TDY · Teledyne Technologies Incorporated

Teledyne Technologies delivered record first quarter 2026 results with net sales reaching $1,560.1 million, a 7.6% increase over the prior year, driven by $33.3 million in incremental sales from recent acquisitions including DD-Scientific. Organic growth was particularly strong in the Digital Imaging segment, up 7.9% to $816.9 million, fueled by higher infrared imaging detectors, components, subsystems for defense and commercial uses, surveillance, and unmanned air systems. Aerospace and Defense Electronics saw a robust 14.4% sales increase to $277.5 million, with $20.3 million from acquisitions and $36.1 million higher defense electronics sales. Instrumentation grew 5.3% to $361.4 million on marine and environmental instrumentation strength, while Engineered Systems dipped 2.6% to $104.3 million. GAAP operating margin expanded to 18.9% from 17.9%, and non-GAAP margin improved to 22.6% from 22.0%, reflecting higher sales volumes despite increased R&D and amortization expenses of $57.6 million. Non-GAAP diluted EPS rose 17.2% to $5.80, supported by 20.3% higher GAAP net income to $226.8 million. Management highlighted record sales, EPS, and margins, with Executive Chairman Robert Mehrabian noting strongest organic growth in Digital Imaging and return to growth in industrial imaging and X-ray businesses. Cash from operations was $234.0 million, yielding $204.3 million free cash flow after $29.7 million capex, down slightly due to inventory builds. Balance sheet strengthened with net debt at $1,954.9 million (1.3x leverage) as of March 29, 2026, and a post-quarter $450 million debt repayment. The company raised full-year 2026 guidance, signaling confidence in sustained momentum, with non-GAAP EPS now $23.85-$24.15 and GAAP $20.08-$20.44, alongside Q2 non-GAAP EPS of $5.70-$5.80.