Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 44

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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%Selling, general and administrative expense13.7 %11.3 %Research and development expense2.5 %2.5 %Acquired intangible asset amortization 1.3 %0.1 %Operating income 23.0 %28.0 %

* Not meaningful

First quarter of 2025 compared with the first quarter of 2024

Net sales increased due to a $57.1 million increase in defense electronics, partially offset by a $0.3 million decrease in aerospace electronics.  The first quarter of 2025 included $42.3 million in incremental sales from recent acquisitions.

Cost of sales increased due to higher net sales, partially offset by unfavorable product mix, including recent acquisitions which carry a higher cost of sales percentage, and the cost of sales percentage increased due to unfavorable product mix.  SG&A expense increased due to higher net sales as well as $3.2 million of transaction and integration costs for 2025 acquisitions incurred in the first quarter of 2025, with no comparable amount recorded in the first quarter of 2024.  R&D expense increased due to primarily to the 2025 acquisitions, and the R&D expense percentage was similar in both periods.

Operating income increased primarily due to increased net sales, and operating income as a percent of net sales decreased primarily due higher transaction and integration costs as well as unfavorable product mix.

26

Engineered Systems

First QuarterChange(dollars in millions)20252024$%Net sales$107.1$93.2$13.9 14.9 %Cost of sales$90.2$82.5$7.7 9.3 %Selling, general and administrative expense$6.1$7.9$(1.8)(22.8)%Research and development expense$—$0.1$(0.1)(100.0)%Operating income$10.8$2.7$8.1 300.0 %As percentage of net sales:Cost of sales84.2 %88.5 %Selling, general and administrative expense5.7 %8.5 %Research and development expense— %0.1 %Operating income10.1 %2.9 %

First quarter of 2025 compared with the first quarter of 2024

Net sales increased due to higher sales of $14.2 million for engineered products, partially offset by a $0.3 million