Teledyne Technologies Incorporated

Welcome to Teledyne's second quarter earnings call. Here's our first speaker, Mr. Jason VanWees.

Good morning. This is Jason VanWees, Vice Chairman. I'd like to welcome everyone to Teledyne's second quarter 2026 earnings release conference call. We released our earnings earlier this morning before the NYSE opened. Joining me today are Teledyne's Executive Chairman, Robert Mehrabian, President and CEO, George Bobb, EVP and CFO, Steve Blackwood, Melanie Cibik, EBP General Counsel, Chief Compliance Officer, and Secretary. After remarks by Robert, George, and Steve, we will ask for your questions. But of course, before we get started, 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 being webcast and a replay, both by a webcast and dial-in, will be available for approximately one month. Here's Robert.

Thank you, Jason. This morning we were pleased to announce the strongest quarterly orders, sales, and operating profit in the company's history. Specifically, sales increased 9.8% and non-gap earnings increased 20.8%. Orders have now exceeded sales for the 11th consecutive quarter, and we ended June with approximately $5 billion of funded backlog. Organic growth was greatest in our digital imaging segment, where infrared detectors and systems for space, airborne, and marine unmanned systems, as well as counter unmanned applications Thank you very much. The strength of our business portfolio and what Teledyne is today. A company with a broad set of sensors and vertically integrated platforms from space to deep sea. For example, we possess a unique range of precision sensors and devices across the electromagnetic and acoustic spectrums. These include Imaging sensors and optics from X-ray to infrared and transducers and sensor systems across the ultrasonic and acoustic frequency ranges. Furthermore, while we continue to be a reliable merchant supplier of these products for applications in space, defense, healthcare, safety, and energy, we also use these products in our proprietary products, sensors in our vertically integrated subsystems and platforms. Examples include unmanned aerial systems, subsystems for counter UAS, unmanned air systems applications, vision systems for in maritime unmanned surface vessels, like the ones used in the Gulf of Hormuz, and completely autonomous Underwater Vehicles. Largely based on the strong Q2 performance, we now believe 2026 annual revenue will be $120 million greater than we forecast in April. We're also raising our full-year non-gap earnings outlook by 55 cents per share at the midpoint of our prior outlook to reflect the additional organic growth. Notwithstanding the acceleration of our organic growth, we will continue to compound earnings and cash flow to acquisitions. In fact, approximately 90% of today's earnings are from businesses that Teledyne has acquired over the past 25 years. And with leverage at its lowest level in six years, we have more than ample flexibility George will now briefly comment on the performance of our four business segments.