was. So as you see these ramps, a lot of this is new programs that are going to be coming online in the next couple of years. And some of that, the development is taking place today. You have the technology, which Doug hit on, and I'm going to elaborate on here as we get into the presentation. And then you have -- which we -- I think we all like and enjoy is ASP due to technology, where the industry stands. We've had an opportunity to work on pricing, both from a technology standpoint as well as the material costs and other things go up. Some of the programs that you're seeing replacements are 2 or 3x what they were in past generations. So a lot of positive things occurring in the overall industry. So grab these. So Doug hit on it, talked a little bit about N+M. N+M is something that we've been working on, quite frankly, for over 2 years. We started with an engagement with one of our strategic customers and looking at how do they resolve some issues that they're having in the design stage. The main reason for N+M development is to get enough power into the chips and not mess up the signal integrity of your product. So for those of us who have been doing this for a long time, this breaks just about every rule from a manufacturing standpoint when you manufacture printed circuit boards. So in the past, if you can think of it as a centerpiece, you have a center of a PCB this side of it. You want everything to be equal on both sides, whether it be layers, whether it be materials, whether it be copper distribution. And as you can see from the picture up here, we've thrown all of that out. And the technology has driven us to do that. So today, very heavy, very thick boards, today, the whole idea of this technology is to get the power into this chip. Also in manufacturing it, the real challenge is manufacturing is to be flat, have a flat [ open area ] or flat [ VGA ] package. Manufacturers that are able to do that, both working with the customer upfront as well as optimizing their processes, is going to be a winner in this technology. Today you're looking at 1.6T switches, you're looking at AI ASICs that are going to utilize this technology. And we have spent the better part of the last 12 to 14 months taking the information and then trying to really retool our factories, Guangzhou and Dongguan, to support this ramp, which is going to, in effect, take place this summer and into the second half of the year. So much different technology than we were dealing with even 12 months ago. So what does that look like for us? As I mentioned, the front-end work with our customers started in our Dongguan facility. That's where the last probably 24 months we worked to optimize our process, work with the customers, make minor and minor design changes to make it more manufacturable. In the past, you used to be able to kind of create a book and know what the product was going to do when it came into your factory. And going to this N+M technology now, it's so many variables. You really have to work upfront. You have to work with your customer in the introduction stage to really optimize your processes to get that flat board and, more importantly, that flat VGA period. As we work with our customers, it became very evident that we were going to need more capacity. So what we do in TTM is you just pivot to your sister plant. That's what's beautiful about TTM with our footprint. We pivoted to Guangzhou. So 14 months ago, we made the decision that we're going to retool both Dongguan and Guangzhou. Great plan, we feel good about it. But like every good plan, you get punched in the mouth and you see where you end up. For us, it was a customer that beat us to the punch. They needed capacity. They needed it last year for N+M. All the planning we had done, we had to pivot. We had to go to our HY facility, sorry, Huiyang facility. That wasn't in the plans. But what we have the ability to do at TTM is to pivot. We had all lessons learned, engineering resources, move them over to HY for a handful of weeks. That facility comes up. Find out not enough capacity, pivot again, go to Penang. And honestly, for Penang, I think in 2025, it was the largest revenue part number in Penang with an N+M -- advanced tech N+M board. Those 2 facilities beat DMC and Guangzhou to the punch. And it was fun to see how we were able to pivot and support that customer. Now as we talk to our customers, more and more of them want solutions outside of China as well. So we're looking to pivot the same technology to our Penang facility, which I just mentioned has already come up. Our Eau Claire facility will almost certainly have N+M technology. Penang 2 site most likely to have N+M technology. And then our Toronto facility is going to be able to play a role in the development, more than likely bringing on this technology. As I mentioned, speed to market is twice as fast as it was a few years ago. So to have that capability in North America, to work with our North American customers is going to be key in helping them get to market quicker. And then being able to take lessons learned and move that to a production facility is going to be paramount. So as we start talking about kind of the case study here, I sat down and really put one together based on one customer. And it quickly became apparent that it really applies to multiple customers. So from a generic standpoint, upfront engagement, as I've already said a couple of times, is really key in understanding what it is they're trying to accomplish, what does that look like from a manufacturing standpoint. Worked with Jim Walsh and his team from an operations. Do we have the capacity in place? Some of you asked at the breakout, how do we manage capacity? How do we go after these "franchise programs"? And a lot of time and effort is now put into understanding what the overall demand is going to be for any one program, any one project. And so we've got various trackers, we work with our operations team, we work with supply chain to make sure that we're going to be set up for success as these projects near production. And I think we've done a really good job of doing that. And from day-to-day, we're working with our customers on day slips or that 2-day slips, 1-day slip, and we're in tune that closely with them on these ramps that are going to occur in the second half of the year. Now today, most of it's 1.6 and, as I mentioned, AI ASICs. The industry will continue to use this technology when it goes to 3.2. And that's where we're at now working with customers, is working on that next-generation 3.2. There could be some changes in flavor, but for the most part, you're going to use the same structure as we do today. Only you're going to go from probably a 36, 38, probably upwards to a 50-layer will be the main change as we go to the 3.2 chip. Now my last slide here before I hand it back over to Doug. So everyone in here probably has read about optics. It's exciting. TTM has been investing in optics for well over 10 years. We keep thinking that the next generation is the last time that copper is going to be used. You're just going to -- it's going to be a bandwidth issue. And this slide is -- I'm going to talk out of both sides of my mouth just a little bit here because we do think optics is coming. Edwin sits on the Optica board. We have a team of people developing optics. We have close relationships with OEM customers as we develop. We've got a couple of different variations on what that looks like, and I don't think the industry has adopted one of them yet. But we're largely invested in optics. And for all the reasons you're seeing on the slide here: energy consumption, signal integrity, bandwidth. That's all coming. But I do want to caution you, the early 3.2 designs we have do not include optics yet. So there isn't a cliff. There isn't a falloff on copper. It's going to be implemented at some point in time, and TTM thinks that we're uniquely positioned to maximize and optimize that opportunity. And we'll use kind of the playbook we put in place for N+M, but it's really exciting to see. To us, it's going to be an addition. And it's going to be an addition we'll try to understand what that technology looks like as you introduce that into or onto the PCB board. So with that, I think I will hand it back over to Doug to give closing statements. Thank you.

Okay. Thank you. Hopefully, that's been insightful and informative to you, and you've recognized, as I talked to some of you in the beginning during the break, we're much more about data center and networking. We have a very set -- exciting mix of businesses, and we've got a formula that's working. I think to sum it all up, it comes down to focus, competitive differentiation and then speed and execution, focus on engaging the right markets and the right customers within those markets. picking the right -- the technologies to invest to give us competitive advantage. And it's got to be backed up by operational excellence. I'm looking at Jim Walsh, our COO. But we -- everything we talked about today, we have to deliver on time with great quality because these are going into very high-reliability dependent applications. Competitive differentiation, leveraging TTM's financial strength to pick those targeted areas of technology leadership where we can have a long and differentiated runway for profitable growth. and executing that footprint in a way that adds value for our customers and sets us apart from our competition. And then speed and execution, bringing that product and that technology to bear quickly, choosing the appropriate scale-up solution so that we can effectively convert our CapEx investments into revenue as quickly as possible. This formula is allowing us to succeed now and to grow now, and it's the foundation for why we are going to continue to win in the future. So again, we thank you for your attention to this section. And it's now my pleasure to turn it over to Dan Boehle, our Chief Financial Officer.

Hello, everyone. Well, it looks different from up here. Listen, today, hopefully, as Edwin said earlier, you get to speak with Edwin, myself and Sean quite a bit at different conferences and on the phone and everything else, so hopefully, you got a lot of perspective today from the folks amongst the business that actually do the work and actually create what a great company we have here at TTM. If you didn't get a time to speak with them at the break, do that -- do so after we do this and gather for lunch. But that's what we brought you here today for. But I know you also want to see some numbers. So I've got a few slides to go through some numbers with you and talk about what the priorities are, talk about where we're going to end up in 2026. Then I will hand it over to Edwin for a wrap-up, and then we'll allow you to ask more questions after that. So financial priorities. So currently focused on 3 major priorities: revenue growth, as we've said many times now. And you can -- and as we've mentioned earlier today and earlier in the past few weeks, we now expect that our revenue for 2026 could reach about $4 billion based on the demand that you have been hearing today and all the great end markets that we serve. All of our end markets are doing well, are all improving year-over-year, with the exception of automotive, which is slightly down, but the others are making up for that. Second priority, expanding profitability. With a $4 billion revenue growth or $400 million revenue expectations for 2026, we talked about Q1 and Q2, we're growing at about 30%. So that implies 38% growth for the full year. So that's going to show expectation of accelerated growth in the second half of the year. A lot of that, a key growth factor in that is the N+M technology that Rob and Doug just spoke to you about. That technology is kind of the next generation that will drive higher prices, higher ASP, and that will drive -- that will result in higher gross margins for us. The other improvements in gross margin through the second half of the year will be a reduction in the Penang headwind that we spoke about. That should be less than 80 bps for the year and as well as continued operational efficiency. As we come up the curve on those new products, you're going to see product yield improvements as well, efficiencies there that will drive improved gross margins. Moving down to the operating margin and EBITDA levels, you're going to see improved operating leverage as we continue to manage our operating expenses through SG&A management, what have you. So you'll see better expansion of our EBITDA and operating margins as well. Third priority for the year, and as always, cash flow, generating cash flow that allows us to invest organically within the company as well as continue to maintain a strong balance sheet with low debt leverage, which allows us flexibility and liquidity as we go forward to look at potentially inorganic growth through strategic M&A. To underscore that cash flow message, here's what we've been doing in the last 3 years. You can see on the left side, cash flow generation from operations, all the way on the right side, the CapEx that we've been able to expend over those 3 years. And in the middle, showing free cash flow has been positive for the last 3 years. We expect to continue to get slightly positive in the current year. I disclosed at our last earnings call, we've increased the capital expenditures for the current year to be $300 million to $320 million. We expect our cash from ops to come in about that same level or slightly above. So we expect to have some positive free cash flow. But what we're doing, as you've heard today, throughout both of our segments, investing in organic capacity growth. So we've been able to do that and fund that through our own cash from operations. We've done that prudently. We've done that in a timely manner. So on the bottom there, I've shown -- we always talk about CapEx. I have had other questions -- have had questions from time to time. This is just the cash we spend. But the bottom of the right there shows how much we approved in those years. So you can see that we're planning to spend $300 million to $320 million this year. We've approved $500 million, which means we've started ordering those, right? The cash follows because we have good payment terms to our equipment suppliers. But if you look at that bottom, the total of what's been approved from 2023 through expectations for 2026 is over $1 billion, right? So we continue to spend at elevated levels, but prudently and timely to make sure that we can meet our customers' demands when they come. And then as I spoke, strong balance sheet, low leverage. The debt market has been asking us to come and dip into them. So we are taking advantage of that. We're doing 2 different things right now. We're in the market currently to reprice and to upsize our current Term Loan B. So moving it from about $340 million to $400 million on upsize. So we're currently taking commitments on that. We are also trying to reprice that down from SOFR 225 to SOFR plus 175. So 50 basis point savings, which would save us approximately $7 million of interest savings over the remaining term of that loan. If completed, we expect to close that in June, early June. Concurrently, we're also replacing our current ABLs. We have about $150 million ABL in Asia and $150 million ABL in the U.S. We're replacing that with a multicurrency class flow revolver. We're looking for commitments on that up to $1 billion. So significantly improving and increasing that revolver capacity from $300 million to $1 billion. If we get all the commitments on that, we close that, that's expected to close in June as well. So very good pricing on this in the market right now. Very, very happy to be serving -- providing lending to TTM at this point in time. With that, I'll give you where we expect to hit -- where we expect to end up on 2026. So showing you our trajectory over the last few years, you can see quite a bit of improvement on the top line, we had 19% improvement last year. We went and said in January, we expect, and very confidently, expect to grow 15% to 20% over the next 3 years. You can see in the 2026 now, we're expecting to grow to approximately $4 billion. That implies about a 38% growth rate. So almost double what we said earlier in this year. A lot of that driven by the very good strength in data center networking and our ability to spend capital equipment, spend CapEx, get it up and running very quickly. As Doug showed, those pictures are amazing to see how quickly we can turn a blank building into a production line and turn that into revenue. So very speedy and a great return, as he showed you, 10x over the length of ultimately when we get all that CapEx in. So that being the case, you're going to see improved operating margins and EBITDA margins. The bottom line here, operating margin growing from 11.7% last year to a range of 13% to 15%. That is a 200 basis points improvement over what we said previously as our long-term targets, which were 11% to 13%. So we've achieved those and we have gone beyond those. We'll expect to get between 13% and 15% for 2026. On the adjusted EBITDA margin, 16% to 18% is a 100 basis points improvement over our prior guide, which was 15% to 17%. The delta there is being driven this year by the weakening of the U.S. dollar. So we've got foreign currency losses this year. Those won't -- hopefully won't continue. But as far as what we expect this year, that's about 100 basis points impact on us. So that's why you're not seeing that 200 basis points improvement in EBITDA, but still good improvement year-over-year. And this is where we expect to end the year, very strong based on all the messages and the business end market stories that you heard today. So that's the end of my guide for this year, and I'll turn it over to Edwin to give you some closing takeaways, and we'll take questions.

Okay. Thank you, Dan. It's such a pleasure, let's say, that today you were able to hear the story directly from the business unit leaders. That's such a great opportunity. Again, we see you quite often, but again, the story starts there. What you also saw, I hope, is, let's say, a very coherent executive team, very, very, very solid. This reflects to the executive team. This reflects to the Board of Directors, same thing. We get a lot of good support there as well. And it reflects to all the 20,000 people we have on the payroll. So it's thanks to these guys who are able to show what we do. And again, Dan had the opportunity to show the $4 billion there. He didn't allow me to show them, okay? So that's great. Having said that, one slide with closing remarks and hopefully some observations and then we go to the Q&A session. I was so happy, let's say, that during the break, we got quite some good questions on A&D, which is -- because I bet that 80% of the questions will go to data centers, but I'm so glad you guys asked questions about A&D. That's fantastic. So the takeaways here. Hopefully, you saw that we have a very, very, very nice road map on PCBs, going to 150 layers, going to very complex construction, let's say, with N+M and all N+M [ to them], all these type of things happening. But besides that, on the interconnect side, also, let's say, advanced interconnect. So going to more heterogeneous packaging, going to, let's say, where we have optical components embedded, all these type of things are happening. Then using that interconnect, we go fully vertically integrated. We use our interconnect solutions to make modules, subsystems and systems. Greg showed us that it's already 25% of the business right now where we use our interconnect and make modules and systems and subsystems. But that will grow, yes. Again, that wave will come down, and we better be prepared for that. So we have now the opportunity to grow, let's say, in these more complex solutions. Again, I keep emphasizing that we need to be the technology leader, and we are the technology leader. And we have to make sure we invest in that and we do that. That's super, super important. So besides capacity, make sure we have a leadership position there. Again, we're helped by the megatrends, AI and the defense side, 80% of our business driven by these megatrends. Great. Entry barriers. We love difficult stuff. I repeat it again. We love difficult things to do. And that gives us the entry barriers and that gives us our competitive edge. And then last but not least, and Dan showed it already, the very, very strong financial performance. And now especially with the revolver and all these things happening, I think we have a lot of, lot of flexibility. So there's a lot of room to go. I really thank you again for supporting us over all these years and continue to support us. I thank you also for attending this session. And we'll open to questions. As always, the simple questions come to me and all the more difficult questions come to Dan and the other guys. Thank you.

Terrific presentations from my vantage point, hopefully, from yours as well. I'm going to invite everybody who's been a speaker today to come up to the stage. And similar to a little bit earlier, so Cathie and Doug, Greg, if you want to come up. And we're now going to entertain your questions as we round out the session prior to lunch. And just actively look for us, raise your hand. Similar format to earlier, please identify your name and who you're with. And what we'll do in this case, since we're at the end, we'll do one question and we'll do one follow-up question, okay? So that gives everybody an opportunity. Okay. All right. So I will walk my way back here.

Jim Ricchiuti with Needham. I feel like you've been talking about N+M for some time. And I'm wondering if you could speak to the competitive landscape for that technology. And maybe the follow-up, I'll jump the gun on it is, how do you see that playing out in your commercial business over the next couple of years as a percentage in broad strokes of your revenue?

[indiscernible] but the good thing with N+M is it started -- let's say, started it -- it started with switching. That's what most of the applications were. And you see it now being used, let's say, in other parts of the data center side, but also, let's say, in the medical and what we call M&I business. So I'll leave it to Robert to talk about the competitive landscape. But I'm so glad that we are not only, let's say, one of the inventors of the N+M, but that we also are able to industrialize it and make it in large volumes. As Robert explained, these things tend to bend. That's very much of a difficulty. So we found solutions for that. So Rob.

The market -- the competition landscape is it's restricted. I mean there's only -- I consider there will only be a handful of actual active competitors. Now that doesn't mean that others aren't trying to get into it. But today, I think our customers feel comfortable with a select few, a select handful of manufacturers out there that have also developed the capabilities and brought in the capacity to support these franchise programs. So it's -- we're somewhat protected at this point.

And then, Rob, if you could just follow up, how -- on Jim's question, or Doug, what is a general perspective in terms of how this develops from here once we ramp beyond the third and fourth quarter? Any sort of color around that would be great.

From a capacity or...

How we ramp that piece of our business.

Well, so I mean, a lot of planning has got into it, bringing in the capital equipment, retooling these plants. So we have been very selective. I answered this question at the break. We've been very selective as far as programs that we have committed to. These programs are very large in nature. You have to make sure that you have the capacity allocated. And we've done a lot in the way of working with our ops team and understanding what it is we have the capability. We have line of sight of almost 100% coverage by probably the middle of next year on projects we've already committed to. I would say we are holding some capacity because it's creating a lot of opportunities for customers that may not be a strategic partner today, customers that we might want to access into. And that's -- it's been interesting to have customers coming to us, knocking on our door, almost in some cases telling us that we have to take these projects. So it's been a bit of a game changer, us being out in the forefront of this and putting us in a good position to not only fulfill that capacity by the middle of '27, but look at do we continue to add capacity and working with Jim and his operations team.

Jim, the only thing I would add is -- is this on? Can you hear me now? The only thing I'd add is I think certainly, this started, as Edwin and Rob said, in data center networking. But we're already seeing interest coming out of the instrumentation side of the business, where we see also have historically dealt with high-layer count applications. So we're looking for that to migrate across that MII business as well.

Steve Fox from Fox Advisors. I guess, Dan, first question from me. The latest guidance is implying 20% incremental margins, if I did my math right, and you guys have done much better than that the last few years. Is there any reason for that conservatism or other that is holding back the incrementals?

You're talking about on the EBITDA level, or -- I mean, like I said, we do have the headwind from foreign exchange that's impacting that. We do have yield expectations or yield performance we still need to execute for the second half of the year. So are you at the middle of that range?

Yes, yes, at the middle. And is there an assumption that you talk about around just sort of mix and pricing within that, that also drops to the bottom line?

I'd say mix and ASP. Revenue mix is what's going to drive the majority of it. And the higher we can -- the better we can yield N+M, the closer we will be to the higher end of those ranges, right?

And then I actually had another aerospace and defense question. Like if you guys are talking about high single-digit growth from that part of your business, from just listening to the presentation, there seems like a lot of opportunities for double-digit growth. I don't know if that's a time line thing, a visibility thing like or just the size of the markets. But where could there be upside, I guess, that we should maybe focus on, whether it's space or some of these neo-primes where you can maybe drive even better growth in the next few years?

Yes. I think it's a great question. I appreciate it. The important thing to understand about the defense side, it takes time to qualify these products. And we are a bit dependent on the DoW's acquisition timing and process. So we see the demand signals. We're responding to those in terms of standing ready. But a lot of that timing truly does depend on the defense side on when those procurements are going to make their way through the system. I think on the space side, I was talking about this with one of your colleagues, but one of the things that's important about the opportunity we have in space, especially in commercial space, is the decision-making and the attitude that the commercial space companies take when it comes to where they have to buy their manufactured product from. So the types of products that TTM is manufacturing here in the U.S., and our A&D business really anchored out of the U.S., a number of the commercial applications can still be procured for now outside of the U.S. There is a lot of focus on national security infrastructure, U.S. infrastructure and what the implications that might be. We're watching that very closely. So there's still some decision-making, I would say, that has to happen in the part of the commercial space primes in terms of how they are going to procure, and that will directly impact what our ramp-up looks like. We know it's coming. It's just a matter of what does that time line look like for them.

It's Will Stein from Truist Securities again. I think the last time the company offered a big update for investors, I think, was around January, and you talked about 15% to 20% top line for 3 years and then a doubling of EPS in 2. And now today, we're getting an update on '26. I'm wondering when we think about growth in '27, '28, et cetera, can you help nudge us in the right direction for contemplating total company revenue growth and margin expansion as we go forward?

Well, let me start and then hand it over to Dan. So first of all, I think that 15% to 20% is still very accurate going forward. Hopefully, we do better, as always. But 15% to 20% is still pretty accurate and also, let's say, doubling the earnings from 25 to 27 is also still very accurate. There's a lot going on, and you see how well we are positioned. So we'll see. We'll see. And as always, we give -- every quarter, we give, let's say, our best outlook for the quarter. By the way, only since the couple of months we decided now to give full guidance for the year. So that's a big change for us. Remember, we did only the next quarter. So that's going well. But for now, we stick to, let's say, the 15% to 20% for the coming years, and again, the doubling from 25 to 27. And as always, we push and we -- you see how well we are positioned. So if things change, then you -- as a good analyst, you are one of the first to know.

One follow-up, if I can. It's actually a different topic. Edwin, you've been with the company, I think, less than a year still, and it's a very exciting growthy time, a lot is changing. I'm hoping you can talk a little bit about the company's culture. You come from a very different company. Maybe talk about the aspects of the culture that you were either positively surprised by or things that are very supportive of change and growth. And then maybe if there's anything that you've had to change, we'd love to hear about that.

First of all, I think the company where I came from, I was 20 years in Teledyne, as you know, is the culture was pretty similar, I would say. It's a high-tech company and we do a lot of good high-tech stuff. But there are also some very nice things in TTM. First of all, and I mentioned it during the closing remarks, it's a very, very nice team to work with. And this is not only valid for the leadership team here, but also if you go a few levels down, it's still that same culture, very, very cooperative. There is no politics in the company, okay? So that helps a lot. So regarding culture, we didn't have to change a lot. I always say we, I don't say I, okay? So we didn't have to change a lot. The culture was there. There is, let's say, each of the plants have their own ambition to grow. It almost feels like families. But at the same time, we have what we call the One TTM. So they work together in a very, very nice way. So again, the culture was already there. We just continue it. The only thing what we emphasized a bit more is R&D and innovation. So these are the things we, I think, are putting a bit more on the priority list. Again, you have to be the technology leader. The capacity story is going very well. I like how Doug explained it with, let's say, the brownfield and the more, let's say, cautious way of adding capacity and that these are things we were already there. So again, it was just for me, a nice continuation and it's an amazing story here.

Sahej Singh from Stifel on behalf of Ruben Roy. Dan, maybe 2 questions for you. The first is around the $1 billion revolver and the upsized debt. That's a war chest. You guys are not unfamiliar with M&A, as we know. And you're also talking about CapEx expansion in 3 tiers between greenfield, brownfield and expansion. And so as we think about this balance sheet that you're now in charge of, how do we think about that as dissected via M&A, CapEx and any other capital allocation priorities?

Sure. Yes. Thank you for the question. As I showed, I think we're mostly wanting to fund our internal investment, our organic growth through our own operating cash, and we've been capable of doing that. So that was the signal that the war chest, as you put it, is most likely going to be used for M&A. We have a very active pipeline. You saw a globe that turned around that showed Europe, and my boss seems to want to be there, if you haven't heard that. So certainly, there are opportunities we're looking at for geographic expansion as well as some bolt-on strategic M&A. So that is why we want to go to the debt markets and increase that flexibility.

And I'll let the colleagues sort of follow up on M&A specific. The other question I have is a bit of napkin math on CapEx I think you put up a number, which is $450 million from '25 to '27. And I think your last 12-month CapEx to sales ratio is a little above 10%. Historically, you've done about 6%. Your $310 million on $4 billion for this year is about $7.75 billion. So what's the historical norm for your CapEx to sales? Where do you hope to land, especially as we start thinking about '27, '28 and all to come?

Yes. I'd say through that period, you just mentioned through '27, '28, we'll probably continue to be at between 6% and 7% of revenue, with growing revenue. So a growing dollar amount, but we'll probably stay within that 6% to 7%, which is higher than our historical, which is about 4% to 5%.

Drew Morton from Rivermont Capital. I had a 2-part question. First, you guys kind of talked about the $500 million in CapEx that was approved versus the $300 million that you're spending this year. Can you maybe help us understand the difference between those 2 numbers? And then I guess second question, just how should we think about revenue generated per dollar of CapEx or kind of like an ROI on the CapEx that you're spending?

So yes, the reason I put that up there is to the approved number versus the capital expenditures is some of our equipment, we have terms -- we maybe pay 25%, 30% deposit upfront. We may have a payment somewhere in the middle, but then mostly we pay the rest after a year. So our cash flows lag quite a bit, the ordering and delivery of our equipment. So a signal to why -- and I've mentioned to quite a few of you, our revenue growth through the first half of this year and then acceleration to the second half, largely due to purchase of equipment that we made orders on the end of last year. And so that was just a signal to show you there's more equipment still that's on order that's coming in that we haven't paid for yet. So the cash flow will lag into next year. But the capacity will be here, right? And then your second question was around -- yes. I mean I'm not -- frankly, look, I think what Doug showed you gave basically a 10x on that $450 million, right, generated about $4.5 billion of revenue for data center and compute over the 3-year period. So I think that's maybe not a benchmark for every CapEx, but the signal there was that what we're doing, right, if you're doing a green -- we talk about greenfield, brownfield and then we're adding capacity, we're adding drilling machines and plating lines to existing facilities that we have, that has a very quick turn, right? That is generating 10x over the next 3 years. Because we're not having to build buildings, we're not having to fit out new buildings. We're adding equipment to existing facilities. We have an existing workforce who knows how to run these equipment and turn that into revenue very quickly. So I'll just stick with that example, but that -- which is the growth part of our company.

Jim Ricchiuti with Needham. A follow-up question again on capital allocation. Has your thinking changed at all with respect to the Eau Claire facility, when you might be installing equipment, how to think about eventually that business scaling in that facility?

Jim, yes, I think we never had a specific start date in mind with that. It was a proactive move. We firmly believe that, that demand will come. And it's going to be driven by a number of different drivers, if you will. I mean there'll be a certain aspect of that will come from the customers themselves in terms of how they view their strategies on regional diversification, what they think they need to do in terms of China plus strategies. Another aspect is going to be possible signals that come from the government in terms of certain type of work that may need to be produced, if not in the United States and outside of China. So there's a variety of factors that we're experiencing as we talk to customers. I think the other factor that's in the background is just the need for more advanced tech capacity. And we've made it very clear that what we do do within the realm of commercial sector, not to say what might happen in A&D, is that factory will support advanced technology, and that factory will support the innovation center I mentioned. So when you look at the commercial side, these customers are always driven first -- largely driven first by cost. They don't make the move until they think they have to. But I can tell you that we're seeing increasing interest in the fact that we've got that asset, and they appreciate and understand the point I made earlier that a factory like Eau Claire can be converted into capacity and revenue for them much more quickly than a greenfield. So we're very optimistic about it. Still don't have a definite exact time frame to share today.

Okay. And Edwin, a question on M&A. And I know you can't be specific, but the previous 2 acquisitions the company has done has been in the defense area. And certainly, [ Anaren and Telephonics ] are good acquisitions. Can you give us a sense as to how you're thinking about, particularly with respect to Europe, opportunities on the defense side versus the PCB side, which the company hasn't done for a while?

Jim, typically, we always look, let's say, at -- on the PCB side, let's say, the interconnect side, we're looking at how much more global we can get. So I mentioned before that Europe is very interesting there because -- and maybe it starts with A&D because remember that if you want to provide A&D solution in Europe, there needs to be 60-plus percent European content. So that could be a very attractive angle. The other thing is everything up the chain, and that's more than A&D. At the moment, our IE business, what Greg described, is defense, but there are more angles there to that as well. So up the chain and a better coverage, let's say, even better coverage on PCB. These are the things you should think of.

There's no other questions, I'll ask a follow-up. Again, Ed Singh from Stifel on behalf of Ruben Roy. During Cathie, during the MD section, you're talking about contract terms and the change in procurement cycles. Similarly, we're seeing that in data centers, and we're hearing from across the supply chain, how visibility is changing and how contract terms are changing. Color there would be helpful on both sides. And Edwin, maybe for you specifically, excluding co-op on the data center side and to the degree you can talk about aerospace and defense or Cathie can, do you take the over or under on 4-year visibility for customer road maps?

Let me first go to Cathie and then, Doug, you can answer the data center.

Yes. So let's see if I can parse your question. So from an aerospace and defense perspective, looking at sort of changes in contract terms, I think I would characterize that just a little bit differently. So what we're seeing in the slowdown from our customers and in the sort of narrative that's coming out of the DoW is a streamlining and accelerating of acquisition. At the same time, what we're also seeing is a recognition on the part of the DoW and the primes that they need to telegraph a longer signal to shore up the defense industrial base. So in and amongst that is this attempt to streamline acquisition process to try to get contracts into the hands of the DIB, the defense industrial base, quicker. And in certain cases, longer contracting versus sort of more transactional. This is what the defense industrial base needs, and there is a response happening there. But it still takes time. This is still the defense acquisition process, right, that is really driving the timing of these contracts. So I think that's the change, right? There is an acceleration. There's a push. There's a longer duration coming because of the signal that needs to be sent through to the supply chain, and we are getting those indications. And there are certain types of contracting that are able to happen more quickly and remove some of the burden of administration from the administration. And so those are all sort of flowing through. The other part that you asked in terms of advanced packaging, can you give me just a little bit more of a sense on that question? Four years for visibility. Is that -- over 4 years or under 4 years?

Yes. So we spoke about it a bit during the break, correct? So the thing is, yes, we have a good idea where things are going. And we are, let's say, exploring different directions as well. Each of these solutions have their own complexity, and Doug showed some things regarding co-op. Yes, we have some very, very unique IP. Now is the time, let's say, to write down the IP. Some things are patents, some things is know-how basically. We have to defend our position there. But I can tell you, we're exploring in different direction there. And the visibility, yes, take any [ old ] report or any other report here, you see where things might go. But it's like all these things, you have to be extremely flexible. Yes, the products you have today might change next week because of different insights. So that's the visibility we have on that R&D.

Okay. And then on the commercial side of the business. So notwithstanding the automotive, which is a highly contractual business, historically, our other commercial markets, contracts have been more in terms of general framework agreements. I can say without getting into specifics that, in the current environment where capacity is more of a concern at the moment than it's been in the past on some of these advanced technologies, we are engaging in customer conversations focused around long-term agreements for capacity guarantees, engineering engagement so that you're gaining visibility to longer-term road map views and executive level engagement. So a little more formality being discussed now in these other commercial markets with some of the bigger customers than we've seen in the past. That's certainly very interesting to us and something that we will pursue appropriately.

I guess we're doing follow-ups. It's Will Stein again from Truist. Okay. I'll do it a little louder. One of the numbers that stuck out to me in today's presentation was a 9% share in the data center or data center networking, as you call today. I'm very curious as to what portion of that TAM is not only addressable by you but attractive to you. In other words, when you only have 9% share and you're one of a small number of companies that can address that market, it suggests quite a bit of upside if you were to sort of go for it and add the capacity. But maybe a lot of this is business that's actually not all that interesting from a margin perspective. So I'm hoping you can maybe talk us through that, please.

It's a good question. I would say looking at the 9%, you're looking in the rear. As we look to the future, there's an opportunity for that to grow within the context of the technologies we're focusing on. You are right, not everything is super attractive to us from a technology standpoint. So we have been very diligent in the technologies that we've approached. That's what we plan for. That's what our customers are coming to us and saying they need most. So as we set it up, we want to be very careful and very deliberate on what we -- the type of business we go after. And there could be growth in there. There could be decline because other technologies around it are growing a little bit faster in areas that we've elected not to invest. So hopefully, that answers your question. Doug, do you want to add to that?

Yes, I'll just say I think you're touching on the right point, Will. I mean we're being very purposeful when we use the term serviceable available market. We're looking at all of our capability and what we could support if we wanted to. There's a lot of commodity business in that number that's just not attractive to us. And I think that's probably the main reason that number is as low as it is.

A follow-up because, why not? You talked a little bit about optical communication on printed circuit boards, which I don't think we've heard you guys talk about in this forum anyway. Currently, I don't have a great understanding of that market, but I perceive there to be 1 or 2 very big global suppliers of fiber optic cable. And the idea that this could be just easily sort of built up into a printed circuit board transitioning from what copper clad laminates to what is it a glass laminate? How does that work? What does that look like? Can you help us -- for those of us who aren't creative enough to imagine it, can you help paint a picture for us?

Let me start and then hand it over to Doug. So well, first of all, data centers, they hate cables, okay? So they hate cables. So if you look at fiber solutions, they sometimes are not the best solution. So you see that we have already, let's say, we showed some real pictures, and this is real, of, let's say, our waveguides in our PCBs. The other thing we are doing well, we are very close with some of the component suppliers and solution suppliers in the optical domain. So you can imagine the companies [indiscernible] the [ Coherents ] and [ Lumentus ] of this world. So we're very close to these guys as well to try to get to that, let's say, the most optimal solutions. It's always a question, let's say, what will win. I think the very nice slide Rob showed regarding copper, copper is not going away, okay? It's not going away soon. So that will stay there. The other thing is, let's say, how we can be, let's say, add our optical knowledge and our optical solutions to be complementary to that copper solution. That's basically the way we are aiming at. Do we have a lot of color right now on where that's going? No. But we are, let's say, showcasing some of these solutions to our customers. So what we don't do is, with our customers, we go just with PowerPoints. We go with real prototypes, let's say, these waveguides. We go with components on top of these waveguides. We look at coupling. We look at, let's say, on [ reflow ] possibilities in -- with these same components. Optical components, you can hardly reflow. So you have to look very close to your industrialization to see what you can do there. This is just a few of these challenges we have. But again, we have time to bring that forward. That's where we are.

I think Edwin summarized it nicely. And I think in terms of trying to envision it, think about integrating the optics into the board. And that's really what our engineering teams, our R&D teams are exploring with customers because it hasn't been done up until now. So it's that as well as co-packaged optics and things like that on the board that can fit into that slide that Rob described. It's evolving, but we're getting more interest, and we're certainly building up our R&D staff to support it.

Okay. Any other questions? No? Okay. Yes, we do? Great.

Just in terms of the 15% to 20% CAGR over the next 3 years and in light of the strong growth this year, how do you think about the implied '27, '28, just given the opportunities ahead? What sector should still be driving that, especially with the ramp we have going on in asymmetric boards? Any more color we can get on that would be super helpful.

Yes, that's basically repeating my answer. The 15% to 20% is still pretty accurate. There's a lot going on. There's a lot in our control, there's a lot outside of our control. So for now, the 15% to 20%, and as we always did, every quarter, we give a nice update where we are, and that's probably the best answer I can give right now.

Okay. Well, folks, I think we're at a point now where we can probably conclude the webcast, conclude the presentations and Q&A. Hopefully, you'll have an opportunity to join us for lunch. We're going to have our team here and available for you, certainly distributed around the room as well as in this breakout room outside. So thanks again. And if you can just join me with a quick applause for all of the presenters here today. They did a terrific job. So thank you.