Teledyne Technologies Incorporated (TDY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Here is our first speaker, Mr. Jason Van Wees. Good morning, everyone, and thank you for joining the earnings call. This is Jason Van Wees, Vice Chairman, and I'd like to welcome everyone to our fourth quarter and full year earnings release conference call. and dial-in will be available for approximately one month. Here is Robert. Thank you, Jason. We concluded 2025 with the largest quarterly orders, sales, and non-gap earnings, as well as operating margin in the company's history. Consequently, optimistic about 2026, both due to the performance of our businesses in 2025, as well as the new leadership in place with George Bob as CEO and multiple senior executives with added responsibilities in our business segments. Getting back to 2025, fourth quarter sales increased 7.3% from last year, while non-GAAP earnings increased 14.1%. For the full year, sales increased 7.9% and non-GAAP earnings increased 11.5%. Throughout Teledyne, our defense businesses remained healthy and our short-cycle commercial businesses continued to recover with most product families increasing either sequentially or year-over-year. In digital imaging, Teledyne FLIR performed very well with particular strength in unmanned and other defense surveillance systems, while within marine instrumentation, we achieved record sales of autonomous underwater vehicles. In terms of capital deployment, 25 was our second largest year in history, with over $850 million spent on acquisitions throughout the year, and $400 million for stock repurchases within the fourth quarter. Nevertheless, having generated approximately $1.1 billion in free cash flow for two consecutive years, we ended 2025 with a leverage ratio of just 1.4 times. Last week, we continued our String of Pearls strategy with the acquisition of DD Sc...