Teledyne Technologies(TDY) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales reached $1,502.3 million, a 5.4% increase from $1,425.0 million in Q4 2023[2] - Fourth quarter 2024 net income attributable to Teledyne was $198.5 million, a decrease of 38.6% compared to $323.1 million in Q4 2023[2] - Full year 2024 net sales totaled $5,670.0 million, a slight increase of 0.6% from $5,635.5 million in 2023[4] - Full year 2024 non-GAAP net income attributable to Teledyne was $939.2 million, compared to $943.3 million in 2023, reflecting a decrease of 0.4%[5] - Operating income for Q4 2024 was $237.1 million, down 12.7% from $271.5 million in Q4 2023[33] - GAAP net income for Q4 2024 was $198.5 million, down from $323.1 million in Q4 2023, representing a decrease of about 38.6%[44] - For the full year 2024, GAAP net income was $819.2 million, compared to $885.7 million in 2023, a decline of approximately 7.5%[44] Earnings Per Share - Full year 2025 GAAP diluted earnings per share outlook is projected to be between $17.70 and $18.20, while non-GAAP earnings per share is expected to be between $21.10 and $21.50[2] - Diluted earnings per share for Q4 2024 were $4.20, down from $6.75 in Q4 2023[33] - Non-GAAP diluted earnings per share for Q4 2024 increased to $5.52 from $5.44 in Q4 2023, a growth of 1.5%[44] - The company expects GAAP diluted earnings per share for Q1 2025 to be between $3.90 and $4.04, and for the full year 2025 to be between $17.70 and $18.20[50] Segment Performance - The Digital Imaging segment reported Q4 2024 net sales of $822.2 million, a 2.5% increase from $802.5 million in Q4 2023[9] - The Instrumentation segment's Q4 2024 net sales increased by 10.1% to $368.9 million, driven by stronger marine instrumentation sales[11] - The Digital Imaging segment reported a 2.5% increase in net sales for Q4 2024, totaling $822.2 million, while total year sales decreased by 2.3%[37] - Instrumentation segment net sales increased by 10.1% in Q4 2024, reaching $368.9 million, and by 4.3% for the total year[37] Acquisitions and Investments - The company expects to deploy approximately $770 million on acquisitions in Q1 2025, following a full year capital deployment of $1.1 billion in 2024[2] - The recently completed acquisition of Micropac Industries, Inc. is expected to enhance Teledyne's business portfolio[3] - The company anticipates potential acquisitions as part of its growth strategy, though no specific timelines or terms are guaranteed[28] Tax and Impairment - The effective tax rate for Q4 2024 was 11.7%, with income tax benefits of $30.2 million compared to $123.4 million in Q4 2023[21] - Income tax benefits from FLIR acquisition-related tax matters were $16.6 million for Q4 2024, compared to $102.2 million in Q4 2023[34] - The company incurred pretax, non-cash impairment charges of $52.5 million related to indefinite-lived trademarks in Q4 2024[33] Assets and Liabilities - Total assets decreased from $14,527.9 million in Q4 2023 to $14,200.5 million in Q4 2024, a decline of approximately 2.25%[41] - Total liabilities decreased from $5,302.1 million in Q4 2023 to $4,645.1 million in Q4 2024, a reduction of approximately 12.3%[41] - The company reported a net debt of $1,999.2 million as of December 29, 2024, down from $2,596.6 million a year earlier, a decrease of about 23.1%[50] - Total stockholders' equity increased from $9,221.2 million in Q4 2023 to $9,549.4 million in Q4 2024, an increase of approximately 3.6%[41] Non-GAAP Measures - The company reports non-GAAP financial measures to provide a clearer understanding of short-term and long-term financial trends, aiding comparability with competitors[52] - Non-GAAP income before income taxes, net income, and diluted earnings per common share exclude acquisition-related costs and amortization, offering an alternative view of performance[54] - Non-GAAP operating margin is defined as non-GAAP operating income divided by net sales, excluding certain acquisition and integration-related costs[55] - Non-GAAP total debt includes current and long-term debt, while net debt is calculated as total debt minus cash and cash equivalents, assisting in liquidity analysis[56] - The non-GAAP diluted earnings per common share outlook for Q1 2025 and the full year 2025 excludes acquisition-related costs and amortization[57] - Free cash flow is defined as cash provided by operating activities minus capital expenditures, indicating the company's ability to generate cash flow[58] - Management excludes amortization of acquired intangible assets and non-cash trademark impairments from non-GAAP measures to facilitate comparisons of operations pre- and post-acquisition[59] - Transaction and integration costs related to acquisitions are excluded from non-GAAP measures as they do not reflect ongoing financial performance[59] - The company believes that non-GAAP measures provide additional insights into operating results and trends, enhancing understanding for investors and management[53] - Non-GAAP measures may differ from similar measures used by other companies, highlighting the importance of viewing them alongside GAAP measures[53]