Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 41

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 41
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 in the Middle East, including disruption of shipping lanes in the Red Sea;

•the ability of oil and gas companies to generate or raise funds for capital expenditures;

•domestic and foreign tax policy;

•laws and governmental regulations that restrict exploration and development of oil and gas in various offshore jurisdictions or the use of hydraulic fracturing;

•laws and governmental regulation that restrict the use of hydraulic fracturing;

•technological changes;

•the political environment of oil-producing regions;

•the price and availability of alternative fuels; and

•climate change regulations that provide incentives to conserve energy, use electric vehicles or use alternative energy sources, or that impose restrictions on the development and extraction of oil and gas.

The airline industry is heavily regulated, and if we fail to comply with applicable requirements, our results of operations could suffer.

Our commercial aerospace group produces products for use in commercial aviation.  Governmental agencies throughout the world, including the Federal Aviation Administration (“FAA”), prescribe standards and qualification requirements for aircraft components, including virtually all commercial airline and general aviation products.  Specific regulations vary from country to country, although compliance with FAA requirements generally satisfies regulatory requirements in other countries.  If any material authorization or approval qualifying us to supply our products is revoked or suspended, then sale of the product would be prohibited by law, which would have an adverse effect on our business, financial condition and results of operations.

The FAA and equivalent regulatory agencies have increasingly focused on the need to assure that airline industry products are designed with sufficient cybersecurity controls to protect against unauthorized access or other unwanted compromise.  A failure to meet these evolving expectations could negatively impact sales into the industry and expose us to legal or contractual liability.

Changes in production rates for major aircraft manufacturers, like Boeing and Airbus, impact our commercial aerospace businesses.  Boeing and Airbus recently have struggled to meet delivery targets due to supply chain issues and other challenges.  In January 2024, the FAA ordered the temporary grounding of Boeing 737-9 MAX aircraft as a result of an incident on a Boeing 737-9 MAX where it lost a “door plug.”  The FAA capped the output of Boeing 737-MAX aircraft until quality control targets are reached.  A strike by machinists at Boeing in 2024 lasted almost two months and resulted in a pause in aircraft production.  These factors have negatively impacted our sales to Airbus and Boeing and any future pauses or reductions in manufacturing could negatively impact our business.

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A change in policy direction related to environmental regulations and green energy could negatively impact demand for our