Teledyne Technologies (TDY) investor relations material

Executive summary

• Q3 sales, operating earnings and non-GAAP diluted EPS reached records; sales rose 9.4% YoY and non-GAAP EPS increased 20.6%.

• Orders exceeded sales for 12 consecutive quarters; funded backlog was $5.3B, with 72% expected to convert to revenue within 12 months.

• Growth was broad across defense and commercial markets, with Digital Imaging accelerating and all four segments reporting higher sales.

Financial highlights

• Q3 net sales were $1,684.9M vs. $1,539.5M; recent acquisitions contributed $11.7M in incremental sales.

• GAAP net income was $272.8M, up 23.6%, and diluted EPS was $5.82, up 25.2%; adjusted net income was $315.1M and adjusted diluted EPS was $6.72 vs. $264.5M and $5.57.

• GAAP operating income rose 22.8% to $347.2M; adjusted operating income was $402.6M vs. $340.0M.

• Operating cash flow was $352.5M vs. $343.1M; record Q3 free cash flow was $319.5M vs. $313.9M.

• Capital expenditures were $33.0M vs. $29.2M; depreciation and amortization was $84.7M vs. $84.5M.

Outlook and guidance

• FY26 sales guidance rose to $6.625B, up 8.3% YoY; GAAP EPS guidance is $21.71–$21.87 and non-GAAP EPS guidance is $25.40–$25.50.

• Q4 2026 EPS guidance is $5.68–$5.83 GAAP and $6.60–$6.70 non-GAAP; expected organic revenue growth is 7%–8%.

• Management expects mid- to higher-single-digit growth in 2027, above historical levels, but has not provided formal guidance.

• Digital Imaging FY26 revenue is expected near $2.5B, with 10% organic growth plus 0.6% acquisition contribution; segment margin growth is projected at 225 bps.