01—Abstract
Summary
Summary of the 10-Q filed April 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported first-quarter 2025 net sales of $1,449.9 milliona, up 7.4% from $1,350.1 million a year earlier.
Operating income rose 10.7% to $259.3 millionb, and net income attributable to Teledyne increased 5.7% to $188.6 million, or $3.99 per diluted share versus $3.72. The filing attributes the sales growth to higher sales in every segment, including $55.6 million of incremental sales from recent acquisitions. Aerospace and Defense Electronics was the fastest-growing segment, with net sales up 30.6% to $242.5 million, driven by defense electronics and the 2025 acquisitions.
The balance sheet and cash flow changed materially because of acquisitions. Teledyne spent $757.6 millionc on businesses in the quarter, mainly the Optical Systems and Advanced Electronic Systems businesses of Excelitas Technologies Corp. for $706.4 million, funded partly by $315.0 million of borrowings under its $1.20 billion credit facility. Total debt rose to $2,964.8 million from $2,649.0 million, and cash and cash equivalents fell to $461.5 million from $649.8 million.
Goodwill increased to $8,534.0 milliond from $7,990.5 million. Operating cash flow was $242.6 million, compared with $291.0 million a year earlier. The filing flags ongoing risks.
Management cites new U.S. tariffs and retaliatory measures, including tariffs and trade sanctions between the United States and China, as a potential source of revenue reductions and cost increases. Teledyne has made voluntary disclosures to U.S. and non-U.S. export authorities regarding Teledyne FLIR shipments, and the company cannot estimate the potential penalties.
The company also disclosed a civil investigation by the U.S. Department of Justice relating to an ejection seat sequencer program. Management believes these matters are not likely to have a material adverse effect on financial condition, though the export matters could be material if resolved unfavorably.
02—Key points
Key Highlights
- Net sales rose 7.4% to $1,449.9 million, with growth in all four segments; acquisitions contributed $55.6 million of incremental sales.
- Operating income increased 10.7% to $259.3 million; diluted EPS was $3.99 versus $3.72.
- Aerospace and Defense Electronics net sales grew 30.6% to $242.5 million, while its operating margin fell to 23.0% from 28.0%, reflecting $3.2 million of transaction and integration costs and unfavorable product mix.
- Teledyne spent $757.6 million on acquisitions, including $706.4 million for the Excelitas OS and AES businesses, lifting goodwill to $8,534.0 million.
- Total debt rose to $2,964.8 million from $2,649.0 million after $315.0 million of credit facility borrowings; $855.5 million remained available under the facility.
- Cash and cash equivalents declined to $461.5 million from $649.8 million, and operating cash flow was $242.6 million versus $291.0 million.
- Remaining performance obligations totaled $4,214.5 million, with about 77% expected to be recognized within the next 12 months.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Teledyne Technologies kept $0.13.
- Revenue$1.45B100.0%
- Cost of revenue−$830.4M57.3%
- Gross profit$619.5M42.7%
- Operating costs−$360.2M24.8%
- Operating income$259.3M17.9%
- Interest, other & tax−$70.7M4.9%
- Net income$188.6M13.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 28, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.45B$1.35B | +7.4% |
| Cost of Revenue | $830.40M$770.20M | +7.8% |
| Gross Profit | $619.50M$579.90M | +6.8% |
| R&D Expenses | $74.30M$76.50M | −2.9% |
| SG&A Expenses | $233.90M$219.70M | +6.5% |
| Operating Expenses | $1.19B$1.12B | +6.7% |
| Operating Income | $259.30M$234.30M | +10.7% |
| Net Income | $188.60M$178.50M | +5.7% |
| EPS (Basic) | $4.03$3.77 | +6.9% |
| EPS (Diluted) | $3.99$3.72 | +7.3% |
| Shares Outstanding (Basic) | 46.80M47.30M | −1.1% |
| Shares Outstanding (Diluted) | 47.30M48.00M | −1.5% |
05—Questions
Frequently Asked Questions
How did Teledyne perform in the first quarter of 2025?
Net sales increased 7.4% to $1,449.9 million and operating income rose 10.7% to $259.3 million. Net income attributable to Teledyne was $188.6 million, up 5.7%, or $3.99 per diluted share compared with $3.72 a year earlier.
How did the acquisitions affect the balance sheet and cash position?
Teledyne paid $757.6 million, net of cash acquired, for the OS and AES businesses of Excelitas ($706.4 million) and Micropac ($51.2 million). Goodwill rose to $8,534.0 million, total debt increased to $2,964.8 million, and cash fell to $461.5 million.
Which segment showed the largest change and why?
Aerospace and Defense Electronics net sales increased 30.6% to $242.5 million, mainly from a $57.1 million increase in defense electronics and $42.3 million of incremental sales from recent acquisitions. Its operating income rose 7.3% to $55.7 million, but its operating margin declined to 23.0% from 28.0% due to transaction and integration costs and unfavorable product mix.
What are the main risks identified in the filing?
The filing highlights new U.S. tariffs and retaliatory measures, including trade sanctions between the United States and China, which could reduce revenue or increase material costs. It also discloses voluntary export disclosures involving Teledyne FLIR shipments, where potential penalties could be material, and a Department of Justice civil investigation relating to an ejection seat sequencer program.
Did Teledyne repurchase shares or change its capital return activity this quarter?
No repurchases were made under any authorization in the first quarter of 2025 or 2024. The Board's $1.25 billion repurchase authorization approved in April 2024 remains open, and the company intends to fund future repurchases from cash on hand and credit facility borrowings.
06—Continue