Teledyne Technologies reported second-quarter 2026 net sales of $1,662.5 million, up 9.8% year-over-year, with GAAP diluted EPS of $5.37 and non-GAAP diluted EPS of $6.28. Operating income was $333.2 million (GAAP) and non-GAAP operating income was $389.4 million, while cash from operations totaled $315.2 million and free cash flow was $284.7 million. The company also raised its full-year 2026 GAAP EPS outlook to $20.73–$20.99 and non-GAAP EPS outlook to $24.45–$24.65 and finished the quarter with a consolidated leverage ratio of 1.1x.

Financial Highlights

  • Revenue: Net sales of $1,662.5 million for Q2 2026, an increase of 9.8% from Q2 2025 ($1,513.7 million).
  • Operating income: GAAP operating income of $333.2 million for Q2 2026; non-GAAP operating income of $389.4 million (non-GAAP operating margin 23.4%).
  • Net income: Net income attributable to Teledyne of $251.7 million for Q2 2026 (GAAP).
  • Adjusted earnings per share: GAAP diluted EPS $5.37; non-GAAP diluted EPS $6.28 for Q2 2026 (non-GAAP EPS up 20.8% year-over-year).
  • Cash and leverage: Cash provided by operating activities $315.2 million; free cash flow $284.7 million; quarter-end consolidated leverage ratio ~1.1x with net debt of $1,686.9 million.

Business Highlights

  • Record backlog and orders: Company reported all-time record quarterly orders, sales and operating profit and ended the quarter with approximately $5.0 billion of funded backlog.
  • Digital Imaging strength: Segment net sales rose 12.7% to $868.7 million driven by higher sales of infrared detectors, imaging components/subsystems, surveillance systems, industrial/scientific imaging and X-ray products.
  • Segment performance: Instrumentation sales increased 5.5% to $387.8 million with growth in marine, environmental and test & measurement products; Aerospace & Defense Electronics sales increased 8.2% to $286.4 million; Engineered Systems sales rose 8.4% to $119.6 million.
  • Acquisitions and integration: Q2 included incremental sales from recent acquisitions (totaling $12.2 million in the quarter), with ongoing review of additional acquisition opportunities and limited transaction/integration costs recorded.
  • Operational cash and capital: Capital expenditures of $30.5 million in the quarter; inventory and working capital changes contributed to strong operating cash flow and enabled a $450 million debt maturity repayment early in the quarter.

Original SEC Filing:

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