Teledyne Technologies Raises 2025 Profit Forecast on Strong Defense Demand

Teledyne Technologies has raised its full-year 2025 earnings forecast due to strong demand in defense electronics and military drones, with its third-quarter results surpassing Wall Street expectations. The company reported record quarterly sales, non-GAAP earnings per share, and free cash flow, driven by growth in defense-related sectors and backlog increases, despite potential short-term disruptions from the ongoing U.S. government shutdown. Its Q3 revenue reached $1.54 billion, a 6.7% year-over-year increase, exceeding analyst estimates, and adjusted EPS of $5.57 also beat expectations. Teledyne's business spans four main segments, including digital imaging and aerospace and defense electronics, with about a quarter of its revenue from U.S. government contracts. While the company shows consistent long-term growth, recent two-year revenue growth has slowed compared to its five-year trend but still outperforms peers amid cyclical headwinds. Teledyne's strong financial position and robust backlog provide flexibility for acquisitions or stock repurchases as it continues to capitalize on growing defense demand.