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Did Teledyne beat or miss consensus estimates last quarter?

- **Q3 Records**: 6.7% sales growth, $314M free cash flow, and $6.06B full-year sales target.
- **Defense Dominance**: 37.6% YoY growth in Aerospace & Defense, unmanned systems bookings +$30M.
- **Cash Position**: $2.0B net debt, $1B+ free cash flow, enabling selective M&A.
- **2026 Vision**: Machine vision recovery, defense spending, and subsea drone expansion driving long-term growth.

**【Management Opening Remarks】**
- **Record Q3 Performance**: Achieved all-time highs with 6.7% YoY sales growth ($6.06B full-year forecast), 9.2% non-GAAP EPS increase, and $314M free cash flow.
- **Government Shutdown Impact**: Anticipated minimal impact (25% of sales if prolonged), with 2018-19 shutdown precedent showing resilience.
- **China Designation**: Teledyne FLIR and Brown Engineering sales to China negligible (0.4% and 0% of 2024-25 sales).
- **Acquisition Activity**: $770M spent YTD, nearing completion of TransponderTech carve-out, pursuing selective deals.

**【CEO Commentary】**
- **Digital Imaging**: FLIR defense/industrial sales up 10%, sensors/cameras for machine vision +3.4%, offset by X-ray detector weakness.
- **Instrumentation**: Marine interconnects (+3.2%), environmental safety systems (+7.5%), test & measurement oscilloscopes growth.
- **Aerospace & Defense**: 37.6% YoY growth driven by acquisitions, strong aftermarket and 2026 delivery orders.
- **Engineered Systems**: 8.1% YoY decline vs. tough comp, 30bps margin improvement.

**【CFO Financial Commentary】**
- **Cash Flow Strength**: Q3 free cash flow $314M (vs. $229M), operating cash flow $343M (vs. $250M), net debt $2.0B.
- **Q4 Guidance**: GAAP EPS $4.76-$4.98, non-GAAP EPS $5.73-$5.88.
- **Full Year 2025**: Non-GAAP EPS $21.45-$21.60.

**【Q&A Highlights】**
- **Digital Imaging Margins**: 2024 target achievable with cost reductions, 2025 flat-to-up trend.
- **Defense Growth**: Unmanned systems (Rogue 1, LASSO) and subsea vehicles ($500M+ annual run rate) key drivers.
- **2026 Outlook**: Machine vision recovery, defense spending, and test & measurement semiconductors growth.
- **Organic vs. M&A**: 2025 EPS growth ~$0.25 from M&A, rest organic; cautious on high-multiple deals.

Teledyne Technologies Incorporated (TDY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TDY

TDY fundamentals

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