TELEDYNE TECHNOLOGIES INC
For the period ended Mar 30, 2025. Filed Apr 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 30, 2025 · Filed Apr 28, 2025
TDY$618.60+4.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-29; filed 2024-10-28.
0001094285-24-000104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-30; filed 2025-04-28.
0001094285-25-000105
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 112 previous paragraphs and 78 current paragraphs.
31 unchanged; 37 reworded; 10 added; 39 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
In early 2025, the U.S. Presidential administration implemented significant new tariffs on foreign imports impacting multiple countries, commodities and industries, and these new tariffs and export restrictions also prompted retaliatory tariffs and export restrictions from certain countries. As of April 2025, certain tariffs and retaliatory tariffs have been delayed, but a number of the new tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China. Our net sales to China-based customers represented approximately 4% of total revenues in 2024, of which less than 50% of these sales were made directly from our U.S. subsidiaries. China has also restricted the export of certain rare earth minerals which are used in our products. Tariffs, trade restrictions and retaliatory measures could result in revenue reduction, cost increases on material used in our products or significant production delays, which could adversely affect our business, financial condition, operational results and cash flows. Consistent with our strategy, we are optimizing operations and facilities and taking measures to contain costs to reduce the impact from tariffs. We may also implement additional pricing actions to mitigate the impact of these tariffs.
Current report
First Quarter Results
Current report
Research and Development Expense
Current report
R&D expense decreased $2.2 million in the first quarter of 2025 due to lower R&D expense at the Digital Imaging segment.
Current report
Acquired intangible asset amortization for the first quarter of 2025 was $52.0 million compared with $49.4 million, with the increase primarily related to 2025 acquisitions within the Aerospace and Defense Electronics segment.
Current report
Net sales increased due to a $57.1 million increase in defense electronics, partially offset by a $0.3 million decrease in aerospace electronics. The first quarter of 2025 included $42.3 million in incremental sales from recent acquisitions.
Current report
Cost of sales increased due to higher net sales, partially offset by unfavorable product mix, including recent acquisitions which carry a higher cost of sales percentage, and the cost of sales percentage increased due to unfavorable product mix. SG&A expense increased due to higher net sales as well as $3.2 million of transaction and integration costs for 2025 acquisitions incurred in the first quarter of 2025, with no comparable amount recorded in the first quarter of 2024. R&D expense increased due to primarily to the 2025 acquisitions, and the R&D expense percentage was similar in both periods.
Current report
Total debt at March 30, 2025, was $2,964.8 million compared with $2,649.0 million at December 29, 2024, with the increase due to borrowings under the credit facility to support acquisition activity in the first quarter of 2025.
Current report
Net cash provided by operating activities was $242.6 million for the first three months of 2025 compared with $291.0 million, with the decrease driven primarily by cash outflows on foreign exchange contracts in the first quarter of 2025 as compared to cash inflows on foreign exchange contracts in the first quarter of 2024 as well as lower customer advances received in the first quarter of 2025.
Current report
Net cash provided by financing activities was $339.6 million for the first three months of 2025 compared with net cash provided by financing activities of $6.1 million, with the first three months of 2025 including net proceeds from our credit facility of $315.0 million.
Removed paragraphs (39)
Previous report
We had previously assumed no full year sales growth in industrial automation markets as well as electronic test and measurement markets. Those markets weakened more than planned in the first half of the year, however, we believe those markets have stabilized or are beginning to recover.
Previous report
To date, we have not been materially impacted by the conflict in Israel and its effect on neighboring regions. We do not have material assets in Israel. Our total net sales to Israel in the first nine months of 2024 and the full year 2023 were approximately 1% of total net sales, respectively. It is too early to determine the full extent of the impact this conflict could have on our business and our operations, including the impact to our suppliers from these regions, and our assessment of the potential impacts is ongoing.
Previous report
not meaningful
Previous report
Third Quarter Results
Previous report
Acquired intangible asset amortization for the third quarter of 2024 was $49.8 million compared with $49.1 million.
Previous report
During the third quarter of 2024, the Company released $62.5 million of net income tax reserve liability (including applicable interest and penalties) as a result of a favorable resolution reached by the Company with foreign tax authorities around transfer pricing between certain FLIR subsidiaries.
Previous report
The first nine months of 2024 net sales decreased 1.0%. Net income for the first nine months of 2024 increased 10.3%, driven primarily by the favorable resolution of an uncertain tax position reached by the Company with foreign tax authorities around transfer pricing between certain FLIR subsidiaries. Net income per diluted share was $13.01 for the first nine months of 2024, compared with net income per diluted share of $11.75.
Previous report
Net Sales
Previous report
The first nine months of 2024 net sales, compared with the first nine months of 2023, reflected lower net sales in the Digital Imaging and Engineered Systems segments, partially offset by higher net sales in the Aerospace and Defense Electronics and Instrumentation segments. The first nine months of 2024 included $32.1 million in incremental sales from recent acquisitions.
Previous report
Cost of Sales
Previous report
Cost of sales decreased $18.6 million in the first nine months of 2024 and reflected the impact of lower sales. Cost of sales as a percentage of net sales increased for the first nine months of 2024 to 57.0% from 56.9%.
Previous report
Selling, General and Administrative Expense
Previous report
SG&A expense, including research and development expense, decreased $13.5 million in the first nine months of 2024 due to lower sales as well as lower research and development expense, with the lower research and development expense primarily related to FLIR integration-related cost-reduction efforts implemented in the second half of 2023. SG&A expense as a percentage of net sales for the first nine months of 2024 was 21.4% compared with 21.5%. Corporate expense, which is included in SG&A expense, was $57.1 million for the first nine months of 2024, compared with $49.8 million, with the increase primarily related to higher compensation expense, including higher stock-based compensation expense and increased legal contingencies for a legacy environmental reserve. Stock-based compensation expense was $30.0 million for the first nine months of 2024 compared with $24.3 million. The first nine months of 2024 also included $6.9 million of FLIR-related integration costs, including employee separation costs, facility consolidation costs and facility lease impairments, compared with $5.8 million.
Previous report
Acquired Intangible Asset Amortization
Previous report
Acquired intangible asset amortization for the first nine months of 2024 was $148.3 million compared with $148.1 million.
Previous report
Pension Service Expense
Previous report
Operating Income
Previous report
Operating income for the first nine months of 2024 decreased 1.4%. The first nine months of 2024, compared with the first nine months of 2023, reflected lower operating income in the Digital Imaging and Engineered Systems segments, partially offset by higher operating income in the Aerospace and Defense Electronics and Instrumentation segments.
Previous report
Non-operating Income and Expense
Previous report
Interest and debt expense, net of interest income, was $44.2 million for the first nine months of 2024, compared with $61.7 million, with the decrease related to reduced outstanding borrowings with lower weighted average interest rates compared to the first nine months of 2023. Non-service retirement benefit income was $8.2 million for the first nine months of 2024 compared with $9.3 million for the first nine months of 2023. Other income and expense, net was expense of $3.7 million for the first nine months of 2024 compared with $7.4 million of other expense for the first nine months of 2023, with the difference primarily related to lower foreign exchange losses in the first nine months of 2024 compared with the first nine months of 2023.
Previous report
Income Tax
Previous report
The first nine months income tax provision considers income, permanent items, tax credits, and various statutory tax rates. In both years, the first nine months discrete impact is primarily tax on stock-based compensation.
Previous report
During the first nine months of 2024, the Company released $62.5 million of net income tax reserve liability (including applicable interest and penalties) as a result of a favorable resolution reached by the Company with foreign tax authorities around transfer pricing between certain FLIR subsidiaries.
Previous report
Net sales decreased primarily due to lower sales of industrial automation imaging systems, X-ray products and geospatial products, partially offset by higher sales of unmanned air systems, surveillance systems, infrared detectors and incremental sales from recent acquisitions. Sales of industrial automation imaging systems decreased $136.7 million, sales of X-ray products decreased $23.1 million, sales of commercial infrared imaging systems decreased $9.6 million, sales of geospatial products decreased $8.0 million, sales of unmanned air systems increased $33.7 million, sales of surveillance systems increased $20.4 million and sales of infrared detectors increased $19.2 million. The first nine months of 2024 also included $14.8 million in incremental sales from recent acquisitions.
Previous report
Cost of sales decreased primarily due to decreased net sales partially offset by product mix. As a result of unfavorable product mix, including lower industrial automation imaging systems net sales, the cost of sales percentage increased during the period. SG&A expense decreased primarily due to lower net sales and $54.5 million in lower research and development costs. SG&A expense as a percentage of net sales decreased primarily due primarily due to lower research and development costs. Research and development costs decreased primarily due to FLIR integration-related cost-reduction efforts implemented in the second half of 2023.
Previous report
Operating income decreased primarily due to lower net sales and unfavorable product mix during the period partially offset by lower research and development costs. Operating income as a percentage of net sales decreased during the period primarily due to unfavorable product mix partially offset by lower research and development costs.
Previous report
For nine months of 2024 compared with the first nine months of 2023
Previous report
Operating income increased primarily due to higher net sales and favorable product mix, including improved margins in our Marine Instrumentation product line. Operating income as a percentage of net sales increased primarily due to increased net sales and favorable product mix.
Previous report
Net sales increased due to a $12.6 million increase in defense electronics and a $4.3 million increase in aerospace electronics.
Previous report
Cost of sales increased due to higher net sales partially offset by favorable product mix, and the cost of sales percentage decreased due to favorable product mix. SG&A expense increased primarily due to higher net sales as well as a $2.5 million increase in research and development costs.
Previous report
Net sales increased due to a $19.4 million increase for defense electronics and an $18.4 million increase for aerospace electronics.
Previous report
Cost of sales increased primarily due to higher net sales partially offset by favorable product mix, and the cost of sales percentage decreased as a result. SG&A expense as well as the SG&A expense percentage increased primarily due to a $5.7 million increase in research and development costs.
Previous report
Net sales decreased primarily due to lower sales of $8.7 million for engineered products and $1.6 million for energy systems.
Previous report
Cost of sales decreased primarily due to lower net sales. The cost of sales percentage increased due to program mix. SG&A expense and SG&A expense as a percentage of net sales increased.
Previous report
Operating income decreased primarily due to lower net sales. Operating income as a percentage of net sales decreased slightly.
Previous report
Total debt at September 29, 2024 was $2,798.0 million compared with $3,244.9 million at December 31, 2023. In the first nine months of 2024, we made a $450 million debt maturity payment on the Senior notes due April 2024.
Previous report
During the first nine months of 2024, we repurchased approximately 0.8 million shares for $332.6 million with a weighted-average price of $397.14 per share. Subsequent to the end of the third quarter of 2024, we repurchased approximately 0.1 million shares for $21.4 million with a weighted-average price of $445.85 per share.
Previous report
Net cash provided by operating activities was $859.5 million for the first nine months of 2024 compared with $671.7 million, driven primarily by stronger working capital conversion in the first nine months of 2024, including stronger account receivable collection and higher contract liabilities from customer advances.
Previous report
Net cash used in financing activities was $772.4 million for the first nine months of 2024 compared with net cash used in financing activities of $665.7 million, with the first nine months of 2024 including a $450 million debt maturity payment on the Senior Notes due April 2024, and share repurchases of $332.6 million. During the first nine months of 2023, the Company repaid $125.0 million of amounts outstanding on its credit facility, the $300.0 million Fixed Rate Senior Notes due April 2023, and the remaining $245.0 million on its term loan due May 2026. The Company also repurchased and retired $10.0 million of its Fixed Rate Senior Notes due April 2031, recording a $1.6 million non-cash gain on the extinguishment of this debt.
Reworded paragraphs (37)
Previous wording
Teledyne provides enabling technologies for industrial growth markets that require advanced technology and high reliability. These markets include aerospace and defense, factory automation, air and water quality environmental monitoring, electronics design and development, oceanographic research, deepwater oil and gas exploration and production, medical imaging and pharmaceutical research. Our products include digital imaging sensors, cameras and systems within the visible, infrared and X-ray spectra, monitoring and control instrumentation for marine and environmental applications, harsh environment interconnects, electronic test and measurement equipment, aircraft information management systems, and defense electronics and satellite communication subsystems. We also supply engineered systems for defense, space, environmental and energy applications. We differentiate ourselves from many of our direct competitors by having a customer- and Company-sponsored applied research center that augments our product development expertise. We believe our technological capabilities, innovation and the ability to invest in the development of new and enhanced products are critical to obtaining and maintaining leadership in our markets and the industries in which we compete.
Current wording
Teledyne provides enabling technologies for industrial growth markets that require advanced technology and high reliability. These markets include aerospace and defense, factory automation, air and water quality environmental monitoring, electronics design and development, oceanographic research, deepwater oil and gas exploration and production, medical imaging and pharmaceutical research. Our products include digital imaging sensors, cameras and systems within the visible, infrared and X-ray spectra, monitoring and control instrumentation for marine and environmental applications, harsh environment interconnects, electronic test and measurement equipment, aircraft information management systems, and defense electronics and satellite communication subsystems. We also supply engineered systems for defense, space, environmental and energy applications. We believe our technological capabilities, innovation and the ability to invest in the development of new and enhanced products are critical to obtaining and maintaining leadership in our markets and the industries in which we compete.
Previous wording
Our strategy continues to emphasize growth in our four business segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics and Engineered Systems. The markets in which we sell our enabling technologies are characterized by high barriers to entry and include specialized products and services not likely to be commoditized. We intend to strengthen and expand our business with targeted acquisitions and through product development. We continue to focus on balanced and disciplined capital deployment among capital expenditures, acquisitions, product development and stock repurchases. We aggressively pursue operational excellence to continually improve our margins and earnings by emphasizing cost containment and evaluating cost reductions in all aspects of our business. At Teledyne, operational excellence includes the rapid integration of the businesses we acquire. Using complementary technology across our businesses and through targeted research and development, we seek to create new products to grow our company and expand our addressable markets. We continually evaluate our businesses to ensure that they are aligned with our strategy.
Current wording
Our strategy continues to emphasize growth in our four business segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics and Engineered Systems. The markets in which we sell our enabling technologies are characterized by high barriers to entry and include specialized products and services not likely to be commoditized. We intend to strengthen and expand our business with targeted acquisitions and through product development. We continue to focus on balanced and disciplined capital deployment among capital expenditures, acquisitions, stock repurchases and product development. We aggressively pursue operational excellence to continually improve our margins and earnings by emphasizing cost containment and evaluating cost reductions in all aspects of our business. At Teledyne, operational excellence includes the rapid integration of the businesses we acquire. Using complementary technology across our businesses and through targeted research and development (“R&D”), we seek to create new products to grow our company and expand our addressable markets. We continually evaluate our businesses to ensure that they are aligned with our strategy.
Previous wording
Consistent with our strategy, we completed two acquisitions each in 2024 and in 2023. The financial results of the completed acquisitions have been included since the respective date of each acquisition.
Current wording
Consistent with our strategy, we completed two acquisitions each in the first quarter of 2025 and the full year of 2024. The financial results of the completed acquisitions have been included since the respective date of each acquisition.
Previous wording
Trends Affecting Our Business and Other Matters
Current wording
Trends and Other Matters Affecting Our Business
Previous wording
As part of a continuing effort to reduce costs and improve operating performance, we may take and have taken actions to consolidate and relocate certain facilities and reduce headcount across various businesses, reducing our exposure to weaker end markets. We continue to seek cost reductions in our businesses.
Current wording
As part of a continuing effort to reduce costs and improve operating performance, we continue to take actions to consolidate and relocate certain facilities and reduce head count across various businesses, reducing our exposure to weaker end markets. We continue to seek cost reductions in our businesses.
Previous wording
(a) Net sales exclude inter-segment sales of $5.9 million and $19.2 million for the third quarter and nine months of 2024, respectively, and $7.2 million and $21.5 million for the third quarter and nine months of 2023, respectively.
Current wording
(a) Net sales exclude inter-segment sales of $3.8 million and $4.8 million for the first quarter of 2025 and 2024, respectively.
Previous wording
The following is a discussion of our 2024 third quarter results compared with the third quarter results of 2023. Comparisons are with the corresponding reporting period of 2023, unless noted otherwise.
Current wording
The following is a discussion of our 2025 first quarter results compared with the first quarter results of 2024. Comparisons are with the corresponding reporting period of 2024 unless noted otherwise.
Previous wording
Our third quarter of 2024 net sales increased 2.9%. Net income attributable to Teledyne for the third quarter of 2024 increased 31.9%, driven primarily by the favorable resolution of an uncertain tax position reached by the Company with foreign tax authorities around transfer pricing between certain FLIR subsidiaries. Net income per diluted share was $5.54 for the third quarter of 2024, compared with net income per diluted share of $4.15.
Current wording
Our first quarter of 2025 net sales increased 7.4%. Net income attributable to Teledyne for the first quarter of 2025 increased 5.7%, driven primarily by higher net sales. Net income per diluted share was $3.99 for the first quarter of 2025, compared with net income per diluted share of $3.72.
Previous wording
The third quarter of 2024 net sales, compared with the third quarter of 2023, reflected higher net sales in each segment other than the Digital Imaging segment. The third quarter of 2024 included $18.0 million in incremental sales from recent acquisitions.
Current wording
The first quarter of 2025 net sales compared with the first quarter of 2024 reflected higher net sales in each segment. The first quarter of 2025 included $55.6 million in incremental sales from recent acquisitions.
Previous wording
Cost of sales increased $26.7 million in the third quarter of 2024 primarily driven by higher net sales. Cost of sales as a percentage of net sales increased for the third quarter of 2024 to 57.1% from 56.8%.
Current wording
Cost of sales increased $60.2 million in the first quarter of 2025, primarily driven by higher net sales. Cost of sales as a percentage of net sales increased slightly for the first quarter of 2025 to 57.3% from 57.0%.
Previous wording
SG&A expense, including research and development expense, increased $7.2 million in the third quarter of 2024 due to higher sales. SG&A expense as a percentage of net sales decreased to 20.7% for the third quarter of 2024, compared with 20.8%. Corporate expense, which is included in SG&A expense, was $18.7 million for the third quarter of 2024, compared with $17.8 million, with the increase primarily related to higher compensation expense. Stock-based compensation expense was $8.7 million for the third quarter of 2024 compared with $8.0 million.
Current wording
Selling, general and administrative (“SG&A”) expense increased $14.2 million in the first quarter of 2025 due to higher net sales. SG&A expense as a percentage of net sales decreased to 16.1% for the first quarter of 2025 compared with 16.3%. Corporate expense, which is included in SG&A expense, was $22.2 million for the first quarter of 2025 compared with $20.1 million, with the increase primarily related to higher transaction costs in the first quarter of 2025 related to current year acquisitions. Stock-based compensation expense was $8.9 million for the first quarter of 2025 compared with $12.0 million, with the decrease due to timing of grants in the current year. Subsequent to the end of the first quarter of 2025, the Company made its annual stock option and restricted stock grants.
Previous wording
Pension service expense is included in both cost of sales and SG&A expense. For the third quarter of 2024 and 2023, pension service expense was $1.5 million. For 2024, the weighted-average discount rate used to determine the benefit obligation for the domestic qualified pension plans is 6.86% compared with 5.71% in 2023.
Current wording
Pension service expense is included in both cost of sales and SG&A expense. For the first quarter of 2025 and 2024, pension service expense was $1.5 million. For 2025, the weighted-average discount rate used to determine the benefit obligation for the domestic qualified pension plans is 7.05% compared with 6.86% in 2024.
Previous wording
Operating income for the third quarter of 2024 increased 2.4%. The third quarter of 2024, compared with the third quarter of 2023, reflected higher operating income in each segment other than the Digital Imaging segment.
Current wording
Operating income for the first quarter of 2025 increased 10.7%. The first quarter of 2025, compared with the first quarter of 2024, reflected higher operating income in each segment.
Previous wording
Interest and debt expense, net of interest income, was $15.7 million for the third quarter of 2024, compared with $18.4 million, with the decrease related to reduced outstanding borrowings compared to the third quarter of 2023. Non-service retirement benefit income was $2.8 million for the third quarter of 2024 compared with $3.1 million. Other income and expense, net was expense of $2.7 million for the third quarter of 2024 compared with expense of $2.9 million for the third quarter of 2023.
Current wording
Interest and debt expense, net of interest income, was $17.3 million for the first quarter of 2025 compared with $12.7 million, with the decrease related to higher outstanding borrowings compared to the first quarter of 2024. Non-service retirement benefit income was $2.8 million for the first quarter of 2025 compared with $2.7 million. Other income and expense, net, was expense of $5.9 million for the first quarter of 2025 compared with income of $1.2 million for the first quarter of 2024. Other income and expense, net, primarily consisted of foreign currency exchange losses in the first quarter of 2025, as compared with foreign currency exchange gains in the first quarter of 2024.
Previous wording
The third quarter income tax provision considers income, permanent items, tax credits, and various statutory tax rates.
Current wording
The first quarter income tax provision considers income, permanent items, tax credits, and various statutory tax rates.
Previous wording
(a) The third quarter of 2024 includes net discrete income tax benefits of $62.3 million and the third quarter of 2023 includes net discrete income tax benefits of $6.1 million.
Current wording
(a) The first quarter of 2025 includes net discrete income tax benefits of $3.7 million and the first quarter of 2024 includes net discrete income tax benefits of $4.4 million.
Previous wording
Segment results include net sales and operating income by segment but exclude corporate office expenses. Corporate expense primarily includes various administrative expenses relating to our corporate office not allocated to our segments. See Note 3 to these condensed consolidated financial statements for additional segment information.
Current wording
Segment results include net sales and operating income by segment but exclude corporate office expenses. Corporate expense primarily includes various administrative expenses relating to our corporate office that are not allocated to our segments. See Note 3 to these condensed consolidated financial statements for additional segment information.
Previous wording
Net sales decreased primarily due to lower sales of industrial automation imaging systems and X-ray products, partially offset by higher sales of unmanned air systems, surveillance systems, infrared detectors, commercial infrared imaging systems and incremental sales from recent acquisitions. Sales of industrial automation imaging systems decreased $45.3 million, sales of X-ray products decreased $9.7 million, sales of unmanned air systems increased $15.6 million, sales of surveillance systems increased $8.9 million, sales of commercial infrared imaging systems increased $6.2 million and sales of infrared detectors increased $5.3 million. The third quarter of 2024 also included $10.8 million in incremental sales from recent acquisitions.
Current wording
Net sales increased primarily due to higher sales of commercial infrared imaging components as well as surveillance systems, partially offset by lower sales of X-ray products. Sales of commercial infrared imaging components increased $13.9 million, sales of surveillance systems increased $11.7 million, and sales of X-Ray products decreased $6.9 million. The first quarter of 2025 included $8.9 million in incremental sales from recent acquisitions.
Previous wording
Cost of sales increased primarily due to product mix partially offset by decreased net sales. As a result of unfavorable product mix, including lower industrial automation imaging systems net sales, the cost of sales percentage increased during the period. SG&A expense decreased due to lower net sales. SG&A expense as a percentage of net sales increased slightly during the quarter.
Current wording
Cost of sales increased primarily due to product mix. As a result of unfavorable product mix, the cost of sales percentage increased during the period. SG&A expense decreased primarily due to cost reduction initiatives that completed in 2024, partially offset by higher sales. As a result, SG&A expense as a percentage of net sales decreased during the quarter. R&D expense decreased primarily due to ongoing cost rationalization and cost reduction initiatives.
Previous wording
Operating income decreased primarily due to lower net sales and unfavorable product mix during the period, and operating income as a percentage of net sales decreased during the period primarily due to unfavorable product mix.
Current wording
Operating income increased primarily due to higher net sales and lower SG&A and R&D expense, partially offset by unfavorable product mix during the period, and operating income as a percentage of net sales increased during the period primarily due to lower SG&A and R&D expense in the first quarter of 2025.
Previous wording
Net sales increased due to higher sales in our Marine Instrumentation product line, partially offset by lower sales at our Test and Measurement Instrumentation and Environmental Instrumentation product lines. Sales of Marine Instrumentation increased $71.9 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales. Sales of Test and Measurement Instrumentation decreased $36.6 million, and sales of Environmental Instrumentation decreased $12.6 million, respectively, with the decrease in Test and Measurement Instrumentation primarily due to end market weakness. The first nine months of 2024 included $17.3 million in incremental sales from recent acquisitions.
Current wording
Net sales increased due to higher sales in our Marine Instrumentation and Test and Measurement Instrumentation product lines, partially offset by lower sales at our Environmental Instrumentation product line. Sales of Marine Instrumentation increased $14.0 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales. Sales of Test and Measurement Instrumentation increased $1.1 million, and sales of Environmental Instrumentation decreased $2.2 million. The first quarter of 2025 included $4.4 million in incremental sales from recent acquisitions.
Previous wording
Cost of sales increased primarily due to higher net sales partially offset by favorable product mix. The cost of sales percentage decreased due to favorable product mix, including improved margins in our Marine Instrumentation product line. SG&A expense increased slightly due to higher net sales in the period, and SG&A expense as a percentage of net sales decreased as research and development expense was relatively consistent in both periods while net sales increased.
Current wording
Cost of sales increased primarily due to higher net sales, partially offset by favorable product mix. The cost of sales percentage decreased due to favorable product mix, including improved margins in our Marine Instrumentation product line. SG&A expense increased due to higher net sales during the period, and SG&A expense as a percentage of net sales increased slightly. R&D expense increased due to higher Marine Instrumentation product development, and the R&D expense percentage was relatively consistent in both periods.
Previous wording
Operating income increased primarily due to higher Marine Instrumentation sales, favorable product mix and improved Marine Instrumentation margins, and operating income as a percentage of net sales increased due to favorable product mix and improved Marine Instrumentation margins as well as lower research and development expense as a percentage of net sales.
Current wording
Operating income increased primarily due to higher Marine Instrumentation sales, favorable product mix, and improved Marine Instrumentation margins, and operating income as a percentage of net sales increased due to favorable product mix and improved Marine Instrumentation margins.
Previous wording
Operating income and operating income as a percent of net sales increased primarily due to increased net sales during the period as well as favorable product mix.
Current wording
Operating income increased primarily due to increased net sales, and operating income as a percent of net sales decreased primarily due higher transaction and integration costs as well as unfavorable product mix.
Previous wording
Net sales increased due to higher sales of $10.3 million for engineered products and $0.5 million for energy systems.
Current wording
Net sales increased due to higher sales of $14.2 million for engineered products, partially offset by a $0.3 million decrease in energy systems.
Previous wording
Cost of sales increased primarily due to higher net sales, and the cost of sales percentage increased slightly during the period. SG&A expense decreased primarily due to lower research and development and bid and proposal expense, and SG&A expense as a percentage of net sales decreased.
Current wording
Cost of sales increased primarily due to higher net sales, and the cost of sales percentage decreased during the period due to favorable program mix. SG&A expense decreased primarily due to lower selling expense, and SG&A expense as a percentage of net sales decreased.
Previous wording
Operating income and operating income as a percentage of net sales increased primarily due higher net sales and favorable program mix.
Current wording
Operating income and operating income as a percentage of net sales increased primarily due to higher net sales, lower selling expense and favorable program mix.
Previous wording
Cash and cash equivalents totaled $561.0 million at September 29, 2024 compared with $648.3 million at December 31, 2023. Cash equivalents consist of highly liquid money-market mutual funds with maturities of three months or less when purchased.
Current wording
Cash and cash equivalents totaled $461.5 million at March 30, 2025, compared with $649.8 million at December 29, 2024. Cash equivalents consist of highly liquid money-market mutual funds, with maturities of three months or less when purchased.
Previous wording
At September 29, 2024, $1,171.1 million was available under the $1.20 billion credit facility, after reductions of $28.9 million in outstanding letters of credit.
Current wording
At March 30, 2025, $855.5 million was available under the $1.20 billion credit facility, after reductions of $315.0 million in outstanding borrowings and $29.5 million in outstanding letters of credit.
Previous wording
Our bank credit agreements, which includes our $1.20 billion credit facility expiring June 2029 and our $150.0 million term loan due October 2024, require us to comply with various financial and operating covenants. At September 29, 2024, we were in compliance with these covenants.
Current wording
Our bank credit agreements, which includes our $1.20 billion credit facility expiring June 2029, require us to comply with various financial and operating covenants. At March 30, 2025, we were in compliance with these covenants.
Previous wording
In April 2024, our Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $1.25 billion of our common stock. This authorization superseded prior open stock repurchase programs authorized by the Board of Directors. The newly authorized stock repurchase program does not have a stated expiration date. Shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or via an accelerated stock repurchase program. Shares could be repurchased in a plan pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The repurchase program is expected to remain open continuously, and the number of shares purchased will depend on a variety of factors, such as share price, levels of cash available, acquisitions and alternative investment opportunities available immediately or longer-term, and other regulatory, market or economic conditions. We currently intend to fund future share repurchases with cash on hand and available borrowings under our credit facility.
Current wording
In April 2024, our Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $1.25 billion of our common stock. This authorization superseded prior open stock repurchase programs authorized by the Board of Directors. The newly authorized stock repurchase program does not have a stated expiration date. Shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or via an accelerated stock repurchase program. Shares could be repurchased in a plan pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The repurchase program is expected to remain open continuously, and the number of shares purchased will depend on a variety of factors such as share price, levels of cash available, acquisitions and alternative investment opportunities available immediately or longer-term, and other regulatory, market or economic conditions. We currently intend to fund future share repurchases with cash on hand and available borrowings under our credit facility. No repurchases under any authorizations were made in the first quarter of 2025 or 2024.
Previous wording
Net cash used in investing activities was $178.2 million for the first nine months of 2024 compared with $127.3 million. During the first nine months of 2024, we spent $123.7 million on acquisitions as compared with $53.5 million. Capital expenditures for the first nine months of 2024 and 2023 were $54.7 million and $74.7 million, respectively. We currently plan to invest approximately $100 million for capital expenditures in 2024.
Current wording
Net cash used in investing activities was $775.0 million for the first three months of 2025 compared with $15.9 million. During the first three months of 2025, we spent $757.6 million on acquisitions, with no comparable spend for the first three months of 2024. Capital expenditures for the first three months of 2025 and 2024 were $18.0 million and $15.9 million, respectively. We currently plan to invest approximately $130 million for capital expenditures in 2025.
Previous wording
From time to time we make, and this report contains, forward looking statements, as defined in the Private Securities Litigation Reform Act of 1995, directly or indirectly relating to sales, sales growth, earnings, operating margin, growth opportunities, acquisitions, product sales, capital expenditures, stock repurchases, pension matters, stock-based compensation expense, the credit facility, interest expense, severance, relocation and facility consolidation costs, environmental remediation costs, taxes, exchange rate fluctuations and strategic plans. Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “believe” or “expect”, that convey the uncertainty of future events or outcomes. All statements made in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and in other sections of this Form 10-Q that are not historical in nature should be considered forward-looking.
Current wording
From time to time we make, and this report contains, forward looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management’s beliefs about the financial condition, results of operations, acquisitions, capital expenditures and product synergies, integration costs, tax matters and businesses of Teledyne in the future. Forward-looking statements involve risks and uncertainties, are based on the current expectations of the management of Teledyne and are subject to uncertainty and changes in circumstances. All statements made in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and in other sections of this Form 10-Q that are not historical in nature should be considered forward-looking. Actual results could differ materially from these forward-looking statements.
Previous wording
Actual results could differ materially from these forward-looking statements. Many factors could change anticipated results, including: changes in relevant tax and other laws; foreign currency exchange risks; rising interest rates; risks associated with indebtedness, as well as our ability to reduce indebtedness and the timing thereof; the impact of semiconductor and other supply chain shortages; higher inflation, including wage competition and higher shipping costs; labor shortages and competition for skilled personnel; the inability to develop and market new competitive products; inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements and the providing of estimates of financial measures, in accordance with U.S. GAAP and related standards; disruptions in the global economy; the ongoing conflict in Israel and neighboring regions, including related protests, attacks on defense contractors and suppliers and the disruption to global shipping routes; the ongoing conflict between Russia and Ukraine, including the impact to energy prices and availability, especially in Europe; customer and supplier bankruptcies; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from existing and future deficit reduction measures or changes to U.S. and foreign government spending and budget priorities triggered by inflation, rising interest costs, and economic conditions; impacts from the United Kingdom’s exit from the European Union; uncertainties related to the 2024 U.S. Presidential election; the imposition and expansion of, and responses to, trade sanctions and tariffs; the continuing review and resolution of FLIR’s trade compliance and tax matters; escalating economic and diplomatic tension between China and the United States; threats to the security of our confidential and proprietary information, including cybersecurity threats; risks related to artificial intelligence; natural and man-made disasters, including those related to or intensified by climate change; and our ability to achieve emission reduction targets and decrease our carbon footprint. Lower oil and natural gas prices, as well as instability in the Middle East or other oil producing regions, and new regulations or restrictions relating to energy production, including those implemented in response to climate change, could further negatively affect our businesses that supply the oil and gas industry. Weakness in the commercial aerospace industry negatively affects the markets of our commercial aviation businesses. The recent machinist strike at Boeing as well as the ongoing issues with Boeing’s 737 MAX product line could result in manufacturing delays and lower sales of our products to Boeing. In addition, financial…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Many factors could change anticipated results, including: the impact of policies of the U.S. Presidential Administration, especially with respect to new and higher tariffs, cutbacks in the funding of government agencies and programs, and the scaling back of environmental and green energy policies; escalating economic and diplomatic tension between China and the United States, including a potential “trade war” that results in higher tariffs and restrictions on sales of goods and services; reciprocal tariffs from other countries; changes in relevant tax and other laws; foreign currency exchange risks; rising interest rates and inflation; risks associated with indebtedness, as well as our ability to reduce indebtedness and the timing thereof; the impact of semiconductor and other supply chain shortages; higher inflation, including wage competition and higher shipping costs; labor shortages and competition for skilled personnel; the inability to develop and market new competitive products; inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements and the providing of estimates of financial measures, in accordance with GAAP and related standards; disruptions in the global economy; the ongoing conflict in Israel and neighboring regions, including related protests, attacks on defense contractors and suppliers and the disruption to global shipping routes; the ongoing conflict between Russia and Ukraine, including the impact to energy prices and availability, especially in Europe; customer and supplier bankruptcies; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from existing and future deficit reduction measures or changes to U.S. and foreign government spending and budget priorities triggered by inflation, rising interest costs, and economic conditions; the continuing review and resolution of FLIR’s trade compliance and tax matters; threats to the security of our confidential and proprietary information, including cybersecurity threats; risks related to artificial intelligence; natural and man-made disasters; and our ability to achieve emission reduction targets and decrease our carbon footprint. Lower oil and natural gas prices, as well as instability in the Middle East or other oil producing regions, and new regulations or restrictions relating to energy production could further negatively affect our businesses that supply the oil and gas industry. Weakness in the commercial aerospace industry negatively affects the markets of our commercial aviation businesses. Lower aircraft production rates at Boeing or Airbus could result in reduced sales of our commercial aerospace products. In addition, financial market fluctuations affect the value of the company’s pension …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
While our growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain key management and customers and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses internationally, including those arising from U.S. and foreign government policy changes or actions and exchange rate fluctuations.
Current wording
While the Company’s growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain key management and customers and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses internationally, including those arising from U.S. and foreign government policy changes or actions and exchange rate fluctuations.
Previous wording
Readers are urged to read our periodic reports filed with the Securities and Exchange Commission for a more complete description of our company, its businesses, its strategies and the various risks that we face. Various risks are identified in our 2023 Form 10-K and subsequent Quarterly Reports on Form 10-Q.
Current wording
Readers are urged to read our periodic reports filed with the SEC for a more complete description of our Company, its businesses, its strategies and the various risks that we face. Various risks are identified in our 2024 Form 10-K and subsequent Quarterly Reports on Form 10-Q.
Previous wording
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We assume no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Current wording
All forward-looking statements speak only as of the date they are made and are based on information available at that time. We assume no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Pension service expense is included in both cost of sales and SG&A expense. For both the first nine months of 2024 and 2023, pension service expense was $4.5 million. For 2024, the weighted-average discount rate used to determine the benefit obligation for the domestic qualified pension plans is 6.86% compared with 5.71% in 2023.
Previous report — wording carried elsewhere
(a) The first nine months of 2024 includes net discrete income tax benefits of $67.4 million and the first nine months of 2023 includes net discrete income tax benefits of $14.1 million, respectively.
Previous report — wording carried elsewhere
Net sales increased due to higher sales in our Marine Instrumentation product line, partially offset by lower sales at our Test and Measurement Instrumentation and Environmental Instrumentation product lines. Sales of Marine Instrumentation increased $31.9 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales. Sales of Test and Measurement Instrumentation and Environmental Instrumentation decreased $7.2 million and $4.0 million, respectively, with the decrease in Test and Measurement Instrumentation primarily due to end market weakness. The third quarter of 2024 included $7.2 million in incremental sales from recent acquisitions.
Previous report — wording carried elsewhere
Cost of sales decreased primarily due to favorable product mix, and the cost of sales percentage decreased due to favorable product mix, including improved margins in our Marine Instrumentation product line. SG&A expense increased primarily due to higher net sales.
Previous report — wording carried elsewhere
Operating income and operating income as a percent of net sales increased primarily due to increased net sales and favorable product mix during the period.