Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 56

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 of $62.3 million.

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 expense.  The Company has estimated the 2025 impact in current results which includes a cash tax reduction of approximately $30.0 million.  The Company will continue to model the elective decisions before the 2025 tax return is filed in 2026.  The 2026 impact is estimated to include a cash tax reduction of between $60.0 million and $70.0 million. 

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

The first nine months of 2025 net sales increased 8.0%.  Net income for the first nine months of 2025 decreased 0.2%, primarily driven by the favorable resolution of an uncertain tax position reached by the Company with foreign tax authorities around transfer pricing between certain FLIR subsidiaries in the third quarter of 2024.  Net income per diluted share was $13.06 for the first nine months of 2025, compared with net income per diluted share of $13.01.

Net Sales 

The first nine months of 2025 net sales, compared with the first nine months of 2024, reflected higher net sales in each segment.  The first nine months of 2025 included $196.3 million in incremental sales from recent acquisitions, which are primarily included within the Aerospace and Defense Electronics segment.

Cost of Sales

Cost of sales increased $203.9 million in the first nine months of 2025, primarily driven by higher net sales.  Cost of sales as a percentage of net sales increased for the first nine months of 2025 to 57.3% from 57.0%.

Selling, General and Administrative Expense

SG&A expense increased $30.9 million in the first nine months of 2025 primarily due to higher net sales, including net sales related to 2025 acquisitions.  SG&A expense as a percentage of net sales for the first nine months of 2025 was 15.6% compared with 16.1%.  Corporate expense, which is included in SG&A expense, was $65.9 million for the first nine months of 2025 compared with $57.1 million, with the increase primarily related to higher employee compensation costs, including severance costs