Teledyne Technologies (TDY) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and full-year net sales, non-GAAP earnings, and operating margin in 2025, with optimism for 2026 due to strong business performance and new leadership.

• Q4 2025 net sales rose 7.3% year-over-year to $1,612.3 million, with net income up 38.8% to $275.6 million.

• Full year 2025 net sales increased 7.9% to $6,115.4 million, with non-GAAP earnings up 11.5% and net income up 9.2% to $894.8 million.

• Free cash flow exceeded $1.0 billion for the second consecutive year, supporting strong capital deployment.

• Completed acquisitions of Transponder Tech and DD-Scientific, and repurchased $400 million in stock in Q4.

Financial highlights

• Q4 non-GAAP diluted EPS was $6.30, up 14.1% year-over-year; GAAP diluted EPS was $5.84.

• Q4 non-GAAP operating margin reached 23.9%, up from 22.7% last year.

• Q4 cash from operations was $379 million; free cash flow was $339.2 million, a record.

• Ended 2025 with a leverage ratio of 1.4x and $2.12 billion in net debt.

• Capital expenditures in Q4 were $39.8 million; depreciation and amortization expense was $84.6 million.

Outlook and guidance

• 2026 GAAP diluted EPS guidance: $19.76–$20.22; non-GAAP: $23.45–$23.85.

• Q1 2026 GAAP EPS: $4.45–$4.59; non-GAAP EPS: $5.40–$5.50.

• 2026 revenue expected at approximately $6.37 billion; non-GAAP EPS midpoint at $23.65, in line with consensus.

• Expect normal seasonality: ~48% of sales and 46% of earnings in 1H 2026.

• Organic revenue growth projected at 3.5–4% across segments, with no expected declines in any business.