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Item 1. Financial Statements

2026-07-24 compared with 2026-04-24 · 375 added, 177 removed, 795 unchanged (41% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

FOR THE FIRST QUARTER ENDED MARCH 29, 2026 AND MARCH 30, 2025

FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 28, 2026 AND JUNE 29, 2025

(Unaudited — Amounts in millions, except per share amounts)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

Net sales $ 1,662.5 $ 1,513.7 $ 3,222.6 $ 2,963.6

3 unchanged sentences

Research and development

90.2 82.4 174.8 156.7

Acquired intangible asset amortization 56.0 54.6 113.6 106.6

1 unchanged sentence

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 )

2 unchanged sentences

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

9 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE FIRST QUARTER ENDED MARCH 29, 2026 AND MARCH 30, 2025

FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 28, 2026 AND JUNE 29, 2025

(Unaudited — Amounts in millions)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

Net income (loss) including noncontrolling interest $ 251.7 $ 210.4 $ 478.5 $ 399.2

11 unchanged sentences

(Unaudited — Amounts in millions, except share amounts)

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

Current Assets

5 unchanged sentences

Total current assets 3,200.6 3,055.6

Property, plant and equipment, net of accumulated depreciation and amortization of $ 1,125.5 at March 29, 2026 and $ 1,107.9 at December 28, 2025

Property, plant and equipment, net of accumulated depreciation and amortization of $ 1,146.3 at June 28, 2026 and $ 1,107.9 at December 28, 2025

Goodwill 8,661.9 8,687.6

20 unchanged sentences

issued shares:

47,417,939 at March 29, 2026 and 47,424,847 at December 28, 2025;

47,417,939 at June 28, 2026 and 47,424,847 at December 28, 2025;

outstanding shares:

46,328,578 at March 29, 2026 and 46,185,578 at December 28, 2025

46,355,253 at June 28, 2026 and 46,185,578 at December 28, 2025

Additional paid-in capital 4,352.9 4,383.2

Retained earnings 7,619.3 7,140.8

Treasury stock, 1,089,361 shares at March 29, 2026 and 1,239,269 at December 28, 2025

Treasury stock, 1,062,686 shares at June 28, 2026 and 1,239,269 at December 28, 2025

( 519.1 ) ( 585.2 )

20 unchanged sentences

0.5 4,353.6 ( 529.7 ) 7,367.6 ( 487.6 ) 10,704.4

Net income (loss) — — — 251.7 — 251.7

Other comprehensive income (loss), net of tax — — — — ( 47.5 ) ( 47.5 )

Treasury stock issued — ( 10.6 ) 10.6 — — —

Stock-based compensation and other

— 6.6 — — — 6.6

Exercise of stock options

— 3.3 — — — 3.3

Balance, June 28, 2026

$ 0.5 $ 4,352.9 $ ( 519.1 ) $ 7,619.3 $ ( 535.1 ) $ 10,918.5

Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

11 unchanged sentences

0.5 4,386.8 ( 231.1 ) 6,455.3 ( 686.3 ) 9,925.2

Net income (loss) — — — 209.9 — 209.9

Other comprehensive income (loss), net of tax — — — — 228.6 228.6

Treasury stock issued

— ( 13.7 ) 13.7 — — —

Treasury stock repurchased, including excise tax — — ( 2.9 ) — — ( 2.9 )

Stock-based compensation and other

— 11.4 — — — 11.4

Exercise of stock options — 4.7 — — — 4.7

Balance, June 29, 2025

$ 0.5 $ 4,389.2 $ ( 220.3 ) $ 6,665.2 $ ( 457.7 ) $ 10,376.9

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 29, 2026 AND MARCH 30, 2025

FOR THE SIX MONTHS ENDED JUNE 28, 2026 AND JUNE 29, 2025

(Unaudited — Amounts in millions)

19 unchanged sentences

Financing Activities

Net proceeds from (repayments on) credit facility

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

8 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

March 29, 2026

June 28, 2026

Basis of Presentation

3 unchanged sentences

The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025 (“2025 Form 10-K”).

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of March 29, 2026, and the consolidated results of operations, consolidated comprehensive income (loss) and consolidated cash flows for the first quarter ended March 29, 2026.

The results of operations and cash flows for the first quarter ended March 29, 2026, are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of June 28, 2026, and the consolidated results of operations, consolidated comprehensive income (loss) and consolidated cash flows for the second quarter and six months ended June 28, 2026.

The results of operations and cash flows for the second quarter ended June 28, 2026, are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year.

Recent Accounting Standards

5 unchanged sentences

The Company is evaluating the impact of adopting this guidance on its consolidated financial statements.

Other ASUs issued but not effective until after March 29, 2026, are not expected to have a material effect on the Company’s consolidated financial position, annual results of operations and/or cash flows.

Other ASUs issued but not effective until after June 28, 2026, are not expected to have a material effect on the Company’s consolidated financial position, annual results of operations and/or cash flows.

Business Acquisitions

1 unchanged sentence

DD-Scientific

In the first quarter of 2026, the Company acquired DD-Scientific Holdings Limited and its subsidiary DD-Scientific Limited (together, “DD-Scientific”) for approximately $ 53.4 million in cash, net of cash acquired and subject to certain adjustments.

In the first quarter of 2026, the Company acquired DD-Scientific Holdings Limited and its subsidiary DD-Scientific Limited (together, “DD-Scientific”) for approximately $ 53.6 million in cash, net of cash acquired and certain adjustments.

DD-Scientific, founded in 2011 and headquartered in Fareham, UK, develops and manufactures high-performance gas sensors for critical applications in industries including industrial safety, healthcare and environmental compliance.

DD-Scientific will be included within the Instrumentation segment.

DD-Scientific is included within the Instrumentation segment.

Goodwill resulting from the DD-Scientific acquisition will not be deductible for tax purposes.

7 unchanged sentences

During the third quarter of 2025, the Company acquired the redeemable noncontrolling interest of NL Acoustics for $ 27.2 million in cash, with the acquisition of the noncontrolling interest treated as an equity transaction during the period.

During the third quarter of 2025, the Company acquired the assets of Maretron, including the brand’s Octoplex, MPower and MConnect product lines from Littelfuse, Inc.

The Maretron assets are part of the Digital Imaging segment, and the acquisition is not material for further disclosure.

During the first quarter of 2025, the Company acquired Micropac Industries, Inc.

6 unchanged sentences

During the first quarter of 2025 , the Company acquired select aerospace and defense electronics businesses of Excelitas Technologies C orp.

(“Excelitas”) for approximately $ 702.8 million in cash, net of cash acquired, and subject to certain adjustments.

(“Excelitas”) for approximately $ 702.8 million in cash, net of cash acquired and certain adjustments.

The acquisition includes the Optical Systems ( “ OS ” ) business which is based in Northern Wales, UK, as well as the U.S.-based Advanced Electronics Systems ( “ AES ” ) business (collectively, “OS and AES businesses”, or “Qioptiq”).

17 unchanged sentences

The Company’s cost to acquire these acquisitions was allocated to the assets acquired and liabilities assumed based upon their respective fair values as of the date of the completion of the acquisition.

The differences between the fair value of the consideration paid and the estimated fair value of the assets and liabilities acquired was recorded as goodwill.

The fair value of the acquired identifiable assets and liabilities for TransponderTech and DD-Scientific are provisional pending finalization of the Company’s acquisition accounting, including the measurement of tax basis in certain jurisdictions and the resulting deferred taxes that might arise from book and tax basis differences, if any.

The differences between the fair value of the consideration paid and the estimated fair value of the assets and liabilities acquired were recorded as goodwill.

The fair value of the acquired identifiable assets and liabilities for TransponderTech and DD-Scientific is provisional pending finalization of the Company’s acquisition accounting, including the measurement of tax basis in certain jurisdictions and the resulting deferred taxes that might arise from book and tax basis differences, if any.

Pro forma results of operations, the revenue and net income subsequent to the acquisition date, and a more detailed breakout of the major classes of assets and liabilities acquired for these acquisitions have not been presented because the effects of these acquisitions both individually and in the aggregate were not material to the Company’s financial results.

8 unchanged sentences

Corporate expense primarily includes administrative expenses relating to the corporate office not allocated to the segments.

In the first quarter of 2026, the Company completed one acquisition, and the financial results of this acquisition have been included since the date of the acquisition and is part of the Instrumentation segment.

In 2026, the Company completed one acquisition, and the financial results of this acquisition have been included since the date of the acquisition and is part of the Instrumentation segment.

In 2025, the Company completed four acquisitions, and the financial results of these acquisitions have been included since the date of the acquisition and are part of the Digital Imaging and Aerospace and Defense Electronics segments.

1 unchanged sentence

Information for the Company’s business segments was as follows (in millions):

First Quarter Ended March 29, 2026

Digital Imaging

Instrumentation

Aerospace and Defense Electronics

Engineered Systems

Second Quarter Ended June 28, 2026

Digital Imaging Instrumentation Aerospace and Defense Electronics Engineered Systems Total

Net sales (a) $ 868.7 $ 387.8 $ 286.4 $ 119.6 $ 1,662.5

Costs and expenses

Cost of sales 459.3 199.5 168.0 97.6 924.4

Selling, general and administrative 134.1 57.2 33.0 6.4 230.7

Research and development 57.7 26.3 5.7 0.5 90.2

Acquired intangible asset amortization 47.4 3.4 5.2 — 56.0

Segment Operating income (loss)

$ 170.2 $ 101.4 $ 74.5 $ 15.1 $ 361.2

Reconciliation to Income (loss) before income taxes

Corporate expense ( 28.0 )

Interest and debt expense, net ( 13.6 )

Non-service retirement benefit income 2.6

Other income (expense), net ( 0.9 )

Income (loss) before income taxes

(a) Net sales exclude inter-segment sales of $ 18.0 million for the second quarter of 2026.

Six Months Ended June 28, 2026

Digital Imaging Instrumentation Aerospace and Defense Electronics Engineered Systems Total

Net sales (a) $ 1,685.6 $ 749.2 $ 563.9 $ 223.9 $ 3,222.6

Costs and expenses

11 unchanged sentences

Income (loss) before income taxes

(a) Net sales exclude inter-segment sales of $ 5.3 million for the first quarter of 2026.

First Quarter Ended March 30, 2025

Digital Imaging

Instrumentation

Aerospace and Defense Electronics

Engineered Systems

(a) Net sales exclude inter-segment sales of $ 23.3 million for the first six months of 2026.

Second Quarter Ended June 29, 2025

Digital Imaging Instrumentation Aerospace and Defense Electronics Engineered Systems Total

Net sales (a) $ 771.0 $ 367.6 $ 264.8 $ 110.3 $ 1,513.7

Costs and expenses

Cost of sales 436.6 186.7 154.2 91.6 869.1

Selling, general and administrative 120.3 50.3 30.8 6.3 207.7

Research and development 48.2 25.7 8.2 0.3 82.4

Acquired intangible asset amortization 46.3 3.3 5.0 — 54.6

Segment Operating income (loss)

$ 119.6 $ 101.6 $ 66.6 $ 12.1 $ 299.9

Reconciliation to Income (loss) before income taxes

Corporate expense ( 21.7 )

Interest and debt expense, net ( 17.6 )

Non-service retirement benefit income 2.7

Other income (expense), net ( 2.7 )

Income (loss) before income taxes

(a) Net sales exclude inter-segment sales of $ 7.2 million for the second quarter of 2025.

Six Months Ended June 29, 2025

Digital Imaging Instrumentation Aerospace and Defense Electronics Engineered Systems Total

Net sales (a) $ 1,528.0 $ 710.9 $ 507.3 $ 217.4 $ 2,963.6

Costs and expenses

11 unchanged sentences

Income (loss) before income taxes

(a) Net sales exclude inter-segment sales of $ 3.8 million for the first quarter of 2025.

(a) Net sales exclude inter-segment sales of $ 11.0 million for the first six months of 2025.

Product Lines

3 unchanged sentences

The table below provides a summary of the net sales by product line for the Instrumentation segment (in millions):

First Quarter

Second Quarter Six Months

Instrumentation 2026 2025 2026 2025

7 unchanged sentences

Identifiable assets:

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

Digital Imaging $ 11,282.4 $ 11,303.3

3 unchanged sentences

Total segment identifiable assets 14,859.5 14,779.9

14,910.7 14,779.9

Corporate 420.9 505.4

Total Teledyne identifiable assets $ 15,280.4 $ 15,285.3

$ 15,493.0 $ 15,285.3

Revenue Recognition and Contract Balances

1 unchanged sentence

The Company disaggregates its revenue from contracts with customers by customer type and geographic region for each segment, as management believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

First Quarter Ended

March 29, 2026

First Quarter Ended

March 29, 2026

Second Quarter Ended

June 28, 2026

Second Quarter Ended

June 28, 2026

Customer Type Geographic Region (c)

9 unchanged sentences

First Quarter Ended

March 30, 2025

First Quarter Ended

March 30, 2025

Six Months Ended

June 28, 2026

Six Months Ended

June 28, 2026

Customer Type Geographic Region (c)

(in millions) U.S.

(a) Other (b) Total United States Europe Asia All other Total

Digital Imaging $ 371.0 $ 1,314.6 $ 1,685.6 $ 813.3 $ 468.8 $ 259.8 $ 143.7 $ 1,685.6

Instrumentation 65.6 683.6 749.2 293.7 241.5 124.8 89.2 749.2

Aerospace and Defense Electronics 198.3 365.6 563.9 334.3 150.3 47.5 31.8 563.9

Engineered Systems 192.1 31.8 223.9 221.6 — 0.8 1.5 223.9

Total $ 827.0 $ 2,395.6 $ 3,222.6 $ 1,662.9 $ 860.6 $ 432.9 $ 266.2 $ 3,222.6

Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

Second Quarter Ended

June 29, 2025

Second Quarter Ended

June 29, 2025

Customer Type Geographic Region (c)

(in millions) U.S.

(a) Other (b) Total United States Europe Asia All Other

7 unchanged sentences

Six Months Ended

June 29, 2025

Six Months Ended

June 29, 2025

Customer Type Geographic Region (c)

(in millions) U.S.

(a) Other (b) Total United States Europe Asia All other Total

Digital Imaging $ 303.0 $ 1,225.0 $ 1,528.0 $ 697.7 $ 401.1 $ 274.8 $ 154.4 $ 1,528.0

Instrumentation 59.9 651.0 710.9 298.9 216.4 117.9 77.7 710.9

Aerospace and Defense Electronics 204.4 302.9 507.3 325.2 116.1 45.7 20.3 507.3

Engineered Systems 184.0 33.4 217.4 215.0 — 1.2 1.2 217.4

Total $ 751.3 $ 2,212.3 $ 2,963.6 $ 1,536.8 $ 733.6 $ 439.6 $ 253.6 $ 2,963.6

Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed-price contracts.

Net sales in the Engineered Systems segment are typically between 45 % and 55 % fixed-price contracts in a given reporting period, with the balance of net sales derived from cost-reimbursable type contracts.

For the first quarter ended March 29, 2026, approximately 46 % of net sales in the Engineered Systems segment was derived from fixed-price contracts.

For the six months ended June 28, 2026, approximately 47 % of net sales in the Engineered Systems segment was derived from fixed-price contracts.

Contract Liabilities

Contract Liabilities by Balance Sheet Location (in millions) March 29, 2026

Contract Liabilities by Balance Sheet Location (in millions) June 28, 2026

December 28, 2025

2 unchanged sentences

Total contract liabilities $ 461.6 $ 403.2

The Company recognized revenue of $ 95.2 million during the first quarter ended March 29, 2026, from contract liabilities that existed at the beginning of the year.

The Company recognized revenue of $ 170.7 million during the six months ended June 28, 2026, from contract liabilities that existed at the beginning of the year.

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).

As of March 29, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,867.4 million.

As of June 28, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 5,176.1 million.

The Company expects approximately 72 % of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 28 % recognized thereafter.

7 unchanged sentences

Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly.

The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first quarter of 2026 was $ 8.6 million of favorable operating income compared with $ 2.3 million of favorable operating income in the first quarter of 2025, with the first quarter of 2026 primarily related to favorable changes within the Digital Imaging segment.

The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first six months of 2026 was $ 22.4 million of favorable operating income compared with $ 1.9 million of favorable operating income in the first six months of 2025, with the first six months of 2026 primarily related to favorable changes within the Digital Imaging segment.

None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income (loss) for any period presented.

6 unchanged sentences

Foreign currency changes and other ( 48.5 ) ( 10.3 ) ( 2.6 ) — ( 61.4 )

Balance at March 29, 2026

Balance at June 28, 2026

$ 7,017.3 $ 1,012.3 $ 614.7 $ 17.6 $ 8,661.9

1 unchanged sentence

Acquired intangible assets consisted of the following (in millions):

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

Gross Carrying Amount

28 unchanged sentences

Cash Equivalents

The Company had $ 298.9 million and $ 136.0 million of cash equivalents at March 29, 2026, and December 28, 2025, respectively.

The Company had $ 99.5 million and $ 136.0 million of cash equivalents at June 28, 2026, and December 28, 2025, respectively.

Cash equivalents consist of highly liquid money-market mutual funds with maturities of three months or less when purchased.

Accounts Receivable, Net

Accounts receivable is presented net of an allowance for estimated credit losses of $ 11.1 million at March 29, 2026 and $ 11.0 million at December 28, 2025.

Accounts receivable is presented net of an allowance for estimated credit losses of $ 8.9 million at June 28, 2026 and $ 11.0 million at December 28, 2025.

Inventories, Net

2 unchanged sentences

Inventory balances are summarized as follows (in millions):

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

Raw materials and supplies $ 738.1 $ 648.9

15 unchanged sentences

Long-Term Debt (in millions):

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

$ 1.2 billion credit facility due June 2029

8 unchanged sentences

Total long-term debt, net of current portion $ 2,026.9 $ 2,025.3

At March 29, 2026, $ 1,165.8 million was available under the $ 1.2 billion credit facility after reductions of $ 34.2 million in outstanding letters of credit.

The Company’s bank credit agreements require the Company to comply with various financial and operating covenants, and at March 29, 2026, the Company was in compliance with these covenants.

At March 29, 2026, Teledyne has $ 56.7 million in outstanding letters of credit, including $ 34.2 million against our credit facility.

Subsequent to the end of the quarter, the Company repaid $ 450.0 million of its Fixed Rate Senior Notes due April 2026 primarily from cash on hand.

At June 28, 2026, $ 1,160.7 million was available under the $ 1.2 billion credit facility after reductions of $ 39.3 million in outstanding letters of credit.

The Company’s bank credit agreements require the Company to comply with various financial and operating covenants, and at June 28, 2026, the Company was in compliance with these covenants.

At June 28, 2026, Teledyne has $ 64.2 million in outstanding letters of credit, including $ 39.3 million against our credit facility.

In the second quarter of 2026, the Company repaid $ 450.0 million of its Fixed Rate Senior Notes due April 2026.

The income tax provision is calculated using an estimated annual effective tax rate based upon estimates of annual income, permanent items, statutory tax rates and planned tax strategies in the various jurisdictions in which the Company operates, except that certain loss jurisdictions and discrete items such as the resolution of uncertain tax positions and stock-based accounting income tax benefits are treated separately.

First Quarter

Second Quarter Six Months

(dollars in millions) 2026 2025 2026 2025

2 unchanged sentences

Effective tax rate 21.7 % 19.3 % 20.3 % 20.1 %

(a) The first quarter of 2026 and 2025 includes net discrete income tax benefits of $ 8.0 million and $ 3.7 million, respectively.

(a) The second quarter of 2026 and 2025 includes net discrete income tax benefits of $ 1.2 million and $ 8.4 million, respectively.

The first six months of 2026 and 2025 includes net discrete income tax benefits of $ 9.2 million and $ 12.1 million, respectively.

Pension Plans

First Quarter

Second Quarter Six Months

(in millions)

2026 2025 2026 2025

Service cost—benefits earned during the period

$ 1.2 $ 1.5 $ 2.4 $ 3.0

Pension non-service cost (income)

9 unchanged sentences

The Company uses the Black–Scholes option pricing model to determine the fair value of stock options.

Stock-based compensation expense was $ 5.6 million and $ 8.9 million for the first quarter of 2026 and 2025, respectively.

Stock option activity for the first quarter of 2026 is as follows:

First Quarter

Stock-based compensation expense was $ 13.9 million and $ 19.5 million for the second quarter and first six months of 2026, respectively, and $ 11.3 million and $ 20.2 million for the second quarter and first six months of 2025, respectively.

Stock option activity for the second quarter and first six months of 2026 is as follows:

Second Quarter Six Months

Shares Weighted Average Exercise Price

Beginning balance 806,107 $ 322.63 946,782 $ 306.37

Granted (a) 47,251 $ 656.69 47,251 $ 656.69

Exercised ( 13,867 ) $ 233.35 ( 150,110 ) $ 214.34

2 unchanged sentences

Exercisable at end of period 734,323 $ 313.25 734,323 $ 313.25

On April 22, 2026 the Company granted approximately 47,000 stock options at an exercise price of $ 659.69 per share and a grant date fair value of $ 253.85 per share.

Restricted stock activity for the first quarter of 2026 is as follows:

First Quarter

(a) In the second quarter of 2026, the Company granted stock options with a grant date fair value of $ 253.85 per share.

Restricted stock activity for the second quarter and first six months of 2026 is as follows:

Second Quarter Six Months

Shares Weighted Average Fair Value per Share

Beginning balance 158,338 $ 449.24 173,727 $ 434.60

3 unchanged sentences

Ending balance 188,375 $ 508.05 188,375 $ 508.05

On April 22, 2026, the Company granted approximately 52,000 time-based restricted stock units with a grant date fair value of $ 659.69 per share.

Earnings Per Share

The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions):

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

Weighted average basic common shares outstanding 46.3 46.9 46.3 46.8

1 unchanged sentence

Weighted average diluted common shares outstanding 46.9 47.4 46.9 47.4

For the first quarter of 2026 and 2025, the Company did not have any stock options that would have been anti-dilutive.

For the second quarter and first six months of 2026, the Company excluded less than 0.1 million of stock options in the computation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive.

For the second quarter and first six months of 2025, the Company did not have any stock options that would have been anti-dilutive.

Stock Repurchases

In July 2025, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $ 2.0 billion of Teledyne’s common stock.

As of March 29, 2026, $ 1.6 billion remained available under the repurchase authorization.

As of June 28, 2026, $ 1.6 billion remained available under the repurchase authorization.

The authorized stock repurchase program does not have a stated expiration date.

3 unchanged sentences

The Company currently intends to fund future share repurchases, if any, with cash on hand and available borrowings under the Company’s credit facility.

No repurchases under any authorizations were made in the first quarter of 2026.

No repurchases under any authorizations were made in the second quarter and first six months of 2026.

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, net of tax, as applicable, for the first quarter ended March 29, 2026, and March 30, 2025, are as follows (in millions):

The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, net of tax, as applicable, for the second quarter and six months ended June 28, 2026, and June 29, 2025, are as follows (in millions):

Foreign Currency Translation Cash Flow Hedges

Pension and Postretirement Benefits Total

Balance at December 28, 2025

Balance at March 29, 2026

$ ( 289.4 ) $ ( 0.3 ) $ ( 197.9 ) $ ( 487.6 )

2 unchanged sentences

Net other comprehensive income (loss) ( 49.3 ) ( 1.1 ) 2.9 ( 47.5 )

Balance at March 29, 2026

Balance at June 28, 2026

$ ( 338.7 ) $ ( 1.4 ) $ ( 195.0 ) $ ( 535.1 )

1 unchanged sentence

Pension and Postretirement Benefits Total

Balance at March 30, 2025

$ ( 451.5 ) $ ( 0.9 ) $ ( 233.9 ) $ ( 686.3 )

Other comprehensive income (loss) before reclassifications 224.4 2.6 — 227.0

Amounts reclassified from AOCI — ( 0.1 ) 1.7 1.6

Net other comprehensive income (loss) 224.4 2.5 1.7 228.6

Balance at June 29, 2025

$ ( 227.1 ) $ 1.6 $ ( 232.2 ) $ ( 457.7 )

Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total

Balance at December 28, 2025

3 unchanged sentences

Net other comprehensive income (loss) ( 113.2 ) ( 1.9 ) 5.4 ( 109.7 )

Balance at March 30, 2025

Balance at June 28, 2026

$ ( 338.7 ) $ ( 1.4 ) $ ( 195.0 ) $ ( 535.1 )

The reclassifications out of AOCI to net income for the first quarter ended March 29, 2026, and March 30, 2025, are as follows (in millions):

Amount Reclassified From AOCI for the Quarter Ended March 29, 2026

Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total

Balance at December 29, 2024

$ ( 602.3 ) $ ( 2.2 ) $ ( 235.4 ) $ ( 839.9 )

Other comprehensive income (loss) before reclassifications 375.2 3.2 — 378.4

Amounts reclassified from AOCI — 0.6 3.2 3.8

Net other comprehensive income (loss) 375.2 3.8 3.2 382.2

Balance at June 29, 2025

$ ( 227.1 ) $ 1.6 $ ( 232.2 ) $ ( 457.7 )

The reclassifications out of AOCI to net income for the second quarter ended June 28, 2026, and June 29, 2025, are as follows (in millions):

Amount Reclassified From AOCI for the Quarter Ended June 28, 2026

Amount Reclassified From AOCI for the Quarter Ended

March 30, 2025

June 29, 2025

Statement of Income (Loss) Presentation

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Total $ 2.9 $ 1.7

Amount Reclassified From AOCI for the Six Months Ended June 28, 2026

Amount Reclassified From AOCI for the Six Months Ended June 29, 2025

Statement of Income (Loss) Presentation

(Gain) loss on cash flow hedges:

(Gain) loss recognized in income on derivatives

$ ( 0.6 ) $ 0.8 See Note 13

Income tax impact 0.1 ( 0.2 ) Provision for income taxes

Total $ ( 0.5 ) $ 0.6

Amortization of defined benefit pension and postretirement plan items:

Amortization of net prior service cost (income)

$ 0.1 $ 0.1 Costs and expenses

Amortization of net actuarial loss 6.9 4.1 Costs and expenses

Total before tax 7.0 4.2

Income tax impact ( 1.6 ) ( 1.0 ) Provision for income taxes

Total $ 5.4 $ 3.2

Derivative Instruments and Hedging Activities

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dollar value of future cash flows and minimize the volatility of reported earnings.

During 2025, the Company entered into certain derivative contracts to reduce the volatility from translation of the Company’s euro denominated net investments.

The Company has entered into certain derivative contracts to reduce the volatility from translation of the Company’s euro denominated net investments.

The Company does not use foreign currency forward contracts for speculative or trading purposes.

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The Company utilizes foreign currency forward contracts to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in Canadian dollars for the Canadian companies, and in British pounds for the UK companies.

As of March 29, 2026, foreign currency forward contracts in Canadian dollars designated as cash flow hedges have maturities ranging from June 2026 to February 2027.

As of March 29, 2026, foreign currency forward contracts in British pounds designated as cash flow hedges have maturities ranging from June 2026 to February 2027.

As of June 28, 2026, foreign currency forward contracts in Canadian dollars designated as cash flow hedges have maturities ranging from September 2026 to February 2027.

As of June 28, 2026, foreign currency forward contracts in British pounds designated as cash flow hedges have maturities ranging from September 2026 to February 2027.

The Company utilizes cross-currency swaps to hedge portions of the Company’s euro denominated net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S.

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The following is a summary of the gain (loss) included in the condensed consolidated statements of income (loss) and comprehensive income (loss) related to the derivative instruments described above (in millions):

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

Net gain (loss) recognized in AOCI—Foreign Exchange Contracts (a)

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Fair Value Liability

March 29, 2026 December 28, 2025 March 29, 2026 December 28, 2025 March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025 June 28, 2026 December 28, 2025 June 28, 2026 December 28, 2025

Derivatives designated as hedging instruments:

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All fair values for these derivatives were measured using Level 2 hierarchy information as defined by the accounting policies (in millions):

March 29, 2026 December 28, 2025

June 28, 2026 December 28, 2025

Foreign currency forward contracts $ 1.7 $ 16.0

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Gross derivative assets and liabilities are subject to legally enforceable master netting agreements, for which the Company has not elected to present net amounts on the condensed consolidated balance sheets.

The effect of such right of setoff on the Company’s financial position was $ 0.5 million and $ 0.4 million as of March 29, 2026, and December 28, 2025, respectively.

The effect of such right of setoff on the Company’s financial position was $ 0.4 million and $ 0.4 million as of June 28, 2026, and December 28, 2025, respectively.

Financial Instruments Not Recorded at Fair Value

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The Company’s long-term debt is considered a Level 2 and is valued based on observable market data.

As of March 29, 2026, and December 28, 2025, the aggregate fair values of the Company’s borrowings were $ 2,338.8 million and $ 2,359.5 million, respectively, and the carrying value was $ 2,489.0 million as of March 29, 2026 and December 28, 2025.

As of June 28, 2026, and December 28, 2025, the aggregate fair values of the Company’s borrowings were $ 1,900.9 million and $ 2,359.5 million, respectively, and the carrying values were $ 2,038.9 million and $ 2,489.0 million, respectively.

Commitments and Contingencies

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Environmental Remediation Obligations

At March 29, 2026, the Company’s reserves for environmental remediation obligations totaled $ 5.9 million, of which $ 3.0 million is included in current accrued liabilities.

At June 28, 2026, the Company’s reserves for environmental remediation obligations totaled $ 5.7 million, of which $ 2.9 million is included in current accrued liabilities.

At December 28, 2025, the Company’s reserves for environmental remediation obligations totaled $ 6.0 million.

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Other Claims and Legal Matters

In December 2025, Teledyne RISI, Inc.

d/b/a Teledyne Electronic Safety Products (“TESP”) reached a final settlement agreement with the U.S.

Department of Justice, on behalf of the Department of the Air Force and the Department of the Navy, regarding a civil false claims investigation relating to certain electronic modules manufactured between November 2011 and June 2012 for an ejection seat sequencer program.

By entering a negotiated settlement, which included the payment by TESP of $ 1.5 million, TESP admitted no wrongdoing and sought to avoid the costs and expense of potential protracted litigation.

Various claims (whether based on U.S.

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Our manufacturing facilities span across many countries which helps us mitigate the impact of certain tariffs and trade restrictions.

Also, consistent with our strategy, we continually optimize our operations and take measures to contain costs to reduce the impact from tariffs.

We may also implement additional pricing actions to mitigate the impact of these tariffs.

Also, consistent with our strategy, we continually optimize our operations and take measures to contain costs to reduce the impact from tariffs or other inflationary pressures.

We may also implement additional pricing actions to mitigate the impact of these tariffs or other inflationary pressures.

We have been working to minimize potential delivery delays and shortages of components and raw materials needed for certain products we manufacture.

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In February 2026, the U.S.

Supreme Court issued a ruling invalidating certain tariffs.

Significant uncertainty exists regarding the timing and amount of any potential tariff refunds.

Supreme Court issued a ruling invalidating tariffs under International Emergency Economic Powers Act (IEEPA).

We filed for IEEPA refunds during the first half of 2026, and we began receiving these refunds in the second quarter of 2026.

We also continue to pay tariffs, as required.

We will continue to assess these developments as additional information becomes available.

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Government shutdowns have resulted in delays in anticipated contract awards, issuances of export licenses, shipments and payments of invoices for several of our businesses.

The Company is currently benefiting from increased global defense spending.

The Company continues to benefit from increased global defense spending.

Sales recorded and costs incurred recorded by subsidiaries operating outside of the United States are translated into U.S.

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Results of Operations

First Quarter %

(dollars in millions) 2026 2025 Change

Second Quarter % Six Months %

(dollars in millions) 2026 2025 Change 2026 2025 Change

Net sales $ 1,662.5 $ 1,513.7 9.8 % $ 3,222.6 $ 2,963.6 8.7 %

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Net income (loss) attributable to Teledyne $ 251.7 $ 209.9 19.9 % $ 478.5 $ 398.5 20.1 %

First Quarter %

(dollars in millions) 2026 2025 Change

Second Quarter % Six Months %

(dollars in millions) 2026 2025 Change 2026 2025 Change

Net sales (a):

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Total operating income (loss) $ 333.2 $ 278.2 19.8 % $ 627.4 $ 537.5 16.7 %

(a) Net sales exclude inter-segment sales of $5.3 million and $3.8 million for the first quarter of 2026 and 2025, respectively.

First Quarter Results

The following is a discussion of our 2026 first quarter results compared with the first quarter results of 2025.

(a) Net sales exclude inter-segment sales of $18.0 million and $23.3 million for the second quarter and six months of 2026, respectively, and $7.2 million and $11.0 million for the second quarter and six months of 2025, respectively.

Second Quarter Results

The following is a discussion of our 2026 second quarter results compared with the second quarter results of 2025.

Comparisons are with the corresponding reporting period of 2025 unless noted otherwise.

First quarter of 2026 compared with the first quarter of 2025

Our first quarter of 2026 net sales increased 7.6%, primarily due to higher sales in most segments.

Net income attributable to Teledyne for the first quarter of 2026 increased 20.3%, primarily driven by an increase in sales and an increase in overall operating margin.

Net income per diluted share was $4.85 for the first quarter of 2026, compared with net income per diluted share of $3.99.

The first quarter of 2026 net sales compared with the first quarter of 2025 reflected higher net sales in the Digital Imaging, Instrumentation and Aerospace and Defense Electronics segments, partially offset by lower net sales in the Engineered Systems segment.

The first quarter of 2026 included $33.3 million in incremental sales from recent acquisitions, which are included within the Digital Imaging, Instrumentation and Aerospace and Defense Electronics segments.

Second quarter of 2026 compared with the second quarter of 2025

Our second quarter of 2026 net sales increased 9.8%.

Net income attributable to Teledyne for the second quarter of 2026 increased 19.9%, primarily driven by an increase in sales and an increase in overall operating margin.

Net income per diluted share was $5.37 for the second quarter of 2026, compared with net income per diluted share of $4.43.

The second quarter of 2026 net sales compared with the second quarter of 2025 reflected higher net sales in each segment.

The second quarter of 2026 included $12.2 million in incremental sales from recent acquisitions, which are included within the Digital Imaging and Instrumentation segments.

Cost of Sales

Cost of sales increased $55.9 million in the first quarter of 2026, primarily driven by higher net sales.

Cost of sales as a percentage of net sales decreased for the first quarter of 2026, to 56.8% from 57.3%.

Cost of sales increased $55.3 million in the second quarter of 2026, primarily driven by higher net sales partially offset by tariff refunds, primarily within the Digital Imaging segment.

Cost of sales as a percentage of net sales decreased for the second quarter of 2026, to 55.6% from 57.4%.

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense increased $3.5 million in the first quarter of 2026 primarily due to higher net sales, including net sales related to 2026 and 2025 acquisitions.

SG&A expense as a percentage of net sales decreased to 15.2% for the first quarter of 2026 compared with 16.1%.

Corporate expense, which is included in SG&A expense, was $19.0 million for the first quarter of 2026 compared with $22.2 million, with the decrease related to lower transaction and integration costs.

Stock-based compensation expense was $5.6 million for the first quarter of 2026 compared with $8.9 million.

Selling, general and administrative (“SG&A”) expense increased $29.3 million in the second quarter of 2026 primarily due to higher net sales, including net sales related to 2026 and 2025 acquisitions.

SG&A expense as a percentage of net sales increased to 15.6% for the second quarter of 2026 compared with 15.2%.

Corporate expense, which is included in SG&A expense, was $28.0 million for the second quarter of 2026 compared with $21.7 million, with the increase related to higher compensation costs, including incentive compensation as well as higher professional services.

Stock-based compensation expense was $13.9 million for the second quarter of 2026 compared with $11.3 million.

Research and Development Expense

R&D expense increased $10.3 million in the first quarter of 2026 primarily due to higher R&D expense in the Digital Imaging segment.

R&D expense increased $7.8 million in the second quarter of 2026 primarily due to higher R&D expense in the Digital Imaging segment.

Acquired Intangible Asset Amortization

Acquired intangible asset amortization for the first quarter of 2026 was $57.6 million compared with $52.0 million, with the increase primarily related to 2025 and 2026 acquisitions across multiple segments.

Acquired intangible asset amortization for the second quarter of 2026 was $56.0 million compared with $54.6 million, with the increase primarily related to 2026 and 2025 acquisitions across multiple segments.

Pension Service Expense

Pension service expense is included in both cost of sales and SG&A expense.

For the first quarter of 2026 and 2025, pension service expense was $1.2 million and $1.5 million, respectively.

For the second quarter of 2026 and 2025, pension service expense was $1.2 million and $1.5 million, respectively.

Operating Income

Operating income for the first quarter of 2026 increased 13.5%.

The first quarter of 2026, compared with the first quarter of 2025, reflected higher operating income in each segment, including incremental operating income related to 2026 and 2025 acquisitions.

Operating income for the second quarter of 2026 increased 19.8%.

The second quarter of 2026, compared with the second quarter of 2025, reflected higher operating income in the Digital Imaging, Aerospace and Defense Electronics and Engineered Systems segments, including incremental operating income related to 2026 and 2025 acquisitions.

Non-operating Income and Expense

Interest and debt expense, net of interest income, was $12.3 million for the first quarter of 2026 compared with $17.3 million, with the decrease related to lower outstanding borrowings compared to the first quarter of 2025.

Non-service retirement benefit income was $2.7 million for the first quarter of 2026 compared with $2.8 million.

Other income (expense), net, was expense of $5.9 million for the first quarter of 2026 and for the first quarter of 2025.

Other income (expense), net, primarily consisted of foreign currency exchange losses for the first quarter of 2026 and for the first quarter of 2025.

The first quarter of both the 2026 and 2025 income tax provision considers income, permanent items, tax credits and various statutory tax rates.

First Quarter

Interest and debt expense, net of interest income, was $13.6 million for the second quarter of 2026 compared with $17.6 million, with the decrease related to lower outstanding borrowings compared to the second quarter of 2025.

Non-service retirement benefit income was $2.6 million for the second quarter of 2026 compared with $2.7 million.

Other income (expense), net, was expense of $0.9 million for the second quarter of 2026 compared with expense of $2.7 million.

Other income (expense), net, primarily consisted of foreign currency exchange losses for the second quarter of 2026 and 2025.

The second quarter of both the 2026 and 2025 income tax provision considers income, permanent items, tax credits and various statutory tax rates.

Second Quarter

(dollars in millions) 2026 2025

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Effective tax rate 21.7% 19.3%

(a) The first quarter of 2026 and 2025 includes net discrete income tax benefits of $8.0 million and $3.7 million, respectively.

(a) The second quarter of 2026 and 2025 includes net discrete income tax benefits of $1.2 million and $8.4 million, respectively.

In July 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law.

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The 2026 impact is estimated to include a cash tax reduction of between $60.0 million and $70.0 million.

First six months of 2026 compared with the first six months of 2025

The first six months of 2026 net sales increased 8.7%.

Net income attributable to Teledyne for the first six months of 2026 increased 20.1%, primarily driven by an increase in sales and an increase in overall operating margin.

Net income per diluted share was $10.20 for the first six months of 2026, compared with net income per diluted share of $8.41.

The first six months of 2026 net sales, compared with the first six months of 2025, reflected higher net sales in each segment.

The first six months of 2026 included $25.2 million in incremental sales from recent acquisitions, which are included within the Digital Imaging and Instrumentation segments.

Cost of Sales

Cost of sales increased $111.2 million in the first six months of 2026, primarily driven by higher net sales partially offset by tariff refunds, primarily within the Digital Imaging segment.

Cost of sales as a percentage of net sales decreased for the first six months of 2026 to 56.2% from 57.3%.

Selling, General and Administrative Expense

SG&A expense increased $32.8 million in the first six months of 2026 primarily due to higher net sales, including net sales related to 2026 and 2025 acquisitions.

SG&A expense as a percentage of net sales decreased to 15.4% for the first six months of 2026 compared with 15.6%.

Corporate expense, which is included in SG&A expense, was $47.0 million for the first six months of 2026 compared with $43.9 million, with the increase primarily related to higher employee compensation costs, including incentive compensation as well as higher professional services.

Stock-based compensation expense was $19.5 million for the first six months of 2026 compared with $20.2 million.

Research and Development Expense

R&D expense increased $18.1 million in the first six months of 2026 due to higher R&D expense within the Digital Imaging, Instrumentation and Engineered Systems segments.

Acquired Intangible Asset Amortization

Acquired intangible asset amortization for the first six months of 2026 was $113.6 million compared with $106.6 million, with the increase primarily related to 2026 and 2025 acquisitions across multiple segments.

Pension Service Expense

Pension service expense is included in both cost of sales and SG&A expense.

For the first six months of 2026 and 2025, pension service expense was $2.4 million and $3.0 million, respectively.

Operating Income

Operating income for the first six months of 2026 increased 16.7%.

The first six months of 2026, compared with the first six months of 2025, reflected higher operating income in the Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems segments, including incremental operating income related to 2026 and 2025 acquisitions

Non-operating Income and Expense

Interest and debt expense, net of interest income, was $25.9 million for the first six months of 2026, compared with $34.9 million, with the decrease related to lower outstanding borrowings compared to the first six months of 2025.

Non-service retirement benefit income was $5.3 million for the first six months of 2026 compared to $5.5 million.

Other income (expense), net was expense of $6.8 million for the first six months of 2026 compared with expense of $8.6 million.

Other income (expense), net primarily consisted of foreign currency exchange losses for the first six months of 2026 and 2025.

The first six months of both the 2026 and 2025 income tax provision considers income, permanent items, tax credits and various statutory tax rates.

In both 2026 and 2025, the first six months discrete impact is primarily related to tax on stock-based compensation.

(dollars in millions) 2026 2025

Provision (benefit) for income taxes (a) $ 121.5 $ 100.3

Income (loss) before income taxes $ 600.0 $ 499.5

Effective tax rate 20.3% 20.1%

(a) The first six months of 2026 and 2025 includes net discrete income tax benefits of $9.2 million and $12.1 million, respectively.

In July 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law.

The Act includes changes to U.S.

tax law, including provisions to accelerate tax deductions for qualified property and research expense.

The Company has estimated the 2025 impact in current results which includes a cash tax reduction of approximately $30.0 million.

The Company will continue to model the elective decisions before the 2025 tax return is filed in 2026.

The 2026 impact is estimated to include a cash tax reduction of between $60.0 million and $70.0 million.

Segment Results

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Digital Imaging

First Quarter Change

Second Quarter Change Six Months Change

(dollars in millions) 2026 2025 $ % 2026 2025 $ %

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Research and development expense

6.6 % 6.3 % 6.5 % 6.1 %

Acquired intangible asset amortization 5.5 % 6.0 % 5.7 % 6.0 %

Operating income 19.6 % 15.5 % 18.5 % 15.8 %

First quarter of 2026 compared with the first quarter of 2025

Net sales increased primarily due to higher sales of infrared imaging detectors, components and subsystems for both defense and commercial applications as well as higher surveillance and unmanned air systems for defense applications.

Sales of infrared imaging detectors, components and subsystems increased $18.9 million, sales of surveillance increased $8.9 million, and sales of unmanned air systems increased $11.4 million.

The first quarter of 2026 included $8.0 million in incremental Digital Imaging sales from recent acquisitions.

Cost of sales increased primarily due to higher net sales, partially offset by favorable product mix.

The cost of sales percentage decreased during the period due to favorable product mix.

Second quarter of 2026 compared with the second quarter of 2025

Sales of infrared imaging detectors, components and subsystems increased $29.0 million, sales of surveillance systems increased $15.5 million, and sales of industrial and scientific imaging systems increased $9.1 million, and sales of X-ray products increased $7.1 million.

The second quarter of 2026 included $6.1 million in incremental Digital Imaging sales from recent acquisitions.

Cost of sales increased primarily due to higher net sales as well as increased inventory reserves, partially offset by favorable product mix and tariff refunds.

The cost of sales percentage decreased during the period due to favorable product mix and tariff refunds.

SG&A expense increased primarily due to higher net sales, and SG&A expense as a percentage of net sales decreased.

R&D expense and R&D expense as a percentage of net sales increased primarily due to the timing of FLIR product development activities, including both defense and commercial development activities.

Acquired intangible asset amortization increased, and acquired intangible asset amortization as a percentage of net sales decreased.

Operating income increased primarily due to higher net sales and favorable product mix, partially offset by higher R&D expense as a percentage of net sales.

Acquired intangible asset amortization increased slightly, and acquired intangible asset amortization as a percentage of net sales decreased.

Operating income increased primarily due to higher net sales, favorable product mix and tariff refunds, partially offset by higher R&D expense as a percentage of net sales.

As a result, operating income as a percentage of net sales increased.

First six months of 2026 compared with the first six months of 2025

Sales of infrared imaging detectors, components and subsystems increased $47.9 million, sales of surveillance systems increased $24.4 million, sales of industrial and scientific imaging systems increased $13.4 million and sales of X-ray products increased $10.9 million.

The first six months of 2026 included $14.2 million in incremental Digital Imaging sales from recent acquisitions.

Cost of sales increased primarily due to higher net sales, and the cost of sales percentage decreased during the period due to favorable product mix as well as tariff refunds.

SG&A expense increased primarily due to higher net sales, and SG&A expense as a percentage of net sales decreased.

R&D expense and R&D expense as a percentage of net sales increased primarily due to the timing of FLIR product development activities, including both defense and commercial development activities.

Acquired intangible asset amortization increased while acquired intangible asset amortization as a percentage of net sales decreased.

Operating income increased primarily due to higher net sales, favorable product mix and tariff refunds, partially offset by higher R&D expense as a percentage of net sales.

As a result, operating income as a percentage of net sales increased.

Instrumentation

First Quarter Change

Second Quarter Change Six Months Change

(dollars in millions) 2026 2025 $ % 2026 2025 $ %

12 unchanged sentences

Research and development expense

6.8 % 7.0 % 6.9 % 7.0 %

Acquired intangible asset amortization 1.0 % 0.9 % 0.9 % 0.9 %

Operating income 26.1 % 27.6 % 25.3 % 27.3 %

First quarter of 2026 compared with the first quarter of 2025

Net sales increased due to higher sales in the Marine Instrumentation and Environmental Instrumentation product lines.

Second quarter of 2026 compared with the second quarter of 2025

Net sales increased due to higher sales in each product line.

Sales of Marine Instrumentation increased $9.7 million due to stronger offshore energy and defense markets.

Sales of Environmental Instrumentation increased $7.2 million primarily due to stronger sales of gas detection products.

Test and Measurement Instrumentation decreased $2.7 million.

The first quarter of 2026 included $5.0 million in incremental Environmental Instrumentation sales from recent acquisitions.

Test and Measurement Instrumentation increased $3.3 million.

The second quarter of 2026 included $6.1 million in incremental Environmental Instrumentation sales from recent acquisitions.

Cost of sales increased due to higher net sales and unfavorable product mix.

The cost of sales percentage increased.

As a result, the cost of sales percentage increased.

SG&A expense increased, and SG&A expense as a percentage of net sales increased.

R&D expense increased slightly, and R&D expense as a percentage of net sales decreased slightly.

Acquired intangible asset amortization and acquired intangible asset amortization as a percentage of net sales increased slightly due to the 2026 acquisition of DD-Scientific.

Operating income and operating income as a percentage of net sales decreased primarily due to unfavorable product mix.

First six months of 2026 compared with the first six months of 2025

Net sales increased due to higher sales in each product line.

Sales of Marine Instrumentation increased $23.2 million due to stronger offshore energy and defense markets.

Sales of Environmental Instrumentation increased $14.5 million primarily due to stronger sales of gas detection products.

Test and Measurement Instrumentation increased $0.6 million.

The first six months of 2026 included $11.0 million in incremental Environmental Instrumentation sales from recent acquisitions.

Cost of sales increased due to higher net sales and unfavorable product mix.

As a result, the cost of sales percentage increased.

SG&A expense increased, and SG&A expense as a percentage of net sales increased.

R&D expense increased in each product line, and R&D expense as a percentage of net sales decreased slightly.

Acquired intangible asset amortization increased due to the 2026 acquisition of DD-Scientific while acquired intangible asset amortization as a percentage of net sales remained consistent for both periods.

Operating income and operating income as a percentage of net sales decreased primarily due to unfavorable product mix.

Aerospace and Defense Electronics

First Quarter Change

Second Quarter Change Six Months Change

(dollars in millions) 2026 2025 $ % 2026 2025 $ %

12 unchanged sentences

Research and development expense

2.0 % 3.1 % 2.2 % 2.8 %

Acquired intangible asset amortization 1.8 % 1.9 % 2.0 % 1.7 %

Operating income 26.0 % 25.2 % 25.9 % 24.1 %

First quarter of 2026 compared with the first quarter of 2025

Net sales increased due to a $36.1 million increase in defense electronics, partially offset by a $1.1 million decrease in aerospace electronics.

The first quarter of 2026 included $20.3 million in incremental defense electronics sales from recent acquisitions.

Second quarter of 2026 compared with the second quarter of 2025

Net sales increased due to a $20.8 million increase in defense electronics and a $0.8 million increase in aerospace electronics.

Cost of sales increased due to higher net sales.

The cost of sales percentage increased due to unfavorable product mix.

SG&A expense increased, and SG&A expense as a percentage of net sales decreased.

R&D expense and R&D expense as a percentage of net sales decreased.

Acquired intangible asset amortization increased slightly primarily due to the 2025 acquisitions, and acquired intangible asset amortization as a percentage of net sales decreased slightly.

Operating income increased primarily due to increased net sales, and operating income as a percentage of net sales increased primarily due to lower R&D expense.

First six months of 2026 compared with the first six months of 2025

Net sales increased due to a $56.9 million increase for defense electronics, partially offset by a $0.3 million decrease for aerospace electronics.

Cost of sales increased due to higher net sales.

The cost of sales percentage decreased due to favorable product mix.

SG&A expense and SG&A expense as a percentage of net sales decreased due to higher transaction and integration costs in 2025 as a result of acquisitions.

R&D expense increased, and R&D expense as a percentage of net sales remained reasonably consistent between the two periods.

Acquired intangible asset amortization and acquired intangible asset amortization as a percentage of net sales increased primarily due to the 2025 acquisitions.

Operating income increased primarily due to increased net sales, and operating income as a percentage of net sales increased primarily due to favorable product mix.

SG&A expense and SG&A expense as a percentage of net sales decreased.

R&D expense and R&D expense as a percentage of net sales decreased.

Acquired intangible asset amortization, and acquired intangible asset amortization as a percentage of net sales increased due to the 2025 acquisitions.

Operating income increased primarily due to increased net sales, and operating income as a percentage of net sales increased primarily due to lower R&D expense.

Engineered Systems

First Quarter Change

Second Quarter Change Six Months Change

(dollars in millions) 2026 2025 $ % 2026 2025 $ %

9 unchanged sentences

Selling, general and administrative expense

5.4 % 5.7 % 5.8 % 5.7 %

Research and development expense

0.4 % 0.3 % 0.3 % 0.1 %

Operating income 12.6 % 11.0 % 12.0 % 10.5 %

* Not meaningful

First quarter of 2026 compared with the first quarter of 2025

Net sales decreased due to lower sales of $2.7 million for engineered products and lower sales of $0.1 million for energy systems.

Cost of sales decreased primarily due to lower net sales and favorable program mix.

Second quarter of 2026 compared with the second quarter of 2025

Net sales increased primarily due to higher sales of engineered products.

Cost of sales increased primarily due to higher net sales, partially offset by favorable program mix.

Cost of sales as a percentage decreased due to favorable program mix.

SG&A expense and SG&A expense as a percentage of net sales increased due to higher employee compensation costs.

Operating income increased primarily due to favorable program mix, partially offset by lower net sales and operating income as a percentage of net sales increased due to favorable program mix.

SG&A expense increased slightly due to higher employee compensation costs, and SG&A expense as a percentage of net sales decreased.

Operating income increased primarily due to higher net sales and favorable program mix.

As a result, operating income as a percentage of net sales increased.

First six months of 2026 compared with the first six months of 2025

Net sales increased primarily due to higher sales of engineered products.

Cost of sales increased primarily due to higher net sales, partially offset by favorable program mix.

Cost of sales as a percentage decreased due to favorable program mix.

SG&A expense increased primarily due to higher employee compensation costs, and SG&A expense as a percentage of net sales increased slightly.

Operating income increased primarily due to higher net sales and favorable program mix.

As a result, operating income as a percentage of net sales increased.

Financial Condition, Liquidity and Capital Resources

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Cash and Cash Equivalents

Cash and cash equivalents totaled $521.4 million at March 29, 2026, compared with $352.4 million at December 28, 2025, with the increase primarily related to cash generated from operating activities partially offset by the 2026 acquisition and capital expenditures.

Cash and cash equivalents totaled $340.1 million at June 28, 2026, compared with $352.4 million at December 28, 2025, with the decrease primarily related to a debt maturity payment on a fixed rate senior note, funding of capital expenditures, and our 2026 acquisition of DD-Scientific, primarily offset by cash generated from operating activities.

Cash equivalents consist of highly liquid money-market mutual funds, with maturities of three months or less when purchased.

Long-term Debt

Total debt, net of unamortized debt discount and debt issuance costs at March 29, 2026, was $2,476.3 million compared with $2,475.4 million at December 28, 2025.

Subsequent to the end of the quarter, the Company repaid $450.0 million of its Fixed Rate Senior Notes due April 2026 primarily from cash on hand.

At March 29, 2026, we had $56.7 million in outstanding letters of credit, including $34.2 million against our credit facility.

Our credit facility requires us to comply with various financial and operating covenants and at March 29, 2026, we were in compliance with these covenants and had a significant amount of margin between required financial covenant ratios and our actual ratios.

Total debt, net of unamortized debt discount and debt issuance costs at June 28, 2026, was $2,027.0 million compared with $2,475.4 million at December 28, 2025.

In the second quarter of 2026, the Company repaid $450.0 million of its Fixed Rate Senior Notes due April 2026.

At June 28, 2026, we had $64.2 million in outstanding letters of credit, including $39.3 million against our credit facility.

Our credit facility requires us to comply with various financial and operating covenants and at June 28, 2026, we were in compliance with these covenants and had a significant amount of margin between required financial covenant ratios and our actual ratios.

Currently, we do not believe our ability to undertake additional debt financing, if needed, is reasonably likely to be materially impacted by debt restrictions under our credit agreements.

Available borrowing capacity under the $1.2 billion credit facility, which is reduced by borrowings and $34.2 million in outstanding letters of credit, was $1,165.8 million at March 29, 2026.

Available borrowing capacity under the $1.2 billion credit facility, which is reduced by borrowings and $39.3 million in outstanding letters of credit, was $1,160.7 million at June 28, 2026.

Our liquidity is not dependent upon the use of off-balance sheet financial arrangements.

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In July 2025, our Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $2.0 billion of our common stock.

As of March 29, 2026, $1.6 billion remained available under the repurchase authorization.

As of June 28, 2026, $1.6 billion remained available under the repurchase authorization.

The authorized stock repurchase program does not have a stated expiration date.

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We currently intend to fund future share repurchases, if any, with cash on hand and available borrowings under our credit facility.

No repurchases under any authorizations were made in the first quarter of 2026.

Net cash provided by operating activities was $234.0 million for the first three months of 2026 compared with net cash provided by operating activities of $242.6 million, with the decrease primarily driven by higher inventory purchases in 2026 partially offset by favorable operating results.

Net cash used in investing activities was $83.1 million for the first three months of 2026 compared with net cash used in investing activities of $775.0 million.

During the first three months of 2026, we spent $53.4 million on acquisitions compared with $757.6 million.

Capital expenditures for the first three months of 2026 and 2025 were $29.7 million and $18.0 million, respectively.

No repurchases under any authorizations were made in the second quarter and first six months of 2026.

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.

Net cash used in investing activities was $118.8 million for the first six months of 2026 compared with net cash used in investing activities of $805.2 million.

During the first six months of 2026, we spent $53.4 million on acquisitions compared with $757.6 million.

Capital expenditures for the first six months of 2026 and 2025 were $60.2 million and $48.3 million, respectively.

During 2026, we plan to invest approximately $150 million for capital expenditures, principally to upgrade facilities and manufacturing equipment as well as to support internal growth initiatives.

Net cash provided by financing activities was $18.4 million for the first three months of 2026 compared with net cash provided by financing activities of $339.6 million.

The first three months of 2025 included net proceeds from our credit facility of $315.0 million.

Subsequent to the end of the quarter, the Company repaid $450.0 million of its Fixed Rate Senior Notes due April 2026 primarily from cash on hand.

Net cash used in financing activities was $436.7 million for the first six months of 2026 compared with net cash used in financing activities of $4.8 million.

In the second quarter of 2026, the Company repaid $450.0 million of its Fixed Rate Senior Notes due April 2026.

Critical Accounting Policies and Estimates

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All forward-looking statements speak only as of the date they are made and are based on information available at that time.

We assume no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events, except as required by federal securities laws.

Teledyne assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws.

As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements