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 strong performance across defense and recovering commercial businesses.

• 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 2025 sales increased 7.3% year-over-year; non-GAAP earnings up 14.1%; Q4 non-GAAP diluted EPS was $6.30.

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

• Free cash flow for Q4 2025 was $339.2 million, up from $303.4 million in 2024; Q4 cash flow from operations was $379 million.

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

• Full year non-GAAP diluted EPS was $21.99, up from $19.73 in 2024.

Outlook and guidance

• 2026 revenue expected at approximately $6.37 billion; non-GAAP EPS midpoint at $23.65.

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

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

• Organic revenue growth projected at 3.5–4% across segments, with no expected contraction in short-cycle businesses.

• Unmanned business revenue expected to grow about 10% to $550 million in 2026.