THOUSAND OAKS, Calif. — (BUSINESS WIRE) — January 22, 2025 — Teledyne Technologies Incorporated (NYSE: TDY)

• Record quarterly sales of $1,502.3 million, an increase of 5.4% compared with last year
• Fourth quarter GAAP diluted earnings per share of $4.20 and record non-GAAP diluted earnings per share of $5.52
• Fourth quarter GAAP operating margin of 15.8% and fourth quarter non-GAAP operating margin of 22.7%
• Full year GAAP diluted earnings per share of $17.21 and record non-GAAP diluted earnings per share of $19.73
• Full year GAAP operating margin of 17.4% and full year non-GAAP operating margin of 22.0%
• Record full year cash from operations of $1,191.9 million and record free cash flow of $1,108.2 million
• Full year capital deployment of $1.1 billion for debt repayments, stock repurchases and acquisitions. Expect to deploy approximately $770 million on acquisitions in the first quarter of 2025
• Quarter-end Consolidated Leverage Ratio of 1.5x
• Recently completed acquisition of Micropac Industries, Inc. on December 30, 2024
• Announced pending acquisition of select aerospace and defense electronics businesses from Excelitas Technologies Corp.
• Issuing full year 2025 GAAP diluted earnings per share outlook of $17.70 to $18.20 and full year 2025 non-GAAP earnings per share outlook of $21.10 to $21.50, which includes Micropac but excludes Excelitas

Teledyne today reported fourth quarter 2024 net sales of $1,502.3 million, compared with net sales of $1,425.0 million for the fourth quarter of 2023, an increase of 5.4%. The fourth quarter of 2024 net sales included $17.3 million in incremental net sales from acquisitions. Net income attributable to Teledyne was $198.5 million ($4.20 diluted earnings per share) for the fourth quarter of 2024, compared with $323.1 million ($6.75 diluted earnings per share) for the fourth quarter of 2023, a decrease of 38.6%. The fourth quarter of 2024 included $49.7 million of pretax acquired intangible asset amortization expense, $52.5 million of pretax, non-cash trademark impairments, $1.5 million of pretax transaction and integration costs and $16.6 million of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the fourth quarter of 2024 was $260.9 million ($5.52 diluted earnings per share). The fourth quarter of 2023 included $48.6 million of pretax acquired intangible asset amortization expense, $3.0 million of pretax transaction and integration costs and $102.2 million of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the fourth quarter of 2023 was $260.5 million ($5.44 diluted earnings per share). Operating margin was 15.8% for the fourth quarter of 2024 compared with 19.1% for the fourth quarter of 2023. Excluding the items discussed above, non-GAAP operating margin was 22.7% for both the fourth quarter of 2024 and 2023.

“In the fourth quarter, we achieved all-time record sales and non-GAAP earnings per share,” said Robert Mehrabian, Executive Chairman. “Year-over-year growth accelerated, as our shorter-cycle businesses improved throughout 2024 coupled with strong demand in our longer cycle defense, space, and energy businesses. Given our record free cash flow in 2024, we ended the year with very low leverage despite $1.1 billion of capital deployment. We successfully closed the Micropac acquisition at the beginning of fiscal 2025, and we expect the completion of the Excelitas carve-out transaction in the first quarter. We begin 2025 optimistic about our performance and business portfolio; nevertheless, we remain vigilant given the strong U.S. dollar and unpredictable geopolitical environment.”

Full Year

Full year net sales for 2024 were $5,670.0 million, compared with $5,635.5 million for 2023, an increase of 0.6%. Net income attributable to Teledyne was $819.2 million ($17.21 diluted earnings per share) for fiscal year 2024, compared with $885.7 million ($18.49 diluted earnings per share) for fiscal year 2023, a decrease of 7.5%.

Full year 2024 net sales included $49.4 million in incremental net sales from acquisitions. The full year of 2024 included $198.0 million of pretax acquired intangible asset amortization expense, $8.4 million of pretax transaction and integration costs, $52.5 million of pretax, non-cash trademark impairments and $77.8 million of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the full year of 2024 was $939.2 million ($19.73 diluted earnings per share). The full year of 2023 included $196.7 million of pretax acquired intangible asset amortization expense, $8.8 million of pretax transaction and integration costs and $100.5 million of income tax benefits from FLIR acquisition-related tax matters. Excluding these items, non-GAAP net income attributable to Teledyne for the full year of 2023 was $943.3 million ($19.69 diluted earnings per share). Operating margin was 17.4% for 2024, compared with 18.4% for 2023. Excluding the items discussed above, non-GAAP operating margin was 22.0% for both 2024 and 2023.

Full year 2024 income tax expense included $77.8 million of income tax benefits from FLIR acquisition-related tax matters as well as $12.7 million of income tax benefits related to share-based accounting. Full year 2023 income tax expense included $100.5 million of income tax benefits from FLIR acquisition-related tax matters as well as $20.1 million of income tax benefits related to share-based accounting.

In the fourth quarter of 2024, Teledyne completed its annual impairment testing of goodwill and indefinite-lived intangibles assets. As a result of the testing, the company recorded pretax, non-cash impairment charges of $52.5 million related to indefinite-lived trademarks.

Review of Operations

Comparisons are with the fourth quarter of 2023, unless noted otherwise.

Digital Imaging

The Digital Imaging segment’s fourth quarter 2024 net sales were $822.2 million, compared with $802.5 million, an increase of 2.5%. Operating income was $90.8 million for the fourth quarter of 2024, compared with $134.3 million, a decrease of 32.4%. The fourth quarter of 2024 included $1.5 million of pretax transaction and integration costs compared with $3.0 million. Acquired intangible amortization expense for the fourth quarter of 2024 was $46.1 million compared with $44.9 million. In the fourth quarter of 2024, Teledyne recorded a $49.5 million pretax, non-cash trademark impairment. Excluding these items, non-GAAP operating income for the fourth quarter of 2024 was $187.9 million, compared with $182.2 million, an increase of 3.1%.

The fourth quarter of 2024 net sales increased primarily due to higher sales of unmanned air systems, surveillance systems, and commercial infrared imaging systems partially offset by lower sales of X-ray products, industrial automation imaging systems, and unmanned ground systems. The fourth quarter of 2024 also included $12.2 million of incremental sales from a recent acquisition. The decrease in operating income was primarily due to a $49.5 million pretax, non-cash trademark impairment recorded in the fourth quarter of 2024.

Instrumentation

The Instrumentation segment’s fourth quarter 2024 net sales were $368.9 million, compared with $335.2 million, an increase of 10.1%. Operating income was $100.8 million for the fourth quarter of 2024, compared with $90.7 million, an increase of 11.1%. In the fourth quarter of 2024, Teledyne recorded a $3.0 million pretax, non-cash trademark impairment.

The fourth quarter of 2024 net sales increase resulted from a $29.9 million increase in sales of marine instrumentation primarily due to stronger offshore energy and defense markets, a $1.9 million increase in sales of electronic test and measurement instrumentation as well as a $1.9 million increase in sales of environmental instrumentation. The fourth quarter of 2024 also included $5.1 million of incremental sales from recent acquisitions. The increase in operating income primarily reflected the impact of higher marine instrumentation sales as well as favorable marine instrumentation product mix and improved marine instrumentation margins.