Teledyne Technologies

“We sell products to customers directly engaged in oil and gas exploration and production. Changes to regulations, social practices and preferences, energy generation and transportation technologies that may occur or be implemented to mitigate climate change could result in reduced demand for hydrocarbon products, which could result in a reduction in sales to these customers.”

Annual report 2025A · The company itself

“We generate revenue from companies in the oil and gas industry, especially the offshore oil and gas industry, a historically cyclical industry with levels of activity that are significantly affected by the levels and volatility of oil and gas prices, which has in the past impacted and can impact in the future our financial results. Teledyne manufactures seismic energy sources, interconnects and data acquisition products that are used in offshore energy exploration. The oil and gas industry has historically been cyclical and characterized by significant changes in the levels of exploration and development activities.”

Annual report 2025A · The company itself

“Aerospace and Defense Electronics Segment Our Aerospace and Defense Electronics segment provides sophisticated electronic and optical components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components for a variety of commercial and defense applications that require high performance and high reliability. Such applications include aircraft, radar, electronic countermeasures, weapon systems, space, wireless and satellite communications and terminals and test equipment.”

Annual report 2025A · The company itself

“We provide research and engineering capabilities primarily in the areas of electronics, materials, optical systems and information science to military, aerospace and industrial customers, as well as to various businesses throughout Teledyne.”

Annual report 2025A · The company itself

“Table of Contents For defense applications, we also develop and manufacture multi-spectrum electro-optic/infrared imaging systems and associated products such as lasers, optics, and radars, CBRNE (“Chemical, Biological, Radiological, Nuclear and Explosive detectors”) and unmanned aerial and ground systems.”

Annual report 2025A · The company itself

“We provide solutions for threat protection, military maneuver and force protection, border controls and homeland security, law enforcement, public safety, and commercial applications worldwide.”

Annual report 2025A · The company itself

“We provide a broad range of end-to-end undersea interconnect solutions to the offshore oil and gas, naval defense, oceanographic and telecom markets.”

Annual report 2025A · The company itself

“We also design and manufacture remotely operated underwater vehicles used in maritime security, military, search and rescue, aquaculture, and scientific research applications.”

Annual report 2025A · The company itself

“Engineered Systems Segment Our Engineered Systems segment provides innovative systems engineering, integration and advanced technology development, and complex manufacturing solutions for defense, space, environmental and energy applications.”

Annual report 2025A · The company itself

“Our products include digital imaging sensors, cameras and systems within the visible, infrared and X-ray spectra, monitoring and control instrumentation for marine and environmental applications, harsh environment interconnects, electronic test and measurement equipment, aircraft information management systems, and defense electronics and satellite communication subsystems.”

Annual report 2025A · The company itself

“Digital Imaging 52 % 54 % 56 % Instrumentation Engineered Systems 7 % 8 % 8 % Total 100 % 100 % 100 % Digital Imaging Segment Our Digital Imaging segment includes high-performance sensors, cameras and systems within the visible, infrared, ultraviolet and X-ray spectra for use in industrial, scientific, government, space, defense, security, medical and other applications.”

Annual report 2025A · The company itself

“We also produce and provide manufacturing services for micro electromechanical systems (“MEMS”) and high-performance, high-reliability semiconductors, including analog-to-digital and digital-to-analog converters, as well as unmanned aerial and ground systems.”

Annual report 2025A · The company itself

“Our customers use our equipment in the design, development, manufacture, installation, deployment and operation of electronics equipment in a broad range of industries, including aerospace and defense, internet infrastructure, automotive, industrial, computer and semiconductor, consumer electronics mobile, and power electronics.”

Annual report 2025A · The company itself

“Some of our product sales are tied to artificial intelligence (“AI”)-related capital expenditures and data center infrastructure. Several factors could result in volatility in AI-related spending, including constraints related to electricity generation and delivery, overbuilt capacity, new AI-focused legal regulations, and a consolidation of competing independent technologies.”

Annual report 2025A · The company itself

“Our competitors may be faster or more successful than we are in incorporating AI and other disruptive technology into their offerings, which would impair our ability to compete successfully.”

Annual report 2025A · The company itself

“We currently incorporate machine learning and AI capabilities into certain of our products and solutions and may seek to expand the use of AI in our offerings in the future. As with many innovations, AI presents risks, challenges, and unintended consequences that could affect our business.”

Annual report 2025A · The company itself

“Changes in production rates for major aircraft manufacturers, like Boeing and Airbus, impact our commercial aerospace businesses. Boeing and Airbus have in the recent past struggled to meet delivery targets due to supply chain issues and other challenges. Any future pauses or reductions in manufacturing from Boeing or Airbus could negatively impact our business.”

Annual report 2025A · The company itself

“Our customers use our equipment in the design, development, manufacture, installation, deployment and operation of electronics equipment in a broad range of industries, including aerospace and defense, internet infrastructure, automotive, industrial, computer and semiconductor, consumer electronics mobile, and power electronics.”

Annual report 2025A · The company itself

“Our torque sensors are also used in other markets, including automotive and power tools.”

Annual report 2025A · The company itself

“We provide onboard avionics systems and ground-based applications that allow civil and military aircraft operators to access, manage and utilize their data more efficiently. Our products include aircraft data and connectivity solutions, hardware systems, and software applications used by commercial airlines and the U.S. military, and we provide services related to our products.”

Annual report 2025A · The company itself

“Our commercial aerospace group produces products for use in commercial aviation.”

Annual report 2025A · The company itself

“As a manufacturer and distributor of a wide variety of products, including monitoring instruments, gas and flame detection instruments, products used in offshore oil and gas production, products used in transportation and commercial aviation, products used in maritime navigation and products used in medical devices (including X-ray detectors), our results of operations are susceptible to adverse publicity regarding the quality or safety of our products.”

Annual report 2025A · The company itself

“Through this segment, we provide visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research and scientific applications.”

Annual report 2025A · The company itself

“We develop high-resolution, low-dose X-ray sensors as well as high-power microwave and high-energy X-ray subsystems for medical, dental and industrial applications.”

Annual report 2025A · The company itself

“Many of our products are used by industrial customers and municipalities to monitor ambient air quality, water quality and gas and particulate emissions in order comply with regulatory requirements issued by the U.S. Environmental Protection Agency and other federal agencies.”

Annual report 2025A · The company itself

“Some of our product sales are tied to artificial intelligence (“AI”)-related capital expenditures and data center infrastructure. Several factors could result in volatility in AI-related spending, including constraints related to electricity generation and delivery, overbuilt capacity, new AI-focused legal regulations, and a consolidation of competing independent technologies.”

Annual report 2025A · The company itself

“Design and test engineers use our protocol analysis solutions, including traffic generators and emulators, to accurately and reliably monitor and test high data-rate communication interfaces and diagnose operational problems in a wide range of systems and devices to ensure that they comply with industry standards, including in the areas of cloud computing, data storage and networks.”

Annual report 2025A · The company itself

“Through this segment, we provide visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research and scientific applications.”

Annual report 2025A · The company itself

“Table of Contents Test and Measurement Instrumentation Our test and measurement products provide capabilities that enable the designers of complex electronic systems in many industry sectors to bring their products to market reliably and quickly. Our customers use our equipment in the design, development, manufacture, installation, deployment and operation of electronics equipment in a broad range of industries, including aerospace and defense, internet infrastructure, automotive, industrial, computer and semiconductor, consumer electronics mobile, and power electronics.”

Annual report 2025A · The company itself

“We provide a broad range of end-to-end undersea interconnect solutions to the offshore oil and gas, naval defense, oceanographic and telecom markets.”

Annual report 2025A · The company itself

“As a manufacturer and distributor of a wide variety of products, including monitoring instruments, gas and flame detection instruments, products used in offshore oil and gas production, products used in transportation and commercial aviation, products used in maritime navigation and products used in medical devices (including X-ray detectors), our results of operations are susceptible to adverse publicity regarding the quality or safety of our products.”

Annual report 2025A · The company itself

“We manufacture torque sensors and automatic data acquisition systems that are used to test critical control valves in nuclear power and industrial plants.”

Annual report 2025A · The company itself

“Teledyne Brown Engineering, Inc. and other Teledyne companies manufacture components for customers in the nuclear power market, including utilities and certain governmental entities.”

Annual report 2025A · The company itself

“We manufacture instruments that are used by pharmaceutical scientists to evaluate the release rate characteristics and physical properties of various dosage forms to ensure the safety and efficacy of medicines worldwide.”

Annual report 2025A · The company itself

“As a manufacturer and distributor of a wide variety of products, including monitoring instruments, gas and flame detection instruments, products used in offshore oil and gas production, products used in transportation and commercial aviation, products used in maritime navigation and products used in medical devices (including X-ray detectors), our results of operations are susceptible to adverse publicity regarding the quality or safety of our products.”

Annual report 2025A · The company itself

“Engineered Systems Segment Our Engineered Systems segment provides innovative systems engineering, integration and advanced technology development, and complex manufacturing solutions for defense, space, environmental and energy applications.”

Annual report 2025A · The company itself

“Our leadership in Universal Serial Bus (“USB”) and video technologies provides a unique base to service the mobile, internet of things, automotive and consumer electronics test markets.”

Annual report 2025A · The company itself

“China has also restricted the export of certain rare earth minerals and permanent magnets that are used in our products, which has in the past delayed and could in the future limit our ability to sell products that require these components or result in lower margins products that incorporate these components.”

Annual report 2025A · The company itself

“China has also increased sanctions on certain specific U.S. companies, including two Teledyne legal entities, by adding them to its Unreliable Entity List or Export Control List, which has impacted the ability of some Teledyne subsidiaries (including those not so listed) to conduct business in China.”

Annual report 2025A · The company itself

“A military conflict between China and Taiwan would likely have a material adverse impact on our ability to sell products to customers in these areas and on our supply chain.”

Annual report 2025A · The company itself

“An economic slowdown in China may adversely affect us. Our net sales to China-based customers represented approximately 4% of total revenues in 2025 and 2024, respectively.”

Annual report 2025A · The company itself

“In-country manufacturing could result in lower demand for our products. Many countries, including China, India and Saudi Arabia, have bolstered laws or regulations requiring the use of local suppliers, personnel and in-country manufacturing, which has had a negative impact on Teledyne’s revenues of instrumentation, commercial aerospace, marine and digital imaging products, as we currently have limited manufacturing operations in these countries.”

Annual report 2025A · The company itself

“Many key suppliers to our businesses, whether direct or indirect, are based in China.”

Annual report 2025A · The company itself

“In both 2025 and 2024, we sold products to customers in over 100 foreign countries. Approximately 90% of our net sales to international customers during 2025 were made to customers in 30 foreign countries.”

Annual report 2025A · The company itself

“In both 2025 and 2024, sales to customers outside the United States accounted for approximately 48% of total net sales.”

Annual report 2025A · The company itself

“In 2025, the top five countries for sales to international customers, ranked by net sales, were the UK, Germany, Japan, China and France and represented approximately 20% of our total net sales.”

Annual report 2025A · The company itself

“Our core business base includes the National Aeronautics and Space Administration (“NASA”), the U.S. Department of War, the U.S. Department of Energy, foreign militaries and commercial customers.”

Annual report 2025A · The company itself

“Government sales $ 1,559.4 $ 1,377.1 $ 1,381.7 Total U.S. Government sales as a percent of total net sales 25.5 % 24.3 % 24.5 % Our principal U.S.”

Annual report 2025A · The company itself

“Government contracts depends on the continued availability of funding from the U.S. Government, and, accordingly, we have the risk that funding for our existing contracts may be canceled or diverted to other uses or delayed or that funding for new programs will not be available. Similarly, sales to the European defense market depends on continued funding from European governments.”

Annual report 2025A · The company itself

“Presidential Administration for various defense and NASA programs could impact our Engineered Systems, Aerospace and Defense Electronics and Digital Imaging segments. Budget cuts at NASA have negatively impacted the revenues of Engineered Systems in 2025 and are expected to further impact revenues in 2026.”

Annual report 2025A · The company itself

“We are seeing increased sales into the European defense market as European defense budgets increase as a result of the conflict in Ukraine, threats from Russia and other geopolitical instability.”

Annual report 2025A · The company itself

“In January 2026, the President issued an executive order that imposes obligations on U.S. defense contractors, including immediately prohibiting any “major defense contractor” from conducting future stock buybacks or issuing dividends at the expense of accelerated procurement and increased production capacity. The executive order also orders a historical review of defense contractor performance and directs the Secretary of War to develop and implement additional provisions related to prohibition of stock buybacks and corporate distributions, prohibition on the use of certain metrics in determining executive compensation and authorizing the U.S. Government to cap executive base salaries.”

Annual report 2025A · The company itself

“We have significant operations in Canada and in member states of the EU, which could be negatively impacted by a trade war with the United States.”

Annual report 2025A · The company itself

“Presidential Administration for various defense and NASA programs could impact our Engineered Systems, Aerospace and Defense Electronics and Digital Imaging segments. Budget cuts at NASA have negatively impacted the revenues of Engineered Systems in 2025 and are expected to further impact revenues in 2026.”

Annual report 2025A · The company itself

“In both 2025 and 2024, sales to customers outside the United States accounted for approximately 48% of total net sales.”

Annual report 2025A · The company itself

“Properties At December 28, 2025, we had 81 principal operating facilities in 20 states and 11 foreign countries.”

Annual report 2025A · The company itself

“At December 28, 2025, our principal operating facilities by segment were located as follows (countries and states listed alphabetically): •Digital Imaging - Belgium, Canada, Estonia, France, the Netherlands, Norway, Spain, Sweden, the UK and the United States ◦The United States includes principal operating facilities in California, Indiana, Maryland, Massachusetts, Montana, New Hampshire, New Jersey, Oklahoma, Oregon, Pennsylvania and Tennessee •Instrumentation - Denmark, France, Iceland, UK and the United States ◦The United States includes principal operating facilities in California, Colorado, Florida, Massachusetts, Nebraska, New Hampshire, New York, Ohio, Pennsylvania, Texas and Virginia •Aerospace and Defense Electronics - the UK and the United States ◦The United States includes principal operating facilities in California, Illinois, Ohio and Texas •Engineered Systems - the United States ◦ The United States includes principal operating facilities in Alabama, Maryland and Tennessee Subsequent to the end of fiscal year 2025, we completed one acquisition that is part of the Instrumentation segment, with principal operating facilities in the UK.”

Annual report 2025A · The company itself

“Risks Related to our Business and Industry A possible recession in the United States or globally may adversely affect us. We sell products and services to customers in industries that are sensitive to the level of general economic activity and consumer spending habits. If another recession emerges, either globally or in the United States, we may experience declines in revenues, profitability and cash flows from reduced orders, payment delays, collection difficulties, increased price pressures for our products, increased risk of excess and obsolete inventories or other factors caused by the economic problems of our customers.”

Annual report 2025A · The company itself

“We develop and manufacture products for customers in the energy exploration and production markets, commercial aerospace markets, the semiconductor industry, and the consumer electronics, telecommunications, automotive and healthcare industries; each of which has been cyclical, exhibited rapid changes and suffered from fluctuating market demands. A cyclical downturn in one or more of these markets may materially affect future operating results.”

Annual report 2025A · The company itself

“We may not be able to service our debt obligations, which could have a material and adverse effect on our business, financial condition or operating results. Our ability to meet our interest expense and debt service obligations will depend on our future performance, including the cash we generate from operating activities, which will be affected by financial, business, economic and other factors, including potential changes in laws or regulations, industry conditions, industry supply and demand, customer preferences, the success of our products and pressure from competitors.”

Annual report 2025A · The company itself

“Sanctions on Russia imposed by multiple countries and related Teledyne policies have led to a comprehensive ban on commercial activity with that market.”

Annual report 2025A · The company itself

“A military conflict between China and Taiwan would likely have a material adverse impact on our ability to sell products to customers in these areas and on our supply chain.”

Annual report 2025A · The company itself

“Ongoing instability in the Middle East and the conflict between Russia and Ukraine could result in supply chain and other business disruptions.”

Annual report 2025A · The company itself

“In recent years, inflation and supply chain constraints resulted in sustained increases in the prices we pay for many of the components and raw materials used in our products. In addition, we have experienced higher labor costs due to increased competition for personnel in many regions in which we operate as well as general inflationary conditions, and higher shipping costs due to labor and rising energy prices.”

Annual report 2025A · The company itself

“Our future success depends to a significant extent upon the continued service of our executive officers and other key management and technical personnel and on our ability to continue to attract, retain and motivate qualified personnel. The lack of human capital due to very competitive labor market conditions in certain regions could impact our ability to deliver products and services. A significant portion of our revenue depends on the availability of a highly skilled technical workforce, the market for which is competitive.”

Annual report 2025A · The company itself

“Some of our businesses, including our businesses in engineered systems as well as in traveling wave tube and integrated microwave module design and development, draw from a pool of specialized engineering talent that is small and, in some cases, currently shrinking. Some of our businesses have a need for employees with a certain level of security clearance, and competition for such employees has increased.”

Annual report 2025A · The company itself

“Government contracting agencies have adopted rules and regulations requiring contractors to implement a set of cybersecurity measures to attain the safeguarding of contractor systems that process, store, or transmit certain information. Implementation and compliance with these cybersecurity requirements is complex and costly, and could result in unforeseen expenses, lower profitability and, in the case of non-compliance, penalties and damages, all of which could have an adverse effect on our business.”

Annual report 2025A · The company itself

“In recent years, inflation and supply chain constraints resulted in sustained increases in the prices we pay for many of the components and raw materials used in our products. In addition, we have experienced higher labor costs due to increased competition for personnel in many regions in which we operate as well as general inflationary conditions, and higher shipping costs due to labor and rising energy prices.”

Annual report 2025A · The company itself

“Presidential administration has announced significant new tariffs on foreign imports into the United States, particularly with respect to imports from China, and has proposed additional new tariffs that may be implemented in the future, including on member states of the European Union (“EU”) and on Canada and Mexico. High tariffs generally increase the cost of materials for our products, which could result in our products becoming less competitive or generating lower margins.”

Annual report 2025A · The company itself

“Currency exchange rate fluctuations may increase the cost of our products to international customers and therefore reduce our competitive position. In addition to making our products manufactured in the United States more expensive, a stronger dollar impacts the value of our foreign profits when translated back into dollars.”

Annual report 2025A · The company itself

“We have significant operations in Canada and in member states of the EU, which could be negatively impacted by a trade war with the United States.”

Annual report 2025A · The company itself

“As European countries increase their defense spending, requirements to have production facilities in the EU are becoming more common to win contracts. If we are unable to respond to these requirements, we may be unable to bid on new programs or lose opportunities to competitors that are based in the EU.”

Annual report 2025A · The company itself

“We are seeing increased sales into the European defense market as European defense budgets increase as a result of the conflict in Ukraine, threats from Russia and other geopolitical instability.”

Annual report 2025A · The company itself

“In both 2025 and 2024, we sold products to customers in over 100 foreign countries. Approximately 90% of our net sales to international customers during 2025 were made to customers in 30 foreign countries.”

Annual report 2025A · The company itself

“In both 2025 and 2024, sales to customers outside the United States accounted for approximately 48% of total net sales.”

Annual report 2025A · The company itself

“Properties At December 28, 2025, we had 81 principal operating facilities in 20 states and 11 foreign countries.”

Annual report 2025A · The company itself

“As discussed under the risk factor below headed “Natural and man-made disasters could adversely affect our business, results of operations and financial condition,” some of our manufacturing facilities are located in regions that may be impacted by severe weather events, like hurricanes or ice storms, or in areas prone to wildfires, droughts and rising sea levels, the frequency and severity of which may increase as a result of climate change. These events could result in potential damage to our physical assets and may result in disruptions in manufacturing activities and impair the ability of our employees to work effectively.”

Annual report 2025A · The company itself

“Teledyne’s facilities in Quebec, Canada have been impacted by loss of electrical power caused by severe ice storms.”

Annual report 2025A · The company itself

“In addition, we have manufacturing facilities in the southeastern United States and Texas that have been threatened or struck by major hurricanes. Our businesses located in Houston, Texas and Daytona Beach, Florida have been impacted in the past by hurricanes.”

Annual report 2025A · The company itself

“Higher interest rates and other factors could cause our customers to reduce capital spending, which could adversely impact us. Higher interest rates may reduce capital spending by our existing and potential customers, which could result in lower sales of our products.”

Annual report 2025A · The company itself

“Any future indebtedness incurred under our credit facility will expose us to interest rate risk.”

Annual report 2025A · The company itself

“As of December 28, 2025, we had $2,488.0 million total outstanding indebtedness in senior notes.”

Annual report 2025A · The company itself

“Legislative and regulatory measures currently under consideration or being implemented by government authorities to address climate change could require reductions in our GHG or other emissions, establish a carbon tax or increase fuel or energy taxes.”

Annual report 2025A · The company itself

“These legal requirements, in addition to emission reduction efforts that we voluntarily undertake, are expected to result in increased capital expenditures and compliance costs and could result in higher costs required to operate and maintain our facilities, procure raw materials and energy, and may require us to acquire emission credits or carbon offsets.”

Annual report 2025A · The company itself

“China has also restricted the export of certain rare earth minerals and permanent magnets that are used in our products, which has in the past delayed and could in the future limit our ability to sell products that require these components or result in lower margins products that incorporate these components.”

Annual report 2025A · The company itself

“In response, China has unveiled restrictions on exports from China of certain materials and components, including gallium and germanium and which are used in semiconductor manufacturing and permanent magnets and which have impacted 9 Table of Contents the production and pricing of some of our digital imaging and aerospace and defense products.”

Annual report 2025A · The company itself

“Some items we purchase for the manufacture of our products are purchased from limited or single sources of supply due to technical capability, price and other factors. Furthermore, sole source supply is more common among our businesses that are heavily involved in R&D because there can be few suppliers in the world capable of producing the products or providing the services with the right highly specialized technology.”

Annual report 2025A · The company itself

“We have also outsourced from time to time the manufacturing of certain parts, components, subsystems and even finished products to single or limited sources, including international sources. Disruption of these sources or supplier-imposed rationing of scarce components could cause delays or reductions in shipments of our products or increases in our costs, which could have an adverse effect on our financial condition or operations.”

Annual report 2025A · The company itself

“New EU cybersecurity requirements are expected to come into effect in 2026, which may impact our ability to market our products and services in the EU.”

Annual report 2025A · The company itself

“The Presidential Administration has also rolled back green energy initiatives, which could harm our energy systems business that manufactures hydrogen-based energy generation systems and which also is likely to reduce the number of federally funded hydrogen generation projects, which lowers demand for our process instrumentation products.”

Annual report 2025A · The company itself

“Teledyne FLIR has enhanced its trade compliance program. Nonetheless, adverse disclosures and findings could cause additional expenses in connection with further remedial measures or potential penalties.”

Annual report 2025A · The company itself

“In addition, we have experienced higher labor costs due to increased competition for personnel in many regions in which we operate as well as general inflationary conditions, and higher shipping costs due to labor and rising energy prices.”

Annual report 2025A · The company itself

“The Presidential Administration has also rolled back green energy initiatives, which could harm our energy systems business that manufactures hydrogen-based energy generation systems and which also is likely to reduce the number of federally funded hydrogen generation projects, which lowers demand for our process instrumentation products.”

Annual report 2025A · The company itself

“The Presidential Administration scaled back many of these regulations, which could result in decreased demand for our products, especially if funding from individual states do not make up for the shortfall in federal funding.”

Annual report 2025A · The company itself

“In both 2025 and 2024, sales to customers outside the United States accounted for approximately 48% of total net sales.”

Annual report 2025A · The company itself

“Our Teledyne Battery Products unit makes lead acid batteries in California and is subject to a variety of environmental regulations and inspections, which have increased over time.”

Annual report 2025A · The company itself

“Table of Contents A change in policy direction related to environmental regulations and green energy could negatively impact demand for our monitoring instruments and energy systems products.”

Annual report 2025A · The company itself

“We have significant operations in Canada and in member states of the EU, which could be negatively impacted by a trade war with the United States.”

Annual report 2025A · The company itself