Teledyne Technologies Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.31%.
Did TDY Beat Earnings? Q3 2025 Results
Teledyne Technologies posted a record-setting third quarter, with non-GAAP diluted EPS of $5.57 clearing the $5.47 consensus estimate by 1.80% and revenue of $1.54 billion edging past expectations by 0.81% while growing 6.7% year-over-year. The standout driver was the Aerospace and Defense Electronics segment, where sales surged 37.6% to $275.50 million, propelled by $69.00 million in incremental defense electronics contributions from recent acquisitions. Free cash flow also hit a quarterly record of $313.90 million, up sharply from $228.70 million a year ago. The strong results prompted management to raise full-year 2025 non-GAAP EPS guidance to a range of $21.45 to $21.60, while Q4 non-GAAP EPS is guided at $5.73 to $5.88, though executives flagged the ongoing U.S. Government shutdown as a potential headwind to near-term new awards and shipments. With defense demand accelerating and backlog at FLIR continuing to grow, Teledyne enters the final quarter on solid footing, even as <a href="https://247wallst.com/investing/2025/10/21/live-will-texas-instruments-beat-q3-earnings/">peers across the sector</a> face their own quarterly tests.
- Record quarterly new orders with continued backlog growth at Teledyne FLIR
- $69.0 million in incremental sales from recent acquisitions
- Higher sales of commercial infrared imaging components and subsystems
- Stronger gas detection product sales in environmental instrumentation
- Stronger offshore energy and defense markets for marine instrumentation
- Higher defense electronics sales up $75.6 million year-over-year
- Favorable timing of accounts receivable collections driving record operating cash flow
- Higher sales of unmanned air systems and industrial automation imaging systems
“This morning, we were pleased to announce record quarterly sales, non-GAAP earnings per share and free cash flow. Furthermore, total company new orders were also a quarterly record due in part to continued backlog growth at Teledyne FLIR. Given our strong third quarter performance, recovering commercial short-cycle businesses, and robust backlog growth, we are raising our full year earnings outlook. Our defense-related businesses, including our new acquisitions, are performing extremely well, and we continue to pursue a number of significant contract opportunities not yet formally awarded or reflected in our backlog. Nevertheless, given the current U.S. Government shutdown, we are a bit measured on expectations for new awards and shipments in the very near-term. Finally, our balance sheet is the strongest in years, providing the capacity to pursue acquisitions or stock repurchases, as we feel appropriate.”
Teledyne Technologies CEO, on the earnings call
Forward Guidance & Outlook
Teledyne raised its full year 2025 outlook. Q4 2025 GAAP diluted EPS is expected to be $4.76 to $4.98, and full year 2025 GAAP diluted EPS is expected to be $17.83 to $18.05 (up from $17.59 to $17.97). Q4 2025 non-GAAP diluted EPS is expected to be $5.73 to $5.88, and full year 2025 non-GAAP diluted EPS is expected to be $21.45 to $21.60 (up from $21.20 to $21.50). The company cited strong Q3 performance, recovering commercial short-cycle businesses, and robust backlog growth. However, management noted the current U.S. Government shutdown may impact near-term new awards and shipments.
TDY YoY Financials
TDY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.