Teledyne Technologies (TDY) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 sales of $1,502.3 million, up 5.4% year-over-year, and record non-GAAP EPS of $5.52.

• Full year 2024 net sales rose 0.6% to $5,670.0 million; record non-GAAP EPS and operating margins for both Q4 and full year.

• Record annual free cash flow, ending 2024 with low leverage after $1.1B in capital deployment.

• Closed Micropac acquisition in December 2024; Excelitas carve-out expected to close in Q1 2025.

• Entered 2025 optimistic about both commercial and defense market portfolios.

Financial highlights

• Q4 2024 non-GAAP EPS set a record at $5.52; full year non-GAAP EPS reached $19.73.

• Q4 cash flow from operating activities was $332.4M, up from $164.4M in 2023; Q4 free cash flow was $303.4M.

• Full year 2024 free cash flow reached $1.11B; record full year cash from operations of $1,191.9M.

• Ended 2024 with just under $2B net debt ($2.65B debt, $650M cash); consolidated leverage ratio 1.5x.

• Q4 2024 GAAP net income was $198.5M ($4.20/share), down 38.6% YoY due to non-cash trademark impairments and lower tax benefits.

Outlook and guidance

• 2025 sales expected to grow ~4% (3.2% organic, ~1% from acquisitions).

• 2025 non-GAAP earnings projected to grow ~8%.

• 2025 GAAP EPS guidance: $17.70–$18.20; non-GAAP EPS: $21.10–$21.50, including Micropac but excluding Excelitas.

• Q1 2025 GAAP EPS: $3.90–$4.04; non-GAAP EPS: $4.80–$4.90.

• Free cash flow for 2025 expected to exceed $1B; plans to deploy ~$770M on acquisitions in Q1 2025.