AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Qualification requirements and specialized technology suggest possible barriers, but relative protection and company-wide economic significance are unestablished.
durability · — · No demonstrated duration of competitive protection is supplied. Management's description of stable technology development and customer attrition does not establish durable excess returns.
customer dependency · — · Firm orders demonstrate committed demand, but neither those orders nor management's attrition description establishes costly substitution or dependence on Teledyne.
erosion resilience · — · Improving operating results do not demonstrate resilience of an identified moat. Competitive bidding, increased terminations and evolving qualification expectations leave protection uncertain.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The passages do not establish observed net pricing outcomes. Additional pricing actions are prospective, and reported profitability does not isolate price effects.
retention · 2/4 · Indirect evidence supports continuing demand: firm remaining performance obligations rose from $4,867.4 million in March to $5,176.1 million in June 2026. Management describes relatively stable customer attrition, but no repeat-customer rate is provided. Increased defense terminations temper the assessment despite immaterial financial effects.
margin resilience · 3/4 · First-half 2026 sales rose from $2,963.6 million to $3,222.6 million while operating income rose from $537.5 million to $627.4 million, demonstrating improved profitability despite higher R&D and SG&A spending. Acquisition contributions and unfavorable contract estimates in 2024 limit attribution to pricing and evidence of longer-term resilience.
contractual freedom · 1/4 · Sales outside Engineered Systems are primarily fixed-price, and government fixed-price contracts typically cannot be renegotiated for technical problems or cost-estimation failures. This materially constrains repricing during performance; freedom when negotiating new contracts is not established.
Predictability97
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 6.75
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 4.29
Financial strength79
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 81.36
- netDebtEbitGrade
- 63.07
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 71.42
- Debt / FCF (x)
- 2.30
- Net debt / operating income (x)
- 1.85
- Interest coverage (x)
- 19.29
- Current ratio (x)
- 1.64
Capital allocation84
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 8.95
- 3-year average dilution (%)
- 0.00
- 3-year average SBC / revenue (%)
- 0.63
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · Actual debt repayments across 2023, 2024 and the first half of 2026, alongside $549.2 million of first-half 2026 operating cash flow, demonstrate financing discipline. Teledyne funded $821.4 million of 2025 acquisitions from cash on hand and repurchased $400 million of shares. Acquisition returns and repurchase value creation remain unproven; inventory absorbed substantial cash in 2026.
incentive alignment · 2/4 · Issued three-year awards combine income, revenue and relative shareholder-return objectives, supported by ownership guidelines and an adopted clawback. Growth metrics include acquisitions and permit adjustments; ownership compliance includes awards and options, and some executives may still have time to comply. These are actual arrangements, not proof of exceptional alignment or completed vesting.
execution · 3/4 · Higher first-half 2026 sales, operating income and operating cash flow demonstrate strong execution from indirect operating evidence. Acquisitions contributed to improvement, lower tax payments aided cash generation, and inventory spending and earlier unfavorable contract estimates temper the assessment.
governance · 3/4 · Nine of eleven directors are independent, key committees are fully independent, all directors met the disclosed 2025 attendance threshold, and a clawback policy is adopted. Board declassification remained incomplete as of the proxy; proposed shareholder rights are not counted as implemented.
Evidence
i Table of Contents PART I Item 1. Business Who We Are Teledyne Technologies Incorporated is a Delaware corporation that provides enabling technologies to sense, analyze and distribute information for industrial growth markets that require advanced technology and high reliability.
Item 1, Business: technology and reliability requirements · Filed 20/02/2026
Governmental agencies throughout the world, including the Federal Aviation Administration (“FAA”), prescribe standards and qualification requirements for aircraft components, including virtually all commercial airline and general aviation products.
Item 1A, Risk Factors: aircraft-component qualification requirements · Filed 20/02/2026
Consistent with Teledyne’s growth strategy, the Company seeks to acquire companies in markets characterized by high barriers to entry and that include specialized products not likely to be commoditized.
Notes to financial statements: acquisition strategy and intangible-asset accounting · Filed 20/02/2026
Given the Company’s markets and the highly engineered nature of the Company’s products, the rates of new technology development and customer acquisition and/or attrition are often not volatile.
Notes to financial statements: management description of technology development and customer attrition · Filed 20/02/2026
We do not consider any single patent or trademark, or any group of them, essential either to Teledyne’s business as a whole or to any one of our reportable segments.
Business: patents and trademarks · Filed 20/02/2026
Many of our U.S. Government contracts are awarded after a competitive bidding process in which we seek to emphasize our ability to provide superior products and technical solutions.
Business: competitive bidding for government contracts · Filed 20/02/2026
If any material authorization or approval qualifying us to supply our products is revoked or suspended, then sale of the product would be prohibited by law, which would have an adverse effect on our business, financial condition and results of operations.
Risk Factors: consequences of losing product authorizations · Filed 20/02/2026
Government have not materially impacted our results of operations; however, our Defense Electronics businesses have seen an increase in terminations for convenience due to shifting Government priorities.
Risk Factors: increased defense-contract terminations without material results impact · Filed 20/02/2026
We may also implement additional pricing actions to mitigate the impact of these tariffs or other inflationary pressures.
MD&A: prospective additional pricing actions · Filed 24/07/2026
Financial Statements TELEDYNE TECHNOLOGIES INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 28, 2026 AND JUNE 29, 2025 (Unaudited — Amounts in millions, except per share amounts) Second Quarter Six Months 2026 2025 2026 2025 Net sales $ 1,662.5 $ 1,513.7 $ 3,222.6 $ 2,963.6 Costs and expenses Cost of sales 924.4 869.1 1,810.7 1,699.5 Selling, general and administrative 258.7 229.4 496.1 463.3 Research and development 90.2 82.4 174.8 156.7 Acquired intangible asset amortization 56.0 54.6 113.6 106.6 Total costs and expenses 1,329.3 1,235.5 2,595.2 2,426.1 Operating income (loss) 333.2 278.2 627.4 537.5 Interest and debt income (expense), net (13.6) (17.6) (25.9) (34.9) Non-service retirement benefit income (expense), net 2.6 2.7 5.3 5.5 Other income (expense), net (0.9) (2.7) (6.8) (8.6) Income (loss) before income taxes 321.3 260.6 600.0 499.5 Provision (benefit) for income taxes 69.6 50.2 121.5 100.3 Net income (loss) including noncontrolling interest 251.7 210.4 478.5 399.2 Less: Net income (loss) attributable to noncontrolling interest — 0.5 — 0.7 Net income (loss) attributable to Teledyne $ 251.7 $ 209.9 $ 478.5 $ 398.5 Basic earnings per common share $ 5.44 $ 4.48 $ 10.33 $ 8.51 Weighted average common shares outstanding 46.3 46.9 46.3 46.8 Diluted earnings per common share $ 5.37 $ 4.43 $ 10.20 $ 8.41 Weighted average diluted common shares outstanding 46.9 47.4 46.9 47.4 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated statements of income: second quarter and first half of 2026 · Filed 24/07/2026
With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed-price contracts.
Revenue disclosures: prevalence of fixed-price contracts · Filed 24/07/2026
Such contracts are typically not subject to renegotiation if we fail to anticipate technical problems, estimate costs accurately or control costs during performance.
Government contracts: restrictions on renegotiating fixed-price contracts · Filed 20/02/2026
Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and exclude unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity).
Revenue disclosures: definition of remaining performance obligations · Filed 24/07/2026
As of June 28, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $5,176.1 million.
Revenue disclosures: June 2026 remaining performance obligations · Filed 24/07/2026
As of March 29, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,867.4 million.
Revenue disclosures: March 2026 remaining performance obligations · Filed 24/04/2026
Operating income in 2024 primarily reflected the impact of unfavorable contract estimate changes related to electronic manufacturing services products.
MD&A: unfavorable contract-estimate changes in 2024 · Filed 21/02/2025
5 Table of Contents TELEDYNE TECHNOLOGIES INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 28, 2026 AND JUNE 29, 2025 (Unaudited — Amounts in millions) Six Months 2026 2025 Operating Activities Net income (loss) including noncontrolling interest $ 478.5 $ 399.2 Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by (used in) operating activities: Depreciation and amortization 172.9 167.2 Stock-based compensation 19.5 20.2 Changes in operating assets and liabilities excluding the effect of business acquired: Accounts receivable and unbilled receivables (10.8) (22.2) Inventories (139.5) (45.3) Accounts payable 15.3 3.3 Deferred taxes and income taxes receivable (payable), net (5.1) (72.4) Prepaid expenses and other assets (39.6) (11.6) Accrued expenses and other liabilities 45.2 (12.9) Other operating, net 12.8 43.7 Net cash provided by (used in) operating activities 549.2 469.2 Investing Activities Purchases of property, plant and equipment (60.2) (48.3) Purchases of businesses, net of cash acquired (53.4) (757.6) Other investing, net (5.2) 0.7 Net cash provided by (used in) investing activities (118.8) (805.2) Financing Activities Proceeds from (payments on) fixed rate senior notes (450.0) (30.0) Proceeds from (payments on) other debt (0.6) (1.0) Purchases of treasury stock, including excise tax (2.9) (2.9) Proceeds from exercise of stock options 32.2 34.2 Other financing, net (15.4) (5.1) Net cash provided by (used in) financing activities (436.7) (4.8) Effects of exchange rate changes on cash (6.0) 1.9 Change in cash and cash equivalents (12.3) (338.9) Cash and cash equivalents—beginning of period 352.4 649.8 Cash and cash equivalents—end of period $ 340.1 $ 310.9 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated statements of cash flows: first half of 2026 · Filed 24/07/2026
During 2024, we repaid $450.0 million Fixed Rate Senior Notes due April 2024 and $150.0 million for a term loan due October 2024.
Liquidity and capital resources: actual 2024 debt repayments · Filed 21/02/2025
During 2023, we repaid $125.0 million of amount on its credit facility, the $300.0 million Fixed Rate Senior Notes due April 2023, and the remaining $245.0 million on our term loan due May 2026.
Liquidity and capital resources: actual 2023 debt repayments · Filed 23/02/2024
Investing activities used cash for business acquisitions of $821.4 million and $123.7 million in 2025 and 2024, respectively (see “Recent Developments”).
Investing activities: acquisition spending in 2025 and 2024 · Filed 20/02/2026
We funded the acquisitions from cash on hand.
Investing activities: acquisition funding from cash on hand · Filed 20/02/2026
Treasury Stock During 2025, the Company repurchased approximately 0.8 million shares for $400.0 million, with a weighted average price of $507.52 per share.
Stockholders' equity: actual 2025 share repurchases · Filed 20/02/2026
The 2025-2027 Performance Plan awards, which were issued in January 2025, were based on the achievement of the following objectives over the three-year performance period: Award Component Weighting Adjusted income before taxes* 40% Revenue 30% Total stockholder return ** 30% Total 100% * For purposes of determining adjusted income before taxes for the Performance Plan, we adjust the corresponding GAAP amounts for certain tax items.
Compensation discussion: issued 2025–2027 Performance Plan awards and metrics · Filed 12/03/2026
Adjusted income before taxes includes contributions from acquisitions during the performance cycle and may be adjusted to reflect the impact of significant changes in accounting principles, discontinued operations, unusual or extraordinary corporate transactions, events or developments, and unusual tax benefits.
Compensation discussion: acquisition contributions and performance-metric adjustments · Filed 12/03/2026
Key executives are required to own shares of Teledyne common stock equal in market value to the amount set forth below: Position Value of Shares Owned Executive Chairman and President and Chief Executive Officer 5 x base salary Vice Chairman, Executive Vice Presidents and Senior Vice Presidents 3 x base salary Segment Presidents or Presidents of Consolidated Business Units (annual revenue > $100 million) 2 x base salary Corporate Vice Presidents (Corporate and General Managers) and other Executives 1 x base salary A key executive, who is defined as a recipient of a performance-based restricted stock or restricted stock unit award, is expected to attain the minimum level of target ownership within a period of five years from the date of hire or promotion and is expected to own continuously sufficient shares to meet the guideline once attained.
Compensation discussion: executive stock ownership guidelines · Filed 12/03/2026
Performance-based restricted stock and restricted stock units and vested in-the-money options are included in the definition of common stock.
Compensation discussion: instruments counted toward stock ownership guidelines · Filed 12/03/2026
As of the end of 2025, all NEOs and non-employee directors owned sufficient shares to comply (or had additional time to comply) with the guidelines.
Compensation discussion: year-end 2025 ownership compliance or remaining compliance periods · Filed 12/03/2026
Clawback Policy In October 2023, our Board approved a “clawback” policy in compliance with rules of the New York Stock Exchange that requires the Company to seek reimbursement from executive officers of bonus, incentive and certain equity-based awards if the executive’s award was predicated upon the achievement of certain financial reporting measures that were subsequently the subject of a financial restatement and a lower payment, award, or vesting would have occurred based upon the restated financial results.
Compensation discussion: adopted clawback policy · Filed 12/03/2026
Board Practices Board Independence ✓ 9 out of 11 current Board members are independent.
Governance highlights: board independence · Filed 12/03/2026
Board Committees ✓ Fully independent Audit, Personnel and Compensation, and Nominating and Governance Committees.
Governance highlights: independent board committees · Filed 12/03/2026
4 TELEDYNE TECHNOLOGIES INCORPORATED | 2026 Proxy Statement 2026 Proxy Statement Summary (continued) Board Practices ✓ Board declassification is in process and the Board will be fully declassified in 2027.
Governance highlights: board declassification still in progress · Filed 12/03/2026
• In 2025, all directors attended at least 75% of the aggregate number of meetings of the Board and Board committees of which they were members.
Governance highlights: actual 2025 director attendance · Filed 12/03/2026
Cash Flows Net cash provided by operating activities was $549.2 million for the first six months of 2026 compared with net cash provided by operating activities of $469.2 million, with the increase primarily driven by favorable operating results and lower income tax payments, partially offset by higher inventory purchases in 2026.
MD&A: operating cash-flow drivers and inventory investment · Filed 24/07/2026
The second quarter of 2026, compared with the second quarter of 2025, reflected higher operating income in the Digital Imaging, Aerospace and Defense Electronics and Engineered Systems segments, including incremental operating income related to 2026 and 2025 acquisitions.
MD&A: segment operating-income improvement including acquisition contributions · Filed 24/07/2026
The FAA and equivalent regulatory agencies have increasingly focused on the need to assure that airline industry products are designed with sufficient cybersecurity controls to protect against unauthorized access or other unwanted compromise.
Risk Factors: evolving aviation cybersecurity expectations · Filed 20/02/2026
