Teledyne Technologies Incorporated (NYSE:TDY) delivered third-quarter earnings and revenue that topped Wall Street forecasts, buoyed by solid momentum in its defense businesses and recent acquisitions.
The company reported adjusted earnings of $5.57 per share for the quarter, beating the consensus estimate of $5.47. Revenue reached a record $1.54 billion, edging past projections of $1.53 billion and marking a 6.7% increase year-over-year.
“This morning, we were pleased to announce record quarterly sales, non-GAAP earnings per share and free cash flow,” said Robert Mehrabian, Executive Chairman. “Given our strong third quarter performance, recovering commercial short-cycle businesses, and robust backlog growth, we are raising our full year earnings outlook.”
The Aerospace and Defense Electronics unit was the standout performer, with sales surging 37.6% to $275.5 million. This included $69 million in incremental revenue from recently acquired defense electronics assets. Teledyne’s largest division, Digital Imaging, posted a more modest 2.2% increase to $785.4 million.
The company also delivered record cash flow figures, generating $343.1 million from operations and $313.9 million in free cash flow for the quarter. Its consolidated leverage ratio at quarter end was 1.4x, highlighting a solid balance sheet.
For the full year 2025, Teledyne raised its earnings forecast to a range of $21.45 to $21.60 per share, up from $21.20 to $21.50 previously. However, Mehrabian noted some caution regarding new government business, stating: “Given the current U.S. Government shutdown, we are a bit measured on expectations for new awards and shipments in the very near-term.”
Additionally, the company announced plans to acquire TransponderTech in a carve-out deal, signaling its continued pursuit of strategic growth opportunities.