NYSE:TDY
TELEDYNE TECHNOLOGIES INC
A premier provider of high-end sensors, imaging systems, and fluid control devices driving innovation in life sciences and aerospace markets.
Key Metrics
Investment Thesis
Bull Case
Teledyne offers a compelling growth story backed by robust free cash flow generation of $1.19B and a diversified product portfolio across resilient industries. The company's ability to reinvest in R&D and M&A while returning capital via buybacks positions it well for long-term value creation. Consistent revenue expansion despite headwinds suggests pricing power and market share gains.
Bear Case
Valuation may be stretched given the high goodwill balance sheet and potential for significant impairment losses if acquisitions underperform. Heavy reliance on government contracts introduces regulatory and budgetary risk that can cause volatile quarterly earnings surprises. The large cash outflow for investing activities (-$937.9M) indicates aggressive spending that could strain liquidity if growth slows.
About TELEDYNE TECHNOLOGIES INC
Teledyne Technologies Inc. is a global leader in advanced technology solutions serving markets including life sciences, aerospace, defense, and industrial automation. The company specializes in high-performance sensors, imaging systems, and fluid control devices that enable critical innovations across diverse sectors. With revenue reaching $6.12B in 2025 and net profit of $895.7M, the firm demonstrates strong operational resilience and growth potential.
Analysis
Management Discussion
Management successfully navigated a challenging macroeconomic environment, growing revenue from $5.64B in 2023 to $6.12B in 2025 while stabilizing net income at $895.7M after a dip in 2024. Cash flow from operations surged to $1.19B, significantly outpacing net income due to non-cash adjustments and working capital management, though significant cash was deployed for acquisitions ($821.4M) and share repurchases ($402.9M).
Industry Overview
The advanced technology sensors and imaging industry is experiencing rapid expansion driven by demands for AI, autonomous systems, and high-resolution scientific instrumentation. Companies in this space benefit from long development cycles and high switching costs, creating a lucrative but capital-intensive landscape. Market consolidation is common as firms seek to acquire niche technologies to accelerate their innovation pipelines.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $5.64B | $5.67B | $6.12B |
| Cost of Revenue | $3.20B | $3.24B | $3.50B |
| Gross Profit | $2.44B | $2.43B | $2.61B |
| Operating Expenses | $1.41B | $1.45B | $1.47B |
| Operating Income | $1.03B | $989.1M | $1.15B |
| R&D | — | $292.6M | $317.3M |
| G&A | $1.21B | $902.6M | $931.1M |
| D&A | $316.4M | $309.9M | $336.3M |
| Depreciation | $119.1M | $111.3M | $119.2M |
| Amortization | $196.7M | $198.0M | $216.6M |
| Other OpEx | $196.7M | $250.5M | $216.6M |
| Non-Operating Income | $-75.5M | $-51.2M | $-55.3M |
| Interest Expense | $77.3M | — | — |
| Pre-Tax Income | $958.9M | $937.9M | $1.09B |
| Income Tax | $72.3M | $117.2M | $198.8M |
| Continuing Ops | $886.6M | $820.7M | $895.7M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $886.6M | $820.7M | $895.7M |
| Minority Interest | $900.0K | $1.5M | $900.0K |
| Net to Common | $885.7M | $819.2M | $894.8M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.98B | $2.94B | $3.06B |
| Cash & Equivalents | $648.3M | $649.8M | $352.4M |
| Accounts Receivable | $899.7M | $901.1M | $992.4M |
| Inventory | $917.7M | $914.4M | $1.04B |
| Prepaid Expenses | $213.3M | $167.2M | $292.9M |
| Other Current Assets | $302.4M | $312.1M | $374.6M |
| Long-Term Assets | $11.55B | $11.26B | $12.23B |
| PP&E (Net) | $777.0M | $745.2M | $839.1M |
| Intangibles | $2.28B | $2.01B | $2.10B |
| Goodwill | $8.00B | $7.99B | $8.69B |
| Operating Leases | $141.7M | $128.6M | $156.1M |
| Other LT Assets | $346.9M | $378.7M | $446.8M |
| Total Assets | $14.53B | $14.20B | $15.29B |
| Current Liabilities | $1.77B | $1.26B | $1.86B |
| Accounts Payable | $384.7M | $416.4M | $486.6M |
| Current Debt | $600.1M | $300.0K | $450.1M |
| Current Leases | $30.1M | $30.2M | $32.0M |
| Deferred Revenue | $241.1M | $312.6M | $369.6M |
| Other Current Liab | $-271.2M | $-342.8M | $-401.6M |
| Long-Term Liabilities | $3.54B | $3.38B | $2.91B |
| Long-Term Debt | $2.64B | $2.65B | $2.03B |
| LT Operating Leases | $123.4M | $109.6M | $134.7M |
| Other LT Liab | $742.3M | $594.7M | $717.7M |
| Total Liabilities | $5.30B | $4.65B | $4.77B |
| Shareholders' Equity | $9.23B | $9.56B | $10.51B |
| Retained Earnings | $5.45B | $6.27B | $7.14B |
| AOCI | $-634.1M | $-839.9M | $-425.4M |
| Total L&E | $14.53B | $14.20B | $15.29B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $886.6M | $820.7M | $895.7M |
| Non-Cash Adjustments | $-66.8M | $216.8M | $103.3M |
| Working Capital Changes | $16.3M | $154.4M | $192.3M |
| Cash from Operations | $836.1M | $1.19B | $1.19B |
| Capital Expenditures | $114.9M | $83.7M | $117.3M |
| Cash from Investing | $-190.3M | $-207.2M | $-937.9M |
| Debt Repayments | $185.0M | — | — |
| Share Buybacks | — | $354.0M | $402.9M |
| Cash from Financing | $-651.5M | $-945.8M | $-555.2M |
| FX Effect | $15.9M | $-37.4M | $4.4M |
| Net Change in Cash | $10.2M | $1.5M | $-297.4M |
| Beginning Cash | $638.1M | $648.3M | $649.8M |
| Ending Cash | $648.3M | $649.8M | $352.4M |
Frequently Asked Questions
How does TELEDYNE TECHNOLOGIES INC make money?
Revenue is driven by four primary segments: Life Sciences (microscopy and biosensing), Aerospace & Defense (radar, infrared, and electro-optical systems), Industrial (fluid control and analytical instruments), and Emerging Technologies (next-generation sensor platforms for autonomous vehicles and AI).
What are the main risks for TDY?
Fluctuations in global defense spending could impact aerospace and defense segment growth rates. High levels of goodwill ($8.69B) expose the balance sheet to potential impairment charges during market downturns. Supply chain disruptions for specialized semiconductor components could constrain production capacity and margins.
What is TDY's competitive advantage?
The company possesses deep proprietary technology moats in specialized imaging and sensing that command premium pricing power. A highly skilled engineering workforce with decades of R&D investment ($317.3M) creates high barriers to entry for competitors. Strong customer stickiness in defense and government contracts provides stable, long-term revenue visibility.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.