Teledyne Technologies Incorporated shares are trading lower in premarket trading on Wednesday after the company reported its third-quarter results.

The firm reported sales growth of 6.7% year-over-year (Y/Y) to $1.540 billion, beating the consensus of $1.528 billion.

In the quarter, net sales in the Digital Imaging segment stood at $785.4 million (+2.2% Y/Y), Instrumentation segment at $363.6 million (+3.9% Y/Y), Aerospace and Defense Electronics segment at $275.5 million (+37.6% Y/Y) and the Engineered Systems segment at $115.0 million (-8.1% Y/Y).

Also Read: Teledyne Secures $74.2M US Army Contract To Enhance Sensor Tech

Adjusted operating margin stood at 22.1% compared to 22.5% in the same quarter last year. Adjusted EPS was $5.57, above the consensus of $5.480.

During the quarter, the company generated $343.1 million in cash from operations and $ 313.9 million in free cash flow.

As of September 28, 2025, the company’s net debt was $2.0 billion.

Management Commentary

“Furthermore, total company new orders were also a quarterly record due in part to continued backlog growth at Teledyne FLIR. Given our strong third quarter performance, recovering commercial short-cycle businesses, and robust backlog growth, we are raising our full year earnings outlook,” stated Robert Mehrabian, executive chairman.

”Nevertheless, given the current U.S. Government shutdown, we are a bit measured on expectations for new awards and shipments in the very near-term.”

Outlook

Teledyne Technologies ( TDY ) expects fourth-quarter adjusted EPS of $5.73–$5.88, versus the $5.88 consensus estimate.

The company raised its full-year 2025 adjusted EPS guidance to $21.45–$21.60, up from $21.20–$21.50 and compared to the $21.49 estimate.

Investors can gain exposure to the stock through the Spinnaker ETF Series Tuttle Capital Self Defense Index ETF and Virtus ETF Trust II Virtus KAR Mid-Cap ETF .

Price Action: TDY shares are trading lower by 2.40% to $560.00 at the last check on Wednesday.

Read Next:

Benzinga’s ‘Stock Whisper’ Index: 5 Stocks Investors Secretly Monitor But Don’t Talk About Yet