10-Q - TELEDYNE TECHNOLOGIES INC (0001094285) (Filer)

Mon, Apr 28, 10:01 AM (14 days ago)

**Teledyne Technologies Incorporated (TDY) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 net sales increased by 7.4% to $1,449.9 million from $1,350.1 million in Q1 2024. - **Profit Margins:** Operating income rose by 10.7% to $259.3 million. Net income attributable to Teledyne increased by 5.7% to $188.6 million. - **Earnings Per Share (EPS):** Diluted EPS was $3.99 for Q1 2025, up from $3.72 in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $242.6 million, down from $291.0 million in Q1 2024 due to foreign exchange contracts and lower customer advances. - **Investing Activities:** Net cash used in investing activities was $775.0 million, primarily due to acquisitions totaling $757.6 million. - **Financing Activities:** Net cash provided by financing activities was $339.6 million, including $315.0 million from the credit facility. **Segment Performance:** - **Digital Imaging:** Net sales increased by 2.2% to $757.0 million. Operating income rose by 7.5% to $122.3 million. - **Instrumentation:** Net sales increased by 3.9% to $343.3 million. Operating income rose by 7.8% to $92.7 million. - **Aerospace and Defense Electronics:** Net sales surged by 30.6% to $242.5 million, driven by acquisitions. Operating income increased by 7.3% to $55.7 million. - **Engineered Systems:** Net sales increased by 14.9% to $107.1 million. Operating income saw a significant rise of 300.0% to $10.8 million. **Trends and Uncertainties:** - **Acquisitions:** Teledyne completed two acquisitions in Q1 2025, contributing $55.6 million in incremental sales. - **Tariffs and Trade Restrictions:** New tariffs and trade restrictions could impact revenue and costs. Teledyne is optimizing operations and considering pricing actions to mitigate these impacts. - **Foreign Exchange Rates:** Fluctuations in exchange rates affect sales recorded by subsidiaries outside the U.S. Teledyne uses derivative instruments to mitigate these impacts. - **Legal and Environmental Matters:** Ongoing legal proceedings and environmental remediation obligations could have financial implications. **Future Operations Impact:** - **Capital Expenditures:** Teledyne plans to invest approximately $130 million in capital expenditures for 2025. - **Stock Repurchases:** The company has a $1.25 billion stock repurchase program, funded by cash on hand and available borrowings. - **Debt Management:** Teledyne is in compliance with its credit facility covenants and has $855.5 million available under the $1.2 billion credit facility. **Conclusion:** Teledyne Technologies Incorporated (TDY) demonstrated strong financial performance in Q1 2025, with notable growth in revenue and earnings driven by strategic acquisitions and operational excellence. The company faces uncertainties related to tariffs, trade restrictions, and foreign exchange rates but is taking proactive measures to mitigate these risks. Future operations will focus on continued investment in capital expenditures, strategic acquisitions, and share repurchases to drive long-term growth and shareholder value.