Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 82

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 was similar in both periods.

Operating income increased primarily due to increased net sales, and operating income as a percent of net sales decreased primarily due higher transaction and integration costs as well as unfavorable product mix.

26

Engineered Systems

First QuarterChange(dollars in millions)20252024$%Net sales$107.1$93.2$13.9 14.9 %Cost of sales$90.2$82.5$7.7 9.3 %Selling, general and administrative expense$6.1$7.9$(1.8)(22.8)%Research and development expense$—$0.1$(0.1)(100.0)%Operating income$10.8$2.7$8.1 300.0 %As percentage of net sales:Cost of sales84.2 %88.5 %Selling, general and administrative expense5.7 %8.5 %Research and development expense— %0.1 %Operating income10.1 %2.9 %

First quarter of 2025 compared with the first quarter of 2024

Net sales increased due to higher sales of $14.2 million for engineered products, partially offset by a $0.3 million decrease in energy systems.

Cost of sales increased primarily due to higher net sales, and the cost of sales percentage decreased during the period due to favorable program mix.  SG&A expense decreased primarily due to lower selling expense, and SG&A expense as a percentage of net sales decreased.

Operating income and operating income as a percentage of net sales increased primarily due to higher net sales, lower selling expense and favorable program mix.

Financial Condition, Liquidity and Capital Resources

Our principal cash and capital requirements are to fund working capital needs, capital expenditures, income tax payments, and debt service requirements as well as acquisitions.  We may deploy cash for the stock repurchase program.  It is anticipated that cash on hand, operating cash flow, together with available borrowings under our $1.20 billion credit facility, will be sufficient to meet these requirements.  To support acquisitions, we may need to raise additional capital.  No cash pension contributions have been made since 2013 or are planned for the remainder of 2025 for the domestic qualified pension plans.

Cash and Cash Equivalents

Cash and cash equivalents totaled $461.5 million at March 30, 2025, compared with $649.8 million at December 29