Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 257

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 257
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 expense increased in 2024 compared with 2023, and primarily related to higher net sales.  Research and development expense increased in 2024 compared with 2023 primarily due to higher aerospace electronics spending.  The selling, general and administrative expense and research and development expense percentages in 2024 increased slightly compared with 2023.

The increase in operating income for 2024 primarily reflected the impact of higher net sales and favorable product mix.

29

Engineered Systems

(dollars in millions)20242023$ Change% ChangeNet sales$439.8$438.7$1.10.3%Cost of sales$379.5$367.5$12.03.3%Selling, general and administrative expense$26.5$24.9$1.66.4%Research and development expense$0.9$1.6$(0.7)(43.8)%Operating income$32.9$44.7$(11.8)(26.4)%Cost of sales % of net sales86.3 %83.8 %2.5 %Selling, general and administrative expense % of net sales6.0 %5.7 %0.3 %Research and development expense % of net sales0.2 %0.3 %(0.1)%Operating income % of net sales 7.5 %10.2 %(2.7)%International sales % of net sales 1.0 %1.9 %(0.9)%U.S. Government sales % of net sales 88.4 %87.7 %0.7 %

Our Engineered Systems segment provides innovative systems engineering and integration, advanced technology development, and manufacturing solutions for defense, space, environmental and energy applications, including the design and manufacture of electrochemical energy systems.

2024 compared with 2023 

Our Engineered Systems segment net sales for 2024 increased 0.3%, compared with 2023.  Operating income for 2024 decreased 26.4%, compared with 2023.

The 2024 net sales increase primarily reflected $2.4 million of higher sales for engineered products, partially offset by $1.3 million of lower sales for energy systems.  Operating income in 2024 primarily reflected the impact of unfavorable contract estimate changes related to electronic manufacturing services products. 

Cost of sales for 2024 increased compared with 2023, and primarily reflected the impact of