S&P Outlook Revision and Rating Confirmation
S&P Global Ratings revised its outlook on TTM Technologies Inc. from positive to stable on 26 August 2026, while affirming the company’s BB issuer credit rating. The change follows TTM’s announcement of a $1.1 billion acquisition of Epiq Solutions, a printed circuit board manufacturer.
Expected Financing and Leverage Impact
S&P expects TTM to finance the acquisition primarily with debt, which will raise the company’s pro‑forma net leverage to the high‑2x range when the deal closes in the fourth quarter of 2026. This is an increase from the low‑1x leverage level projected for 2025. The rating agency anticipates leverage to decline in 2027 as strong business performance, driven by AI‑focused data‑center demand, improves earnings.
Revenue, Margin and Growth Projections
TTM is projected to achieve almost 50 % topline growth in 2026 and mid‑teens percent growth in 2027. Improved EBITDA margins, expected to approach 20 % in 2027, will support the leverage reduction to the high‑1x area by year‑end 2027.
Capital Expenditure and Cash Flow Outlook
The firm is likely to increase capital expenditures to over $370 million in 2026, reflecting investments in growth initiatives and large working‑capital requirements. Consequently, free operating cash flow is expected to be modestly negative in 2026. By 2027, with EBITDA margins near 20 %, free operating cash flow is projected to exceed $250 million.
Rating Contingencies
S&P warned that the rating could be lowered if TTM undertakes additional debt‑funded acquisitions or if key end‑market demand weakens, causing leverage to stay above 3x. Conversely, an upgrade is possible if the company sustains adjusted net leverage below the 2x area, generates free operating cash flow to debt of around 15 %, and delivers organic revenue growth from its core end markets.