Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 12

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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ization$5.0$0.2$4.8 *$13.4$0.6$12.8 *Operating income$70.4$56.3$14.1 25.0 %$192.7$165.3$27.4 16.6 %As a percentage of net sales:Cost of sales59.0 %55.9 %58.9 %56.4 %Selling, general and administrative expense10.7 %12.5 %11.9 %12.0 %Research and development expense3.0 %3.4 %2.9 %3.0 %Acquired intangible asset amortization 1.7 %0.1 %1.7 %0.1 %Operating income 25.6 %28.1 %24.6 %28.5 %

* Not meaningful

Third quarter of 2025 compared with the third quarter of 2024

Net sales increased due to a $75.6 million increase in defense electronics, partially offset by a $0.3 million decrease in aerospace electronics.  The third quarter of 2025 included $69.0 million in incremental sales from recent acquisitions.

Cost of sales 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 R&D expense as a percentage of net sales decreased.  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 unfavorable product mix, including lower gross margins on sales from 2025 acquisitions as well as higher acquired intangible asset amortization. 

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

Net sales increased due to a $205.3 million increase for defense electronics, partially offset by a $2.8 million decrease for aerospace electronics.  The first nine months of 2025 included $175.7 million in incremental sales from recent acquisitions. 

Cost of sales