Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 13

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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 increased due to higher net sales, inventory step-up expense related to the 2025 acquisitions and unfavorable product mix, including recent acquisitions, which carry a higher cost of sales percentage, and as a result, the cost of sales percentage increased.  SG&A expense increased due to higher net sales and higher transaction and integration costs as a result of 2025 acquisitions.  R&D expense increased primarily due to the 2025 acquisitions, and the R&D expense as a percentage of net sales was similar in both periods.  Acquired intangible asset amortization 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 decreased primarily due to higher transaction and integration costs, higher acquired intangible asset amortization and unfavorable product mix including lower gross margins on sales from 2025 acquisitions.

31

Engineered Systems

Third QuarterChangeNine MonthsChange(dollars in millions)20252024$%20252024$%Net sales$115.0$125.1$(10.1)(8.1)%$332.4$325.1$7.3 2.2 %Cost of sales$96.2$105.9$(9.7)(9.2)%$278.0$281.2$(3.2)(1.1)%Selling, general and administrative expense$6.5$6.1$0.4 6.6 %$18.9$20.4$(1.5)(7.4)%Research and development expense$0.1$0.2$(0.1)(50.0)%$0.4$0.4$— — %Operating income$12.2$12.9$(0.7)(5.4)%$35.1$23.1$12.0 51.9 %As percentage of net sales:Cost of sales83.7 %84.7 %83.6 %86.5 %Selling, general and administrative expense5.6 %4.9 %5.7 %6.3 %Research and development expense0.1 %0.1 %0.1 %0.1 %Operating income10.6 %10.3 %10.6 %7.1 %

Third quarter of 2025 compared with the third quarter of 2024

Net sales decreased due to