Teledyne Technologies

TDY Q2 2025 Earnings

Reported Jul 23, 2025 at 7:02 AM ET · SEC Source

Q2 25 EPS

$5.20

BEAT +2.98%

Est. $5.05

Q2 25 Revenue

$1.51B

BEAT +2.57%

Est. $1.48B

vs S&P Since Q2 25

+8.0%

BEATING MARKET

TDY +21.6% vs S&P +13.6%

Market Reaction

Did TDY Beat Earnings? Q2 2025 Results

Teledyne Technologies turned in its strongest quarterly performance in three years during Q2 2025, posting non-GAAP diluted EPS of $5.20 against a consensus estimate of $5.05, a beat of 2.98%, while revenue of $1.51 billion topped expectations by 2.5… Read more Teledyne Technologies turned in its strongest quarterly performance in three years during Q2 2025, posting non-GAAP diluted EPS of $5.20 against a consensus estimate of $5.05, a beat of 2.98%, while revenue of $1.51 billion topped expectations by 2.57% and grew 10.2% year over year. The primary engine behind those results was a 36.2% surge in Aerospace and Defense Electronics, where $72.60 million in higher defense electronics sales, including $64.30 million from recent acquisitions, provided the clearest explanation for why the quarter landed so comfortably ahead of forecasts. All four business segments contributed organic growth, and non-GAAP operating margin widened to 22.2% from 21.6% a year earlier. Despite the robust print, shares slipped in pre-market trading as management flagged that some Q2 demand may have been pulled forward amid uncertain global trade conditions, a note of caution that also colored Q3 non-GAAP EPS guidance of $5.35 to $5.45. For the full year, Teledyne raised the low end of its GAAP EPS outlook to a range of $17.59 to $17.97.

Key Takeaways

  • Record quarterly net sales with 10.2% year-over-year growth, the greatest total and organic sales growth in three years
  • Orders exceeded sales for the seventh consecutive quarter
  • Aerospace and Defense Electronics sales surged 36.2% driven by $64.3 million in incremental defense electronics sales from recent acquisitions
  • Marine instrumentation sales increased $23.7 million from stronger offshore energy and defense markets
  • Higher sales of unmanned air systems and commercial infrared imaging components in Digital Imaging
  • Favorable program mix in Engineered Systems drove 61.3% operating income growth
  • Effective tax rate declined to 19.3% from 22.2% due to $8.4 million in net discrete income tax benefits
  • $70.1 million in incremental sales from current and prior year acquisitions
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TDY YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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TDY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Today we reported record quarterly sales, having achieved the greatest total and organic sales growth in three years. Furthermore, sales grew organically in every segment, and orders exceeded sales for the seventh consecutive quarter. Both GAAP and non-GAAP earnings per share increased at double-digit rates. Given our strong second quarter results, we are raising the low end of our full year non-GAAP earnings outlook. However, we are exercising some caution regarding the third quarter, as our second quarter likely benefited from a degree of accelerated demand given uncertain global trade policies. While we are pursuing a number of acquisitions, we will continue to consider stock repurchases when we believe Teledyne is the best value acquisition available.”

— Robert Mehrabian, Q2 2025 Earnings Press Release