BOSTON - Teledyne FLIR Defense, a subsidiary of Teledyne Technologies Incorporated (NYSE:TDY), has secured a contract with a maximum value of $249 million from the U.S. Marine Corps Systems Command.
The contract is for the delivery of the Organic Precision Fires-Light (OPF-L) program, which includes a new class of recoverable and reusable loitering munition drones. These systems are designed to provide rifle squads and platoons the ability to engage targets beyond their line of sight.
The initial delivery order under the Indefinite Delivery/Indefinite Quantity (IDIQ) contract is valued at $12 million. The OPF-L program aims to enhance the lethality of small units by equipping them with a man-packable, precision strike capability against a variety of targets, including moving and stationary armor, vehicles, and dismounted personnel.
The advanced small Vertical Take-off and Landing (VTOL) loitering munition solution developed by Teledyne FLIR has demonstrated success in tests, showcasing its effectiveness in combat scenarios.
Dr. JihFen Lei, executive vice president and general manager of Teledyne FLIR Defense, emphasized the system's flexibility and adaptability, which are expected to bolster small unit capabilities across the diverse range of threats encountered in modern battlefields.
The contract includes a five-year performance period with an additional three-year option. Teledyne FLIR is set to deliver the first 127 loitering munition systems to the Marine Corps for testing and evaluation later this summer.
Teledyne FLIR Defense, with over 45 years of experience, provides a variety of mission-critical technology and systems for military, security, and public safety applications. Their portfolio includes thermal imaging, surveillance sensors, unmanned aerial systems, and devices for detecting hazardous materials.
This contract represents a significant commitment by the Marine Corps to modernize and enhance the capabilities of its ground forces with the latest unmanned systems technology. The information for this news article is based on a press release statement from Teledyne Technologies Incorporated.
InvestingPro Insights
Teledyne Technologies Incorporated (NYSE:TDY), with its recent $249 million contract from the U.S. Marine Corps, stands to strengthen its position in defense technology. According to InvestingPro data, Teledyne boasts a market capitalization of $18.88 billion and a P/E ratio of 21.16, indicating a strong market presence. The company's revenue for the last twelve months as of Q4 2023 was reported at $5.635 billion, with a gross profit margin of 43.29%, underscoring its financial robustness in the sector.
InvestingPro Tips suggest that Teledyne is trading at a high P/E ratio relative to near-term earnings growth, which could be a point of consideration for investors looking at the stock's valuation. Additionally, the stock is known for its low price volatility, which might appeal to investors seeking stability in their portfolio. It's noteworthy that analysts predict the company will be profitable this year and it has been profitable over the last twelve months. These factors, combined with the company's high return over the last decade and the fact that it does not pay a dividend, may influence investment decisions.
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