Company: TDY
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001094285-25-000131
Chunk: 8

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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.6$113.5$6.1 5.4 %$241.9$227.3$14.6 6.4 %As a percentage of net sales:Cost of sales56.6 %55.6 %56.2 %55.3 %Selling, general and administrative expense15.6 %17.1 %15.9 %16.9 %Research and development expense6.3 %5.8 %6.1 %6.2 %Acquired intangible asset amortization6.0 %6.1 %6.0 %6.2 %Operating income15.5 %15.4 %15.8 %15.4 %

Second quarter of 2025 compared with the second quarter of 2024

Net sales increased primarily due to higher sales of unmanned air systems and commercial infrared imaging components, partially offset by lower sales of X-ray and geospatial products.  Sales of unmanned air systems increased $20.6 million, sales of commercial infrared imaging components increased $16.1 million, sales of X-ray products decreased $4.0 million and sales of geospatial products decreased $3.7 million.  The second quarter of 2025 included $5.8 million in incremental sales from a recent acquisition.

Cost of sales increased primarily due to product mix.  As a result of unfavorable product mix, the cost of sales percentage increased during the period.  The SG&A expense decrease included the reduction of a contingent liability resulting from a change in estimate, partially offset by higher severance and facility consolidation costs.  As a result, SG&A expense as a percentage of net sales decreased during the quarter.  R&D expense and R&D expense as a percentage of net sales increased primarily due to the timing of FLIR product development activities.  Acquired intangible asset amortization and acquired intangible asset amortization as a percentage of net sales remained reasonably consistent between the two periods.

Operating income increased primarily due to higher net sales and lower SG&A, offset by unfavorable product mix and higher R&D expense during the period, and operating income as a percentage of net sales increased slightly.

First six months of 2025 compared with the first six months of 2024

Net sales increased primarily due to higher sales of commercial infrared imaging components, unmanned air systems and surveillance systems, partially offset by lower sales of X-ray products, industrial automation imaging systems