Teledyne Technologies (TDY) investor relations material

Executive summary

• Achieved record first quarter sales of $1,560.1 million, up 7.6% year-over-year, with record non-GAAP earnings per share and operating margin; net income attributable to shareholders rose 20.3% to $226.8 million.

• Growth was led by Digital Imaging and Aerospace & Defense Electronics, with Instrumentation also contributing, while Engineered Systems saw a slight decline.

• Book-to-bill ratio reached 1.16, marking the 10th consecutive quarter above one, and backlog remains strong.

• Operating income rose 13.5% to $294.2 million, reflecting improved margins and contributions from recent acquisitions.

• Leverage ratio declined to a five-year low, with net debt reduced to $1,954.9 million after a $450 million debt payment.

Financial highlights

• GAAP diluted EPS was $4.85, up from $3.99; non-GAAP diluted EPS was $5.80, up 17.2% year-over-year.

• Cash from operations was $234.0 million, with free cash flow at $204.3 million; capital expenditures rose to $29.7 million from $18.0 million.

• Depreciation and amortization expense increased to $87.2 million from $80.7 million.

• Cost of sales increased 6.7% to $886.3 million, but as a percentage of sales, decreased to 56.8% from 57.3%.

• Effective tax rate for Q1 2026 was 18.6%, down from 21.0% in Q1 2025, aided by discrete tax benefits.

Outlook and guidance

• Full-year 2026 GAAP EPS guidance raised to $20.08–$20.44; non-GAAP EPS to $23.85–$24.15.

• Second quarter 2026 GAAP EPS expected at $4.75–$4.90; non-GAAP at $5.70–$5.80.

• Full-year sales guidance raised to $6.415 billion, 70 basis points higher than prior guidance.

• CapEx projected at $150 million for the year to support capacity and supply chain resilience.

• Management expects slightly higher sales in the second half of the year, with a 51%/49% split between H2 and H1.