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Teledyne's Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

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Key Takeaways

  • TDY's Q2 adjusted EPS rose 13.5% Y/Y to $5.20, topping estimates by 3.6% on higher net sales and income.
  • Q2 sales climbed 10.2% Y/Y to $1.51 billion, with every business segment reporting growth over the prior year.
  • Q3 EPS guidance of $5.35-$5.45 trails the Zacks Consensus Estimate of $5.52.

Teledyne Technologies Inc. ((TDY - Free Report) ) reported second-quarter 2025 adjusted earnings of $5.20 per share, which surpassed the Zacks Consensus Estimate of $5.02 by 3.6%. The bottom line also improved 13.5% from $4.58 recorded in the year-ago quarter.

Including one time items, the company recorded GAAP earnings of $4.43 per share, up 17.5% from the prior-year period’s earnings of $3.77.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDY

Total sales were $1.51 billion, which beat the Zacks Consensus Estimate of $1.47 billion by 2.8%. The top line also surged 10.2% from $1.37 billion reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded in all of its business segments.

TDY’s Segmental Performance

Instrumentation: Sales in this segment increased 10.2% year over year to $367.6 million, driven by higher sales of marine instrumentation due to stronger offshore energy and defense markets. An increase in sales of electronic test and measurement instrumentation also contributed to this unit’s sales growth.

The adjusted operating income rose 16.5% year over year to $101.6 million.

Digital Imaging: Quarterly sales in this division increased 4.3% year over year to $771 million. The jump was due to higher sales of unmanned air systems and commercial infrared imaging components.

The adjusted operating income improved 5.4% year over year to $119.6 million.

Aerospace and Defense Electronics: Sales in this segment totaled $264.8 million, up 36.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics.

The adjusted operating income increased 16.6% year over year to $66.6 million.

Engineered Systems: Revenues in this division rose 3.3% year over year to $110.3 million due to higher sales of engineered products.

This segment's operating income increased 61.3% to $12.1 million.

Financial Condition of TDY

Teledyne’s cash and cash equivalents totaled $310.9 million as of June 29, 2025, compared with $649.8 million as of Dec. 29, 2024.

Its long-term debt was $2.17 billion at the end of the second quarter of 2025 compared with $2.65 billion as of Dec. 29, 2024.

Cash flow from operating activities totaled $226.6 million for the second quarter compared with $318.7 million in the prior-year period.

TDY generated free cash flow of $196.3 million, down from $301 million in the prior-year quarter.

TDY’s Guidance

Teledyne expects to generate adjusted earnings in the band of $5.35-$5.45 per share for the third quarter of 2025. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.52 per share, higher than the company's guided range.

For 2025, Teledyne still expects its adjusted earnings to be in the range of $21.20-$21.50 per share. The Zacks Consensus Estimate for earnings is pegged at $21.45 per share, which lies above the midpoint of the company’s guided range.

TDY’s Zacks Rank

Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation’s ((RTX - Free Report) ) second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41.

RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.

Lockheed Martin Corporation ((LMT - Free Report) ) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.

Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.

Northrop Grumman Corporation ((NOC - Free Report) ) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.

NOC’s total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter.

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