Teledyne Technologies (NYSE:TDY) FY Conference Transcript

Teledyne Technologies FY Conference Summary Company Overview - Company: Teledyne Technologies (NYSE: TDY) - Conference Date: February 12, 2026 Key Industry Exposure - Defense: Approximately 30% of business - Commercial Aviation: About 5% - Space: Roughly 6-7% [3][4] Unmanned Systems Business - Total Revenue: $500 million projected for 2026, with a growth rate of about 10% [4] - Breakdown: - Unmanned Aerial Systems: $200 million (includes Black Hornet drone, SkyRaider, Rogue 1 loitering munition) - Components for unmanned systems: $150 million - Subsea vehicles: $100 million - Ground robots: $50 million [6][7] - Key Drivers: Sales of Black Hornet and Rogue 1, government contracts, and demand from military clients [7][8] Government Contracts and Programs - Key Programs: - Organic Precision Fires-Light (OPFL) for U.S. Marine Corps - LASSO program for the Army, expected to enter production in 2026 [12][14] - Funding Concerns: Prudent guidance due to potential delays in government funding [9] Competitive Landscape - Rogue 1: Competing with companies like Anduril and AeroVironment; expected to see a $30 million increase in funding for 2026 [25][26] - Market Dynamics: Focus on high-performance drones priced between $10,000 and $100,000, avoiding low-cost drone markets [56][72] Space Business - Total Revenue: Approximately $400 million, primarily from imaging devices for missile tracking and earth observation [31][138] - Key Programs: Involvement in Space Development Agency tranche programs, with Tranche 3 expected to contribute over $100 million [148][149] Short Cycle Business Performance - Growth Areas: Industrial and machine vision, environmental monitoring, and test and measurement sectors showing modest growth [178][182] - Healthcare: Flat growth expected in 2026 due to competition and economic factors affecting dental X-ray equipment [201] Capital Deployment Strategy - Acquisition Approach: Focus on bolt-on acquisitions that complement existing product lines, with a mix of bottom-up and top-down strategies [263][265] AI Integration - Internal Use: Prototyping and testing AI applications for various functions, moving towards implementation [237][240] - External Threats: AI seen more as an opportunity for enhancing sensor capabilities rather than a competitive threat [249][250] Conclusion - Teledyne Technologies is positioned for growth in defense, unmanned systems, and space sectors, with a focus on high-performance products and strategic acquisitions. The company is cautiously optimistic about short-cycle business recovery and is actively integrating AI into its operations.