Teledyne Technologies Inc. (NYSE:TDY) on Wednesday delivered a strong finish to the year, posting higher fourth-quarter sales and earnings as growth across its businesses and recent acquisitions boosted results.
The Thousand Oaks, California-based company reported record fourth-quarter 2025 net sales of $1.61 billion, up 7.3% from $1.50 billion a year earlier, including $73.0 million in incremental revenue from recent acquisitions.
Net income attributable to Teledyne rose to $275.6 million, or $5.84 per diluted share, from $198.5 million, or $4.20 per diluted share, in the prior-year period.
Adjusted earnings per share of $6.30 topped Wall Street estimates of $5.83, while quarterly sales of $1.612 billion also exceeded the consensus forecast of $1.573 billion.
Teledyne’s fourth-quarter operating margin expanded to 20.4% from 15.8% a year earlier. On a non-GAAP basis, operating margin improved to 23.9% from 22.7%.
The quarter included $54.9 million in pretax amortization of acquired intangible assets, $0.8 million in pretax transaction and integration costs, $0.2 million in pretax inventory step-up expense, and $20.8 million in income tax benefits related to FLIR acquisition tax matters.
Segment Performance
In the Digital Imaging segment, fourth-quarter net sales rose 3.4% to $850.5 million. Operating income totaled $162.9 million, while non-GAAP operating income was $209.7 million.
Instrumentation segment net sales increased 3.7% to $382.6 million. Operating income was $107.3 million, and non-GAAP operating income came in at $110.4 million.
Aerospace and Defense Electronics posted the strongest growth, with net sales surging 40.4% to $275.9 million. Operating income was $69.4 million, while non-GAAP operating income reached $75.1 million.
Engineered Systems net sales declined 9.9% to $103.3 million, though operating income increased to $11.5 million.
Cash Flow
Teledyne generated $379.0 million in cash from operating activities during the quarter and reported free cash flow of $339.2 million.
As of Dec. 28, 2025, the company had $352.4 million in cash and cash equivalents and total debt of $2.48 billion, resulting in net debt of $2.12 billion. The consolidated leverage ratio at quarter’s end was 1.4 times.
During the quarter, Teledyne repurchased about 0.8 million shares for $400.0 million. The company also completed the carve-out acquisition of TransponderTech and, on Jan. 14, 2026, acquired DD-Scientific.
Outlook
Teledyne Technologies said it expects first-quarter GAAP earnings of $4.45 to $4.59 per share, compared with Wall Street estimates of $4.50. The company forecast adjusted earnings of $5.40 to $5.50 per share, versus the consensus estimate of $5.43.
For full-year 2026, Teledyne projects GAAP earnings of $19.76 to $20.22 per share, compared with analysts’ expectations of $20.28. The company sees adjusted earnings in a range of $23.45 to $23.85 per share, versus the Street estimate of $23.63.
TDY Price Action: Teledyne Technologies shares were up 3.65% at $586.90 during premarket trading on Wednesday. The stock is approaching its 52-week high of $595.99, according to Benzinga Pro data.
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