Teledyne Technologies Incorporated

Ladies and gentlemen, thank you for standing by, and welcome to Teledyne's second quarter earnings call. At this time, all participants are in a listen-only mode. Later, we will have a question-and-answer session, and instructions for queuing up will be provided for you at that time. Should you require operator assistance during the call, press star zero on your phone's keypad. And as a reminder, this conference call is being recorded. At this time, I'd like to turn the conference call over to your host, Jason Van Weese. Please go ahead, sir.

Good morning, everyone. This is Jason Van Wees, Vice Chairman. I'd like to welcome everyone to Teledyne's second quarter 2024 earnings release conference call. We released our earnings earlier this morning before the market opened. Joining me today are Teledyne's Executive Chairman, Robert Morabian, CEO Edwin Rocks, Senior Vice President and CFO Steve Blackwood, and Melanie Civic, EBP, General Counsel, Chief Compliance Officer and Secretary. President and COO George Bob would have joined us But after getting stuck in airports late last week and the weekend, George came back with COVID and is being isolated. Anyway, after remarks by Robert, Edwin, and Steve, we will ask your questions. However, before we get started, our attorneys have reminded me to tell you that all forward-looking statements made this morning are subject to various assumptions, risks, and caveats as noted in the earnings release and our periodic SEC filings. And of course, actual results may differ materially. In order to avoid potential selective disclosures, this call is simultaneously and a replay, both via webcast and dial-in, will be available for about one month. Here's Robert.

Robert Adler Thank you, Jason, and good morning, and thank you for joining our earnings call. In the second quarter, Teledyne achieved all-time record free cash flow, allowing us to deploy approximately $852 million through July on debt repayment, acquisition, and stock repurchases. Non-GAAP operating margin increased from last year and increased in each of our three largest segments. Total sales and earnings increased sequentially and exceeded our most recent expectations, although year-over-year comparisons remain especially difficult in certain commercial markets, such as industrial automation and electronic test and measurement. Nevertheless, strong defense-related sales at Teledyne FLIR and our own legacy space-based infrared imaging business partially offset the expected declines in industrial imaging systems. Furthermore, despite the anticipated year-over-year decline in certain instrumentation product lines, total instrumentation sales were a second-quarter record due to exceptional performance of our marine instrumentation businesses. Primarily driven by our aerospace and defense businesses, orders were greater than sales for the third consecutive quarter, and we ended the period with record backlog. Therefore, we're reasonably confident that quarterly sales will again increase sequentially and with a return to year-over-year sales growth in the second half of 2024. Finally, even with the significant capital deployment in the second quarter, our quarter-end leverage remained at 1.7, and we plan to continue stock repurchases in the balance of 2024, as well as pursue acquisitions. I will now turn the call to Edwin, who will further comment on the performance of our four segments.