Teledyne Technologies Incorporated (NYSE:TDY) shares are trading lower in premarket trading on Wednesday after the company reported its third-quarter results.
The firm reported sales growth of 6.7% year-over-year (Y/Y) to $1.540 billion, beating the consensus of $1.528 billion.
In the quarter, net sales in the Digital Imaging segment stood at $785.4 million (+2.2% Y/Y), Instrumentation segment at $363.6 million (+3.9% Y/Y), Aerospace and Defense Electronics segment at $275.5 million (+37.6% Y/Y) and the Engineered Systems segment at $115.0 million (-8.1% Y/Y).
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Adjusted operating margin stood at 22.1% compared to 22.5% in the same quarter last year. Adjusted EPS was $5.57, above the consensus of $5.480.
During the quarter, the company generated $343.1 million in cash from operations and $ 313.9 million in free cash flow.
As of September 28, 2025, the company’s net debt was $2.0 billion.
Management Commentary
“Furthermore, total company new orders were also a quarterly record due in part to continued backlog growth at Teledyne FLIR. Given our strong third quarter performance, recovering commercial short-cycle businesses, and robust backlog growth, we are raising our full year earnings outlook,” stated Robert Mehrabian, executive chairman.
”Nevertheless, given the current U.S. Government shutdown, we are a bit measured on expectations for new awards and shipments in the very near-term.”
Outlook
Teledyne Technologies expects fourth-quarter adjusted EPS of $5.73–$5.88, versus the $5.88 consensus estimate.
The company raised its full-year 2025 adjusted EPS guidance to $21.45–$21.60, up from $21.20–$21.50 and compared to the $21.49 estimate.
Investors can gain exposure to the stock through the Spinnaker ETF Series Tuttle Capital Self Defense Index ETF (BATS:GUNZ) and Virtus ETF Trust II Virtus KAR Mid-Cap ETF (NYSE:KMID).
Price Action: TDY shares are trading lower by 2.40% to $560.00 at the last check on Wednesday.
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