93241efb18a620a7a79f8328c8b611bcb03d39a679f1aae71df80e0f14243d28

Teledyne Technologies Incorporated is a Delaware corporation specializing in enabling technologies for industrial growth markets that demand advanced technology and high reliability. The company serves various sectors, including aerospace and defense, factory automation, environmental monitoring, electronics design, oceanographic research, deepwater oil and gas exploration, medical imaging, and pharmaceutical research **[0001094285-24-000044_tdy-20231231.htm:3]** **[0001094285-24-000044_tdy-20231231.htm:88]**. Teledyne operates through four main business segments, offering products such as high-performance sensors, cameras, monitoring instruments, electronic components, and systems engineering solutions **[0001094285-24-000044_tdy-20231231.htm:101]**.

1. **Digital Imaging** - Provides high-performance sensors, cameras, and systems across the visible, infrared, and X-ray spectra, contributing significantly to the company's net sales **[0001094285-24-000044_tdy-20231231.htm:102]** **[0001094285-24-000044_tdy-20231231.htm:3]**.
2. **Instrumentation** - Offers monitoring and control instruments for marine, environmental, industrial, and other applications, supporting various industries with precise measurement tools **[0001094285-24-000044_tdy-20231231.htm:3]**.
3. **Aerospace and Defense Electronics** - Delivers sophisticated electronic components and subsystems tailored for aerospace and defense applications, enhancing operational capabilities **[0001094285-24-000044_tdy-20231231.htm:3]**.
4. **Engineered Systems** - Supplies systems engineering and integration solutions, focusing on delivering comprehensive and reliable systems for complex projects **[0001094285-24-000044_tdy-20231231.htm:3]**.

49978ab15411416a9849cf512aadf51bcd3e734d319278bd056d07beed5d1de3

United States

Europe

Asia

All other

- Canada

- United Kingdom

- Belgium

- The Netherlands

- All other countries

Total Revenue

e735a409c6ee196ffc28fe7246c7eadbdcd01ad2f05f0491c7657243c6485a94

| Segment/Quarter                          | Q4 2022  **[0001094285-23-000004_q4-2022earningsrelease.htm:6]** **[0001094285-23-000004_q4-2022earningsrelease.htm:6]** **[0001094285-23-000004_q4-2022earningsrelease.htm:6]** **[0001094285-23-000004_q4-2022earningsrelease.htm:6]**  | Q1 2023  **[0001094285-23-000058_q1-2023earningsrelease.htm:0]** **[0001094285-23-000083_tdy-20230402.htm:6]** **[0001094285-23-000083_tdy-20230402.htm:6]** **[0001094285-23-000083_tdy-20230402.htm:6]**  | Q2 2023  **[0001094285-23-000097_q2-2023earningsrelease.htm:0]** **[0001094285-23-000097_q2-2023earningsrelease.htm:1]** **[0001094285-23-000097_q2-2023earningsrelease.htm:1]** **[0001094285-23-000097_q2-2023earningsrelease.htm:1]**  | Q3 2023  **[0001094285-23-000122_q3-2023earningsrelease.htm:0]** **[0001094285-23-000122_q3-2023earningsrelease.htm:0]** **[0001094285-23-000122_q3-2023earningsrelease.htm:0]** **[0001094285-23-000122_q3-2023earningsrelease.htm:0]**  | Q4 2023  **[0001094285-24-000005_q4-2023earningsrelease.htm:1]** **[0001094285-24-000005_q4-2023earningsrelease.htm:1]** **[0001094285-24-000005_q4-2023earningsrelease.htm:1]** **[0001094285-24-000005_q4-2023earningsrelease.htm:2]**  | Q1 2024  **[0001094285-24-000052_q1-2024earningsrelease.htm:1]** **[0001094285-24-000052_q1-2024earningsrelease.htm:1]** **[0001094285-24-000052_q1-2024earningsrelease.htm:1]** **[0001094285-24-000052_q1-2024earningsrelease.htm:1]**  | Q2 2024  **[0001094285-24-000088_q2-2024earningsrelease.htm:0]** **[0001094285-24-000088_q2-2024earningsrelease.htm:1]** **[0001094285-24-000088_q2-2024earningsrelease.htm:1]** **[0001094285-24-000088_q2-2024earningsrelease.htm:1]**  | Q3 2024  **[0001094285-24-000099_q3-2024earningsrelease.htm:1]** **[0001094285-24-000099_q3-2024earningsrelease.htm:1]** **[0001094285-24-000099_q3-2024earningsrelease.htm:1]** **[0001094285-24-000099_q3-2024earningsrelease.htm:1]**  |
|------------------------------------------|----------------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| **Digital Imaging (in millions)**        | **$806.7**                       | **$772.5**                  | **$793.3**                  | **$775.8**                  | **$802.5**                  | **$740.8**                  | **$739.4**                  | **$768.4**                  |
| **Instrumentation (in millions)**        | **$326.2**                       | **$333.5**                  | **$328.4**                  | **$329.1**                  | **$335.2**                  | **$330.4**                  | **$333.5**                  | **$349.8**                  |
| **Aerospace and Defense Electronics (in millions)** | **$177.9**                       | **$173.2**                  | **$186.0**                  | **$183.3**                  | **$184.0**                  | **$185.7**                  | **$194.4**                  | **$200.2**                  |
| **Engineered Systems (in millions)**     | **$107.4**                       | **$104.1**                  | **$117.0**                  | **$114.3**                  | **$103.3**                  | **$93.2**                   | **$106.8**                  | **$125.1**                  |

588ddf069a29c9038082851f3ec9f11904da5614ac618a7ca3fcfb49a0053d3e

| Metric [USD Million] | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America        | N/A     | **737.4**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **736.2**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **695.8**  **[0001094285-23-000083_tdy-20230402.htm:7]**  | N/A     | **737.4**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **736.2**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **695.8**  **[0001094285-23-000083_tdy-20230402.htm:7]**  |
| Europe               | N/A     | **325.4**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **338.7**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **324.0**  **[0001094285-23-000083_tdy-20230402.htm:7]**  | N/A     | **325.4**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **338.7**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **324.0**  **[0001094285-23-000083_tdy-20230402.htm:7]**  |
| Asia                 | N/A     | **231.9**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **232.9**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **243.1**  **[0001094285-23-000083_tdy-20230402.htm:7]**  | N/A     | **231.9**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **232.9**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **243.1**  **[0001094285-23-000083_tdy-20230402.htm:7]**  |
| Other Regions        | **460.6**  **[0001094285-24-000044_tdy-20231231.htm:102]**  | **107.8**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **116.9**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **120.4**  **[0001094285-23-000083_tdy-20230402.htm:7]**  | N/A     | **107.8**  **[0001094285-23-000129_tdy-20231001.htm:8]**  | **116.9**  **[0001094285-23-000102_tdy-20230702.htm:8]**  | **120.4**  **[0001094285-23-000083_tdy-20230402.htm:7]**  |

2b0c1b11d8eb265b441a2db79871fe2c038ac38ba244f37488ba2bac85c0c46a

1. Given your capacity to spend up to **$2 to $3 billion** on acquisitions  **[TDY_3403390_13]** , how do you prioritize between larger strategic acquisitions versus smaller bolt-on acquisitions, and what are the risks associated with each approach?
2. With the acceleration in sales primarily driven by your defense businesses and some energy  **[TDY_3403390_6]** , how sustainable is this growth considering potential changes in government budgets and fluctuations in the energy markets?
3. Since your U.S. government defense business was up organically by only **2.5%** while overseas programs like those in **Ukraine** and the **Middle East** are performing well  **[TDY_3403390_11]** , how do you assess the geopolitical risks associated with reliance on these international markets for continued growth in your defense segment?
4. Digital Imaging margins have declined from **24.2%** last year to **22.6%** this quarter  **[TDY_3403390_18]** ; with uncertainties in the recovery of your short-cycle businesses, what specific strategies are you implementing to restore or exceed previous margin levels, and how confident are you in the timing of this recovery?
5. Given that your Marine segment's growth could be impacted by significant declines in oil prices affecting production interconnects  **[TDY_3403390_12]** , how are you preparing to mitigate this risk and sustain growth in this segment, especially considering that offshore energy constitutes over **30%** of the business?

5a487e003b1e1f9a484dd06176d08a51a5e19cfaf498bbeafff3bae71bd7317a

- Strong growth expected in the **defense sector**, particularly in **FLIR defense businesses**, which grew **almost 9%** in Q4 and are expected to grow another **6%** next year. The company is well-positioned in **unmanned systems**, **electronic warfare**, and **observations using EOIR**, which favor Teledyne regardless of which defense programs proceed.  **[TDY_3413014_14]**
- Positive trends in **book-to-bill ratio**, indicating strong demand. The overall book-to-bill is **1.04**, with segments like **marine** at **1.23** and **environmental** at **1.09**. Additionally, **machine vision** is recovering with order increases throughout the year.  **[TDY_3413014_12]**
- Introduction of new products in **Digital Imaging**, expected to be **much more competitive**, suggesting potential upside in this segment. The company acknowledges being **conservative** in its outlook, which could lead to upside if market conditions improve more than expected.  **[TDY_3413014_15]**

99ca556f48ce1779fa71aeea98805ab1e950b7474f7a454e8bdef8749d506f2e

- **Uncertainty in Defense Program Funding**: Teledyne's management stated that they "really don't know what's going to happen to the various programs yet" in the defense sector, introducing uncertainty in future revenue from defense contracts.  **[TDY_3413014_10]**
- **Foreign Exchange Headwinds Impacting Revenue Growth**: The company is anticipating a **1.3% FX headwind** in their 2025 outlook, compared to a minimal tailwind in the previous year, which could negatively affect international revenues and overall growth.  **[TDY_3413014_14]**
- **Slower Recovery in Key Business Segments**: The recovery in Teledyne's **legacy digital imaging business** is slower than expected, with management expressing surprise at the sluggish pace. "These are short-cycle businesses... so we don't have a lot of visibility."  **[TDY_3413014_14]**  Additionally, recovery in the **machine sensors** segment is expected only in the second half of 2025, indicating prolonged weakness in that area.  **[TDY_3413014_12]**

065dd4e734a16812c012bb62b33b40b3809c10e861aafd01bc55f37310a7abb8

1. **Organic Growth and FX Impact**  
   **Q:** Does the 3.2% organic growth include FX impact?  
   **A:** Yes, we account for a **1.3% headwind from FX** in 2025, compared to a **20 basis points tailwind** in 2024. We expect **most short-cycle businesses to grow modestly**, with growth in test and measurement and environmental in the low single digits due to FX effects.  **[TDY_3413014_9]** 

2. **Margin Outlook for 2025**  
   **Q:** What's driving margin expansion into 2025?  
   **A:** We expect company-wide margins to grow by **80 basis points**, increasing from **22%** in 2024 to **22.8%** in 2025. In Digital Imaging, we anticipate margins to improve by **70-80 basis points**, reaching about **23%**. Strong margin growth in Instruments and Aerospace & Defense segments over the past two years makes us cautious, projecting smaller increases due to recent acquisitions like Micropac, which initially have lower margins.  **[TDY_3413014_8]** 

3. **Excelitas Acquisition Impact**  
   **Q:** What revenue and earnings will Excelitas add?  
   **A:** If Excelitas closes as scheduled, it will add about **$15 million in revenue per month**. For a full year, it could contribute approximately **$0.15 to $0.20 per share** in earnings accretion, excluding potential margin expansions from integration efforts.  **[TDY_3413014_6]** **[TDY_3413014_9]** 

4. **FLIR and Digital Imaging Outlook**  
   **Q:** How is FLIR and Digital Imaging expected to perform?  
   **A:** In 2025, we expect FLIR to grow about **3.9%**, with defense growing **6%** due to a strong backlog. The commercial side remains cautious. Legacy Digital Imaging growth is projected to be modest, around **1.2%** excluding acquisitions. Overall, total Digital Imaging would grow about **3.6%**, including acquisitions.  **[TDY_3413014_8]** 

5. **Order Trends and Recovery**  
   **Q:** What are the recent order trends and recovery signs?  
   **A:** The overall book-to-bill ratio is a positive **1.04**. Instruments have a strong book-to-bill of **1.12**, led by Marine at **1.23**. Digital Imaging's FLIR is at **1.03**, while legacy imaging is slightly below **1 at 0.97**. Machine vision orders are recovering slowly, with expectations of full recovery in the second half of 2025 for machine sensors.  **[TDY_3413014_10]** 

6. **Defense Outlook and Growth**  
   **Q:** Is the 4% defense growth outlook conservative?  
   **A:** While we're projecting **4%** organic growth in Aerospace and Defense, FLIR's defense business grew **9%** in Q4 and is expected to grow another **6%** next year. We're optimistic due to our focus on unmanned systems, electronic warfare, and EOIR observations, which are favorable regardless of specific program developments.  **[TDY_3413014_11]** 

7. **Free Cash Flow Expectations**  
   **Q:** What's the free cash flow outlook for 2025?  
   **A:** We achieved a free cash flow of **$1.11 billion** in 2024. For 2025, we anticipate generating over **$1 billion**, assuming stable working capital and tax conditions, though some favorable factors in 2024 may not recur.  **[TDY_3413014_13]** 

8. **Impact of Tariffs and Policies**  
   **Q:** How will tariffs and new policies affect you?  
   **A:** The impact of new tariffs on Canada, Mexico, or China is expected to be less than half of the **$100 million** cost experienced in 2022. We believe we can manage these effects through price adjustments and efficiencies. The new government's focus on efficiency may favor us due to our unmanned platforms and standard products, which are less reliant on protracted appropriations.  **[TDY_3413014_10]** 

9. **Dividend Policy Consideration**  
   **Q:** Will you consider initiating a dividend?  
   **A:** We prefer to use our cash for acquisitions, as our pipeline is robust. While we've returned value through stock buybacks when undervalued, a small dividend may not significantly benefit investors at this time.  **[TDY_3413014_13]** 

3e7d48987086d63be6e59c098f26a6216f9239ab812150719ef9f75548b5d3b8

a6b7dcda983a71983b6162e86ea376a4b5fc4ded66b31ecaba39b0df30df0cbf

c6c598e72cdc7ccf6f955deea972d116f05482eda4d4ce0a4496262841f829fa

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

ac0b7615ae3ada6c597746ad319207eab619947bb59acec043737e1946e4a5bc

bb4a888eb4ca9fd5008c92621ec3fdd8cea627680536672d238757c0084d8225

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2024
- **Guidance:**
  - **Fourth Quarter 2024 GAAP EPS:** $4.27 to $4.41 per share  **[TDY_3403390_5]** .
  - **Fourth Quarter 2024 Non-GAAP EPS:** $5.13 to $5.23  **[TDY_3403390_5]** .
  - **Full Year 2024 GAAP EPS:** $17.28 to $17.42  **[TDY_3403390_5]** .
  - **Full Year 2024 Non-GAAP EPS:** $19.35 to $19.45  **[TDY_3403390_5]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q3 2024 and FY 2024
- **Guidance:**
  - **Third Quarter 2024 GAAP EPS:** $4.02 to $4.16  **[TDY_3394125_4]** .
  - **Third Quarter 2024 Non-GAAP EPS:** $4.90 to $5.00  **[TDY_3394125_4]** .
  - **Full Year 2024 GAAP EPS:** $15.87 to $16.13  **[TDY_3394125_4]** .
  - **Full Year 2024 Non-GAAP EPS:** $19.25 to $19.45  **[TDY_3394125_4]** .
  - **Free Cash Flow:** Above $900 million for the full year  **[TDY_3394125_9]** .
  - **Segment Margin Expectations:**
    - **Instrumentation:** Increase by 90 to 100 basis points  **[TDY_3394125_14]** .
    - **Digital Imaging:** Decrease by 20 to 30 basis points  **[TDY_3394125_14]** .
    - **Aerospace and Defense:** Increase by over 100 basis points  **[TDY_3394125_14]** .
    - **Engineered Systems:** Decrease due to first half performance  **[TDY_3394125_14]** .
    - Overall segment margins up by 14 to 15 basis points  **[TDY_3394125_14]** .
  - **Digital Imaging Margins:** Improve to 22.2% in Q3 and potentially 23% in Q4, ending the year at 22.2%  **[TDY_3394125_15]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024 and FY 2024
- **Guidance:**
  - **Second Quarter 2024 GAAP EPS:** $3.57 to $3.70  **[TDY_3380445_5]** .
  - **Second Quarter 2024 Non-GAAP EPS:** $4.40 to $4.50  **[TDY_3380445_5]** .
  - **Full Year 2024 GAAP EPS:** $16.02 to $16.27  **[TDY_3380445_5]** .
  - **Full Year 2024 Non-GAAP EPS:** $19.25 to $19.45  **[TDY_3380445_5]** .
  - **Full Year 2024 Estimated Tax Rate:** 22.5%  **[TDY_3380445_5]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** Q1 2024 and FY 2024
- **Guidance:**
  - **Sales Growth:** Annual growth of about 4% for 2024  **[TDY_3370687_1]** .
  - **First Quarter Sales:** Slightly under $1.4 billion, roughly flat compared to the previous year  **[TDY_3370687_1]** .
  - **First Quarter 2024 GAAP EPS:** $3.73 to $3.86  **[TDY_3370687_3]** .
  - **First Quarter 2024 Non-GAAP EPS:** $4.55 to $4.65  **[TDY_3370687_3]** .
  - **Full Year 2024 GAAP EPS:** $17.15 to $17.53  **[TDY_3370687_3]** .
  - **Full Year 2024 Non-GAAP EPS:** $20.35 to $20.68  **[TDY_3370687_3]** .
  - **Tax Rate:** Estimated at 22.5% for 2024, excluding discrete items  **[TDY_3370687_3]** .
  - **Segment Growth:**
    - **Instrumentation:** 3.5%  **[TDY_3370687_6]** .
    - **Digital Imaging:** Above 4%  **[TDY_3370687_6]** .
    - **Aerospace and Defense:** 5%  **[TDY_3370687_6]** .
    - **Engineered Systems:** 4%  **[TDY_3370687_6]** .
  - **Margin Improvement:**
    - Overall company margin improvement of 50 to 60 basis points  **[TDY_3370687_5]** .
    - **Digital Imaging:** Improve by 50 to 100 basis points  **[TDY_3370687_15]** .
    - **Aerospace and Defense:** Improve by 80 to 90 basis points  **[TDY_3370687_5]** .
    - **Engineered Systems:** Improve by 50 basis points  **[TDY_3370687_5]** .
  - **Free Cash Flow:** Between $900 million and $1 billion for 2024  **[TDY_3370687_10]** .

599e738abce065ade643f2af29dcea44eec95bdc20c3af2a1403af230487863d

| Name                | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                      |
|---------------------|--------------------------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Edwin Roks          | Chief Executive Officer                                                  | January 1, 2024  | **Edwin Roks** is the Chief Executive Officer of Teledyne Technologies Incorporated, having assumed this role on **January 1, 2024**. Prior to his promotion to CEO, Dr. Roks was the Executive Vice President of Teledyne and President of the Teledyne Digital Imaging Segment, which is Teledyne's largest segment, since May 2021  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** .                  |
| George C. Bobb III  | President and Chief Operating Officer                                    | January 1, 2024  | **George C. Bobb III** has been the President and Chief Operating Officer of Teledyne Technologies Incorporated since **January 1, 2024**. Prior to this role, he served as the Segment President of Teledyne's Aerospace and Defense Electronics Segment and had executive leadership responsibility for the Marine Instrumentation group  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** .               |
| Jason VanWees       | Vice Chairman                                                            | October 15, 2021 | **Jason VanWees** has been the Vice Chairman of Teledyne Technologies since **October 15, 2021**. Prior to this role, he served as Executive Vice President starting January 1, 2019, and as Senior Vice President, Strategy and Mergers & Acquisitions since July 2013  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** **[0001193125-23-066119_d454824ddef14a.htm:10]** .                                                                             |
| Melanie S. Cibik    | Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary | January 1, 2024  | **Melanie S. Cibik** has been serving as the Executive Vice President of Teledyne since **January 1, 2024**. She has held the positions of General Counsel and Secretary since September 2012, and Chief Compliance Officer since August 2016  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** .                                                                                                           |
| Stephen F. Blackwood| Senior Vice President and Chief Financial Officer                        | December 1, 2023 | **Stephen F. Blackwood** has been serving as the Senior Vice President and Chief Financial Officer of Teledyne Technologies Incorporated since **December 1, 2023**. Prior to this role, he was the Senior Vice President, Strategic Sourcing, Tax, and Treasurer since January 1, 2019  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** .                                                                  |
| Cynthia Belak       | Vice President and Controller                                            | May 2015         | **Cynthia Belak** has been serving as the Vice President and Controller of Teledyne Technologies Incorporated since **May 2015**. Prior to her promotion, she held the position of Vice President, Business Risk Assurance at Teledyne since January 2012  **[0001193125-24-056211_d745612dpre14a.htm:11]** **[0001193125-24-068076_d745612ddef14a.htm:11]** .                                                                                             |

72382b677baa5a102290853f2beeae0c4743b4e86c557ebb5d73b0698bdb0419

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | April 2024  **[0001094285-24-000104_tdy-20240929.htm:16]** **[0001094285-24-000104_tdy-20240929.htm:32]**  |
| End Date/Duration        | No expiration date  **[0001094285-24-000104_tdy-20240929.htm:16]** **[0001094285-24-000104_tdy-20240929.htm:32]**  |
| Total additional amount  | **$1.25 billion**  **[0001094285-24-000104_tdy-20240929.htm:16]** **[0001094285-24-000104_tdy-20240929.htm:32]**  |
| Remaining authorization amount | **$917.4 million**  **[0001094285-24-000104_tdy-20240929.htm:41]**  |
| Details                  | Manage capital structure and return value to shareholders. Funded with cash on hand and available borrowings.  **[0001094285-24-000090_tdy-20240630.htm:17]** **[0001094285-24-000104_tdy-20240929.htm:16]** **[0001094285-24-000104_tdy-20240929.htm:32]**  |

960c35fb8d10e1a85b6847dfc2f490482dc2d7c3a96d8c2251dbd1e2df5564a5

d3e57764f211f7fb4b96b02d495b26b93f21e1a41d2408e1b664eac0e7f8cf1b

**Quarterly guidance for Q1 2025:**
- **GAAP EPS**: $3.90 to $4.04  **[TDY_3413014_5]**  (no prior guidance)  
- **Non-GAAP EPS**: $4.80 to $4.90  **[TDY_3413014_5]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Sales Growth**: 4%  **[TDY_3413014_6]** **[TDY_3413014_1]**  (no prior guidance)  
- **GAAP EPS**: $17.70 to $18.20  **[TDY_3413014_5]**  (no prior guidance)  
- **Non-GAAP EPS**: $20.10 to $21.50  **[TDY_3413014_5]**  (no prior guidance)  
- **Revenue Contribution from Excelitas**: $15 million per month  **[TDY_3413014_6]** **[TDY_3413014_11]**  (no prior guidance)  
- **Instrumentation** (organic growth): 3.8%  **[TDY_3413014_7]**  (no prior guidance)  
- **Digital Imaging** (organic growth): 2.8%  **[TDY_3413014_7]**  (no prior guidance)  
- **Aerospace and Defense Electronics** (organic growth): 4% (rising to 8% with Micropac)  **[TDY_3413014_7]**  (no prior guidance)  
- **Engineered Systems** (organic growth): 2.3%  **[TDY_3413014_7]**  (no prior guidance)  

b120fdfef47292b3ce5c3ab419c17513806c1eda2d9fa07eb308db132c9db06f

Teledyne Q4 highlights: FLIR defense grew ~9% and is set for another 6% in 2025, offsetting uncertainties. Overall book-to-bill at 1.04 signals solid demand. Margins projected +80bps to 22.8%. Watch for a 1.3% FX headwind.

d6eac55b78a28f2cde4bdc0bc0d7a7a8185b0f12b3b141b2307bc571a4af139d

| Name                  | Start Date     | End Date | Reason for Change                                                                 |
|-----------------------|----------------|----------|-----------------------------------------------------------------------------------|
| Deloitte & Touche LLP | April 14, 2015  **[0001094285-15-000043_a8-k401.htm:1]**  | Present  | Current auditor.                                                                  |
| Ernst & Young LLP     | N/A            | March 29, 2015  **[0001094285-15-000043_a8-k401.htm:1]**  | The change was the result of a competitive process conducted by the Audit Committee.  **[0001094285-15-000043_a8-k401.htm:1]**  |

5aa3487fcecf9d196a6604e8ce95d9da6a45cdd72feabce2d01b12755dcb9c64

0ae76550e6b579ebb052b489bf642306572b97971b003d41a397af2a7e910a7d

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,502.3 million (+5% YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:6]** **[0001094285-24-000044_tdy-20231231.htm:102]**   
- Instrumentation: $368.9 million (**+10%** YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:6]** **[0001094285-24-000044_tdy-20231231.htm:102]**   
- Aerospace & Defense Electronics: $196.5 million (+7% YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:6]** **[0001094285-24-000044_tdy-20231231.htm:102]**   
- Engineered Systems: $114.7 million (+11% YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:6]** **[0001094285-24-000044_tdy-20231231.htm:102]**   
- Operating Income: $237.1 million (-13% YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:5]** **[0001094285-24-000044_tdy-20231231.htm:85]**   
- Net Income: $198.5 million (**-39%** YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:5]** **[0001094285-24-000044_tdy-20231231.htm:85]**   
- EPS (Diluted): $4.20 (-38% YoY)  **[0001094285-25-000003_q4-2024earningsrelease.htm:5]** **[0001094285-24-000044_tdy-20231231.htm:85]**   

358c2170b39e13f13c8ea228f6eb913d7c93f5a00f226627ee56f10ce383f4fb

d8a255652011e0f33f6752aefc0695307f399ac26a578fdf3d969d23f526c78e

1. **Guidance Cut and Company Outlook**  
   **Q:** Is Teledyne different after the rare guidance cut?  
   **A:** Robert noted the guidance cut has happened only **4 times** in the past **25 years**.  **[TDY_3380445_9]**  Unexpected weakness in industrial automation and a hit in Engineered Systems led to a **$220 million** revenue reduction.  **[TDY_3380445_9]**  Despite this, Teledyne can better absorb shocks now due to its larger size, with revenue around **$3.1 billion**.  **[TDY_3380445_14]** 

2. **M&A Pipeline and Capital Allocation**  
   **Q:** What's the plan for M&A and capital allocation?  
   **A:** Teledyne's debt-to-EBITDA is at **1.7**, expected to drop to **1.3** by year-end.  **[TDY_3380445_7]**  They plan to repurchase shares, offsetting an increase of **700,000 shares** since acquiring FLIR.  **[TDY_3380445_7]**  With capacity to spend up to **$1.5 to $2 billion**, they aim for small acquisitions this year and larger ones potentially next year.  **[TDY_3380445_7]** 

3. **Short-Cycle Business Weakness and Margins**  
   **Q:** How are short-cycle declines affecting margins?  
   **A:** Gross margins are expected to stay relatively flat around **43%** despite weakness in higher-margin short-cycle areas.  **[TDY_3380445_6]**  They've removed nearly **$100 million** in costs, including **$52 million** last year and an additional **$10 to $15 million** early this year.  **[TDY_3380445_10]** 

4. **Digital Imaging and Machine Vision Declines**  
   **Q:** What's happening in Digital Imaging and Machine Vision?  
   **A:** Machine vision revenue is projected to decline by **$120 million** from approximately **$600 million** in 2023.  **[TDY_3380445_14]**  Overall digital imaging revenue is expected to decrease by about **1.5%**, impacting high-margin businesses.  **[TDY_3380445_14]**  Long-cycle areas like space and defense are performing well.  **[TDY_3380445_11]** 

5. **Buyback Plans and Leverage**  
   **Q:** Are buybacks included in guidance; what's the leverage outlook?  
   **A:** Buybacks are not included in this year's guidance.  **[TDY_3380445_13]**  Even after potential repurchases of **$200 to $300 million**, debt-to-EBITDA would remain below **1.5**, under their target range of **1.5 to 2.5**.  **[TDY_3380445_12]** 

6. **Engineered Systems Margin Hit**  
   **Q:** What caused the Engineered Systems margin decline?  
   **A:** A **$7 million EBIT** impact in Q1 due to higher-than-expected costs led to the margin decline.  **[TDY_3380445_18]**  This is considered a one-time event, and they expect to fix it going forward.  **[TDY_3380445_18]** 

7. **Supply Chain Improvements**  
   **Q:** Are supply chain conditions improving?  
   **A:** Yes, significant improvements over 2022. Purchases from brokers dropped from about **$1 billion** last year's first quarter to just over **$2 million** this year, indicating better supply conditions.  **[TDY_3380445_15]** 

2d8c75eb912d5bbbce3d2198504f0c36f41e97b5c455fa6d9ef7a2c9371bc32a

ad02bef9d95200e04170421bc982859bc2e3b6e0ecb96068cc5272fb42cc1660

| Year | Amount Due (in millions) | Debt Type                                   | Interest Rate (%)                          | % of Total Debt                           |
|----------|------------------------------|------------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| 2024     | $150.0 **[0001094285-24-000104_tdy-20240929.htm:13]**               | Term loan                                      | Variable rate of 6.60% (swapped to 0.61%) **[0001094285-24-000104_tdy-20240929.htm:13]** | 5.4% = (150.0 / 2,798.0) * 100 **[0001094285-24-000104_tdy-20240929.htm:32]** **[0001094285-24-000104_tdy-20240929.htm:13]** |
| 2026     | $450.0 **[0001094285-24-000104_tdy-20240929.htm:13]**               | Fixed Rate Senior Notes                        | 1.60% **[0001094285-24-000104_tdy-20240929.htm:13]**                                 | 16.1% = (450.0 / 2,798.0) * 100 **[0001094285-24-000104_tdy-20240929.htm:32]** **[0001094285-24-000104_tdy-20240929.htm:13]** |
| 2028     | $700.0 **[0001094285-24-000104_tdy-20240929.htm:13]**               | Fixed Rate Senior Notes                        | 2.25% **[0001094285-24-000104_tdy-20240929.htm:13]**                                 | 25.0% = (700.0 / 2,798.0) * 100 **[0001094285-24-000104_tdy-20240929.htm:32]** **[0001094285-24-000104_tdy-20240929.htm:13]** |
| 2030     | $485.0 **[0001094285-24-000104_tdy-20240929.htm:13]**               | Fixed Rate Senior Notes                        | 2.50% **[0001094285-24-000104_tdy-20240929.htm:13]**                                 | 17.3% = (485.0 / 2,798.0) * 100 **[0001094285-24-000104_tdy-20240929.htm:32]** **[0001094285-24-000104_tdy-20240929.htm:13]** |
| 2031     | $1,030.0 **[0001094285-24-000104_tdy-20240929.htm:13]**             | Fixed Rate Senior Notes                        | 2.75% **[0001094285-24-000104_tdy-20240929.htm:13]**                                 | 36.8% = (1,030.0 / 2,798.0) * 100 **[0001094285-24-000104_tdy-20240929.htm:32]** **[0001094285-24-000104_tdy-20240929.htm:13]** |

d124380b84f739e0ae13d7a913637057286197fc0cfc39eab3a7a61c4801b9bf

- **Margins in digital imaging decreased from 24.2% last year to 22.6% in Q3**, and recovery remains uncertain due to delays in the sensor market.  **[TDY_3403390_18]**
- The marine segment could face challenges if **oil prices decline significantly**, potentially reducing sales of production interconnects.  **[TDY_3403390_12]**
- Although the short-cycle businesses reported a **book-to-bill ratio above 1**, it is based on lower build levels, and **sensor bookings have not yet recovered**, indicating a potentially slow recovery.  **[TDY_3403390_19]**

dd7a3af38167efa2d2bb18e93108a32bb69ef66e2daf64d88a3eea03d2af6150

1. **Margin Improvement**  
   **Q:** How will margins improve across major business units?  
   **A:** Management expects margin improvement in every segment in 2024. **Instrumentation** margins are projected to increase by about **25 basis points**  **[TDY_3370687_5]** , **Digital Imaging** by about **80 basis points**  **[TDY_3370687_5]** , **Aerospace and Defense** by **80 to 90 basis points**  **[TDY_3370687_5]** , and **Engineered Systems** around **50 basis points**.  **[TDY_3370687_5]**  Overall, they anticipate about a **70 basis point** margin improvement in the segments and between **50 and 60 basis points** for the company as a whole, similar to the previous year's increase.  **[TDY_3370687_5]** 

2. **Revenue Growth Outlook**  
   **Q:** What are the revenue growth assumptions for 2024 across segments?  
   **A:** Management expects overall revenue to increase by about **4%** in 2024.  **[TDY_3370687_6]**  By segment, **Instrumentation** is projected to grow about **3.5%**, with marine businesses up **6% to 6.5%**, environmental just under **3%**, and test and measurement holding steady.  **[TDY_3370687_6]**  **Digital Imaging** sales are expected to increase by over **4%**  **[TDY_3370687_6]** , **Aerospace and Defense** by about **5%**  **[TDY_3370687_6]** , and **Engineered Systems** by about **4%**.  **[TDY_3370687_6]** 

3. **Short-Cycle Business Recovery**  
   **Q:** Are you assuming recovery in short-cycle businesses later in the year?  
   **A:** Management expects an uptick in short-cycle businesses such as lab instrumentation and industrial automation in the second half of the year.  **[TDY_3370687_4]**  They anticipate a linear ramp in sales and earnings throughout 2024, with an average revenue increase of about **4%** and earnings up to **$20.68** per share, reflecting an improvement in margin of **50 to 60 basis points**.  **[TDY_3370687_4]** 

4. **Free Cash Flow and Leverage**  
   **Q:** How do you see free cash flow and working capital shaping up in 2024?  
   **A:** Despite free cash flow being lighter than expected in 2023 due to R&D tax headwinds of **$60 million to $75 million**  **[TDY_3370687_10]** , management expects to generate between **$900 million** and **$1 billion** in free cash flow in 2024.  **[TDY_3370687_10]**  They anticipate the net debt-to-EBITDA ratio to decrease from **1.9x** to closer to **1.1x to 1.2x**, positioning the company well for pursuing small and midsized acquisitions.  **[TDY_3370687_10]** 

5. **M&A Outlook**  
   **Q:** Are valuations for larger deals becoming more attractive, and how is the M&A pipeline shaping up?  
   **A:** Management observes that valuations for larger acquisitions remain high and have not come down as much as they would like.  **[TDY_3370687_14]**  However, they see opportunities in smaller bolt-on acquisitions and expect to pursue some this year, following their "string of pearls" strategy.  **[TDY_3370687_14]** **[TDY_3370687_19]**  They prefer to be patient regarding larger deals due to current high prices.  **[TDY_3370687_19]** 

6. **Digital Imaging Margins**  
   **Q:** How did Digital Imaging margins perform, and what is expected for 2024?  
   **A:** **FLIR** margins improved significantly in 2023, rising from **20.3%** to **22.1%**  **[TDY_3370687_11]** , which helped keep overall margins in Digital Imaging relatively flat despite declines in industrial and scientific vision.  **[TDY_3370687_11]**  Management expects Digital Imaging margins to improve by **50 to 100 basis points** in 2024.  **[TDY_3370687_11]** **[TDY_3370687_15]** 

7. **Capital Allocation**  
   **Q:** Is there interest in buying back stock or considering a stock split?  
   **A:** Management prefers to invest in acquisitions rather than buying back stock, believing that investment returns are better reflected in acquisitions.  **[TDY_3370687_22]**  They have an open authorization for buybacks but do not see it as a priority unless the stock price declines significantly.  **[TDY_3370687_22]**  They are not considering a stock split, as it would be inconvenient for their predominantly institutional investor base.  **[TDY_3370687_22]** 

8. **Pricing Strategy**  
   **Q:** How is the pricing environment evolving, and what are your expectations for price increases?  
   **A:** The company achieved price increases of about **3%** in 2023    and expects similar increases of **2% to 3%** in 2024.    In certain areas, they can raise prices more than **3%**, but government contracts often limit pricing flexibility.   

9. **Defense Backlog and CR Risk**  
   **Q:** How are you considering the risk of a government Continuing Resolution on defense backlog growth?  
   **A:** While a Continuing Resolution is not ideal, management is focusing on existing orders, with a healthy book-to-bill ratio.  **[TDY_3370687_8]**  They have a strong backlog from longer-term programs and new products like the **Black Hornet 4** nano drone, which is gaining traction.  **[TDY_3370687_8]** 

10. **Defense Opportunities**  
    **Q:** What's your view on potential incremental defense awards as the year progresses?  
    **A:** Management is optimistic about upcoming defense awards.  **[TDY_3370687_16]**  They are introducing new products like the **Black Hornet 4** nano drone and participating in programs like the **Space Development Agency's Tranche 2 Tracking Layer**.  **[TDY_3370687_16]**  They are engaged with all the primes that have received recent awards and feel confident about their prospects.  **[TDY_3370687_16]** 

11. **Aerospace Growth Drivers**  
    **Q:** How do you see growth in commercial aerospace between new builds and MRO, and its impact on margins?  
    **A:** A significant portion of the company's aerospace revenue is from the aftermarket (MRO), supported by a large installed base.  **[TDY_3370687_20]**  They expect this to be beneficial, along with contributions from new builds like the **737** program.  **[TDY_3370687_20]**  In defense, they see strong programs in modernization and stockpile replacement, anticipating **5% to 6%** growth in both aerospace and defense.  **[TDY_3370687_20]** 

12. **Industrial Market Outlook**  
    **Q:** What metrics are you watching for a rebound in industrial automation and laboratory instrumentation markets?  
    **A:** Management is monitoring improvements in semiconductor market projections and increased smartphone demand, which benefits their MEMS programs.  **[TDY_3370687_13]**  While they have less visibility in laboratory instrumentation and haven't seen such declines before, they believe these markets should recover.  **[TDY_3370687_13]**  Additionally, their environmental businesses, including air and water quality monitoring, are healthy with a strong backlog.  **[TDY_3370687_13]** 

8ba66f60180eb49948c66f5a7e9320c6c0808fb779bc4af52a1932a062d102f1

- The Machine Vision business experienced a significant decline, with sales **down 30% year-over-year in Q1 and Q2**, and is expected to be **down about 20% for the full year**.  **[TDY_3394125_11]**
- The Test and Measurement segment is facing challenges, with expectations of a **10% decline for the year**, primarily due to lagging **oscilloscope** sales.  **[TDY_3394125_7]**
- The Digital Imaging segment shows potential weakness, with a **book-to-bill ratio below 1 at 0.98**  **[TDY_3394125_5]** , and margins are expected to **decrease modestly by 20-30 basis points** for the year due to headwinds in certain businesses.  **[TDY_3394125_14]**

d018d82cbde705f1a0072b2f8d925b7da7d83a4f7747daa694e112178c490c3d

- **Teledyne lacks visibility in the laboratory instrumentation market and has experienced unprecedented declines they haven't seen before**.  **[TDY_3370687_13]**  CEO Robert Mehrabian stated, "**We don't have as much visibility, frankly, we haven't seen these kind of declines before... we're not counting on them a lot.**"  **[TDY_3370687_13]**
- **The company expects first-quarter revenues to be flat year-over-year, indicating a slow start to 2024**.  **[TDY_3370687_16]**  Mehrabian mentioned that the first quarter will be "**our lowest quarter... it should be flat year-over-year in terms of revenue and then pick up.**"  **[TDY_3370687_16]**
- **High valuations are limiting Teledyne's ability to pursue larger acquisitions, potentially affecting growth prospects through M&A**  **[TDY_3370687_14]** **[TDY_3370687_19]** . Mehrabian noted, "**Valuations on the larger deals have not come down yet as much as we would like... prices are still pretty high**"  **[TDY_3370687_14]** , and "**Larger acquisitions right now... are pretty expensive, people are paying prices that we are not going to.**"  **[TDY_3370687_19]**

e7433085d8be6e481fd7ed8390ba503e882b4e2bd537ed5eb1bc33a8a1818486

- Teledyne achieved a strong overall book-to-bill ratio of **1.07**, with the Aerospace and Defense segment reaching **1.41**, indicating future revenue growth driven by strong demand in these markets.  **[TDY_3394125_5]**
- The Marine Instrumentation business is experiencing robust growth, driven by offshore oil exploration and defense underwater vehicles, with near capacity levels and businesses "doing really well."  **[TDY_3394125_8]** **[TDY_3394125_6]**
- The company is generating significant free cash flow, with **$576 million** in the first half and expecting over **$900 million** for the year, allowing for continued share repurchases and acquisitions to enhance shareholder value.  **[TDY_3394125_9]** **[TDY_3394125_14]**

78b00e64dc2a330d9051db79e390303fa64afcfb16a682cb5ee5c7a1ef6d6f8b

- **Teledyne significantly lowered its revenue guidance by $220 million**, due to a surprising slowdown in industrial automation and unexpected issues in the Engineered Systems business.  **[TDY_3380445_9]**
- **The company has low visibility in short-cycle businesses and is not counting on improvements**, especially in industrial automation, because they have no confidence in forecasting these areas.  **[TDY_3380445_17]**
- **Margins in key segments are declining**, with FLIR business margins falling almost 200 basis points year-over-year and DALSA e2c margins at their lowest in a long time at **19.5% in Q1**.  **[TDY_3380445_10]**

9c11df775bc610facc3209edd7853b874a0b235abd701086304ca91e38b2bb67

1. **Digital Imaging Margins**  
   **Q:** How are Digital Imaging margins and outlook?  
   **A:** FLIR's margins improved significantly, with Digital Imaging margins at **22.6%** in Q3, down from **24.2%** last year. Management expects margins to reach at least **24%**, potentially exceeding **25%** if short-cycle businesses recover strongly.  **[TDY_3403390_19]** ,  **[TDY_3403390_16]** 

2. **Marine Segment Outlook**  
   **Q:** Can you sustain Marine's strong growth next year?  
   **A:** Marine has shown strong performance, with book-to-bill of **1.27** in Q1 and **1.04** in Q3. Management expects continued strength next year, though lower oil prices could affect some areas. Marine's diverse mix—offshore energy (**30–40%**), science and construction (**27%**), and defense (**28%**)—supports positive expectations.  **[TDY_3403390_12]** 

3. **M&A Activity**  
   **Q:** What are your plans for M&A activity?  
   **A:** The acquisition pipeline has reopened, with opportunities especially in aerospace, defense, and instruments. Management has capacity to spend up to **$2–3 billion**, targeting deals from **$50 million** to **$0.5 billion**. Focus will shift from share buybacks to acquisitions.  **[TDY_3403390_13]** 

4. **Defense Business Performance**  
   **Q:** How did the Defense segment perform this quarter?  
   **A:** U.S. government defense sales grew organically by about **2.5%**, with strong international programs in Ukraine and the Middle East. New program wins in counter-UAV systems and UAVs like the **Black Hornet** contribute to a positive outlook.  **[TDY_3403390_11]** 

5. **Short-Cycle Business Recovery**  
   **Q:** What is the outlook for short-cycle business recovery?  
   **A:** Management believes short-cycle businesses may have bottomed out, with recent book-to-bill above **1.1**. However, recovery is uncertain and depends on capital expenditures. Sensor sales remain weak, but camera sales show improvement.  **[TDY_3403390_10]** ,   ,  **[TDY_3403390_17]** 

6. **Book-to-Bill and Revenue Guidance**  
   **Q:** Can you provide details on book-to-bill and revenue guidance?  
   **A:** Overall book-to-bill at the end of Q3 was about **1.48**, with healthy ratios across most businesses except one environmental segment. Revenue guidance remains at **$5.624 billion**, maintaining prior projections due to global uncertainties.  **[TDY_3403390_7]** 

7. **Impact of Boeing Strike**  
   **Q:** How will the Boeing strike affect your business?  
   **A:** The Boeing strike could reduce revenue by up to **$5 million** from Q3 to Q4, particularly in data acquisition systems for the **737 MAX**. If the strike settles, the impact may be less, around **$2–3 million**.  **[TDY_3403390_14]** 

8. **Environmental Instrumentation Weakness**  
   **Q:** What's causing weakness in environmental instrumentation?  
   **A:** Air quality and stack monitoring businesses have softened, partly due to lower demand in the Middle East. The impact is modest, and management expects Q4 to be slightly better than Q3.  **[TDY_3403390_15]** 

9. **FLIR's UAV Opportunities**  
   **Q:** How is FLIR positioned in new UAV programs like Replicator 2?  
   **A:** FLIR has strong UAV offerings, including the small **Black Hornet**, counter-UAV systems deployed in Europe, and loitering UAVs with munitions. They recently won a **$168 million** sensor program for chemical, biological, and nuclear detection. Management is optimistic about FLIR Defense's prospects.  **[TDY_3403390_18]** 

40c316283416a89795efa47a3cf516963e2323766ab98e02621637e3b74e39d6

- **Teledyne expects a linear ramp in sales and earnings throughout 2024**, with an average **revenue increase of about 4%** and **earnings up to $20.68**, reflecting an improvement in margin of **50 to 60 basis points** over the prior year. The company anticipates an uptick in previously weaker businesses in the second half of the year.  **[TDY_3370687_4]**
- **Margin improvement is expected in every segment**, particularly in **Digital Imaging** (about **80 basis points**) and **Aerospace and Defense** (about **80 to 90 basis points**). Overall, the company anticipates a margin improvement of **50 to 60 basis points**, similar to the **60 basis points** improvement achieved last year.  **[TDY_3370687_5]**
- **Debt reduction and strong cash flow** position Teledyne well for acquisitions. The company **paid down $680 million of debt in 2023**, reducing the **net debt-to-EBITDA ratio to about 1.9**, with expectations to further reduce it to **1.1 to 1.2 in 2024**. This strong financial position enables Teledyne to pursue both **small and mid-sized acquisitions** to fuel growth.  **[TDY_3370687_10]**

493642fcc46d9627debd637ef072d3666d5277f41bf9764d01124e7f3475dad5

- **Teledyne's long-cycle businesses, including marine, defense, and space, are performing strongly with a robust backlog expected to drive revenue growth in the second half of the year.**  **[TDY_3380445_9]** **[TDY_3380445_13]** **[TDY_3380445_17]** **[TDY_3380445_11]**
- **The company has a strong balance sheet with low net debt and ample free cash flow, enabling significant share repurchases (authorized up to $1.25 billion) and acquisitions to enhance shareholder value.**  **[TDY_3380445_9]** **[TDY_3380445_19]**
- **Teledyne is proactively managing costs, having removed over $100 million in expenses, which is expected to maintain or improve margins even on lower revenues, positioning the company for increased profitability when markets recover.**  **[TDY_3380445_10]**

6c560c32d71ed9eeb49697f747b32be04abe814564ae66280abcca8b2f5a0e92

- **Teledyne's defense business is experiencing strong international growth**, with programs in Ukraine and the Middle East performing well, and new contracts in counter-UAV systems and their own UAVs like the **Black Hornet**, which are **doing really well**.  **[TDY_3403390_11]**
- **The Marine segment remains strong and is expected to continue performing well into next year**, supported by a diversified mix of businesses in offshore energy (around **40% including exploration**), science and construction (about **27%**), and defense (approximately **28%**).  **[TDY_3403390_12]**
- **Short-cycle businesses have stabilized and may be improving**, with a recent **book-to-bill ratio above 1.1**, suggesting a recovery. The **FLIR Industrial business is performing well**, especially with new **AI-enabled infrared cameras**, which is **positive** for future growth.  **[TDY_3403390_19]**

88d463203e742aa779eb9b83d3f68841d49182986d7c67b75d6779475535a825

Teledyne Technologies Inc (TDY)

Financials