Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 3

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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Net Sales 

The first quarter of 2025 net sales compared with the first quarter of 2024 reflected higher net sales in each segment.  The first quarter of 2025 included $55.6 million in incremental sales from recent acquisitions.

Cost of Sales

Cost of sales increased $60.2 million in the first quarter of 2025, primarily driven by higher net sales.  Cost of sales as a percentage of net sales increased slightly for the first quarter of 2025 to 57.3% from 57.0%.

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense increased $14.2 million in the first quarter of 2025 due to higher net sales.  SG&A expense as a percentage of net sales decreased to 16.1% for the first quarter of 2025 compared with 16.3%.  Corporate expense, which is included in SG&A expense, was $22.2 million for the first quarter of 2025 compared with $20.1 million, with the increase primarily related to higher transaction costs in the first quarter of 2025 related to current year acquisitions.  Stock-based compensation expense was $8.9 million for the first quarter of 2025 compared with $12.0 million, with the decrease due to timing of grants in the current year.  Subsequent to the end of the first quarter of 2025, the Company made its annual stock option and restricted stock grants. 

Research and Development Expense

R&D expense decreased $2.2 million in the first quarter of 2025 due to lower R&D expense at the Digital Imaging segment.

Acquired Intangible Asset Amortization

Acquired intangible asset amortization for the first quarter of 2025 was $52.0 million compared with $49.4 million, with the increase primarily related to 2025 acquisitions within the Aerospace and Defense Electronics segment.

Pension Service Expense

Pension service expense is included in both cost of sales and SG&A expense.  For the first quarter of 2025 and 2024, pension service expense was $1.5 million.  For 2025, the weighted-average discount rate used to determine the benefit obligation for the domestic qualified pension plans is 7.05% compared with 6.86% in 2024. 

Operating Income

Operating income for the first quarter of 2025 increased 10.7%.  The first quarter of 2025