Teledyne Technologies (TDY) investor relations material

Executive summary

• Achieved record quarterly orders, sales, and operating profit in Q2 2026, with sales up 9.8% year-over-year to $1,662.5 million and non-GAAP earnings up 20.8%.

• Orders exceeded sales for the 11th consecutive quarter, ending June with a $5 billion funded backlog and strong organic growth, especially in Digital Imaging.

• Full-year 2026 revenue outlook raised by $120 million to over $6.53 billion, with non-GAAP EPS guidance increased by $0.55 at the midpoint.

• Repaid $450 million in gross debt and continue to evaluate acquisition opportunities.

Financial highlights

• Q2 cash flow from operations was $315.2 million, up from $226.6 million in 2025; free cash flow was $284.7 million, up from $196.3 million.

• Net income attributable to shareholders increased 19.9% year-over-year to $251.7 million.

• Operating income rose 19.8% to $333.2 million; non-GAAP operating margin improved to 23.4% from 22.2%.

• Ended the quarter with $1.69 billion net debt, with leverage at 1.1x, the lowest in six years.

Outlook and guidance

• Q3 2026 GAAP EPS expected at $5.10–$5.25; non-GAAP EPS at $6.05–$6.15.

• Full-year 2026 GAAP EPS guided to $20.73–$20.99; non-GAAP EPS to $24.45–$24.65.

• 2026 revenue growth forecast at just under 7% year-over-year, with defense sales expected to grow at high single-digit rates.

• Digital Imaging segment projected to grow 7.5% for the year, FLIR over 9%, Instrumentation 5.7%, Aerospace & Defense 7.2%, Engineered Systems 5.6%.