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Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by Teledyne Technologies Incorporated (“Teledyne” or the “Company”) pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in notes to consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, but resultant disclosures are in accordance with generally accepted accounting principles in the United States (“GAAP”) as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025 (“2025 Form 10-K”).

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of June 28, 2026, and the consolidated results of operations, consolidated comprehensive income (loss) and consolidated cash flows for the second quarter and six months ended June 28, 2026. The results of operations and cash flows for the second quarter ended June 28, 2026, are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year.

Recent Accounting Standards

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires public entities, on an interim and annual basis, to provide disclosure of specified information about costs and expenses in the notes to the financial statements. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements.

Other ASUs issued but not effective until after June 28, 2026, are not expected to have a material effect on the Company’s consolidated financial position, annual results of operations and/or cash flows.

2026 Acquisitions

DD-Scientific

In the first quarter of 2026, the Company acquired DD-Scientific Holdings Limited and its subsidiary DD-Scientific Limited (together, “DD-Scientific”) for approximately $53.6 million in cash, net of cash acquired and certain adjustments. DD-Scientific, founded in 2011 and headquartered in Fareham, UK, develops and manufactures high-performance gas sensors for critical applications in industries including industrial safety, healthcare and environmental compliance. DD-Scientific is included within the Instrumentation segment. Goodwill resulting from the DD-Scientific acquisition will not be deductible for tax purposes.

2025 Acquisitions

TransponderTech

During the fourth quarter of 2025, the Company acquired the TransponderTech business headquartered in Linkoping, Sweden from Saab AB for approximately $58.2 million in cash, net of cash acquired. The TransponderTech business includes a portfolio of connected commercial maritime products, including Automatic Identification System, Very High Frequency Data Exchange System and Global Navigation Satellite System technologies. TransponderTech is part of the Digital Imaging segment. The Company funded the acquisition from cash on hand. Goodwill resulting from the TransponderTech acquisition will not be deductible for tax purposes.

NL Acoustics

During the third quarter of 2025, the Company acquired the redeemable noncontrolling interest of NL Acoustics for $27.2 million in cash, with the acquisition of the noncontrolling interest treated as an equity transaction during the period.

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Micropac

During the first quarter of 2025, the Company acquired Micropac Industries, Inc. (“Micropac”) for approximately $51.2 million in cash, net of cash acquired. Micropac, founded in 1963 and headquartered in Garland, Texas, designs and manufactures microelectronic circuits, optoelectronic components and sensor and display assemblies primarily for military, aerospace and medical applications. Micropac is part of the Aerospace and Defense Electronics segment. The Company funded the acquisition from cash on hand. Goodwill resulting from the Micropac acquisition will not be deductible for tax purposes.

Optical Systems and Advanced Electronics Systems (“Qioptiq”) businesses

During the first quarter of 2025, the Company acquired select aerospace and defense electronics businesses of Excelitas Technologies Corp. (“Excelitas”) for approximately $702.8 million in cash, net of cash acquired and certain adjustments. The acquisition includes the Optical Systems (“OS”) business which is based in Northern Wales, UK, as well as the U.S.-based Advanced Electronics Systems (“AES”) business (collectively, “OS and AES businesses”, or “Qioptiq”). Qioptiq is part of the Aerospace and Defense Electronics segment. The Company funded the acquisition from available borrowings on the credit facility as well as from cash on hand. Goodwill resulting from the acquisition of the UK operations will not be deductible for tax purposes, but goodwill resulting from the acquisition of the U.S. operations will be deductible for tax purposes.

The following tables show the purchase price (net of cash acquired), goodwill acquired, and acquired intangible assets for the acquisitions made in 2026 and 2025 (in millions):

			2026
Acquisitions			Acquisition Date						Consideration Transferred (a)						Goodwill Acquired						Acquired Intangible Assets
DD-Scientific			January 14, 2026						$	53.6					$	35.7					$	11.0
Total									$	53.6					$	35.7					$	11.0

(a) Net of cash acquired

			2025
Acquisitions			Acquisition Date						Consideration Transferred (a)						Goodwill Acquired						Acquired Intangible Assets
TransponderTech			October 31, 2025						$	58.2					$	40.1					$	14.8
Qioptiq			February 3, 2025						702.8						428.7						208.2
Micropac			December 30, 2024						51.2						5.0						8.1
Total									$	812.2					$	473.8					$	231.1

(a) Net of cash acquired

The Company’s cost to acquire these acquisitions was allocated to the assets acquired and liabilities assumed based upon their respective fair values as of the date of the completion of the acquisition. The differences between the fair value of the consideration paid and the estimated fair value of the assets and liabilities acquired were recorded as goodwill. The fair value of the acquired identifiable assets and liabilities for TransponderTech and DD-Scientific is provisional pending finalization of the Company’s acquisition accounting, including the measurement of tax basis in certain jurisdictions and the resulting deferred taxes that might arise from book and tax basis differences, if any. Pro forma results of operations, the revenue and net income subsequent to the acquisition date, and a more detailed breakout of the major classes of assets and liabilities acquired for these acquisitions have not been presented because the effects of these acquisitions both individually and in the aggregate were not material to the Company’s financial results. The significant factors that resulted in recognition of goodwill for the 2026 and 2025 acquisitions included the acquired businesses’ market positions, growth opportunities in the markets in which they operate, experienced work force and established operating infrastructures. The results of these acquisitions have been included in Teledyne’s results since the dates of their respective acquisition.

Teledyne is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. The Company’s customers include government agencies, aerospace prime contractors, energy exploration and production companies, major industrial companies, and airlines. The Company has four reportable segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems.

Segment results include net sales and operating income by segment but exclude corporate expenses. Corporate expense primarily includes administrative expenses relating to the corporate office not allocated to the segments.

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In 2026, the Company completed one acquisition, and the financial results of this acquisition have been included since the date of the acquisition and is part of the Instrumentation segment. In 2025, the Company completed four acquisitions, and the financial results of these acquisitions have been included since the date of the acquisition and are part of the Digital Imaging and Aerospace and Defense Electronics segments. See Note 2 to these condensed consolidated financial statements for information regarding these 2026 and 2025 acquisitions.

Information for the Company’s business segments was as follows (in millions):

			Second Quarter Ended June 28, 2026
			Digital Imaging						Instrumentation						Aerospace and Defense Electronics						Engineered Systems						Total
Net sales (a)			$	868.7					$	387.8					$	286.4					$	119.6					$	1,662.5
Costs and expenses
Cost of sales			459.3						199.5						168.0						97.6						924.4
Selling, general and administrative			134.1						57.2						33.0						6.4						230.7
Research and development			57.7						26.3						5.7						0.5						90.2
Acquired intangible asset amortization			47.4						3.4						5.2						—						56.0
Segment Operating income (loss)			$	170.2					$	101.4					$	74.5					$	15.1					$	361.2
Reconciliation to Income (loss) before income taxes
Corporate expense																											(28.0)
Interest and debt expense, net																											(13.6)
Non-service retirement benefit income																											2.6
Other income (expense), net																											(0.9)
Income (loss) before income taxes																											$	321.3

(a) Net sales exclude inter-segment sales of $18.0 million for the second quarter of 2026.

			Six Months Ended June 28, 2026
			Digital Imaging						Instrumentation						Aerospace and Defense Electronics						Engineered Systems						Total
Net sales (a)			$	1,685.6					$	749.2					$	563.9					$	223.9					$	3,222.6
Costs and expenses
Cost of sales			906.9						389.7						330.7						183.4						1,810.7
Selling, general and administrative			261.3						111.4						63.4						13.0						449.1
Research and development			110.1						51.4						12.6						0.7						174.8
Acquired intangible asset amortization			95.4						6.9						11.3						—						113.6
Segment Operating income (loss)			$	311.9					$	189.8					$	145.9					$	26.8					$	674.4
Reconciliation to Income (loss) before income taxes
Corporate expense																											(47.0)
Interest and debt expense, net																											(25.9)
Non-service retirement benefit income																											5.3
Other income (expense), net																											(6.8)
Income (loss) before income taxes																											$	600.0

(a) Net sales exclude inter-segment sales of $23.3 million for the first six months of 2026.

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			Second Quarter Ended June 29, 2025
			Digital Imaging						Instrumentation						Aerospace and Defense Electronics						Engineered Systems						Total
Net sales (a)			$	771.0					$	367.6					$	264.8					$	110.3					$	1,513.7
Costs and expenses
Cost of sales			436.6						186.7						154.2						91.6						869.1
Selling, general and administrative			120.3						50.3						30.8						6.3						207.7
Research and development			48.2						25.7						8.2						0.3						82.4
Acquired intangible asset amortization			46.3						3.3						5.0						—						54.6
Segment Operating income (loss)			$	119.6					$	101.6					$	66.6					$	12.1					$	299.9
Reconciliation to Income (loss) before income taxes
Corporate expense																											(21.7)
Interest and debt expense, net																											(17.6)
Non-service retirement benefit income																											2.7
Other income (expense), net																											(2.7)
Income (loss) before income taxes																											$	260.6

(a) Net sales exclude inter-segment sales of $7.2 million for the second quarter of 2025.

			Six Months Ended June 29, 2025
			Digital Imaging						Instrumentation						Aerospace and Defense Electronics						Engineered Systems						Total
Net sales (a)			$	1,528.0					$	710.9					$	507.3					$	217.4					$	2,963.6
Costs and expenses
Cost of sales			859.1						360.2						298.4						181.8						1,699.5
Selling, general and administrative			243.0						100.0						64.0						12.4						419.4
Research and development			92.3						49.9						14.2						0.3						156.7
Acquired intangible asset amortization			91.7						6.5						8.4						—						106.6
Segment Operating income (loss)			$	241.9					$	194.3					$	122.3					$	22.9					$	581.4
Reconciliation to Income (loss) before income taxes
Corporate expense																											(43.9)
Interest and debt expense, net																											(34.9)
Non-service retirement benefit income																											5.5
Other income (expense), net																											(8.6)
Income (loss) before income taxes																											$	499.5

(a) Net sales exclude inter-segment sales of $11.0 million for the first six months of 2025.

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Product Lines

The Instrumentation segment includes three product lines: Marine Instrumentation, Environmental Instrumentation and Test and Measurement Instrumentation. All other segments each contain one product line.

The table below provides a summary of the net sales by product line for the Instrumentation segment (in millions):

			Second Quarter												Six Months
Instrumentation			2026						2025						2026						2025
Marine Instrumentation			$	181.2					$	171.5					$	356.5					$	333.3
Environmental Instrumentation			127.1						119.9						243.3						228.8
Test and Measurement Instrumentation			79.5						76.2						149.4						148.8
Total			$	387.8					$	367.6					$	749.2					$	710.9

Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash and cash equivalents, deferred taxes, pension assets and other assets.

Identifiable assets for the Company’s business segments was as follows (in millions):

Identifiable assets:			June 28, 2026						December 28, 2025
Digital Imaging			$	11,282.4					$	11,303.3
Instrumentation			1,859.1						1,794.3
Aerospace and Defense Electronics			1,512.8						1,498.2
Engineered Systems			205.2						184.1
Total segment identifiable assets			14,859.5						14,779.9
Corporate			420.9						505.4
Total Teledyne identifiable assets			$	15,280.4					$	15,285.3

Approximately 60% of the Company’s revenue was recognized at a point in time, with the remaining 40% of revenue recognized over time. The Company disaggregates its revenue from contracts with customers by customer type and geographic region for each segment, as management believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

			Second Quarter Ended June 28, 2026																					Second Quarter Ended June 28, 2026
			Customer Type																					Geographic Region (c)
(in millions)			U.S. Govt. (a)						Other (b)						Total									United States						Europe						Asia						All Other						Total
Net sales:
Digital Imaging			$	185.6					$	683.1					$	868.7								$	410.6					$	244.7					$	134.2					$	79.2					$	868.7
Instrumentation			34.8						353.0						387.8									150.4						127.7						64.7						45.0						387.8
Aerospace and Defense Electronics			97.6						188.8						286.4									165.0						78.1						23.4						19.9						286.4
Engineered Systems			103.9						15.7						119.6									118.4						—						0.7						0.5						119.6
Total			$	421.9					$	1,240.6					$	1,662.5								$	844.4					$	450.5					$	223.0					$	144.6					$	1,662.5

(a) U.S. Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

(c) Geographic region by destination

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			Six Months Ended June 28, 2026																					Six Months Ended June 28, 2026
			Customer Type																					Geographic Region (c)
(in millions)			U.S. Govt. (a)						Other (b)						Total									United States						Europe						Asia						All other						Total
Net sales:
Digital Imaging			$	371.0					$	1,314.6					$	1,685.6								$	813.3					$	468.8					$	259.8					$	143.7					$	1,685.6
Instrumentation			65.6						683.6						749.2									293.7						241.5						124.8						89.2						749.2
Aerospace and Defense Electronics			198.3						365.6						563.9									334.3						150.3						47.5						31.8						563.9
Engineered Systems			192.1						31.8						223.9									221.6						—						0.8						1.5						223.9
Total			$	827.0					$	2,395.6					$	3,222.6								$	1,662.9					$	860.6					$	432.9					$	266.2					$	3,222.6

(a) U.S. Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

(c) Geographic region by destination

			Second Quarter Ended June 29, 2025																					Second Quarter Ended June 29, 2025
			Customer Type																					Geographic Region (c)
(in millions)			U.S. Govt. (a)						Other (b)						Total									United States						Europe						Asia						All Other						Total
Net sales:
Digital Imaging			$	141.3					$	629.7					$	771.0								$	341.8					$	212.9					$	135.1					$	81.2					$	771.0
Instrumentation			32.6						335.0						367.6									150.9						113.9						59.1						43.7						367.6
Aerospace and Defense Electronics			114.2						150.6						264.8									166.1						65.2						22.7						10.8						264.8
Engineered Systems			91.4						18.9						110.3									108.7						—						0.9						0.7						110.3
Total			$	379.5					$	1,134.2					$	1,513.7								$	767.5					$	392.0					$	217.8					$	136.4					$	1,513.7

(a) U.S. Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

(c) Geographic region by destination

			Six Months Ended June 29, 2025																		Six Months Ended June 29, 2025
			Customer Type																		Geographic Region (c)
(in millions)			U.S. Govt. (a)						Other (b)						Total						United States						Europe						Asia						All other						Total
Net sales:
Digital Imaging			$	303.0					$	1,225.0					$	1,528.0					$	697.7					$	401.1					$	274.8					$	154.4					$	1,528.0
Instrumentation			59.9						651.0						710.9						298.9						216.4						117.9						77.7						710.9
Aerospace and Defense Electronics			204.4						302.9						507.3						325.2						116.1						45.7						20.3						507.3
Engineered Systems			184.0						33.4						217.4						215.0						—						1.2						1.2						217.4
Total			$	751.3					$	2,212.3					$	2,963.6					$	1,536.8					$	733.6					$	439.6					$	253.6					$	2,963.6

(a) U.S. Government sales include sales as a prime contractor or subcontractor.

(b) Primarily commercial sales

(c) Geographic region by destination

With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed-price contracts. Net sales in the Engineered Systems segment are typically between 45% and 55% fixed-price contracts in a given reporting period, with the balance of net sales derived from cost-reimbursable type contracts. For the six months ended June 28, 2026, approximately 47% of net sales in the Engineered Systems segment was derived from fixed-price contracts.

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Contract Liabilities

			Balance at
Contract Liabilities by Balance Sheet Location (in millions)			June 28, 2026						December 28, 2025
Accrued liabilities			$	428.9					$	369.6
Other long-term liabilities			32.7						33.6
Total contract liabilities			$	461.6					$	403.2

The Company recognized revenue of $170.7 million during the six months ended June 28, 2026, from contract liabilities that existed at the beginning of the year.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and exclude unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity). As of June 28, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $5,176.1 million. The Company expects approximately 72% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 28% recognized thereafter.

Changes in Contract Estimates at Completion

For over time contracts using the cost-to-cost method, the Company has an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of the performance obligations. This EAC process requires management’s judgment relative to assessing risks, estimating contract revenue, determining reasonably dependable cost estimates and making assumptions for scheduling and technical issues. The majority of revenue recognized over time uses an EAC process. Since certain contracts extend over a long period of time, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up basis. This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters. Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly.

The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first six months of 2026 was $22.4 million of favorable operating income compared with $1.9 million of favorable operating income in the first six months of 2025, with the first six months of 2026 primarily related to favorable changes within the Digital Imaging segment. None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income (loss) for any period presented.

Goodwill

The carrying value of goodwill by segment was as follows (in millions):

			Digital Imaging						Instrumentation						Aerospace and Defense Electronics						Engineered Systems						Total
Balance at December 28, 2025			$	7,065.8					$	986.9					$	617.3					$	17.6					$	8,687.6
Current year acquisitions			—						35.7						—						—						35.7
Foreign currency changes and other			(48.5)						(10.3)						(2.6)						—						(61.4)
Balance at June 28, 2026			$	7,017.3					$	1,012.3					$	614.7					$	17.6					$	8,661.9

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Acquired intangible assets

Acquired intangible assets consisted of the following (in millions):

			June 28, 2026																		December 28, 2025
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Proprietary technology			$	1,807.8					$	1,077.6					$	730.2					$	1,838.1					$	1,014.5					$	823.6
Customer list/relationships/backlog			784.6						346.7						437.9						788.8						326.9						461.9
Patents			0.6						0.6						—						0.6						0.6						—
Non-compete agreements			0.9						0.9						—						0.9						0.9						—
Definite-lived trademarks			42.7						17.3						25.4						34.8						13.6						21.2
Total acquired intangible assets subject to amortization			2,636.6						1,443.1						1,193.5						2,663.2						1,356.5						1,306.7
Acquired intangible assets not subject to amortization:
Indefinite-lived trademarks			790.7						—						790.7						793.4						—						793.4
Total acquired intangible assets			$	3,427.3					$	1,443.1					$	1,984.2					$	3,456.6					$	1,356.5					$	2,100.1

An evaluation of the carrying value of goodwill and indefinite-lived intangibles is required to be performed on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Based on the results of the Company’s annual assessment in the fourth quarter of 2025, all reporting units with the exception of the FLIR reporting unit in the Digital Imaging segment had estimated fair values that significantly exceeded their respective carrying value. For all reporting units, including the FLIR reporting unit, there have been no events or changes in circumstances which indicate that it is more likely than not that the fair value of the reporting unit is below its carrying value. As such, no interim impairment review was required. The Company will perform its annual analysis during the fourth quarter of 2026.

Based on the results of the Company’s annual assessment in the fourth quarter of 2025, the estimated fair value of all material indefinite-lived trademarks, with the exception of the FLIR indefinite-lived trademark, significantly exceeded their respective carrying value. For all indefinite-lived trademarks, including the FLIR trademark, there have been no events or changes in circumstances which indicate that it is more likely than not that the fair value of the trademark is below its carrying value. As such, no interim impairment review was required. The Company will perform its annual analysis during the fourth quarter of 2026.

Cash Equivalents

The Company had $99.5 million and $136.0 million of cash equivalents at June 28, 2026, and December 28, 2025, respectively. Cash equivalents consist of highly liquid money-market mutual funds with maturities of three months or less when purchased.

Accounts Receivable, Net

Accounts receivable is presented net of an allowance for estimated credit losses of $8.9 million at June 28, 2026 and $11.0 million at December 28, 2025.

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Inventories, Net

Inventories are stated at the lower of cost or net realizable value and primarily valued on an average cost or first-in, first-out method. Inventory adjustments are recorded when inventory is considered to be excess or obsolete based upon an analysis of actual on-hand quantities on a part-level basis to forecasted product demand and historical usage. Inventory balances are summarized as follows (in millions):

			Balance at
			June 28, 2026						December 28, 2025
Raw materials and supplies			$	738.1					$	648.9
Work in process			236.2						210.0
Finished goods			192.1						184.4
Total inventories, net			$	1,166.4					$	1,043.3

Product Warranty Costs

Some of the Company’s products are subject to specified warranties, and the Company reserves for the estimated cost of product warranties on a product-specific basis. Facts and circumstances related to a product warranty matter and cost estimates to return, repair and/or replace the product are considered when establishing a product warranty reserve. The adequacy of the preexisting warranty reserve is assessed regularly, and the reserve is adjusted as necessary based on a review of historical warranty experience with respect to the applicable business or products, as well as the length and actual terms of the warranties, which are typically one year. The product warranty reserve is included in current accrued liabilities and other long-term liabilities on the condensed consolidated balance sheets.

			Six Months
Warranty Reserve (in millions):			2026						2025
Balance at beginning of year			$	56.9					$	50.2
Product warranty expense			12.3						13.9
Deductions			(14.2)						(8.0)
Acquisition			0.2						0.4
Balance at end of period			$	55.2					$	56.5

			Balance at
Long-Term Debt (in millions):			June 28, 2026						December 28, 2025
$1.2 billion credit facility due June 2029			$	—					$	—
1.60% Fixed Rate Senior Notes due April 2026			—						450.0
2.25% Fixed Rate Senior Notes due April 2028			700.0						700.0
2.50% Fixed Rate Senior Notes due August 2030			427.3						427.3
2.75% Fixed Rate Senior Notes due April 2031			910.8						910.7
Other debt			0.8						1.0
Debt discount and debt issuance costs			(11.9)						(13.6)
Total debt, net			2,027.0						2,475.4
Less: Current portion of long-term debt			(0.1)						(450.1)
Total long-term debt, net of current portion			$	2,026.9					$	2,025.3

At June 28, 2026, $1,160.7 million was available under the $1.2 billion credit facility after reductions of $39.3 million in outstanding letters of credit. The Company’s bank credit agreements require the Company to comply with various financial and operating covenants, and at June 28, 2026, the Company was in compliance with these covenants. At June 28, 2026, Teledyne has $64.2 million in outstanding letters of credit, including $39.3 million against our credit facility. In the second quarter of 2026, the Company repaid $450.0 million of its Fixed Rate Senior Notes due April 2026.

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The income tax provision is calculated using an estimated annual effective tax rate based upon estimates of annual income, permanent items, statutory tax rates and planned tax strategies in the various jurisdictions in which the Company operates, except that certain loss jurisdictions and discrete items such as the resolution of uncertain tax positions and stock-based accounting income tax benefits are treated separately.

			Second Quarter												Six Months
(dollars in millions)			2026						2025						2026						2025
Provision (benefit) for income taxes (a)			$	69.6					$	50.2					$	121.5					$	100.3
Income (loss) before income taxes			$	321.3					$	260.6					$	600.0					$	499.5
Effective tax rate			21.7%						19.3%						20.3%						20.1%

(a) The second quarter of 2026 and 2025 includes net discrete income tax benefits of $1.2 million and $8.4 million, respectively. The first six months of 2026 and 2025 includes net discrete income tax benefits of $9.2 million and $12.1 million, respectively.

			Second Quarter												Six Months
(in millions)			2026						2025						2026						2025
Service cost—benefits earned during the period			$	1.2					$	1.5					$	2.4					$	3.0
Pension non-service cost (income)
Interest cost on benefit obligation			$	7.3					$	7.9					$	14.6					$	15.8
Expected return on plan assets			(13.2)						(13.4)						(26.4)						(26.8)
Amortization of net prior service cost (income)			—						—						0.1						0.1
Amortization of net actuarial loss (gain)			3.2						2.9						6.4						5.7
Pension non-service cost (income)			$	(2.7)					$	(2.6)					$	(5.3)					$	(5.2)

Teledyne has long-term incentive plans pursuant to which it has granted non-qualified stock options, restricted stock awards and restricted stock units. The Company also has non-employee director stock compensation plans pursuant to which common stock, stock options and restricted stock units have been issued to its directors. The Company issues shares of common stock upon the exercise of stock options. The Company uses the Black–Scholes option pricing model to determine the fair value of stock options.

Stock-based compensation expense was $13.9 million and $19.5 million for the second quarter and first six months of 2026, respectively, and $11.3 million and $20.2 million for the second quarter and first six months of 2025, respectively.

Stock option activity for the second quarter and first six months of 2026 is as follows:

			Second Quarter												Six Months
			Shares						Weighted Average Exercise Price						Shares						Weighted Average Exercise Price
Beginning balance			806,107						$	322.63					946,782						$	306.37
Granted (a)			47,251						$	656.69					47,251						$	656.69
Exercised			(13,867)						$	233.35					(150,110)						$	214.34
Canceled			(1,931)						$	453.23					(6,363)						$	303.24
Ending balance			837,560						$	342.65					837,560						$	342.65
Exercisable at end of period			734,323						$	313.25					734,323						$	313.25

(a) In the second quarter of 2026, the Company granted stock options with a grant date fair value of $253.85 per share.

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Restricted stock activity for the second quarter and first six months of 2026 is as follows:

			Second Quarter												Six Months
			Shares						Weighted Average Fair Value per Share						Shares						Weighted Average Fair Value per Share
Beginning balance			158,338						$	449.24					173,727						$	434.60
Granted			54,989						$	656.45					77,929						$	569.50
Vested			(23,384)						$	460.09					(54,112)						$	458.17
Forfeited/canceled			(1,568)						$	493.71					(9,169)						$	429.93
Ending balance			188,375						$	508.05					188,375						$	508.05

The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions):

			Second Quarter												Six Months
			2026						2025						2026						2025
Weighted average basic common shares outstanding			46.3						46.9						46.3						46.8
Effect of dilutive securities (primarily stock options)			0.6						0.5						0.6						0.6
Weighted average diluted common shares outstanding			46.9						47.4						46.9						47.4

For the second quarter and first six months of 2026, the Company excluded less than 0.1 million of stock options in the computation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive. For the second quarter and first six months of 2025, the Company did not have any stock options that would have been anti-dilutive.

Stock Repurchases

In July 2025, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $2.0 billion of Teledyne’s common stock. As of June 28, 2026, $1.6 billion remained available under the repurchase authorization. The authorized stock repurchase program does not have a stated expiration date. Shares may be repurchased from time to time in open-market transactions at prevailing market prices, in privately negotiated transactions or via an accelerated stock repurchase program. Shares could be repurchased in a plan pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The repurchase program is expected to remain open continuously, and the number of shares purchased will depend on a variety of factors such as share price, levels of cash available, acquisitions and alternative investment opportunities available immediately or longer-term, and other regulatory, market or economic conditions. The Company currently intends to fund future share repurchases, if any, with cash on hand and available borrowings under the Company’s credit facility. No repurchases under any authorizations were made in the second quarter and first six months of 2026.

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The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, net of tax, as applicable, for the second quarter and six months ended June 28, 2026, and June 29, 2025, are as follows (in millions):

			Foreign Currency Translation						Cash Flow Hedges						Pension and Postretirement Benefits						Total
Balance at March 29, 2026			$	(289.4)					$	(0.3)					$	(197.9)					$	(487.6)
Other comprehensive income (loss) before reclassifications			(49.3)						(1.0)						—						(50.3)
Amounts reclassified from AOCI			—						(0.1)						2.9						2.8
Net other comprehensive income (loss)			(49.3)						(1.1)						2.9						(47.5)
Balance at June 28, 2026			$	(338.7)					$	(1.4)					$	(195.0)					$	(535.1)
			Foreign Currency Translation						Cash Flow Hedges						Pension and Postretirement Benefits						Total
Balance at March 30, 2025			$	(451.5)					$	(0.9)					$	(233.9)					$	(686.3)
Other comprehensive income (loss) before reclassifications			224.4						2.6						—						227.0
Amounts reclassified from AOCI			—						(0.1)						1.7						1.6
Net other comprehensive income (loss)			224.4						2.5						1.7						228.6
Balance at June 29, 2025			$	(227.1)					$	1.6					$	(232.2)					$	(457.7)
			Foreign Currency Translation						Cash Flow Hedges and Other						Pension and Postretirement Benefits						Total
Balance at December 28, 2025			$	(225.5)					$	0.5					$	(200.4)					$	(425.4)
Other comprehensive income (loss) before reclassifications			(113.2)						(1.4)						—						(114.6)
Amounts reclassified from AOCI			—						(0.5)						5.4						4.9
Net other comprehensive income (loss)			(113.2)						(1.9)						5.4						(109.7)
Balance at June 28, 2026			$	(338.7)					$	(1.4)					$	(195.0)					$	(535.1)
			Foreign Currency Translation						Cash Flow Hedges and Other						Pension and Postretirement Benefits						Total
Balance at December 29, 2024			$	(602.3)					$	(2.2)					$	(235.4)					$	(839.9)
Other comprehensive income (loss) before reclassifications			375.2						3.2						—						378.4
Amounts reclassified from AOCI			—						0.6						3.2						3.8
Net other comprehensive income (loss)			375.2						3.8						3.2						382.2
Balance at June 29, 2025			$	(227.1)					$	1.6					$	(232.2)					$	(457.7)

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The reclassifications out of AOCI to net income for the second quarter ended June 28, 2026, and June 29, 2025, are as follows (in millions):

						Amount Reclassified From AOCI for the Quarter Ended June 28, 2026						Amount Reclassified From AOCI for the Quarter Ended  June 29, 2025						Statement of Income (Loss) Presentation
(Gain) loss on cash flow hedges:
(Gain) loss recognized in income on derivatives						$	(0.1)					$	(0.1)					See Note 13
Income tax impact						—						—						Provision for income taxes
Total						$	(0.1)					$	(0.1)
Amortization of defined benefit pension and postretirement plan items:
Amortization of net prior service cost (income)						$	—					$	—					Costs and expenses
Amortization of net actuarial loss						3.7						2.3						Costs and expenses
Total before tax						3.7						2.3
Income tax impact						(0.8)						(0.6)						Provision for income taxes
Total						$	2.9					$	1.7

						Amount Reclassified From AOCI for the Six Months Ended June 28, 2026						Amount Reclassified From AOCI for the Six Months Ended June 29, 2025						Statement of Income (Loss) Presentation
(Gain) loss on cash flow hedges:
(Gain) loss recognized in income on derivatives						$	(0.6)					$	0.8					See Note 13
Income tax impact						0.1						(0.2)						Provision for income taxes
Total						$	(0.5)					$	0.6
Amortization of defined benefit pension and postretirement plan items:
Amortization of net prior service cost (income)						$	0.1					$	0.1					Costs and expenses
Amortization of net actuarial loss						6.9						4.1						Costs and expenses
Total before tax						7.0						4.2
Income tax impact						(1.6)						(1.0)						Provision for income taxes
Total						$	5.4					$	3.2

The Company’s primary exposure to market risk relates to changes in foreign currency exchange rates and interest rates. The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows and minimize the volatility of reported earnings. The Company has entered into certain derivative contracts to reduce the volatility from translation of the Company’s euro denominated net investments. The Company does not use foreign currency forward contracts for speculative or trading purposes.

The Company mitigates exposure to foreign currency exchange rates and interest rates primarily through the following:

Designated Hedging Activities

The Company utilizes foreign currency forward contracts to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in Canadian dollars for the Canadian companies, and in British pounds for the UK companies. As of June 28, 2026, foreign currency forward contracts in Canadian dollars designated as cash flow hedges have maturities ranging from September 2026 to February 2027. As of June 28, 2026, foreign currency forward contracts in British pounds designated as cash flow hedges have maturities ranging from September 2026 to February 2027.

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The Company utilizes cross-currency swaps to hedge portions of the Company’s euro denominated net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The Company has cross-currency swaps designated as net investment hedges with a total notional amount of €450.0 million to hedge portions of the Company’s euro denominated net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. These cross-currency swaps mature between September 2026 and September 2030.

Non-Designated Hedging Activities

The Company utilizes foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables. These foreign currency forward contracts are not designated as accounting hedges. The gain or loss resulting from a change in fair value of a derivative instrument that is not designated an accounting hedge is recognized immediately in earnings and intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings.

Derivative Instruments

The following is a summary of the gain (loss) included in the condensed consolidated statements of income (loss) and comprehensive income (loss) related to the derivative instruments described above (in millions):

			Second Quarter												Six Months
			2026						2025						2026						2025
Net gain (loss) recognized in AOCI—Foreign Exchange Contracts (a)			$	(1.5)					$	3.5					$	(1.9)					$	4.3
Net gain (loss) recognized in AOCI—Cross-Currency Swap Contracts (a)			$	1.1					$	(32.0)					$	13.2					$	(37.5)
Net gain (loss) reclassified from AOCI into revenue/cost of sales—Foreign Exchange Contracts (a)			$	0.1					$	(0.1)					$	0.6					$	0.8
Net gain (loss) recognized in other income and expense, net—Foreign Exchange Contracts			$	(12.4)					$	29.1					$	(26.4)					$	40.5

(a) Effective portion, pre-tax

Net deferred losses recorded in AOCI for the forward contracts that will mature in the next 12 months total $1.4 million, net of taxes. These losses are expected to be offset by anticipated gains in the value of the forecasted underlying hedged item.

The following is a summary of notional amounts and fair values of the Company’s derivatives recorded in the condensed consolidated balance sheets presented by instrument type and use (in millions):

						Notional Amount									Fair Value Asset									Fair Value Liability
						June 28, 2026			December 28, 2025						June 28, 2026			December 28, 2025						June 28, 2026			December 28, 2025
Derivatives designated as hedging instruments:
Foreign currency forward contracts						$	66.9		$	52.2					$	—		$	0.5					$	(1.9)		$	—
Cross-currency swap agreements						511.6			530.0						5.8			6.0						(26.9)			(40.4)
Total derivatives designated as hedging instruments						$	578.5		$	582.2					$	5.8		$	6.5					$	(28.8)		$	(40.4)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts						$	729.4		$	815.6					$	1.7		$	15.5					$	(17.9)		$	(1.4)
Total derivatives						$	1,307.9		$	1,397.8					$	7.5		$	22.0					$	(46.7)		$	(41.8)

All derivative assets are presented in Other current assets or Other non-current assets. All derivative liabilities are presented in Accrued liabilities or Other non-current liabilities.

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The Company’s financial assets and liabilities carried at fair value are primarily comprised of derivative contracts used to hedge the Company’s foreign currency risk. The Company has not elected to measure any additional financial instruments or other items at fair value.

Financial Instruments Recorded at Fair Value

The fair values of the Company’s derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 hierarchy information as defined by the accounting policies (in millions):

			Balance at
			June 28, 2026						December 28, 2025
Assets:
Foreign currency forward contracts			$	1.7					$	16.0
Cross-currency swaps			5.8						6.0
Total assets recorded at fair value			$	7.5					$	22.0
Liabilities:
Foreign currency forward contracts			$	(19.8)					$	(1.4)
Cross-currency swaps			(26.9)						(40.4)
Total liabilities recorded at fair value			$	(46.7)					$	(41.8)
Net derivatives at fair value			$	(39.2)					$	(19.8)

Gross derivative assets and liabilities are subject to legally enforceable master netting agreements, for which the Company has not elected to present net amounts on the condensed consolidated balance sheets. The effect of such right of setoff on the Company’s financial position was $0.4 million and $0.4 million as of June 28, 2026, and December 28, 2025, respectively.

Financial Instruments Not Recorded at Fair Value

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturities of these assets and liabilities.

Teledyne estimates the fair value of its long-term debt based on debt of similar type, rating and maturity and at comparable interest rates. The Company’s long-term debt is considered a Level 2 and is valued based on observable market data. As of June 28, 2026, and December 28, 2025, the aggregate fair values of the Company’s borrowings were $1,900.9 million and $2,359.5 million, respectively, and the carrying values were $2,038.9 million and $2,489.0 million, respectively.

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Trade Compliance Matters

The Company has made voluntary disclosures for certain potential violations of trade compliance laws to applicable U.S. Government authorities, including the U.S. Department of State and the U.S. Department of Commerce. The Company has also made voluntary disclosures to authorities in jurisdictions outside the United States for certain potential violations of local export and import laws. The Company accrues amounts associated with potential violations to the extent a loss, penalty or other government action becomes probable and can be reasonably estimated. An unfavorable outcome could result in substantial fines and penalties or loss or suspension of export privileges or of particular authorizations that could be material to the Company’s financial position, results of operations or cash flows in and following the period in which such outcome becomes estimable or known.

In February 2026, Teledyne FLIR LLC, together with certain of its legacy affiliates, reached a settlement agreement with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), concerning alleged export control compliance issues and subsequently paid a civil penalty of $1.0 million. These matters largely relate to historical conduct at FLIR Systems, Inc., which was acquired by Teledyne in May 2021. There were 19 proposed charges of alleged export violations, including inaccurate application of the BIS “de minimis” rule to foreign-produced products exported from abroad, failure of an affiliate in China to maintain the required records, and several export shipments to an address in Hong Kong on the BIS Entity List that were not identified by the screening software used by the company. The settlement amount reflects that these matters were voluntarily disclosed and that Teledyne cooperated fully with the government’s review and worked to enhance Teledyne FLIR’s export compliance program since the acquisition.

Environmental Remediation Obligations

At June 28, 2026, the Company’s reserves for environmental remediation obligations totaled $5.7 million, of which $2.9 million is included in current accrued liabilities. At December 28, 2025, the Company’s reserves for environmental remediation obligations totaled $6.0 million. The Company evaluates whether it may be able to recover a portion of future costs for environmental liabilities from its insurance carriers and from third parties. The timing of expenditures depends on a number of factors that vary by site, including the nature and extent of contamination, the number of potentially responsible parties, the timing of regulatory approvals, the complexity of the investigation and remediation, and the standards for remediation. The Company expects that it will pay the amounts recorded over many years and will complete remediation of all sites with which it has been identified in up to 30 years.

Other Claims and Legal Matters

Various claims (whether based on U.S. Government or Company audits and investigations or otherwise) may be asserted against the Company related to its U.S. Government contract work, including claims based on business practices and cost classifications and actions under the False Claims Act. Although such claims are generally resolved by detailed fact-finding and negotiation, on those occasions when they are not so resolved, civil or criminal legal or administrative proceedings may ensue. Depending on the circumstances and the outcome, such proceedings could result in fines, penalties, compensatory and treble damages or the cancellation or suspension of payments under one or more U.S. Government contracts. Under government regulations, a company, or one or more of its operating divisions or units, can also be suspended or debarred from government contracts based on the results of investigations. However, although the outcome of these matters cannot be predicted with certainty, management does not believe there is any audit, review or investigation currently pending against the Company of which management has knowledge that is likely to result in suspension or debarment of the Company, or that is otherwise likely to have a material adverse effect on the Company’s financial condition or liquidity, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s results of operations for that period.

A number of other lawsuits, claims and proceedings have been or may be asserted against the Company, including those pertaining to product liability, acquisitions, patent infringement, commercial contracts, employment and employee benefits. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition.

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