TTM Technologies Inc reported a 2.8% increase in its shares in premarket trading Thursday after announcing a multi-year supply agreement with Raytheon to support integrated air and missile defense programs.
The contract, which TTM said could be worth as much as $200 million over a three-year span, is aimed at supporting Raytheon’s Lower Tier Air and Missile Defense Sensor (LTAMDS) program. TTM noted the work builds on its prior support of LTAMDS development and activities related to production readiness.
Under the terms disclosed, TTM will be responsible for the design, manufacture and test of several key items for LTAMDS and GhostEye radars, including the Beam Forming Network, printed wiring boards and specialized assemblies. The company also said the multi-year nature of the commitment permits it to invest in capacity and pursue improved lead-time stability.
"This significant agreement reinforces our long-standing partnership with Raytheon and reflects the growing importance of resilient and trusted, U.S.-based electronics manufacturing for integrated air and missile defense," said Catherine Gridley, Executive Vice President and President of TTM’s Aerospace & Defense Sector.
Raytheon framed the agreement as a means to support program execution and cost control. Mike Mills, Raytheon Vice President of LTAMDS and GhostEye Programs, said establishing the multi-year contract "will allow us to meet our accelerated delivery schedule while reducing costs."
TTM characterized the arrangement as enabling capital and capacity investments intended to deliver more predictable lead times for the radar components it will produce and test. The company reiterated that the potential $200 million figure applies across the three-year period, and that the work extends its existing role supporting development and production-readiness efforts for LTAMDS.
The announcement highlights continued commercial relationships between defense prime contractors and specialized electronics manufacturers focused on radio frequency assemblies and printed circuit board production. TTM's statement emphasized U.S.-based electronics manufacturing as a factor in the agreement.
Summary
TTM Technologies said its stock rose 2.8% in premarket trading after a multi-year deal with Raytheon that could be worth up to $200 million over three years. The contract covers design, manufacturing and testing of critical radar components for the LTAMDS and GhostEye programs and allows TTM to invest in capacity to improve lead-time stability.