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1. Company Snapshot

1.a. Company Description

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally.The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks.Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters.


This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions.The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries.Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications.


The company markets and sells its products and services through a direct internal sales force, as well as third-party sales representatives and distributors.Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

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1.b. Last Insights on TDY

Teledyne Technologies Incorporated's recent performance was driven by strong Q4 earnings, beating estimates with $6.3 per share, up from $5.52 a year ago. Robust defense demand, improving commercial activity, and record sales in autonomous and marine instrumentation fueled growth. The company's digital imaging segment led the way, particularly with infrared components for unmanned systems. Analysts boosted their forecasts following the upbeat Q4 results, with a "Moderate Buy" rating from eight research firms. A recent acquisition and steady defense electronics demand also contributed to the positive momentum.

1.c. Company Highlights

2. Teledyne Technologies' Stellar 2025 Performance and Promising 2026 Outlook

Teledyne Technologies Incorporated concluded 2025 with impressive financial results, boasting record quarterly orders, sales, and non-GAAP earnings, alongside the highest operating margin in the company's history. The company's sales for the full year increased 7.9%, with non-GAAP earnings rising 11.5%. In the fourth quarter, sales grew 7.3% from the previous year, while non-GAAP earnings increased 14.1%. Actual EPS came out at $6.3, surpassing estimates of $5.83. The strong performance was driven by the defense businesses, which remained healthy, and short-cycle commercial businesses that continued to recover. Teledyne FLIR performed particularly well, especially in unmanned and defense surveillance systems.

Publication Date: Jan -22

📋 Highlights
  • Record Financial Performance:: Teledyne achieved record quarterly orders, sales, and non-GAAP earnings in 2025, with full-year sales up 7.9% and non-GAAP earnings rising 11.5%.
  • Defense Segment Growth:: Aerospace and defense electronics sales surged 40.4% YoY, driven by KeyOptik and MicroPak acquisitions, reflecting strong demand in unmanned and surveillance systems.
  • Marine Instrumentation Success:: Autonomous underwater vehicles reached $500M in 2025 revenue, with 10% growth projected to $550M in 2026, driven by harbor security demand in Europe.
  • Financial Strength and Free Cash Flow:: Generated $1.1B in free cash flow over two years, with Q4 free cash flow hitting a record $339.2M and a leverage ratio of 1.4x.
  • 2026 Guidance:: Projects $6.37B revenue and non-GAAP earnings of $23.65, with GAAP EPS forecasted between $4.45–$4.59 and non-GAAP EPS between $5.40–$5.50 for the year.

Segmental Performance

The digital imaging segment saw sales increase 3.4%, driven by strong sales from Teledyne FLIR. The instrumentation segment's total sales rose 3.7%, with marine instruments increasing 3.3% due to strong sales of interconnects and autonomous underwater vehicles. The aerospace and defense electronics segment reported a 40.4% increase in sales, primarily driven by the KeyOptik and MicroPak acquisitions. The company's revenue from unmanned systems, including air, ground, and underwater vehicles, was $500 million in 2025 and is expected to grow about 10% to approximately $550 million in 2026.

Cash Flow and Leverage

Teledyne's cash flow from operating activities was $379 million in the fourth quarter, with free cash flow reaching a record $339.2 million. The company ended 2025 with a leverage ratio of 1.4 times, having generated approximately $1.1 billion in free cash flow for two consecutive years. The net debt stood at $2.12 billion, with $352.4 million in cash.

Outlook and Valuation

For 2026, the company expects revenue of approximately $6.37 billion and non-GAAP earnings of around $23.65. Analysts estimate next year's revenue growth at 4.6%. With a P/E Ratio of 35.66 and an EV/EBITDA of 22.34, the market appears to have priced in a significant level of growth. The company's ROIC of 6.19% and ROE of 8.09% indicate a decent return on capital and equity, respectively. The Net Debt / EBITDA ratio of 1.44 suggests a manageable level of debt.

Growth Prospects

Teledyne expects around 3.5-4% organic growth across its segments, with Aerospace and Defense potentially higher. The company does not anticipate any declines in its businesses. With its focus on acquisitions and history of making strategic purchases, Teledyne is well-positioned for continued growth. The recent production award for its loitering munitions and ongoing developments in new areas are expected to contribute to the company's growth prospects.

3. NewsRoom

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Teledyne Demonstrates Autonomous System for Anti-Submarine Warfare to NATO Members in the North Atlantic

07:00

Source: businesswire.com

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Teledyne FLIR Defense Wins $17.5 Million Contract from armasuisse to Deliver Black Hornet 4 Nano-Drones for Dismounted and Vehicle-Integrated Reconnaissance

Feb -02

Source: businesswire.com

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Teledyne Delivers Four GAVIA AUV Systems to the Swedish Defence Materiel Administration

Jan -28

Source: businesswire.com

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Allspring Common Stock Fund Q4 2025 Performance Review

Jan -28

Source: seekingalpha.com

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Compass Wealth Management LLC Makes New $8.78 Million Investment in Teledyne Technologies Incorporated $TDY

Jan -27

Source: defenseworld.net

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Teledyne Accelerates to Maximum Velocity: $700 in Sight

Jan -23

Source: marketbeat.com

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3 Stocks Positioned to Gain From Renewed U.S. Defense Priorities

Jan -23

Source: zacks.com

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Teledyne's Momentum Makes Me Comfortable Buying At A Premium

Jan -22

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.94%)

6. Segments

Digital Imaging

Expected Growth: 3%

Teledyne Technologies' Digital Imaging segment growth is driven by increasing demand for high-performance cameras in industrial automation, machine vision, and medical imaging. Additionally, growing adoption of AI and computer vision in various industries fuels demand for Teledyne's advanced imaging solutions, contributing to a growth rate of 3.

Instrumentation

Expected Growth: 5%

Teledyne Technologies' instrumentation segment growth is driven by increasing demand for marine and environmental sensors, expansion in oil and gas exploration, and growing adoption of autonomous underwater vehicles. Additionally, the company's focus on innovation, strategic acquisitions, and strong relationships with government and commercial customers contribute to its growth.

Aerospace and Defense Electronics

Expected Growth: 6%

Teledyne Technologies' Aerospace and Defense Electronics segment growth is driven by increasing demand for advanced electronic systems in military and space applications, rising adoption of unmanned aerial vehicles (UAVs), and growing need for cybersecurity solutions. Additionally, the company's focus on research and development, strategic acquisitions, and expanding presence in emerging markets contribute to its 6% growth.

Engineered Systems

Expected Growth: 4%

Teledyne Technologies' Engineered Systems segment growth is driven by increasing demand for advanced electronic components in aerospace and defense, rising adoption of unmanned underwater vehicles, and growing need for sophisticated sensors and subsea systems in the oil and gas industry, as well as expanding presence in emerging markets.

7. Detailed Products

Marine Instrumentation

Teledyne Marine provides a range of marine instrumentation products, including acoustic Doppler current profilers, acoustic releases, and underwater gliders.

Electronic Test and Instrumentation

Teledyne LeCroy offers a range of electronic test and instrumentation products, including oscilloscopes, protocol analyzers, and signal generators.

Aerospace and Defense Electronics

Teledyne e2v provides a range of aerospace and defense electronics products, including semiconductors, microwave devices, and radiation-hardened components.

Digital Imaging

Teledyne DALSA and Teledyne Princeton Instruments provide a range of digital imaging products, including cameras, sensors, and software.

Environmental Monitoring

Teledyne ISCO and Teledyne YSI provide a range of environmental monitoring products, including water and wastewater samplers, and environmental monitoring systems.

8. Teledyne Technologies Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Teledyne Technologies Incorporated operates in a niche market with high barriers to entry, reducing the threat of substitutes.

Bargaining Power Of Customers

Teledyne Technologies Incorporated has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Teledyne Technologies Incorporated has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate supply chain risks.

Threat Of New Entrants

Teledyne Technologies Incorporated operates in a highly regulated industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

Teledyne Technologies Incorporated operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.21%
Debt Cost 3.95%
Equity Weight 73.79%
Equity Cost 9.09%
WACC 7.74%
Leverage 35.52%

11. Quality Control: Teledyne Technologies Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ESCO Technologies

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Growth: 7.7

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

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Teledyne Technologies

A-Score: 5.4/10

Value: 3.1

Growth: 6.3

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

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Quality: 6.4

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Growth: 4.2

Quality: 6.1

Yield: 1.0

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

630.66$

Current Price

630.66$

Potential

-0.00%

Expected Cash-Flows