01—Abstract
Summary
Summary of the 10-Q filed October 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Teledyne Technologies Incorporated (TDY) reported third-quarter 2025 net sales of $1,539.5 milliona, up 6.7% from $1,443.5 million a year earlier, and nine-month net sales of $4,503.1 million, up 8.0%.
Third-quarter net income attributable to Teledyne decreased 15.8% to $220.7 millionb, mainly because the prior-year quarter benefited from the favorable resolution of an uncertain tax position tied to FLIR subsidiaries. Diluted EPS was $4.65 versus $5.54. Nine-month diluted EPS was $13.06 versus $13.01, and operating income rose 9.1% to $820.3 million.
Growth was driven largely by the Aerospace and Defense Electronics segment, where net sales rose 37.6% in the quarter to $275.5 millionc, including $69.0 million of incremental sales from recent acquisitions. The company's balance sheet reflects significant 2025 acquisition activity. Purchases of businesses totaled $764.2 million in the nine months, including the Qioptiq (Excelitas aerospace and defense electronics) acquisition for $702.8 million net of cash acquired.
Goodwill rose to $8,651.7 milliond from $7,990.5 million at December 29, 2024. Cash and cash equivalents declined to $528.6 million, and total debt, net, fell to $2,533.4 million from $2,649.0 million after the company repurchased $118.2 million of senior notes principal. Operating cash flow was $812.3 million for the nine months, compared with $859.5 million a year earlier, mainly due to higher income tax payments.
Management cited tariffs, U.S. Government shutdown effects, and foreign currency movements as ongoing risks. In July 2025 the Board authorized a $2.0 billion share repurchase program, but no repurchases were made in the third quarter or first nine months of 2025.
The filing also discloses ongoing trade compliance voluntary disclosures and a civil investigation by the U.S. Department of Justice, with management not believing the outcome is likely to be materially adverse. A pending acquisition of the TransponderTech business from Saab AB is expected to close in the fourth quarter of 2025.
02—Key points
Key Highlights
- Third-quarter net sales rose 6.7% to $1,539.5 million, and nine-month net sales rose 8.0% to $4,503.1 million.
- Aerospace and Defense Electronics net sales grew 37.6% in the third quarter to $275.5 million, with $69.0 million from recent acquisitions.
- Third-quarter net income attributable to Teledyne fell 15.8% to $220.7 million, driven by a prior-year favorable tax resolution; diluted EPS was $4.65 versus $5.54.
- Nine-month operating income increased 9.1% to $820.3 million, with higher operating income in every segment.
- Purchases of businesses totaled $764.2 million in the first nine months, including Qioptiq for $702.8 million net of cash acquired.
- Total debt, net, declined to $2,533.4 million from $2,649.0 million, and cash and equivalents fell to $528.6 million from $649.8 million.
- A $2.0 billion stock repurchase program was approved in July 2025, but no repurchases were made in the third quarter or first nine months of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Teledyne Technologies kept $0.14.
- Revenue$1.54B100.0%
- Cost of revenue−$880.0M57.2%
- Gross profit$659.5M42.8%
- Operating costs−$376.7M24.5%
- Operating income$282.8M18.4%
- Interest, other & tax−$62.1M4.0%
- Net income$220.7M14.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 24, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.54B$1.44B | +6.7% |
| Cost of Revenue | $880.00M$823.90M | +6.8% |
| Gross Profit | $659.50M$619.60M | +6.4% |
| R&D Expenses | $83.40M$73.00M | +14.2% |
| SG&A Expenses | $238.20M$226.10M | +5.4% |
| Operating Expenses | $1.26B$1.17B | +7.2% |
| Operating Income | $282.80M$270.70M | +4.5% |
| Net Income | $220.70M$262.00M | −15.8% |
| EPS (Basic) | $4.71$5.61 | −16.0% |
| EPS (Diluted) | $4.65$5.54 | −16.1% |
| Shares Outstanding (Basic) | 46.90M46.70M | +0.4% |
| Shares Outstanding (Diluted) | 47.50M47.30M | +0.4% |
05—Questions
Frequently Asked Questions
Why did third-quarter net income decline even though sales grew?
Net income attributable to Teledyne decreased 15.8% to $220.7 million, primarily because the third quarter of 2024 benefited from the favorable resolution of an uncertain tax position with foreign tax authorities around transfer pricing between certain FLIR subsidiaries. The third-quarter 2025 income tax provision was $52.9 million, compared with a benefit of $7.1 million a year earlier.
What acquisitions drove 2025 results and balance sheet changes?
The company acquired select aerospace and defense electronics businesses of Excelitas (Qioptiq) for approximately $702.8 million net of cash acquired, Micropac for approximately $51.2 million, and the Maretron assets, and acquired the redeemable noncontrolling interest of NL Acoustics for $27.2 million. Goodwill increased to $8,651.7 million from $7,990.5 million at December 29, 2024.
How is Teledyne managing its debt and liquidity?
Long-term debt, net of current portion, was $2,083.2 million, and current portion of long-term debt was $450.2 million, reflecting the 1.60% senior notes due April 2026. In the first nine months of 2025, the company repurchased $118.2 million of senior notes principal for $107.7 million in cash. At September 28, 2025, $1,168.7 million was available under the $1.2 billion credit facility, and the company was in compliance with its covenants.
What is the outlook for cash taxes after the One Big Beautiful Bill Act?
The company estimated a cash tax reduction of approximately $30.0 million in 2025 from the Act, which accelerates deductions for qualified property and research expense. It estimates a 2026 cash tax reduction of between $60.0 million and $70.0 million.
Are there material legal or regulatory risks disclosed?
The filing discloses voluntary disclosures to U.S. and non-U.S. export authorities regarding Teledyne FLIR shipments, and a civil investigation by the U.S. Department of Justice relating to an ejection seat sequencer program and deliveries between 2006 and 2018. Management states that an unfavorable outcome could result in substantial fines and penalties and that it does not believe the pending matters are likely to have a material adverse effect on financial condition.
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