01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated reported fiscal 2024 net sales of $5.67 billiona, up 0.6% from $5.64 billion in 2023, while operating income declined 4.4% to $989.1 million.
The decline was driven primarily by $52.5 millionb of pretax, non-cash trademark impairments recorded in 2024 in the Digital Imaging and Instrumentation segments. Net income attributable to Teledyne was $819.2 million, or $17.21 diluted earnings per share, down from $885.7 million and $18.49 in 2023. Digital Imaging, the largest segment at $3.07 billion in net sales, saw sales decline 2.3% and operating income fall 14.6%, while Instrumentation, Aerospace and Defense Electronics, and Engineered Systems sales all increased or were flat.
Cash generation strengthened materially. Net cash provided by operating activities was $1,191.9 millionc, compared with $836.1 million in 2023, and free cash flow (operating cash flow less capital expenditures) was $1,108.2 million. The company used cash to reduce debt, repaying $450.0 million of senior notes and a $150.0 million term loan, and repurchased $354.0 million of stock.
Long-term debt, including unamortized issuance costs, declined to $2,649.0 milliond from $3,244.9 million at year-end 2023. Total goodwill of $7,990.5 million, of which $5,827.1 million relates to the FLIR reporting unit, remains a significant balance sheet item.
Looking ahead, the filing notes two acquisitions completed after year-end: Micropac Industries for approximately $57.6 million on December 30, 2024, and select aerospace and defense electronics businesses of Excelitas Technologies for approximately $700.3 million on February 3, 2025. The company describes an uncertain tariff environment, U.S. government funding risks, and export control matters, including voluntary disclosures related to Teledyne FLIR shipments, and plans approximately $130 million of capital expenditures in 2025.
02—Key points
Key Highlights
- Net sales were $5.67 billion in 2024, up 0.6% from $5.64 billion in 2023; Digital Imaging sales declined 2.3% while Instrumentation rose 4.3% and Aerospace and Defense Electronics rose 6.9%.
- Operating income fell 4.4% to $989.1 million, primarily due to $52.5 million of non-cash trademark impairments, including a $49.5 million charge on the FLIR indefinite-lived trademark.
- Diluted EPS was $17.21 versus $18.49 in 2023, with net income attributable to Teledyne of $819.2 million versus $885.7 million.
- Operating cash flow rose to $1,191.9 million from $836.1 million, producing free cash flow of $1,108.2 million.
- Long-term debt declined to $2,649.0 million from $3,244.9 million after repaying $450.0 million of senior notes and a $150.0 million term loan; $354.0 million was spent on share repurchases.
- Two acquisitions were completed after year-end: Micropac (about $57.6 million, December 30, 2024) and Excelitas' Qioptiq and Advanced Electronics Systems businesses (about $700.3 million, February 3, 2025).
- The FLIR reporting unit's estimated fair value exceeded its carrying value by approximately $420 million, or 5%, a headroom figure investors should monitor given $5,856.5 million of goodwill allocated to it.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Teledyne Technologies kept $0.14.
- Revenue$5.67B100.0%
- Cost of revenue−$3.24B57.1%
- Gross profit$2.43B42.9%
- Operating costs−$1.45B25.5%
- Operating income$989.1M17.4%
- Interest, other & tax−$169.9M3.0%
- Net income$819.2M14.4%
Where FY2024 revenue went
$5.67B- Cost of revenue: $3.24B, 57% of revenue
- SG&A: $902.6M, 16% of revenue
- Net income: $819.2M, 14% of revenue
- R&D: $292.6M, 5.2% of revenue
- Other operating costs: $250.5M, 4.4% of revenue
- Interest, other & tax: $169.9M, 3.0% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.67B$5.64B | +0.6% |
| Cost of Revenue | $3.24B$3.20B | +1.2% |
| Gross Profit | $2.43B$2.44B | −0.2% |
| R&D Expenses | $292.60M$356.30M | −17.9% |
| SG&A Expenses | $902.60M$852.00M | +5.9% |
| Operating Expenses | $4.68B$4.60B | +1.7% |
| Operating Income | $989.10M$1.03B | −4.4% |
| Interest Expense | $57.90M$89.30M | −35.2% |
| Net Income | $819.20M$885.70M | −7.5% |
| EPS (Basic) | $17.43$18.80 | −7.3% |
| EPS (Diluted) | $17.21$18.49 | −6.9% |
| Shares Outstanding (Basic) | 47.00M47.10M | −0.2% |
| Shares Outstanding (Diluted) | 47.60M47.90M | −0.6% |
05—Questions
Frequently Asked Questions
Why did operating income decline in 2024 despite higher net sales?
Operating income decreased to $989.1 million from $1,034.4 million, primarily driven by $52.5 million of pretax, non-cash trademark impairments recorded in 2024 in the Digital Imaging and Instrumentation segments. The filing notes that no comparable impairments were recorded in 2023. Digital Imaging operating income also fell due to lower net sales, unfavorable product mix, and higher engineering costs.
How did cash flow and debt levels change in 2024?
Net cash provided by operating activities was $1,191.9 million, compared with $836.1 million in 2023, partly reflecting lower income tax payments and higher customer advances. The company repaid $450.0 million of Fixed Rate Senior Notes due April 2024 and a $150.0 million term loan due October 2024, reducing long-term debt to $2,649.0 million. As of December 29, 2024, no borrowings were outstanding under its $1.20 billion credit facility, with $1,170.7 million of available borrowing capacity.
Does Teledyne pay dividends, and how much stock did it repurchase?
Teledyne does not anticipate paying cash dividends in the foreseeable future, as it intends to use future earnings to fund development and growth. During 2024, the company repurchased approximately 0.9 million shares for $354.0 million at a weighted-average price of $399.78 per share. At year-end, $896.1 million remained available under the $1.25 billion repurchase program authorized in April 2024.
What risks does the filing highlight for the coming year?
The filing highlights several risks, including new U.S. tariffs and possible retaliatory measures, uncertainty over U.S. government defense and NASA funding, and export control matters, including voluntary disclosures related to Teledyne FLIR shipments whose financial impact cannot yet be estimated. It also notes continued competition from Chinese manufacturers in digital imaging and instrumentation, cyclical semiconductor weakness, and the potential for further non-cash impairments on goodwill and the FLIR trademark.
What are the company's plans for capital spending and recent acquisitions?
Teledyne plans to invest approximately $130 million in capital expenditures in 2025, principally to upgrade facilities and manufacturing equipment, including post-acquisition capital expenditures related to 2025 acquisitions. Capital expenditures were $83.7 million in 2024. The company completed two acquisitions each in 2024 and 2023 within the Digital Imaging and Instrumentation segments, with Adimec and Valeport totaling $123.7 million in cash paid in 2024, and completed two more acquisitions after year-end.
06—Continue