TDY

Technology

Teledyne Technologies

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Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2010	FY 2011	FY 2012	FY 2012	FY 2013	FY 2014	FY 2016	FY 2017	FY 2017	FY 2018	FY 2019	FY 2021	FY 2022	FY 2023	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$1.7B	$1.7B	$1.6B	$689.9M	$831.7M	$1.0B	$1.1B	$1.0B	$2.1B	$2.6B	$2.9B	$3.2B	$3.1B	$4.6B	$5.5B	$5.6B	$5.7B	$6.1B	+7.9%
Gross Profit	$516.1M	$474.8M	$496.1M	-$600.8M	-$547.4M	-$468.2M	-$417.8M	-$407.4M	$831.9M	$991.6M	$1.1B	$1.2B	$1.2B	$1.8B	$2.3B	$2.4B	$2.4B	$2.6B	+7.4%
Gross Margin	30.0%	28.7%	30.2%	-87.1%	-65.8%	-45.4%	-39.1%	-39.9%	38.7%	38.1%	38.3%	39.3%	38.3%	39.9%	42.7%	43.3%	42.9%	42.8%	-0.2pp
Operating Income	$198.6M	$171.4M	$178.5M	$227.2M	$243.1M	$240.3M	$294.5M	$281.7M	$253.8M	$335.6M	$416.6M	$491.7M	$480.1M	$624.3M	$972.0M	$1.0B	$989.1M	$1.1B	+16.2%
Operating Margin	11.5%	10.4%	10.9%	32.9%	29.2%	23.3%	27.5%	27.6%	11.8%	12.9%	14.4%	15.5%	15.6%	13.5%	17.8%	18.4%	17.4%	18.8%	+1.4pp
Net Income	$113.6M	$113.3M	$120.5M	$255.2M	$164.1M	$185.0M	$217.7M	$195.8M	$190.9M	$227.2M	$333.8M	$402.3M	$401.9M	$445.3M	$788.6M	$885.7M	$819.2M	$894.8M	+9.2%
Net Margin	6.6%	6.9%	7.3%	37.0%	19.7%	17.9%	20.4%	19.2%	8.9%	8.7%	11.5%	12.7%	13.0%	9.7%	14.4%	15.7%	14.4%	14.6%	+0.2pp
Free Cash Flow	$82.2M	$121.4M	$110.8M	$174.9M	$124.2M	$131.5M	$244.4M	$163.2M	$229.4M	$316.2M	$360.1M	$393.7M	$547.5M	$723.0M	$394.2M	$721.2M	$1.1B	$1.1B	-3.1%
FCF Margin	4.8%	7.3%	6.7%	25.4%	14.9%	12.7%	22.9%	16.0%	10.7%	12.1%	12.4%	12.4%	17.7%	15.7%	7.2%	12.8%	19.5%	17.6%	-2.0pp
EPS (Diluted)	$3.05	$3.10	$3.27	$6.84	$4.39	$4.87	$5.75	$5.44	$5.37	$6.26	$9.01	$10.73	$10.62	$10.05	$16.53	$18.49	$17.21	$18.88	+9.7%

Total Debt$2.5B

Cash & Equiv.$352.4M

Net Debt$2.1B

4 min read

1. THE BIG PICTURE

Teledyne Technologies has moved beyond being a mere component supplier to become an essential provider of "enabling technologies" across deep-sea, space, and defense environments. By tethering its specialized sensing and instrumentation to high-reliability niches where customers prioritize performance over price, Teledyne Technologies has built a defensive moat that supports consistent $1 billion-plus annual free cash flow. However, this model now rests on a massive $10.8 billion foundation of goodwill and intangible assets, making Teledyne Technologies as much a vehicle for capital deployment as it is a technology manufacturer.

2. WHERE THE RISKS HIT HARDEST

The "preferred supplier" status Teledyne Technologies enjoys in its Aerospace and Defense segment is threatened by its reliance on fixed-price contracts, which accounted for a significant portion of its U.S. government business (10-K Item 1). While these long-term relationships provide revenue stability, they strip Teledyne Technologies of pricing power during inflationary periods; if component or labor costs spike, Teledyne Technologies bears the full burden without the ability to renegotiate (10-K Item 1). Furthermore, Teledyne Technologies’s technological leadership in Digital Imaging is increasingly vulnerable to international trade friction. With 48% of sales coming from outside the U.S., export controls and sanctions could abruptly sever access to key growth markets, complicating the "collaborative" cross-segment marketing strategy management relies on for growth (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a business growing primarily through its checkbook rather than pure organic expansion. While total revenue grew 7.9% (XBRL), the Aerospace and Defense Electronics segment surged 40.4% in the most recent quarter, almost entirely due to $68.5 million in incremental sales from recent acquisitions (8-K). This reliance on M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies is underscored by the fact that 2025 was the second-largest acquisition year in Teledyne Technologies's history. Despite this aggressive spending, Teledyne Technologies maintains a disciplined cash profile, generating over $1.0 billion in free cash flow for two consecutive years (8-K). Short interest stands at a modest 3.1% of the float, suggesting that while Teledyne Technologies is the slowest grower among its immediate peers, the market remains confident in its "steady-as-she-goes" acquisition model.

4. IS IT WORTH IT AT THIS PRICE?

At 25.6x forward earnings, Teledyne Technologies is trading in line with the peer median of 26.7x (Yahoo Finance). This valuation implies the market expects 6.0% long-term growth (CAPM analysis). This expectation is well-supported by Teledyne Technologies’s recent 7.9% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth and its history of using $1.0 billion in annual free cash flow to buy growth. However, compared to Amphenol (APH), which is growing at 51.7% with a similar 26.7x forward multiple, Teledyne Technologies offers significantly less growth for the same price. If long-term growth were to slow to a GDP-paced 2.5%, the justified multiple would drop to 13.6x, representing nearly 47% downside from current levels (CAPM analysis). The current price is only "right" if Teledyne Technologies continues to find high-quality acquisition targets to offset the 9.9% decline currently seen in its Engineered Systems segment (8-K).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if Teledyne Technologies reports a goodwill impairment charge, which would signal that its $8.69 billion in acquisition-related premiums are not generating the expected returns (10-K Item 1A).
Cautious if U.S. government funding delays extend beyond the 43-day shutdown seen in late 2025, as this directly stalls the contract awards that drive 25% of the business.
Constructive if the Engineered Systems segment returns to growth, proving that Teledyne Technologies’s internal "research and engineering capabilities" can drive organic recovery without relying on new acquisitions (10-K Item 1).

6. BOTTOM LINE

Structural Advantage: High switching costs and "preferred supplier" status in specialized, high-reliability niches like subsea interconnects and infrared imaging. Bottom Line: Teledyne Technologies is a fairly valued industrial compounder that remains a safe but unexciting bet on government and industrial R&DR&DResearch & Development — spending on creating new products or technologies spending.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

U.S. Government Funding: Sales under contracts with the U.S. Government, including the U.S. Department of War, represented 25% of total net sales in 2025. Funding delays, cancellations, or government shutdowns—such as the 43-day shutdown in late 2025—directly impact contract awards, invoice payments, and revenue recognition.
International Exposure: Sales to customers outside the United States accounted for 48% of total net sales in 2025. This geographic concentration subjects Teledyne Technologies to risks including export controls, sanctions, and currency exchange rate volatility, which can increase product costs and reduce the value of foreign profits when translated into U.S. dollars.
Acquisition Strategy: Growth through acquisitions involves inherent risks, including the potential for asset impairment, integration difficulties, and the incurrence of significant transaction costs. As of December 28, 2025, Teledyne Technologies held $8,687.6 million in goodwill and $2,100.1 million in net acquired intangible assets, which are subject to annual impairment testing.
Supply Chain and Inflation: Sustained increases in the prices of components, raw materials, labor, and shipping have pressured profitability. If Teledyne Technologies cannot increase product prices to offset these costs, gross margins and profitability may decrease significantly.
Cyclical Market Demand: Teledyne Technologies serves cyclical industries, including energy exploration, commercial aerospace, and semiconductors. A downturn in these sectors, or volatility in AI-related capital expenditures, can lead to reduced orders and lower sales.

2. Company-Specific Risks

Concentrated Technical Workforce: Certain businesses, such as those involved in traveling wave tube and integrated microwave module design, rely on a small and shrinking pool of specialized engineering talent, making the retention of key personnel critical to protecting future revenue.
Asbestos Litigation: Teledyne Technologies is a defendant in lawsuits alleging injury or death from asbestos exposure and may be mistakenly joined in litigation involving businesses not assumed during the 1999 spin-off from Allegheny Teledyne Incorporated.
Facility Concentration: A significant number of production facilities and the corporate headquarters are located in California, an area with above-average seismic activity and wildfire risk, which could lead to catastrophic loss and operational disruption.
Single-Source Dependency: Many products are manufactured using limited or single-source suppliers due to highly specialized technology requirements, limiting Teledyne Technologies's ability to rapidly address supply chain disruptions.

3. Regulatory/Legal Risks

Export Controls and Sanctions: Teledyne Technologies is subject to complex export enforcement, including the Export Administration Regulations and sectoral sanctions. Teledyne Technologies has made voluntary disclosures to the U.S. Department of State and Department of Commerce regarding historical export practices and incorrect de minimis calculation methodologies.
Government Contracting Compliance: U.S. Government contracting businesses are subject to routine audits of procurement and accounting systems. Disapproval of these systems by administrative contracting officers can result in up to 10% of payments being withheld and increased audit oversight.
Executive Order 2026: A January 2026 executive order imposes obligations on "major defense contractors," potentially prohibiting stock buybacks and dividends, and authorizing the U.S. Government to cap executive base salaries.
Environmental Regulations: The Teledyne Battery Products unit is subject to increasing environmental regulations in California, and other sites conduct electroplating and metal finishing operations that utilize hazardous materials, creating potential for material environmental liabilities.

4. Financial Impact Map

U.S. Government Contract Funding → Net Sales → 25% of total net sales in 2025 were derived from U.S. Government contracts.

International Sales and Currency Volatility → Reported Earnings → 48% of 2025 net sales were to customers outside the U.S., making earnings sensitive to dollar strength and foreign trade restrictions.

Acquisition-Related Impairment → Goodwill and Net Acquired Intangible Assets → $8,687.6 million in goodwill and $2,100.1 million in net acquired intangible assets as of December 28, 2025, are subject to fair value impairment testing.

Inflation and Supply Chain Costs → Gross Margins → Inability to offset increased component, labor, and shipping costs could lead to significant decreases in profitability.

Debt Covenants → Indebtedness → $2,488.0 million in senior notes outstanding as of December 28, 2025; breach of negative covenants could result in debt becoming immediately due and payable.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—