Zachary Walljasper

Zachary Wall, on behalf of Amit Mehrotra, questioned the implied deceleration in Teledyne's full-year 2026 earnings growth (7%) compared to the Q1 guidance (10%), seeking clarification on the cadence of the year given similar earnings comps in 1H versus 2H.

Answer

Robert Mehrabian (Executive Chairman) attributed the Q1 strength to easier year-over-year comparisons. He reiterated the company's traditional seasonality, expecting approximately 48% of sales and 46% of earnings in the first half of 2026, while expressing hope for potential improvements.

Zachary Walljasper, on for Joe Spak, asked about the company's capital allocation strategy, noting strong free cash flow and no share repurchases in the quarter, and also inquired about CarGurus' positioning against Amazon's entry into the auto space.

Answer

Elisa Palazzo, CFO, confirmed that 2025 margins are expected to be sustainable despite significant investments and that the $200 million share repurchase program for 2025 is active, with buybacks to occur as deemed appropriate alongside compelling internal investments. Jason Trevisan, CEO, addressed the Amazon threat by differentiating the new car market from the used car market, emphasizing that used cars require deep, trusted integrations with a fragmented network of 40,000 dealers, which is CarGurus' core strength.

Zachary Walljasper, on behalf of Joe Spak, asked about the drivers of margin expansion in the second half of 2025 and the company's capital allocation priorities for the year given the improving free cash flow.

Answer

Chief Financial Officer Brian Roberts stated that capital allocation will continue to balance reducing net leverage and opportunistic share repurchases as top priorities. For H2 2025 margin expansion, he pointed to a combination of incremental revenue, the full impact of cost initiatives, and compounding productivity improvements, expecting a margin lift in Q3 and Q4 similar to the pattern seen in 2024.