Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 111

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 infrared imaging components and subsystems increased $11.7 million, sales of unmanned air systems increased $7.5 million, sales of industrial automation imaging systems increased $5.0 million, and sales of unmanned ground systems decreased $7.2 million.

Cost of sales increased primarily due to higher net sales.  The cost of sales percentage decreased slightly during the period.  SG&A expense increased slightly, and SG&A expense as a percentage of net sales decreased slightly.  R&D expense and R&D expense as a percentage of net sales increased primarily due to the timing of FLIR product development activities, including higher R&D expense for unmanned air systems.  Acquired intangible asset amortization and acquired intangible asset amortization as a percentage of net sales remained reasonably consistent between the two periods.

Operating income decreased primarily due to higher R&D expense, partially offset by higher net sales.  As a result of the higher R&D expenses, operating income as a percentage of net sales decreased.

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

Net sales increased primarily due to higher sales of commercial infrared imaging components, unmanned air systems and surveillance systems, partially offset by lower sales of commercial infrared imaging systems, X-ray products, geospatial products and industrial automation imaging systems.  Sales of commercial infrared imaging components and subsystems increased by $41.7 million, sales of unmanned air systems increased by $29.7 million, sales of surveillance systems increased by $19.7 million, sales of commercial infrared imaging systems decreased by $17.6 million, sales of X-ray products decreased by $11.8 million, sales of geospatial products decreased by $5.4 million, and sales of industrial automation imaging systems decreased by $4.4 million.  The first nine months of 2025 also included $15.1 million in incremental sales from recent acquisitions.

Cost of sales increased primarily due to unfavorable product mix, and the cost of sales percentage increased during the period.  The SG&A expense decrease included the reduction of a contingent liability resulting from a change in estimate, partially offset by higher severance and facility consolidation costs.  As a result, SG&A expense as a percentage of net sales decreased during the first nine months of 2025.  R&D expense and R&D expense as a percentage of net sales increased primarily due to the timing of FLIR product development activities.  Acquired intangible asset amortization increased slightly while acquired intangible asset amortization as a percentage of net