Teledyne Technologies Incorporated

Welcome to Teledyne's Third Quarter Earnings Call. Here's our first speaker, Mr. Jason VanWees.

Good morning, everyone. Thanks for joining us. This is Jason VanWees, Vice Chairman of Teledyne, and I'd like to welcome everyone to Teledyne's Third 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 Mehrabian, President and CEO, George Bobb, EVP and CFO, Steve Blackwood, and Melanie Cibik, EVP, General Counsel, Chief Compliance Officer and Secretary. After remarks by Robert, George and Steve, we will ask your questions. However, our attorneys have reminded me that before we get started, all forward-looking statements this morning are subject to various assumptions, risks and caveats as noted in the earnings release and their 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 webcast and island will be available for approximately one month. Here's Robert.

Thank you, Jason, and good morning, everyone. Our third quarter sales and operating earnings were the strongest in Teledyne's history. For the third quarter in a row, We're raising our full year 2026 sales and earning guidance. In January, we forecasted revenue of $6.37 billion, a 4.2% increase from 2025, and non-GAAP earnings of $23.65 per share. Our outlook for 2026 sales is $6.625 billion, a year-over-year increase of 8.3% and nearly double the growth rate projected in January. An earnings of $25.45 per share, which is a A $1.80 per share, or almost 8% higher than forecast in January, and a 16% increase compared to last year. For all of Teledyne, orders have exceeded sales for 12 consecutive quarters, and funded backlog is now approximately $5.3 billion. In the third quarter, Organic growth accelerated in our digital imaging segment and was led by sales of infrared detectors and subsystems for space and unmanned applications. Furthermore, each of our major commercial imaging businesses, such as industrial vision sensors and systems, as well as healthcare, increased year over year. Our third quarter performance reflected not only the strong execution of the backlog that we've been building for three years, but also 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. We also continue to enjoy robust free cash flow and recently, made $224.6 million of opportunistic stock repurchases at a weighed average price of approximately $607 per share. We did the same in 2025 and 2024 when we felt Teledyne was undervalued. During the past three years, We've deployed nearly $980 million to buy back shares of our company at a total weight average price of $479 per share. Regarding the pending acquisition of Verix, we were following the company for more than six years. As healthcare and life sciences markets began to recover earlier this year, We felt the timing was finally right for us to pursue and then announce this highly complimentary acquisition in the third quarter. The regulatory process is underway and there is a special stockholder meeting scheduled for October 28. We continue to anticipate closing early in 2027. Notwithstanding the stock repurchases and the pending acquisition, current leverage remains at the lowest level in six years, and we have more than ample flexibility to continue compounding earnings growth for years to come. George will now comment on the performance of our four business segments.