Financial Data and Key Metrics Changes - The company reported record quarterly sales, non-GAAP earnings per share, and free cash flow, with sales increasing by 6.7% year-over-year and non-GAAP earnings rising by 9.2% [4] - Free cash flow reached a record $314 million, and total new orders also set a quarterly record [4] - The full-year sales outlook was raised from $6.03 billion to $6.06 billion [4][15] Business Line Data and Key Metrics Changes - In the Digital Imaging segment, sales increased by 2.2%, with growth in Teledyne FLIR sales and modest increases in legacy DALSA and E2V businesses [8] - The Instrumentation segment saw a 3.9% increase in total sales, driven by marine instruments and environmental instruments [10] - Aerospace and Defense Electronics segment sales surged by 37.6%, primarily due to acquisitions and organic growth [11] - Engineered Systems segment revenue decreased by 8.1%, but operating margin increased by 30 basis points [11] Market Data and Key Metrics Changes - The company noted that 25% of sales could be affected by the U.S. government shutdown, but overall impact is expected to be minimal [5][6] - Sales to China represented only 4% of total sales, with negligible impact from being designated as an unreliable entity [6] Company Strategy and Development Direction - The company is focusing on defense-related businesses and pursuing significant contract opportunities, despite the current government shutdown [5][12] - There is a strong emphasis on unmanned systems and space-based electronics, with expectations for growth in these areas [12][54] - The company plans to be aggressive in M&A activities while being prudent about valuations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the company amid market volatility and government shutdown challenges [12] - There is optimism regarding defense spending increases in Europe and the potential for growth in the unmanned systems market [54][55] - The company anticipates a positive outlook for 2026, barring unforeseen global issues [55] Other Important Information - The company ended the quarter with $2.0 billion in net debt, indicating a strong balance sheet [15] - Cash flow from operating activities was $343.1 million, up from $249.8 million in the previous year [14] Q&A Session Summary Question: How did growth progress across various segments? - Management noted a 6.7% overall growth, with marine businesses performing strongly and variations in instrument businesses [20] Question: What is the outlook for digital imaging margins? - Margins are expected to recover, with a target of maintaining last year's margins despite cost reductions [29] Question: Can you provide book-to-bill ratios for major segments? - Digital Imaging had a book-to-bill of 1.12, Instrumentation was 0.9, Aerospace and Defense Electronics was 0.84, and Engineered Systems was over 2 [34][37] Question: What are the potential large contracts in the defense business? - Near-term opportunities exist in unmanned systems, particularly with the U.S. Marine Corps and Army programs [39] Question: How is the company addressing critical minerals availability for sensor products? - Management indicated that while there is some exposure, it is being managed effectively [44] Question: What is the growth potential for the unmanned business? - The unmanned business is expected to grow beyond the current $500 million, with significant demand in aerial, ground, and underwater domains [80] Question: How much of the EPS growth is attributed to M&A versus organic growth? - Most EPS growth is organic, with a small contribution from acquisitions [84]

Financial Data and Key Metrics Changes - The company reported record quarterly sales, non-GAAP earnings per share, and free cash flow, with sales increasing by 6.7% year-over-year and non-GAAP earnings rising by 9.2% [4] - Free cash flow reached a record $314 million, and total new orders also set a quarterly record [4] - The full-year sales outlook was raised from $6.03 billion to $6.06 billion [4][17] Business Line Data and Key Metrics Changes - In the Digital Imaging segment, sales increased by 2.2%, with growth in Teledyne FLIR sales and a modest increase in legacy DALSA and E2V businesses [8] - The Instrumentation segment saw a 3.9% increase in total sales, driven by marine instruments and environmental instruments, while electronic test and measurement systems experienced modest growth [11] - Aerospace and Defense Electronics segment sales surged by 37.6%, primarily due to acquisitions and organic growth [12] - Engineered Systems segment revenue decreased by 8.1%, but operating margin increased by 30 basis points [12] Market Data and Key Metrics Changes - The company noted that customers in China represent only 4% of sales, with minimal impact expected from being designated as an unreliable entity [6] - The ongoing U.S. government shutdown may affect about 25% of sales related to government contracts, but the overall impact is not expected to be significant [5][6] Company Strategy and Development Direction - The company is focused on pursuing significant contract opportunities in defense-related businesses, despite the current government shutdown [5] - There is a strong emphasis on maintaining a robust balance sheet while being aggressive in M&A activities, with $1 billion in free cash flow available [14] - The company is well-positioned in growing markets such as unmanned systems and space-based electronics [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the company despite near-term challenges, citing a diverse portfolio that mitigates market volatility [13] - The outlook for 2026 appears positive, particularly in defense spending in Europe and growth in unmanned systems [55] Other Important Information - Cash flow from operating activities was $343.1 million, up from $249.8 million in the previous year, with free cash flow also showing significant growth [16] - The company ended the quarter with $2.0 billion of net debt, indicating a strong financial position [17] Q&A Session Summary Question: How did the growth across segments progress? - Management noted a 6.7% growth across the portfolio, with marine businesses performing strongly and variations in other segments [21] Question: What about digital imaging margins? - Margins are expected to recover, with specific investments in areas like machine vision and sensors [29][65] Question: Can you provide book-to-bill ratios for various segments? - Digital Imaging had a book-to-bill ratio of 1.12, Instrumentation was 0.9, Aerospace and Defense Electronics was 0.84, and Engineered Systems was over 2 [35][38] Question: What are the potential large contracts in defense? - Near-term opportunities exist in unmanned systems, particularly with the U.S. Marine Corps and Army programs [41] Question: How is the company addressing critical minerals availability? - The company has been diligent in managing exposure to critical minerals, with no significant short-term impact expected [46] Question: What is the outlook for the unmanned business? - The unmanned business is expected to grow, with current revenues around $500 million and significant market share gains anticipated [77] Question: How much of the EPS growth is attributed to M&A versus organic growth? - Most EPS growth is organic, with a small contribution from acquisitions [80]

Financial Data and Key Metrics Changes - The company reported record quarterly sales, non-GAAP earnings per share, and free cash flow, with sales increasing by 6.7% year-over-year and non-GAAP earnings rising by 9.2% [4][21] - Free cash flow reached a record $314 million, and total new orders also set a quarterly record [4][21] - The full-year sales outlook was raised from $6.03 billion to $6.06 billion [4] Business Segment Performance - In the Digital Imaging segment, sales increased by 2.2%, with growth in Teledyne FLIR sales and a modest increase in legacy Dulsa E2V businesses [11] - The Instrumentation segment saw a 3.9% increase in total sales, driven by strong marine instrument sales and a 7.5% increase in environmental instruments [13][14] - Aerospace and Defense Electronics segment sales surged by 37.6%, primarily due to acquisitions and organic growth [15] - Engineered Systems segment revenue decreased by 8.1%, but operating margin increased by 30 basis points [16] Market Data and Key Metrics Changes - The company noted that 25% of sales are related to the U.S. government, which may be affected by the ongoing government shutdown [5][6] - Sales to customers in China represent only 4% of total sales, with minimal impact expected from being designated as an unreliable entity [7] Company Strategy and Industry Competition - The company is pursuing significant contract opportunities in defense, particularly in unmanned systems and advanced electronics [4][18] - The management emphasized a strong portfolio that protects against market volatility, with a focus on unmanned air and subsea systems [17][18] - The company plans to be aggressive yet prudent in M&A activities, with a strong balance sheet and $1 billion in free cash flow [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite challenges from the government shutdown and market volatility [17][18] - The ongoing need for new energy resources is positively impacting instrumentation businesses, and defense spending in Europe is expected to increase [18][62] - The company anticipates a good year in 2026, barring unforeseen global events [68] Other Important Information - Cash flow from operating activities was $343.1 million, up from $249.8 million in 2024, with capital expenditures of $29.2 million [21] - The company ended the quarter with $2 billion in net debt [22] Q&A Session Summary Question: Clarification on segment growth and uncertainty - Management noted a 6.7% growth across the portfolio, with variations in different businesses, particularly strong growth in marine and unmanned systems [28][30] Question: Digital Imaging segment margins - Management indicated that margins in Digital Imaging are expected to recover to 24% in Q4, with a flat year-over-year margin expected [36][37] Question: Book-to-bill ratios for segments - Digital Imaging had a book-to-bill ratio of 1.12, Instrumentation at 0.9, Aerospace and Defense Electronics at 0.84, and Engineered Systems over 2 [42] Question: Potential large contracts in defense - Management highlighted near-term opportunities in unmanned systems, particularly for loitering munitions and submarine interconnects [48] Question: Outlook for 2026 - Management expressed positive expectations for defense businesses in Europe and anticipated growth in various segments, including unmanned systems [62][68]

Teledyne Technologies (TDY) came out with quarterly earnings of $5.57 per share, beating the Zacks Consensus Estimate of $5.5 per share. This compares to earnings of $5.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.27%. A quarter ago, it was expected that this defense and aerospace industry supplier would post earnings of $5.02 per share when it actually produced earnings of $5.2, delivering a surprise of +3.59%.Over th ...

Core Insights - Teledyne Technologies has raised its profit forecast for 2025, indicating confidence in ongoing demand for its defense electronics and military drones [1] Company Summary - The company is focusing on the defense sector, particularly in electronics and drone technology, which are expected to drive revenue growth [1] Industry Summary - The defense electronics and military drone markets are projected to experience sustained demand, contributing to the positive outlook for companies like Teledyne Technologies [1]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of Teledyne's Q3 2025 financial performance, key achievements, and an updated outlook, including executive commentary [Overall Q3 2025 Performance](index=1&type=section&id=Overall%20Q3%202025%20Performance) Teledyne reported increased net sales for Q3 2025, driven by recent acquisitions, but GAAP net income and EPS decreased, while non-GAAP figures showed growth Overall Q3 2025 Performance | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | | Net Sales | $1,539.5 million | $1,443.5 million | 6.7% | | GAAP Net Income Attributable to Teledyne | $220.7 million | $262.0 million | -15.8% | | GAAP Diluted EPS | $4.65 | $5.54 | -15.8% | | Non-GAAP Net Income Attributable to Teledyne | $264.5 million | $241.3 million | 9.6% | | Non-GAAP Diluted EPS | $5.57 | $5.10 | 9.2% | | Operating Margin | 18.4% | 18.8% | -0.4 pp | | Non-GAAP Operating Margin | 22.1% | 22.5% | -0.4 pp | [Key Achievements & Outlook Update](index=1&type=section&id=Key%20Achievements%20%26%20Outlook%20Update) The company achieved record quarterly net sales, non-GAAP diluted EPS, and cash from operations, raising its full-year 2025 EPS outlook and announcing a pending acquisition - Record quarterly net sales of **$1,539.5 million**, an increase of **6.7%** compared with last year[3](index=3&type=chunk) - Record quarterly non-GAAP diluted earnings per share of **$5.57**, an increase of **9.2%** compared with last year[3](index=3&type=chunk) - Record quarterly cash from operations of **$343.1 million** and free cash flow of **$313.9 million**[3](index=3&type=chunk) Full Year 2025 Diluted EPS Outlook Update | Metric | Prior Outlook | New Outlook | | :------- | :------------ | :---------- | | GAAP Diluted EPS | $17.59 to $17.97 | $17.83 to $18.05 | | Non-GAAP Diluted EPS | $21.20 to $21.50 | $21.45 to $21.60 | - Quarter-end consolidated leverage ratio of **1.4x**[3](index=3&type=chunk) - Announced pending carve-out acquisition of TransponderTech[3](index=3&type=chunk) [Executive Commentary](index=2&type=section&id=Executive%20Commentary) The Executive Chairman highlighted record quarterly sales, non-GAAP EPS, and free cash flow, driven by Teledyne FLIR backlog and recovering commercial businesses, with a strong balance sheet for future growth despite U.S. Government shutdown concerns - Record quarterly sales, non-GAAP earnings per share, and free cash flow were achieved[4](index=4&type=chunk) - Total company new orders were a quarterly record, partly due to continued backlog growth at Teledyne FLIR[4](index=4&type=chunk) - Defense-related businesses, including new acquisitions, are performing extremely well[4](index=4&type=chunk) - The balance sheet is the strongest in years, providing capacity to pursue acquisitions or stock repurchases[4](index=4&type=chunk) - Expectations for new awards and shipments in the very near-term are measured due to the current U.S. Government shutdown[4](index=4&type=chunk) [Segment Performance Review](index=2&type=section&id=Segment%20Performance%20Review) This section reviews the financial performance of Teledyne's four operating segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems [Digital Imaging](index=2&type=section&id=Digital%20Imaging) The Digital Imaging segment saw modest net sales growth from commercial infrared imaging and industrial automation, but operating income slightly decreased due to higher R&D expenses Digital Imaging Segment Performance (Q3 YoY) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | Change (%) | | :---------------------- | :------------------ | :------------------ | :--------- | | Net Sales | 785.4 | 768.4 | 2.2% | | Operating Income | 123.4 | 123.9 | -0.4% | | Non-GAAP Operating Income | 170.2 | 173.7 | -2.0% | - Net sales increased primarily due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems, and industrial automation imaging systems[7](index=7&type=chunk) - The decrease in operating income was primarily due to higher research and development expense[7](index=7&type=chunk) [Instrumentation](index=2&type=section&id=Instrumentation) The Instrumentation segment reported increased net sales and operating income, driven by stronger environmental and marine instrumentation sales, particularly in gas detection and offshore energy/defense markets Instrumentation Segment Performance (Q3 YoY) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | Change (%) | | :---------------------- | :------------------ | :------------------ | :--------- | | Net Sales | 363.6 | 349.8 | 3.9% | | Operating Income | 98.8 | 96.3 | 2.6% | | Non-GAAP Operating Income | 102.1 | 99.8 | 2.3% | - Net sales increase resulted from an **$8.1 million** increase in sales of environmental instrumentation (stronger gas detection products) and a **$5.3 million** increase in sales of marine instrumentation (stronger offshore energy and defense markets)[9](index=9&type=chunk) [Aerospace and Defense Electronics](index=2&type=section&id=Aerospace%20and%20Defense%20Electronics) This segment achieved significant growth in net sales and operating income, primarily driven by recent acquisitions contributing to defense electronics sales Aerospace and Defense Electronics Segment Performance (Q3 YoY) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | Change (%) | | :---------------------- | :------------------ | :------------------ | :--------- | | Net Sales | 275.5 | 200.2 | 37.6% | | Operating Income | 70.4 | 56.3 | 25.0% | | Non-GAAP Operating Income | 77.3 | 56.5 | 36.8% | - Net sales reflected higher sales of **$75.6 million** for defense electronics, including **$69.0 million** from recent acquisitions[11](index=11&type=chunk) - The increase in operating income primarily reflected the impact of higher sales, partially offset by higher transaction and integration costs as well as higher acquired intangible amortization expense[11](index=11&type=chunk) [Engineered Systems](index=3&type=section&id=Engineered%20Systems) The Engineered Systems segment experienced a decrease in both net sales and operating income, primarily due to lower sales in engineered products and energy systems Engineered Systems Segment Performance (Q3 YoY) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | Change (%) | | :---------------------- | :------------------ | :------------------ | :--------- | | Net Sales | 115.0 | 125.1 | -8.1% | | Operating Income | 12.2 | 12.9 | -5.4% | - Net sales reflected lower sales of **$9.2 million** for engineered products and lower sales of **$0.9 million** for energy systems[12](index=12&type=chunk) [Additional Financial Information](index=3&type=section&id=Additional%20Financial%20Information) This section provides further financial details on cash flow, debt, liquidity, income taxes, and other corporate expenses [Cash Flow](index=3&type=section&id=Cash%20Flow) Cash provided by operating activities significantly increased in Q3 2025 due to favorable accounts receivable timing, while capital expenditures also rose - Cash provided by operating activities was **$343.1 million** for Q3 2025, up from **$249.8 million** in Q3 2024, driven primarily by favorable timing of accounts receivable collections[13](index=13&type=chunk) - Capital expenditures for Q3 2025 were **$29.2 million**, compared with **$21.1 million** in Q3 2024[14](index=14&type=chunk) Free Cash Flow (Q3 YoY) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | | :-------------------------------- | :------------------ | :------------------ | | Cash provided by operating activities | 343.1 | 249.8 | | Capital expenditures | (29.2) | (21.1) | | **Free cash flow** | **313.9** | **228.7** | [Debt and Liquidity](index=3&type=section&id=Debt%20and%20Liquidity) Net debt remained stable with a slight increase from December 2024, as the company repurchased senior notes and maintained significant credit facility availability Net Debt Position | Metric | September 28, 2025 ($ million) | December 29, 2024 ($ million) | | :------------------------ | :----------------------- | :----------------------- | | Total debt | 2,533.4 | 2,649.0 | | Cash and cash equivalents | (528.6) | (649.8) | | **Net debt** | **2,004.8** | **1,999.2** | - In Q3 2025, the company repurchased and retired **$84.9 million** of principal of its fixed rate senior notes for **$77.7 million** in cash[15](index=15&type=chunk) - As of September 28, 2025, **$1,168.7 million** was available under the **$1.20 billion** credit facility[16](index=16&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) The effective tax rate for Q3 2025 was 19.3%, a significant increase from Q3 2024's negative 2.8%, primarily due to a prior-year FLIR acquisition tax benefit Effective Tax Rate (Q3 YoY) | Metric | Q3 2025 | Q3 2024 | | :------------------------ | :------ | :------ | | Effective tax rate | 19.3% | -2.8% | | Net discrete income tax benefits | $4.9 million | $62.3 million | - The Q3 2024 benefits were primarily related to the resolution of an uncertain tax position related to a pre-acquisition FLIR tax matter[18](index=18&type=chunk) [Other Financial Items](index=3&type=section&id=Other%20Financial%20Items) Corporate expense increased due to higher employee compensation, while net interest expense decreased due to lower outstanding borrowings - Corporate expense was **$22.0 million** for Q3 2025, up from **$18.7 million** in Q3 2024, primarily due to higher employee compensation costs, including severance costs[19](index=19&type=chunk) - Interest expense, net, was **$12.6 million** for Q3 2025, down from **$15.7 million** in Q3 2024, due to lower outstanding borrowings[19](index=19&type=chunk) [Outlook](index=4&type=section&id=Outlook) This section presents Teledyne's earnings per share outlook for the fourth quarter and full year 2025, distinguishing between GAAP and non-GAAP figures [Earnings Per Share Outlook](index=4&type=section&id=Earnings%20Per%20Share%20Outlook) Teledyne provided its GAAP and non-GAAP diluted EPS outlook for Q4 and full year 2025, with non-GAAP figures excluding specific acquisition-related adjustments Q4 2025 Diluted EPS Outlook | Metric | Low | High | | :------- | :-- | :--- | | GAAP | $4.76 | $4.98 | | Non-GAAP | $5.73 | $5.88 | Full Year 2025 Diluted EPS Outlook | Metric | Low | High | | :------- | :-- | :--- | | GAAP | $17.83 | $18.05 | | Non-GAAP | $21.45 | $21.60 | - The non-GAAP outlook excludes acquired intangible asset amortization, transaction and integration costs, inventory step-up expense, and FLIR acquisition-related tax matters[20](index=20&type=chunk) [Non-GAAP Financial Measures and Forward-Looking Statements](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Forward-Looking%20Statements) This section explains the company's use of non-GAAP financial measures and provides cautionary notices regarding forward-looking statements and associated risks [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Teledyne uses non-GAAP financial measures to supplement GAAP reporting, offering additional insights into performance by adjusting for infrequent acquisition-related items, but these are not GAAP substitutes - Non-GAAP financial measures provide management, financial analysts, and investors with additional useful information for evaluating the company's performance, particularly for understanding operating results and trends by adjusting for certain expenses and benefits[21](index=21&type=chunk)[48](index=48&type=chunk) - These measures are not meant to be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP[49](index=49&type=chunk) - Non-GAAP adjustments typically exclude acquired intangible asset amortization, transaction and integration costs, inventory step-up expense, and FLIR acquisition-related tax matters, as these are considered infrequent or non-recurring[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) [Forward-Looking Statements Cautionary Notice](index=4&type=section&id=Forward-Looking%20Statements%20Cautionary%20Notice) The report contains forward-looking statements subject to risks and uncertainties, including governmental policies, economic tensions, and acquisition integration, which could cause actual results to differ materially - Forward-looking statements involve risks and uncertainties and are based on the current expectations of management[22](index=22&type=chunk) - Actual results could differ materially due to factors such as U.S. Presidential Administration policies, U.S.-China economic and diplomatic tension, U.S. Government shutdowns, inability to develop new competitive products, changes in tax laws, foreign currency exchange risks, rising interest rates, supply chain shortages, inflation, labor shortages, global economic disruptions, geopolitical conflicts (Israel, Russia-Ukraine), and acquisition integration risks[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Teledyne assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date they were made[28](index=28&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) This section presents the company's GAAP condensed consolidated statements of income, segment performance, balance sheets, and cash flows [Statements of Income (Loss)](index=6&type=section&id=Statements%20of%20Income%20(Loss)) Presents the GAAP condensed consolidated statements of income for Q3 and nine months ended September 28, 2025, and September 29, 2024, detailing net sales, costs, operating income, and net income attributable to Teledyne Condensed Consolidated Statements of Income (Loss) (GAAP) | Metric | Q3 2025 ($ million) | Q3 2024 ($ million) | 9M 2025 ($ million) | 9M 2024 ($ million) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net sales | 1,539.5 | 1,443.5 | 4,503.1 | 4,167.7 | | Total costs and expenses | 1,256.7 | 1,172.8 | 3,682.8 | 3,415.7 | | Operating income (loss) | 282.8 | 270.7 | 820.3 | 752.0 | | Income (loss) before income taxes | 273.8 | 255.1 | 773.3 | 712.3 | | Net income (loss) attributable to Teledyne | 220.7 | 262.0 | 619.2 | 620.7 | | Diluted earnings per common share | 4.65 | 5.54 | 13.06 | 13.01 | [Summary of Segment Net Sales and Operating Income (Loss)](index=7&type=section&id=Summary%20of%20Segment%20Net%20Sales%20and%20Operating%20Income%20(Loss)) Provides a detailed breakdown of net sales and operating income by segment for Q3 and nine months ended September 28, 2025, and September 29, 2024, highlighting percentage changes Q3 Segment Net Sales and Operating Income (GAAP) | Segment | Q3 2025 Net Sales ($ million) | Q3 2024 Net Sales ($ million) | % Change Net Sales | Q3 2025 Op. Income ($ million) | Q3 2024 Op. Income ($ million) | % Change Op. Income | | :------------------------------ | :---------------------------- | :---------------------------- | :----------------- | :----------------------------- | :----------------------------- | :------------------ | | Digital Imaging | 785.4 | 768.4 | 2.2% | 123.4 | 123.9 | (0.4)% | | Instrumentation | 363.6 | 349.8 | 3.9% | 98.8 | 96.3 | 2.6% | | Aerospace and Defense Electronics | 275.5 | 200.2 | 37.6% | 70.4 | 56.3 | 25.0% | | Engineered Systems | 115.0 | 125.1 | (8.1)% | 12.2 | 12.9 | (5.4)% | | **Total Net Sales / Operating Income** | **1,539.5** | **1,443.5** | **6.7%** | **282.8** | **270.7** | **4.5%** | 9M Segment Net Sales and Operating Income (GAAP) | Segment | 9M 2025 Net Sales ($ million) | 9M 2024 Net Sales ($ million) | % Change Net Sales | 9M 2025 Op. Income ($ million) | 9M 2024 Op. Income ($ million) | % Change Op. Income | | :------------------------------ | :---------------------------- | :---------------------------- | :----------------- | :----------------------------- | :----------------------------- | :------------------ | | Digital Imaging | 2,313.4 | 2,248.6 | 2.9% | 365.3 | 351.2 | 4.0% | | Instrumentation | 1,074.5 | 1,013.7 | 6.0% | 293.1 | 269.5 | 8.8% | | Aerospace and Defense Electronics | 782.8 | 580.3 | 34.9% | 192.7 | 165.3 | 16.6% | | Engineered Systems | 332.4 | 325.1 | 2.2% | 35.1 | 23.1 | 51.9% | | **Total Net Sales / Operating Income** | **4,503.1** | **4,167.7** | **8.0%** | **820.3** | **752.0** | **9.1%** | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) Presents the GAAP condensed consolidated balance sheets as of September 28, 2025, and December 29, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (GAAP) | Item | Sep 28, 2025 ($ million) | Dec 29, 2024 ($ million) | | :-------------------------------- | :----------------------- | :----------------------- | | **ASSETS** | | | | Cash and cash equivalents | 528.6 | 649.8 | | Accounts receivable and unbilled receivables, net | 1,331.0 | 1,213.2 | | Inventories, net | 1,058.1 | 914.4 | | Prepaid expenses and other current assets | 305.2 | 167.2 | | Total current assets | 3,222.9 | 2,944.6 | | Property, plant and equipment, net | 820.4 | 745.2 | | Goodwill and acquired intangible assets, net | 10,765.7 | 10,003.4 | | Prepaid pension assets | 240.2 | 227.6 | | Other assets, net | 319.5 | 279.7 | | **Total assets** | **15,368.7** | **14,200.5** | | **LIABILITIES AND EQUITY** | | | | Accounts payable | 459.5 | 416.4 | | Accrued liabilities | 893.6 | 844.9 | | Current portion of long-term debt | 450.2 | 0.3 | | Total current liabilities | 1,803.3 | 1,261.6 | | Long-term debt, net of current portion | 2,083.2 | 2,648.7 | | Other long-term liabilities | 921.4 | 734.8 | | Total liabilities | 4,807.9 | 4,645.1 | | Redeemable noncontrolling interest | — | 6.0 | | Total stockholders' equity | 10,560.8 | 9,549.4 | | **Total liabilities and equity** | **15,368.7** | **14,200.5** | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) Presents the GAAP condensed consolidated statements of cash flows for Q3 ended September 28, 2025, and September 29, 2024, detailing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (GAAP) | Activity | Q3 2025 ($ million) | Q3 2024 ($ million) | | :-------------------------------------- | :------------------ | :------------------ | | Net income (loss) including noncontrolling interest | 220.9 | 262.2 | | Depreciation and amortization | 84.5 | 76.9 | | Stock-based compensation | 10.5 | 8.7 | | Changes in operating assets and liabilities and other operating activity | 27.2 | (98.0) | | **Net cash provided by (used in) operating activities** | **343.1** | **249.8** | | Purchases of property, plant and equipment | (29.2) | (21.1) | | Purchases of businesses, net of cash acquired | (6.6) | (0.1) | | Other investing, net | 0.1 | 0.1 | | **Net cash provided by (used in) investing activities** | **(35.7)** | **(21.1)** | | Proceeds from (payments) on fixed rate senior notes | (77.7) | — | | Proceeds from exercise of stock options | 13.0 | 5.0 | | Acquisition of noncontrolling interest | (27.2) | — | | Purchases of treasury stock, including excise tax | — | (138.8) | | Other financing, net | 3.2 | (0.7) | | **Net cash provided by (used in) financing activities** | **(88.7)** | **(134.5)** | | Effect of exchange rate changes on cash | (1.0) | 23.6 | | Changes in cash and cash equivalents | 217.7 | 117.8 | | Cash and cash equivalents—beginning of period | 310.9 | 443.2 | | **Cash and cash equivalents—end of period** | **528.6** | **561.0** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including income, EPS, operating income, and net debt [Non-GAAP Income and EPS Reconciliation](index=10&type=section&id=Non-GAAP%20Income%20and%20EPS%20Reconciliation) Reconciles GAAP income before income taxes, net income, and diluted EPS to non-GAAP counterparts for Q3 and nine months, adjusting for transaction costs, inventory step-up, acquired intangible asset amortization, and FLIR tax matters Q3 GAAP to Non-GAAP Income & EPS Reconciliation | Metric | GAAP Q3 2025 ($ million) | Adjustments Q3 2025 ($ million) | Non-GAAP Q3 2025 ($ million) | GAAP Q3 2024 ($ million) | Adjustments Q3 2024 ($ million) | Non-GAAP Q3 2024 ($ million) | | :-------------------------------- | :----------------------- | :-------------------------- | :------------------------- | :----------------------- | :-------------------------- | :------------------------- | | Income Before Income Taxes | 273.8 | 57.2 | 331.0 | 255.1 | 53.5 | 308.6 | | Net Income Attributable to Teledyne | 220.7 | 43.8 | 264.5 | 262.0 | (20.7) | 241.3 | | Diluted Earnings per Common Share | 4.65 | 0.92 | 5.57 | 5.54 | (0.48) | 5.10 | 9M GAAP to Non-GAAP Income & EPS Reconciliation | Metric | GAAP 9M 2025 ($ million) | Adjustments 9M 2025 ($ million) | Non-GAAP 9M 2025 ($ million) | GAAP 9M 2024 ($ million) | Adjustments 9M 2024 ($ million) | Non-GAAP 9M 2024 ($ million) | | :-------------------------------- | :----------------------- | :-------------------------- | :------------------------- | :----------------------- | :-------------------------- | :------------------------- | | Income Before Income Taxes | 773.3 | 174.3 | 947.6 | 712.3 | 155.2 | 867.5 | | Net Income Attributable to Teledyne | 619.2 | 125.6 | 744.8 | 620.7 | 57.6 | 678.3 | | Diluted Earnings per Common Share | 13.06 | 2.65 | 15.71 | 13.01 | 1.21 | 14.22 | [Non-GAAP Operating Income and Margin Reconciliation](index=11&type=section&id=Non-GAAP%20Operating%20Income%20and%20Margin%20Reconciliation) Reconciles GAAP operating income and margin to non-GAAP counterparts for Q3 and nine months, adjusting for transaction costs, inventory step-up expense, and acquired intangible asset amortization Q3 GAAP to Non-GAAP Operating Income & Margin Reconciliation | Metric | GAAP Q3 2025 ($ million) | Adjustments Q3 2025 ($ million) | Non-GAAP Q3 2025 ($ million) | GAAP Q3 2024 ($ million) | Adjustments Q3 2024 ($ million) | Non-GAAP Q3 2024 ($ million) | | :---------------------- | :----------------------- | :-------------------------- | :------------------------- | :----------------------- | :-------------------------- | :------------------------- | | Operating Income | 282.8 | 57.2 | 340.0 | 270.7 | 53.5 | 324.2 | | Operating Margin | 18.4% | | 22.1% | 18.8% | | 22.5% | 9M GAAP to Non-GAAP Operating Income & Margin Reconciliation | Metric | GAAP 9M 2025 ($ million) | Adjustments 9M 2025 ($ million) | Non-GAAP 9M 2025 ($ million) | GAAP 9M 2024 ($ million) | Adjustments 9M 2024 ($ million) | Non-GAAP 9M 2024 ($ million) | | :---------------------- | :----------------------- | :-------------------------- | :------------------------- | :----------------------- | :-------------------------- | :------------------------- | | Operating Income | 820.3 | 174.3 | 994.6 | 752.0 | 155.2 | 907.2 | | Operating Margin | 18.2% | | 22.1% | 18.0% | | 21.8% | - Detailed segment-level non-GAAP operating income reconciliation is provided, showing adjustments for acquired intangible asset amortization, inventory step-up expense, and transaction and integration costs for each segment[44](index=44&type=chunk) [Non-GAAP Net Debt and Outlook Reconciliation](index=13&type=section&id=Non-GAAP%20Net%20Debt%20and%20Outlook%20Reconciliation) Reconciles total debt to net debt and provides a reconciliation of GAAP to non-GAAP diluted EPS outlook for Q4 and full year 2025, detailing specific adjustments Non-GAAP Net Debt | Metric | Sep 28, 2025 ($ million) | Dec 29, 2024 ($ million) | | :------------------------ | :----------------------- | :----------------------- | | Total debt – non-GAAP | 2,533.4 | 2,649.0 | | Less cash and cash equivalents | (528.6) | (649.8) | | **Net debt – non-GAAP** | **2,004.8** | **1,999.2** | Q4 2025 GAAP to Non-GAAP Diluted EPS Outlook Reconciliation (Adjustments) | Adjustment Item | Low | High | | :-------------------------------- | :--- | :--- | | Transaction and integration costs | $0.03 | $0.01 | | Inventory step-up expense | $0.02 | $0.01 | | Acquired intangible asset amortization | $0.92 | $0.88 | | FLIR acquisition-related tax matters | $— | $— | Full Year 2025 GAAP to Non-GAAP Diluted EPS Outlook Reconciliation (Adjustments) | Adjustment Item | Low | High | | :-------------------------------- | :--- | :--- | | Transaction and integration costs | $0.18 | $0.16 | | Inventory step-up expense | $0.07 | $0.06 | | Acquired intangible asset amortization | $3.53 | $3.49 | | FLIR acquisition-related tax matters | $(0.16) | $(0.16) | [Explanation of Non-GAAP Financial Measures](index=14&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Provides detailed definitions and rationale for each non-GAAP financial measure, explaining the exclusion of acquisition-related items for clearer ongoing operational performance and comparability - Acquired intangible asset amortization is excluded to provide an alternative way for investors to compare operations pre-acquisition to post-acquisition and to competitors with internal growth strategies[56](index=56&type=chunk) - Transaction and integration costs (e.g., legal, accounting fees, employee separation, facility consolidation) are excluded because they do not reflect ongoing financial performance[56](index=56&type=chunk) - Inventory step-up expense, a non-cash expense from purchase accounting, is excluded as it is not indicative of ongoing operating results[56](index=56&type=chunk) - FLIR acquisition-related tax matters (e.g., post-acquisition interest on tax reserves, tax benefits/costs from resolution) are excluded as they do not reflect ongoing financial performance[56](index=56&type=chunk)

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Teledyne Technologies Incorporated (NYSE:TDY) ("Teledyne†) announced today that Teledyne's Board of Directors appointed Laura Black, Managing Director of Needham & Company, LLC, and George C. Bobb III, Teledyne's President and Chief Executive Officer, to Teledyne's Board of Directors. These additions raise the number of Board members to 12. Ms. Black, age 64, has served as a Managing Director of Needham & Company, LLC, a full-service investment ba. ...

Core Insights - The article emphasizes the importance of data-driven analysis in identifying investment opportunities within the aerospace, defense, and airline sectors [2]. Group 1: Investment Opportunities - The Aerospace Forum aims to discover investment opportunities in the aerospace, defense, and airline industries, highlighting significant growth prospects in these sectors [2]. - The analysis provided by the forum is informed by data analytics, which helps contextualize industry developments and their potential impact on investment theses [2]. Group 2: Analyst Background - The lead analyst, Dhierin, has a background in aerospace engineering, which enhances the depth of analysis in a complex industry [2]. - The forum offers direct access to data analytics monitors, further supporting informed investment decisions [2].

Core Viewpoint - Teledyne Technologies (TDY) is set to release its third-quarter 2025 results on October 22, with expectations of a year-over-year earnings increase of 7.8% and revenue growth of 5.9% [5][9]. Group 1: Factors Influencing Q3 Results - The acquisition of Maretron in July 2025 is expected to enhance TDY's performance by expanding its product line in high-end marine technology, particularly through the integration of Maretron's digital switching and vessel monitoring systems into the Raymarine business [2]. - Solid organic sales in defense electronics and growth from recent acquisitions are anticipated to positively impact the Aerospace & Defense Electronics unit's revenue [3]. - The Instrumentation segment is likely to benefit from increased sales of marine instrumentation, driven by stronger offshore energy and subsea defense markets [3]. Group 2: Challenges and Cautions - Ongoing global trade uncertainties and potential new tariffs may have influenced customer purchasing decisions, leading to flat revenues in the Digital Imaging segment for Q3 [4]. - Cautious market expectations, especially regarding short-cycle businesses, are expected to limit overall top-line growth [4]. Group 3: Earnings Expectations - The Zacks Consensus Estimate for TDY's earnings is $5.50 per share, reflecting a 7.8% increase year-over-year, while revenue is estimated at $1.53 billion, indicating a 5.9% improvement [5][9]. - The company's Earnings ESP is -0.87%, suggesting that an earnings beat is not anticipated this quarter [6]. Group 4: Comparative Analysis - Other companies in the sector, such as GE Aerospace, Howmet Aerospace, and CurtissWright, are expected to report earnings beats, with respective Earnings ESPs of +2.01%, +0.30%, and +1.45% [10][11][12].

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midc ...