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Teledyne (TDY)
:TDY
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Teledyne Technologies
(NYSE:TDY)
Rating:77Outperform
Price Target:
$624.00
▲(13.01% Upside)
Positive Factors
Earnings
TDY 2Q25 results were ahead of consensus and the company raised guidance.
Leadership
The transition in leadership with George C. Bobb III becoming CEO is part of a planned succession, indicating stability and continuity in Teledyne's management.
Orders
Total orders reached an all-time high over $6.3B, up 12% year-over-year and an acceleration sequentially.
Negative Factors
Future Demand
The biggest questions in the company’s outlook is whether the Q2 upside in the short-cycle business will come at the expense of future demand.
Teledyne Technologies (TDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.89B
Dividend YieldN/A
Average Volume (3M)424.88K
Price to Earnings (P/E)30.2
Beta (1Y)0.77
Revenue Growth6.47%
EPS Growth-1.48%
CountryUS
Employees14,900
SectorTechnology
Sector Strength92
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)5.20
Shares Outstanding46,888,496
10 Day Avg. Volume509,947
30 Day Avg. Volume424,876
Financial Highlights & Ratios
PEG Ratio-3.88
Price to Book (P/B)2.28
Price to Sales (P/S)3.83
P/FCF Ratio19.61
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue4.48
Enterprise Value/Gross Profit10.48
Enterprise Value/Ebitda19.29
Forecast
1Y Price Target
$610.86Price Target Upside10.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Teledyne Technologies Business Overview & Revenue Model
Company DescriptionTeledyne Technologies (TDY) is a diversified industrial conglomerate that operates in various sectors, including aerospace and defense, marine instrumentation, digital imaging, and engineered systems. The company is known for its innovative technology-driven products and services that cater to both commercial and government customers worldwide. Teledyne's core offerings include sophisticated electronics, instrumentation, and communication products that support a range of applications in high-growth industries.
How the Company Makes MoneyTeledyne Technologies makes money through its diverse portfolio of products and services spread across multiple sectors. The company generates revenue primarily from the sale of advanced instrumentation and communication products used in aerospace and defense, environmental monitoring, and marine exploration. Key revenue streams include contracts with government agencies for defense-related projects, sales of environmental monitoring equipment, and digital imaging technologies. In addition, the company benefits from long-term strategic partnerships and collaborations with industry leaders, which enhance its market reach and technological capabilities. Teledyne's ability to innovate and adapt to emerging technologies allows it to maintain a competitive edge and sustain its revenue growth.
Teledyne Technologies Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: -0.68%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with record sales and earnings growth. The company saw robust performance in its Energy and Defense segments and maintained a strong order book. However, management expressed caution about short-cycle business performance, leading to a conservative forecast for the next quarter. Cash flow challenges and margin pressures in specific segments also presented some concerns.Q2-2025 Updates
Positive Updates
Record Quarterly Sales
Teledyne reported record quarterly sales with a 10.2% increase, marking the greatest total and organic sales growth in almost 3 years.
Earnings Growth
Non-GAAP earnings per share increased 13.5% from last year, setting a record for any second quarter.
Strong Defense and Energy Performance
The Energy and Defense businesses performed well due to market strength and the company's specific portfolio, including unmanned air and subsea systems, space-based sensors, NATO defense spending, and offshore energy production.
Order Performance
Orders exceeded sales for the seventh consecutive quarter, with a book-to-bill ratio of 1.1x in the Digital Imaging segment.
Aerospace and Defense Electronics Growth
Second quarter sales in the Aerospace and Defense Electronics segment increased 36.2%, primarily driven by acquisitions and organic growth of defense electronics products.
Stock Repurchase Authorization
The Board of Directors increased stock repurchase authorization from $896 million to $2 billion.
Negative Updates
Cautious Outlook for Short-Cycle Businesses
Management expressed caution about potential pull-ins in short-cycle businesses and forecasted flat sales for the third quarter.
Decrease in Cash Flow
Cash flow from operating activities decreased to $226.6 million compared with $318.7 million in 2024, primarily due to higher income tax payments.
Non-GAAP Operating Margin Decline in Digital Imaging
Non-GAAP operating margin in Digital Imaging decreased marginally due in part to greater severance costs.
Challenges in Commercial Aerospace
While commercial aerospace aftermarket sales increased, this was offset by a decline in OEM sales due to export restrictions.
Company Guidance
During Teledyne's second-quarter earnings call for fiscal year 2025, the company reported a 10.2% increase in sales, marking the greatest total and organic sales growth in nearly three years. Non-GAAP earnings per share grew by 13.5% year-over-year, setting a record for any second quarter. Orders exceeded sales for the seventh consecutive quarter, with notable performance in the Energy and Defense sectors, driven by their portfolio in unmanned systems and space-based sensors. The Digital Imaging segment saw a 4.3% rise in sales, with a book-to-bill ratio of 1.1x. The Instrumentation segment's sales increased by 10.2%, with operating margins reaching 28.5% on a non-GAAP basis. The Aerospace and Defense Electronics segment experienced a 36.2% sales increase, while Engineered Systems revenue rose by 3.3%. Despite spending $770 million year-to-date on acquisitions, the company's debt-to-EBITDA ratio stands at 1.6, with $1.17 billion available in its credit facility. Teledyne's board increased stock repurchase authorization from $896 million to $2 billion, reflecting sound financial health. Looking ahead, Teledyne anticipates flat sales for the third quarter but remains optimistic about long-term growth, forecasting full-year non-GAAP earnings per share between $21.20 and $21.50.Teledyne Technologies Financial Statement Overview
Summary
Teledyne Technologies exhibits a solid financial performance with strong profitability and operational efficiency. Despite a slight decrease in net income, the company has strong margins and revenue growth. The balance sheet shows minimal debt reliance, and cash flow management is sound, although liquidity and capital allocation could improve.Income Statement
Teledyne Technologies has shown a strong income statement performance with increasing total revenue and consistent growth in gross profit. The TTM (Trailing-Twelve-Months) gross profit margin stands at 42.9%, and the net profit margin is 14.4%, indicating strong profitability. Revenue growth is positive, with a 2% increase from the previous year, showcasing a steady upward trend. The EBIT margin of 17.6% and EBITDA margin of 21.7% reflect solid operational efficiency. Despite the positive trajectory, net income slightly decreased from the previous year, which could hint at potential challenges in maintaining net income growth.85
Very Positive
Balance Sheet
The balance sheet of Teledyne Technologies is strong, with a high equity ratio of 65.9%, indicating that a significant portion of the company's assets is financed by equity. The debt-to-equity ratio is exceptionally low at 0.00002, showing minimal reliance on debt financing. Return on Equity (ROE) is robust at 8.4%, reflecting effective use of shareholders' capital to generate profits. However, the decline in cash and short-term investments might suggest a need for improved liquidity management.78
Positive
Cash Flow
Teledyne Technologies demonstrates strong cash flow management, with a healthy operating cash flow to net income ratio of 1.38 in TTM (Trailing-Twelve-Months), indicating that the company generates substantial cash from its operations relative to its net income. The free cash flow has grown positively, reflecting efficient capital expenditure management. However, there is a decline in free cash flow from the previous year, signaling potential areas for improvement in capital allocation.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.91B | 5.67B | 5.64B | 5.46B | 4.61B | 3.09B |
| Gross Profit | 2.53B | 2.43B | 2.44B | 2.33B | 1.84B | 1.18B |
| EBITDA | 1.37B | 1.36B | 1.36B | 1.34B | 982.00M | 604.10M |
| Net Income | 859.00M | 819.20M | 885.70M | 788.60M | 445.30M | 401.90M |
Balance Sheet | ||||||
| Total Assets | 15.14B | 14.20B | 14.53B | 14.35B | 14.45B | 5.07B |
| Cash, Cash Equivalents and Short-Term Investments | 310.90M | 649.80M | 648.30M | 638.10M | 474.70M | 673.10M |
| Total Debt | 2.62B | 2.65B | 3.24B | 3.92B | 4.10B | 778.50M |
| Total Liabilities | 4.75B | 4.65B | 5.30B | 6.20B | 6.82B | 1.84B |
| Stockholders Equity | 10.38B | 9.55B | 9.22B | 8.16B | 7.62B | 3.23B |
Cash Flow | ||||||
| Free Cash Flow | 953.00M | 1.11B | 721.20M | 394.20M | 723.00M | 547.50M |
| Operating Cash Flow | 1.05B | 1.19B | 836.10M | 486.80M | 824.60M | 618.90M |
| Investing Cash Flow | -855.30M | -207.20M | -190.30M | -175.40M | -3.82B | -99.40M |
| Financing Cash Flow | -312.70M | -945.80M | -651.50M | -110.00M | 2.81B | -61.80M |
Teledyne Technologies Technical Analysis
Positive
552.16
Price Trends
518.57
Positive
499.22
Positive
490.17
Positive
Market Momentum
10.04
Positive
62.29
Neutral
58.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDY, the sentiment is Positive. The current price of 552.16 is above the 20-day moving average (MA) of 547.02, above the 50-day MA of 518.57, and above the 200-day MA of 490.17, indicating a bullish trend. The MACD of 10.04 indicates Positive momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 58.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDY.
Teledyne Technologies Risk Analysis
Teledyne Technologies disclosed 42 risk factors in its most recent earnings report. Teledyne Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teledyne Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.89B | 30.24 | 8.72% | ― | 6.47% | -1.48% | |
76 Outperform | $19.73B | 71.98 | 5.06% | ― | -6.93% | 537.94% | |
75 Outperform | $27.76B | 37.76 | 14.30% | ― | -1.16% | -7.04% | |
73 Outperform | $16.41B | ― | 1.25% | ― | 21.68% | 92.07% | |
71 Outperform | $54.11B | 66.88 | 7.55% | 1.77% | 14.63% | 86.61% | |
66 Neutral | $16.38B | 21.85 | 7.36% | 0.49% | -0.12% | -11.27% | |
57 Neutral | HK$14.02B | 9.47 | -2.83% | 4.86% | 9.29% | -48.65% |
* Technology Sector Average
Performance Comparison
TDY
Teledyne Technologies
552.16
141.98
34.61%
GLW
Corning
63.17
25.48
67.60%
COHR
Coherent Corp
105.60
43.62
70.38%
TRMB
Trimble
82.70
31.16
60.46%
KEYS
Keysight Technologies
161.32
38.20
31.03%
FTV
Fortive
48.40
-3.28
-6.35%
Teledyne Technologies Corporate Events
Stock BuybackFinancial Disclosures
Teledyne Technologies Announces $2 Billion Stock Buyback
Positive
Jul 23, 2025
On July 22, 2025, Teledyne Technologies announced a new stock repurchase program, authorizing up to $2.0 billion in stock buybacks, replacing previous authorizations. The company reported record net sales of $1,513.7 million for the second quarter of 2025, a 10.2% increase from the previous year, with significant growth across all segments and a strong financial outlook for the year, although caution was noted for the third quarter due to potential accelerated demand from uncertain global trade policies.
The most recent analyst rating on (TDY) stock is a Buy with a $550.00 price target. To see the full list of analyst forecasts on Teledyne Technologies stock, see the TDY Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.