Teledyne (TDY) investor relations material

Executive summary

• Achieved record quarterly net sales of $1,513.7 million, up 10.2% year-over-year, with all segments contributing and orders exceeding sales for the seventh consecutive quarter.

• Net income attributable to shareholders increased 16.5% year-over-year to $209.9 million; diluted EPS was $4.43 (up 17.5% GAAP, 13.5% non-GAAP).

• Operating income grew 12.6% year-over-year to $278.2 million, with margin improvement in most segments.

• Energy, defense, and digital imaging businesses performed strongly, driven by market demand and robust technology portfolios.

• Four business segments—Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems—each reported higher net sales and operating income.

Financial highlights

• Q2 2025 net sales: $1,513.7 million, up 10.2% year-over-year; net income: $209.9 million, up 16.5%; operating income: $278.2 million, up 12.6%.

• Operating margin improved to 18.4% GAAP and 22.2% non-GAAP; gross margin was 42.6%.

• Cash from operations was $226.6 million; free cash flow was $196.3 million, both down year-over-year due to higher tax payments.

• Capital expenditures were $30.3 million in Q2; depreciation and amortization expense was $86.5 million.

• Net debt as of June 29, 2025, was $2,306.5 million; $1,168.0 million available under the $1.2 billion credit facility.

Outlook and guidance

• Full-year 2025 revenue guidance raised to ~$6.03 billion, with 6.3% growth (4.2% from acquisitions, 2%+ organic).

• Full-year 2025 GAAP EPS outlook raised to $17.59–$17.97; non-GAAP EPS to $21.20–$21.50.

• Q3 2025 GAAP EPS expected at $4.39–$4.54; non-GAAP EPS at $5.35–$5.45.

• Q3 sales expected to remain flat sequentially, reflecting caution over potential demand pull-forward in short-cycle businesses.

• Management continues to emphasize growth through acquisitions, product development, and operational excellence.