Teledyne reported fourth-quarter net sales of $1,612.3 million, up 7.3% from the prior year and driven by $73.0 million of incremental sales from recent acquisitions. GAAP diluted earnings per share were $5.84, while non-GAAP diluted EPS rose 14.1% to $6.30. Cash from operations reached $379.0 million and free cash flow totaled $339.2 million. Net income attributable to Teledyne jumped 38.8% year-over-year to $275.6 million, reflecting strong defense electronics demand and record performance in digital imaging.

The Aerospace and Defense Electronics segment led growth with sales up 40.4% to $275.9 million, including $68.5 million from acquisitions, and non-GAAP operating income climbing 32.7% to $75.1 million. Digital Imaging sales increased 3.4% to $850.5 million, with operating income up 11.6% on higher infrared component shipments for defense surveillance. Instrumentation posted a 3.7% sales gain to $382.6 million, reflecting strength in environmental gas detection and marine instrumentation. Consolidated non-GAAP operating margin expanded to 23.9%, from 22.7% a year earlier.

During the quarter, Teledyne repurchased $400.0 million of stock at a weighted average of $507.52 per share and completed the TransponderTech and DD-Scientific acquisitions. Full-year 2025 free cash flow exceeded $1.0 billion for the second consecutive year, supporting $850.0 million of capital deployment on acquisitions. Teledyne issued 2026 guidance of $19.76 to $20.22 GAAP diluted EPS and $23.45 to $23.85 non-GAAP EPS, with a conservative leverage ratio of 1.4x at quarter-end and ample financial flexibility for further growth.