Teledyne delivers Q1 earnings beat, announces new CEO
Thousand Oaks-based Teledyne Technologies has had an interesting end to the month of April, beating analysts’ expectations when it released its earnings on April 23 and announcing its new CEO a few days later on April 28.
George C. Bobb III, who most recently served as the company’s president and COO, was elevated to president and CEO effective immediately, the company said after the markets closed April 28.
Bobb takes over for Edwin Roks, who retired from the CEO spot after taking over in October 2023. Roks had been with the defense firm since 2011, after Teledyne acquired DALSA. Roks will continue as a special advisor to Executive Chairman Robert Mehrabian through Aug. 31.
“I also want to thank Edwin for his 20 years of service, first starting in 2005 and then joining Teledyne in 2011 with the acquisition of DALSA Corporation. Edwin has been a strong contributor to Teledyne’s growth in the digital imaging area and the advancement of technology across our business portfolio,” Mehrabian said.
Bobb has been with Teledyne since 2008, serving in roles such as the president of Teledyne’s Aerospace and Defense Electronics Segment and has also held various legal positions within the company.
“George has worked with me at Teledyne for 17 years and has excelled at every assignment given to him, including most recently as Teledyne’s President and Chief Operating Officer,” said Mehrabian. “Together, George and I will continue the development and execution of Teledyne’s growth strategy, with George reporting directly to me.”
InvestingPro said they expect the leadership transition to be “seamless, with Bobb’s extensive experience within Teledyne providing continuity.”
Analysts have also maintained a positive outlook, with price targets reaching as high as $600 after the company delivered a strong earnings beat for the first quarter of 2025.
Announced before the markets opened on April 23, Teledyne reported a record $1.45 billion in net sales for the first quarter of 2025, a 7.4% increase compared with the last year.
The defense firm also generated a net income of $188.6 million for the first quarter of 2025 compared with $178.5 million in the same quarter a year ago.
Teledyne also recorded a first quarter GAAP diluted earnings per share of $3.99 and record first quarter non-GAAP diluted earnings per share of $4.95.
Analysts had expected a non-GAAP diluted earnings per share of $4.92 and revenue of $1.44 billion.
In addition to those beats, Teledyne had a record first quarter GAAP operating margin of 17.9% and record first quarter non-GAAP operating margin of 22.0%.
Teledyne also updated its full-year 2025 GAAP diluted earnings per share outlook of $17.35 to $17.83 and maintained its full-year 2025 non-GAAP earnings per share outlook of $21.10 to $21.50.
“We achieved record first quarter sales, non-GAAP operating margin, and adjusted earnings per share,” Mehrabian said.
“First quarter sales reflected organic growth in every segment, coupled with the contribution from recent acquisitions. In addition, quarter-end backlog was a record, as orders exceeded sales for the sixth consecutive quarter.”
Mehrabian also spoke about its most recent acquisition of select aerospace and defense electronics businesses from Excelitas Technologies Corp. for approximately $710 million.
The acquisition includes the optical systems business known under the Qioptiq brand based in Northern Wales, UK, as well as the U.S.-based advanced electronic systems business.
“We continue to execute our strategy, which has delivered long-term results regardless of economic and political uncertainty. That is, maintain a balanced and resilient mix of commercial and government businesses across a broad range of geographies and markets, continue to improve margins in existing businesses, and acquire and integrate complementary companies,” he said.
Teledyne shares closed around $462.62 on April 29, up about 3.5% since its earnings announcement on April 23.
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