June 18, 2024
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Teledyne: Earnings, USCG Contract, Acquisition


Teledyne Technologies beat earnings expectations for the fourth time in a row, reflecting a solid year of strong sales and net income growth.

Teledyne FLIR recently won a $48.7 million contract to provide imaging and other equipment for the U.S. Coast Guard. U.S. Coast Guard photo by Petty Officer 2nd Class Henry G. Dunphy.

Teledyne, the Thousand Oaks-based aerospace engineering company, was expected to release quarterly earnings of about $4.30 per share according to Zacks Consensus Estimate, as compared to earnings of $4.34 a year ago. Instead, Teledyne came out with earnings of $4.54 per share, beating the estimate by more than 5.5%.

Additionally, the company saw record net sales increase almost 4% year-over-year when it released its third quarter 2022 earnings Oct. 26. Teledyne’s net income has also risen significantly, being up 33% compared to the third quarter in 2021.

“We are proud of our performance this quarter, as well as Teledyne’s long history of navigating challenging markets. Despite the strong U.S. dollar, supply chain constraints and inflation, we achieved record third-quarter sales, earnings, operating margin and free cash flow,” said Robert Mehrabian, Teledyne’s chairman, president and Chief Executive Officer in a press release.

Mehrabian attributed the company’s continued success to its overall business strategy, which maintains commercial, governmental and aviation customers.

New Coast Guard Contract

Teledyne announced the same day it released its earning statements that the company received a $48.7 million contract to provide Maritime Forward Looking Infrared (MARFLIR) II sensors, as well as multiple variants of its SeaFLIR 280-HD surveillance systems, to the United States Coast Guard.

The Teledyne FLIR SeaFLIR 280-HD system is a high-performance imaging system that has features needed for long-range detection, identification, tracking and threat assessment. The Coast Guard uses these systems to help perform several essential duties, including providing port and waterway security, drug interdiction, search and rescue and enforcing domestic and international fishing laws.

“The U.S. Coast Guard’s mission areas continue to grow in number and importance to save lives, and in turn they depend on the most advanced imaging technology to be successful,” said Dr. JihFen Lei, executive vice president and general manager of Teledyne FLIR Defense, in another release. “We’re honored to continue our relationship with the Coast Guard and Navy in providing the upgraded SeaFLIR 280 with its many enhanced capabilities.”

Work on the systems will be performed at Teledyne FLIR’s Billerica, Mass. facility, and is expected to be done by March 2027.

Teledyne Acquires ETM

Teledyne is using the gains to push forward into the market. On Oct. 26, Teledyne also announced that a wholly-owned subsidiary has agreed to acquire ETM-Electromatic, which is based in Newark, Calif. ETM designs and manufactures high-power microwave and high-energy X-ray subsystems for cancer treatments, defense and security purposes. Terms of the agreement were not disclosed, but Teledyne will also acquire ETM’s purpose-built manufacturing facility from an affiliate of ETM and its owners.

“ETM is uniquely complementary to our healthcare imaging and defense electronics businesses,” Mehrabian said in a different release. “For many years, Teledyne MEC and Teledyne e2v have supplied critical vacuum electron device components to ETM. The combination with ETM will now accelerate Teledyne’s ability to provide greater content and subsystem-level solutions to cancer radiotherapy, defense and security customers. In addition, ETM strengthens our capabilities in microwave combining technologies and high-power gallium nitride (GaN) based solid-state power amplifiers.”