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. 3/6 · 28/10/2026
Moat—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Pricing power—
Awaiting a sourced assessment under the current scoring policy and financial basis.
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
Management—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Evidence
We provide research and engineering capabilities primarily in the areas of electronics, materials, optical systems and information science to military, aerospace and industrial customers, as well as to various businesses throughout Teledyne.
Business / Digital Imaging research and engineering capabilities · 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.
Risk factors / aircraft component qualification requirements · Filed 20/02/2026
The markets in which we sell our enabling technologies are characterized by high barriers to entry and include specialized products and services not likely to be commoditized.
MD&A / management characterization of market entry barriers · Filed 24/07/2026
Although we have certain advantages that we believe help us compete effectively in our markets, each of our markets is highly competitive.
Business / competition · Filed 20/02/2026
Many of our competitors have, and potential competitors could have, greater name recognition, a larger installed base of products, more extensive engineering, manufacturing, marketing and distribution capabilities and greater financial, technological and personnel resources than we do.
Business / competitor resources · 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 / intellectual property dependence · 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 approvals · Filed 20/02/2026
Most of the contract modifications on the Company’s over time contracts are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract.
Revenue recognition / integration services and contract modifications · Filed 20/02/2026
Remaining Performance Obligations
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).
Notes / 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.
Notes / firm remaining performance obligations at June 28, 2026 · Filed 24/07/2026
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.
Acquired intangible assets / qualitative customer attrition assessment · 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 government bidding · 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 Electronics convenience terminations · Filed 20/02/2026
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 income statements / first-half 2026 comparative results · Filed 24/07/2026
With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed-price contracts.
Business segments / 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.
Business / limits on government contract renegotiation · Filed 20/02/2026
We may also implement additional pricing actions to mitigate the impact of these tariffs or other inflationary pressures.
MD&A / potential additional pricing actions · Filed 24/07/2026
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 cash flows / first-half 2026 spending and debt repayment · Filed 24/07/2026
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 · Filed 24/07/2026
Investing activities used cash for business acquisitions of $821.4 million and $123.7 million in 2025 and 2024, respectively (see “Recent Developments”).
MD&A / actual acquisition spending · Filed 20/02/2026
During 2025, we repurchased approximately 0.8 million shares for $400.0 million with a weighted average price of $507.52 per share.
MD&A / actual 2025 share repurchases · Filed 20/02/2026
We recorded $52.5 million of pretax, non-cash trademark impairments in 2024 in the Digital Imaging and Instrumentation segments.
MD&A / 2024 trademark impairments · 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 · 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 adjustments · Filed 12/03/2026
Restrictions on 69% of the 2023 performance-based restricted stock award lapsed on January 24, 2026, since the performance of our stock price was 69% of that of the S&P 500 for the three-year period ended December 31, 2025, and in January 2026, the Committee confirmed vesting with respect to 69% of such awards.
Compensation discussion / confirmed partial vesting of 2023 awards · 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.
Stock ownership guidelines / compliance or remaining compliance period · 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 / committee independence · 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 / incomplete board declassification · 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
The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in 2025 and 2024 was approximately $12.7 million of favorable operating income and $2.5 million of unfavorable operating income, respectively.
Revenue recognition / favorable and unfavorable contract estimate changes · Filed 20/02/2026
The increase in operating income primarily reflected higher net sales, favorable product mix and tariff refunds partially offset by higher research and development expense and higher inventory reserves.
Digital Imaging results / mix, tariff refunds and inventory reserves · Filed 22/07/2026
Operating income was $101.4 million for the second quarter of 2026 compared with $101.6 million, a decrease of 0.2%.
Instrumentation results / second-quarter operating income decline · Filed 22/07/2026
The decrease in operating income primarily reflected the impact of unfavorable product mix in the segment.
Instrumentation results / unfavorable product mix · Filed 22/07/2026
The second quarter of 2026 net sales included $12.2 million in incremental sales from recent acquisitions.
Second-quarter results / incremental acquisition sales · Filed 22/07/2026
Nevertheless, while Teledyne and Varex serve similar customers with related technologies, our products are uniquely complementary with minimal overlap,” said Robert Mehrabian, Executive Chairman of Teledyne.
Acquisition announcement / management description of complementary portfolios · Filed 10/08/2026
This transaction is anticipated to be completed in early 2027 and is subject to customary closing conditions, including regulatory approvals and Varex’s stockholder approval.
Acquisition announcement / expected closing and outstanding conditions · Filed 10/08/2026
