Q2 FY26 Earnings Presentation Quarter End: September 26, 2025 Earnings Announcement: October 29, 2025 Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumpt ...

Third Quarter 2025 Financial Review October 29, 2025 3Q 2025 EARNINGS RELEASE Forward-Looking Statements Certain statements in this financial review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often ...

Financial Results for Q3 2025 October 29, 2025 Safe Harbor This presentation contains forward-looking statements including statements regarding Teradyne's future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "goal" or other comparable terms. Forward-looking statements in this presentation address various ma ...

Q3 2025 Performance Highlights - Net sales increased by 37% to $182 million compared to Q3 2024[11] - Gross margin was 38%[11] - Net income was $24 million, or $040 per share[11] - Adjusted EBITDA was $32 million, representing a 178% margin[11] - Cash-on-hand remained strong at $204 million with $0 debt[11] YTD 2025 Performance Highlights - Net sales grew by 24% to $482 million compared to 2024 YTD[14] - Gross margin was 37%[14] - Net income reached $66 million, or $110 per share[14] - Adjusted EBITDA was $84 million, with a 175% margin[14] - The company maintained a strong cash position of $204 million with no debt[14] Updated 2025 Full Year Guidance - Net sales are projected to be between $580 million and $595 million[41] - Adjusted EBITDA is expected to be between $90 million and $95 million[41] - The company anticipates a gross margin of approximately 36%[41] - Branded net sales growth is targeted in the mid-teens[41] - Adjusted EBITDA margin is projected in the high teens[41]

Q3 2025 Financial Performance - Sales increased by 6.9% year-over-year, reaching $1.404 billion[18] - Core sales growth was +5.1%, driven by volume (+2.7%) and price (+2.4%)[8] - Adjusted EPS increased by 11.2% year-over-year to $0.99[8, 18] - Free cash flow reached $258 million, representing a 108% free cash flow conversion[8, 20] - Adjusted EBITDA margin was 24.7%[8] - Adjusted operating profit margin was 23.9%, a decrease of 20 basis points year-over-year[8, 18] Segment Performance - Water Quality sales increased to $856 million, with core growth of +5.3%[23] and adjusted operating profit increased by 13.1%[26] - Product Quality & Innovation sales increased to $548 million, with core growth of +4.6%[31] and adjusted operating profit decreased by 2.1%[34] Geographic Performance - North America core sales grew by +6.9% in Q3 2025[11] - Western Europe core sales grew by +2.5% in Q3 2025[11] - High Growth Markets core sales grew by +4.3% in Q3 2025[11] FY2025 Guidance - The company expects mid-single-digit core sales growth for the full year 2025[40, 41] - Adjusted EPS is projected to be between $3.82 and $3.85[40] - Free cash flow conversion is expected to be approximately 100%[40]

Financial Performance Highlights - Total revenue grew by 13% to $999 million in Q3 2025[7, 16] - Organic growth reached 6% in Q3 2025[7, 8] - Adjusted EPS grew by 21% to $1.78 in Q3 2025[8, 19] - Free cash flow increased by 77% in Q3 2025[8] - Year-to-date free cash flow reached $368 million, a 46% increase[20] Segment Performance - Industrial Process (IP) organic revenue grew by 11%[9, 31] - Connect & Control Technologies (CCT) organic revenue grew by 6%[9, 31] - Motion Technologies (MT) adjusted operating margin reached 20.2%, a 210 bps increase[9, 31] Orders and Backlog - Orders grew by 19% in total[11] - Svanehøj orders increased by 59% year-to-date[13] - kSARIA orders increased by 58% year-to-date[13] Guidance - The company is raising its full-year adjusted EPS range to $6.62 - $6.68[7, 25] - The company expects approximately $500 million in free cash flow for the full year[9, 25]

Financial Performance - Core sales increased by 11% year-over-year in Q3 2025[5,6] - Adjusted EBITDA increased by 16% year-over-year in Q3 2025, reaching $122 million[5,6] - Adjusted EBITDA margin was 26.8% in Q3 2025, an increase of 120 bps year-over-year[5,6] - Free cash flow was $94 million in Q3 2025[5] - Year-to-date net sales reached $1,289 million, an 8% increase compared to the same period in 2024[7] - Year-to-date Adjusted EBITDA reached $338 million, a 13% increase compared to the same period in 2024[7] Strategic Developments - Quarterly dividend increased by 22%[5] - The company completed the U.S pension plan termination[5] - Authorized share buyback increased to $500 million[5] - Share repurchases in Q3 2025 amounted to $25 million, representing approximately 600k shares[5] Sustainability Impact - 86% of revenue comes from products with sustainable attributes[10] - Products saved 24.7 million gallons of water[10] - Products delivered 1.8 billion gallons of safer, cleaner filtered water[10] - Products prevented 14.6 billion single-use plastic water bottles[10]

Financial Performance - Net sales for the third quarter of 2025 were $588 million, compared to $674.8 million in the same period of 2024[34] - Adjusted EBITDA for the third quarter of 2025 was $52.6 million, with an Adjusted EBITDA Margin of 8.9%[34, 54] - Adjusted diluted earnings per share for the third quarter of 2025 was $0.31[34, 59] - Free cash flow year-to-date was negative $86.5 million[34, 56] - The company narrowed ranges for sales, Adjusted EBITDA and cash flow, representing continued progress in support of long-term financial goals[5] Strategic Initiatives - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network[5] - The company executed $8 million of share repurchases as part of its balanced capital allocation strategy[5, 34] - Quad's MX Suite of products and services is flexibly tailored for the unique needs of the marketer[7] - Quad's proprietary core dataset features 250 million consumers, mapped to a resilient identifier ⎯ their physical home address ⎯ coupled with additional data and contextual insights that can be activated across any media channel[9] Updated Guidance - Adjusted Annual Net Sales are expected to decline by 3% to 5%[44, 46] - Full-Year Adjusted EBITDA is projected to be between $190 million and $200 million[44, 46] - Free Cash Flow is expected to be between $50 million and $60 million[44, 46] - Year-End Net Debt Leverage Ratio is anticipated to be approximately 1.6x[44, 46]

Financial Performance - Comparable store sales increased by 1.1% in Q2FY26, marking the third consecutive quarter of positive comps[11] - Adjusted diluted EPS was $0.21, exceeding the $0.17 in Q2FY25, a 23.5% increase[11, 13] - Gross margin expanded by 40 basis points year-over-year to 35.7%[11, 13] - Sales decreased by 4.1% from $301.4 million to $288.9 million[13] Strategic Initiatives - The company is focusing on four key areas: driving profitable customer acquisition & activation, improving customer experience & selling effectiveness, increasing merchandising productivity & mitigating tariff risk, and closed store real estate dispositions[5, 6] - The company exited 21 leases and sold 3 owned locations, generating $5.5 million in proceeds[6] - Inventory levels were reduced by approximately $11 million sequentially[11] Fiscal 2026 Expectations - The company expects the store optimization plan to reduce total sales by approximately $45 million in fiscal 2026[19] - CAPEX spend is expected to be $25 million to $35 million[19] Balance Sheet and Liquidity - Net bank debt was approximately $50 million as of September 2025[17] - Availability under the credit facility was approximately $410 million, with cash and equivalents of approximately $10 million as of September 2025[17]

Third Quarter 2025 O c t o b e r 2 9 , 2 0 2 5 FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limited to: (i) statements regarding the Company's results of operations and financial condition; (ii) statements of plans, objectives or goals of the Company or its ...