Company: TDY
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001094285-25-000131
Chunk: 49

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 of 2025 and the full year of 2024.  The financial results of the completed acquisitions have been included since the respective date of each acquisition.  Subsequent to the end of the second quarter of 2025, we completed an additional acquisition. 

Trends and Other Matters Affecting Our Business

In early 2025, the U.S. Presidential administration implemented significant new tariffs on foreign imports impacting multiple countries, commodities and industries, and these new tariffs and export restrictions also prompted retaliatory tariffs and export restrictions from certain countries.  As of July 2025, certain tariffs and retaliatory tariffs have been delayed, but a number of the new tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China.  China has also restricted the export of certain rare earth minerals which are used in our products.  Tariffs, trade restrictions and retaliatory measures could result in revenue reductions, cost increases on material used in our products or significant production delays, which could adversely affect our business, financial condition, operational results and cash flows.  Consistent with our strategy, we are optimizing operations and facilities and taking measures to contain costs to reduce the impact from tariffs.  We may also implement additional pricing actions to mitigate the impact of these tariffs. To date, our strategies have helped minimize our exposure to these conditions.

In July 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law.  The Act includes changes to U.S. tax law, including provisions to accelerate tax deductions for qualified property and research expenditures.  We are in the process of evaluating the impact of the Act to our consolidated financial statements.

Sales recorded and costs incurred recorded by subsidiaries operating outside of the United States are translated into U.S. dollars using exchange rates effective during the respective period.  As a result, we are exposed to movements in the exchange rates of various currencies against the U.S. dollar.  See Note 13 for additional discussion around our derivative instruments and hedging activities used to mitigate these impacts.

As part of a continuing effort to reduce costs and improve operating performance, we continue to take actions to consolidate and relocate certain facilities and reduce headcount across various businesses, reducing our exposure to weaker end markets.  We continue to seek cost reductions in our businesses.

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Results of Operations

  Second Quarter%Six Months%(dollars in millions)20252024Change20252024ChangeNet sales$1,513.7 $1,374.1