Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 6

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
 %14.2 %Research and development expense7.0 %6.9 %Acquired intangible asset amortization1.0 %1.1 %Operating income27.0 %26.0 %

First quarter of 2025 compared with the first quarter of 2024

Net sales increased due to higher sales in our Marine Instrumentation and Test and Measurement Instrumentation product lines, partially offset by lower sales at our Environmental Instrumentation product line.  Sales of Marine Instrumentation increased $14.0 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales.  Sales of Test and Measurement Instrumentation increased $1.1 million, and sales of Environmental Instrumentation decreased $2.2 million.  The first quarter of 2025 included $4.4 million in incremental 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 due to favorable product mix, including improved margins in our Marine Instrumentation product line.  SG&A expense increased 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.