Teledyne Technologies (TDY) investor relations material

Executive summary

• Achieved record quarterly orders, sales, and operating profit in Q2 2026, with net sales up 9.8% year-over-year to $1,662.5 million, driven by growth in all segments and $12.2 million in incremental sales from recent acquisitions.

• Net income attributable to shareholders rose 19.9% to $251.7 million, with GAAP diluted EPS at $5.37 and non-GAAP EPS up 20.8% to $6.28.

• Operating income grew 19.8% to $333.2 million, with margin expansion led by Digital Imaging.

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

• 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.

• Capital expenditures were $30.5 million; depreciation and amortization expense was $85.7 million.

• Net debt decreased to $1,686.9 million from $2,123.0 million at year-end 2025, with leverage at 1.1x, the lowest in six years.

• Operating margin improved to 20.0% (up from 18.4%); non-GAAP operating margin was 23.4%.

• Cash and cash equivalents: $340.1 million at June 28, 2026.

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%.

• Management expects continued growth, supported by strong demand in defense, industrial, and environmental markets.