Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 81

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 due to higher net sales during the period, and SG&A expense as a percentage of net sales increased slightly.  R&D expense increased due to higher Marine Instrumentation product development, and the R&D expense percentage was relatively consistent in both periods.

Operating income increased primarily due to higher Marine Instrumentation sales, favorable product mix, and improved Marine Instrumentation margins, and operating income as a percentage of net sales increased due to favorable product mix and improved Marine Instrumentation margins.

25

Aerospace and Defense Electronics

First QuarterChange(dollars in millions)20252024$%Net sales$242.5$185.7$56.8 30.6 %Cost of sales$144.2$107.9$36.3 33.6 %Selling, general and administrative expense$33.2$21.0$12.2 58.1 %Research and development expense$6.0$4.7$1.3 27.7 %Acquired intangible asset amortization$3.4$0.2$3.2 *Operating income$55.7$51.9$3.8 7.3 %As a percentage of net sales:Cost of sales59.5 %58.1 %Selling, general and administrative expense13.7 %11.3 %Research and development expense2.5 %2.5 %Acquired intangible asset amortization 1.3 %0.1 %Operating income 23.0 %28.0 %

* Not meaningful

First quarter of 2025 compared with the first quarter of 2024

Net sales increased due to a $57.1 million increase in defense electronics, partially offset by a $0.3 million decrease in aerospace electronics.  The first quarter of 2025 included $42.3 million in incremental sales from recent acquisitions.

Cost of sales increased due to higher net sales, partially offset by unfavorable product mix, including recent acquisitions which carry a higher cost of sales percentage, and the cost of sales percentage increased due to unfavorable product mix.  SG&A expense increased due to higher net sales as well as $3.2 million of transaction and integration costs for 2025 acquisitions incurred in the first quarter of 2025, with no comparable amount recorded in the first quarter of 2024.  R&D expense increased due to primarily to the 2025 acquisitions, and the R&D expense percentage