Teledyne Technologies Incorporated

Welcome to Teledyne's first quarter earnings call. And I'd like to introduce our first speaker, Mr. Jason Van Weese. Jason, please go ahead.

Thank you. Hi, good morning, everyone. This is Jason Van Weese, Vice Chairman. I'd like to welcome everyone to Teledyne's first quarter 2026 earnings release conference call. We released our earnings earlier this morning before the market opened. Joining me today are Teledyne's Executive Chairman, Robert Moravian, President and CEO, George Bob, EVP and CFO Steve Blackwood, and Melanie Sivek, EVP General Counsel, Chief Compliance Officer, and Secretary. After remarks by Robert, George, and Steve, we'll answer your questions. But, of course, before we get started, all forward-looking statements made this morning are subject to various assumptions, risks, and caveats, as noted in the earnings release under periodic SEC filings, and, of course, actual results may differ materially. In order to avoid potential selective disclosures, this call is simultaneously being webcast and a replay by a webcast and dial-in will be available for approximately a split month. Here is Robert.

Thank you, Jason, and good morning, everyone, and welcome to our conference call. We started 2026 with record first quarter sales, earnings per share, and operating margin. Specifically, sales and non-gap earnings increased 7.6% and 17.2% respectively. In addition, despite a 30 basis point increase in R&D expense, non-GAAP operating margin increased 58 basis points year over year. And while we acquired DDSA Scientific in January and increased our capital expenditures significantly from last year, our leverage ratio declined to the lowest level in five years since before the acquisition of FLIR in 2001. Excluding the impact of acquisitions, sales increased 5.3%, due in part to the performance of our digital imaging segment, while organic growth was 6.9%. Sales of visible light sensors, infrared detectors, and specialty semiconductors for space applications each increased at double digit rates, as did FLIR infrared cameras for unmanned air vehicles, as well as our own complete unmanned aerial systems. Also, within the digital imaging segment, Our industrial imaging and x-ray businesses each returned to year-over-year growth, which helped contribute to the strong margin performance in the first quarter. Given stronger sales in the first quarter, but also record orders and backlog with a big book-to-bill of 1.16, which is our 10th consecutive quarter of book to bill of over one, we're comfortable in increasing both our expected sales and earnings for 2026. We believe now sales will be in the range of 6.415 billion or 70 basis points higher than we communicated in January. We're also raising our earnings outlook at both the bottom and top of our prior range to about $24 at midpoint or $0.35 overall in increase. George will now briefly comment on the performance of our four business segments.