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Investing.com -- Teledyne Technologies Incorporated (NYSE:TDY) reported record third-quarter sales and earnings that exceeded analyst expectations, as the company benefited from strong performance in its defense-related businesses and recent acquisitions.
The technology company posted adjusted earnings of $5.57 per share for the third quarter, surpassing the analyst consensus of $5.47. Revenue reached a record $1.54 billion, slightly above analysts’ expectations of $1.53 billion and representing a 6.7% increase compared to the same period last year.
"This morning, we were pleased to announce record quarterly sales, non-GAAP earnings per share and free cash flow," said Robert Mehrabian, Executive Chairman. "Given our strong third quarter performance, recovering commercial short-cycle businesses, and robust backlog growth, we are raising our full year earnings outlook."
The company’s Aerospace and Defense Electronics segment showed the strongest growth, with sales increasing 37.6% to $275.5 million, driven by $69.0 million in incremental defense electronics sales from recent acquisitions. Digital Imaging, Teledyne’s largest segment, saw sales rise 2.2% to $785.4 million.
Teledyne generated record quarterly cash from operations of $343.1 million and free cash flow of $313.9 million, strengthening its financial position. The company’s quarter-end consolidated leverage ratio stood at 1.4x.
Looking ahead, Teledyne raised its full-year 2025 outlook, now expecting adjusted earnings per share between $21.45 and $21.60, up from its previous guidance of $21.20 to $21.50. However, Mehrabian expressed some caution regarding near-term government contracts, noting: "Given the current U.S. Government shutdown, we are a bit measured on expectations for new awards and shipments in the very near-term."
The company also announced the pending carve-out acquisition of TransponderTech, signaling continued focus on strategic growth opportunities.