Aerospace and Defense Electronics

The Aerospace and Defense Electronics segment’s fourth quarter 2024 net sales were $196.5 million, compared with $184.0 million, an increase of 6.8%. Operating income was $56.4 million for the fourth quarter of 2024, compared with $50.0 million, an increase of 12.8%.

The fourth quarter of 2024 net sales reflected higher sales of $15.3 million for defense electronics, partially offset by lower sales of $2.8 million for aerospace electronics. The increase in operating income primarily reflected the impact of higher sales and favorable product mix.

Engineered Systems

The Engineered Systems segment’s fourth quarter 2024 net sales were $114.7 million, compared with $103.3 million, an increase of 11.0%. Operating income was $9.8 million for the fourth quarter of 2024, compared with $12.3 million, a decrease of 20.3%.

The fourth quarter of 2024 net sales reflected higher sales of $11.3 million for engineered products and $0.1 million for energy systems. The higher sales for engineered products primarily reflected increased sales from electronic manufacturing services products. The decrease in operating income included $2.9 million of unfavorable contract estimate changes related to electronic manufacturing services products.

Additional Financial Information

Cash Flow

Cash provided by operating activities was $332.4 million for the fourth quarter of 2024 compared with $164.4 million, with the increase driven primarily by lower income tax payments in the fourth quarter of 2024. In the prior year, the Internal Revenue Service (“IRS”) announcements related to the California floods postponed approximately $139 million of Teledyne’s second and third quarter 2023 U.S. federal income tax payments, which the Company paid in the fourth quarter of 2023. Depreciation and amortization expense for the fourth quarter of 2024 was $77.1 million compared with $77.4 million. Stock-based compensation expense for the fourth quarter of 2024 was $7.7 million compared with $8.0 million.

Capital expenditures for the fourth quarter of 2024 were $29.0 million compared with $40.2 million, with the decrease related to timing of capital projects. Teledyne received $21.4 million from the exercise of stock options in the fourth quarter of 2024 compared with $18.2 million.

During the fourth quarter and full year of 2024, the Company repurchased approximately 47.9 thousand shares for $21.4 million, and 885.3 thousand shares for $353.9 million, respectively.

As of December 29, 2024, net debt was $1,999.2 million which is calculated as total debt of $2,649.0 million, net of cash and cash equivalents of $649.8 million. As of December 31, 2023, net debt was $2,596.6 million representing total debt of $3,244.9 million, net of cash and cash equivalents of $648.3 million.

As of December 29, 2024, $1.17 billion was available under the $1.20 billion credit facility, after reductions of $29.3 million in outstanding letters of credit.