TELEDYNE TECHNOLOGIES INC — Call Transcript 2026

All right, we're gonna get started here. Thanks, everyone, for joining us. My name is Joe Giordano. I'm the Industrial Analyst at TD. Excited to have Teledyne with us today. We got George and Jason, and we're just gonna jump right into the conversation. If anyone has any questions, just raise your hand. I'm happy to stop, and we can do that. Otherwise, I'll just kick it off. Guys, thanks a lot for being here. Sure. Appreciate it. You know, maybe just given the theme of the conference, and we're gonna dive into, like, the components of it. Maybe just frame out for everybody what your- how your A&D exposure is, and, and then we'll dive into, like, the subcomponents and what- Sure, sure. So there's about 30% of our business is defense. And I can break that down at some point. About 5% of the business is commercial aviation, and another, you know, call it, 6%-7% is space. Okay. So I wanted to dive into the unmanned stuff first- Mm ... 'cause that's where we're getting a ton of questions. So you've said this, it's $500 million. It's growing, you know, maybe 10% in 2026. What's driving that right now? Yeah. Which parts of it? Probably good to understand what makes up that 500- Let's do that. Right. So about $200 million of that $500 million is unmanned aerial systems, like our Black Hornet drone- Yep ... our SkyRaider, our Rogue 1 loitering munition. About $150 million of that is components that go primarily onto unmanned aerial systems, built by other people, or onto unmanned surface vehicles or subsea vehicles- Yep ... for example. Then maybe about $100 million, round numbers, is subsea vehicles that we make, including our autonomous gliders and our Gavia self-propelled vehicles, and then about another $50 million of ground robots, basically. What's driving that is obviously, you know, the Black Hornet sales, the Rogue 1 loitering munition, which we just got our first production contract on, and then selling a lot of components to others who are making unmanned aerial vehicles. And then finally, subsea, you know, places like the Black Sea, the Baltic Sea, UK Royal Navy, purchasing a, you know, pretty significant number of our subsea vehicles. It strikes me as a conservative estimate here, so, like, it, you know... Is it one, or is there things that we should consider as headwinds from a funding standpoint anywhere? Well, I think we're probably always prudent in guidance, right? Yeah. Particularly as it relates to government funding and timing of government funding. Yeah. So, yeah. What, what are the key things, like the programs that we should all be tracking for you? I mentioned the Organic Precision Fires-Light, or OPF-L, which is a U.S. Marine Corps contract. Just got our first production contract for the Rogue 1 loitering munition. Yep. So that has entered production. Then there's an Army program called LASSO, L-A-S-S-O. Similar program that we think will be more development this year, production next year. Yeah. Okay. Yeah, so we were just talking, we were at one of the production facilities, yes, two days ago. They seemed very bullish on Rogue 1. Yeah. Can you maybe talk about the outlook there and the opportunity, and what are the competitive dynamics with that program? Sure. I mean, it's a very versatile platform, right? It's you know we compete, for example, on the OPF-L. We you know we're competing with companies like Anduril and AeroVironment. Yeah. It has the ability to be recalled, right? So it's not just a one-way munition. Yeah. It can actually be recalled up to very, very close to when it strikes. Good, and it's, you know, been a robust platform. It's pretty lightweight. It weighs about 10 lbs. Yeah. Yeah, so. Is that program... I think DoD budgeting is almost for, like, a $50 million increase just in 2026 for just Rogue 1, right? Yeah. Is that, is that the right number? For us, for us in 2026, it's probably more like $30 million. Okay. Yeah. Yeah, I mean, technically, the ceiling on that initial contract was a $250 million ceiling. The initial development contracts were all small. Okay. I think it was like, you know, $10-ish million for AeroVironment, Anduril, Teledyne. I think we're the only production contract so far that I've seen, but that's only 42, so it could be more- Right ... 'cause the contract ceiling's there. But, you know, how much and when, you know, TBD. But also on programs, I mean, unmanned is clearly significant. It's about $500 million a year of business. But another area where there actually is a larger program that's been in the news is roughly the $400 million of space business we have. Oh. On December 19th, the latest version, Tranche 3 Tracking Layer, was awarded. We're on three of the four prime teams, and- Yep ... we were basically on all of the teams to that date on Tranche 0, Tranche 1, Tranche 2. So space-based imaging, either the current version of Tracking Layer or whatever the future architecture for a Golden Dome may be, that's a good area for us. Yeah. Yeah. And, we're definitely gonna dive into that. Mm-hmm. I just wanted to finish off on, on some of the- Sure ... the unmanned first, and then I wanna dive into space for sure. You mentioned LASSO. How should we think about the potential for something like that compared to the Marine Corps program and where that can potentially- You know, I think, I think it's a very similar kind of similar track. So if you look at the Marine Corps program, it was a year of development, relatively small amount, then into production. I think LASSO looks pretty similar, maybe later this year, development phase. Yep. Development/testing, followed by production phase in 2026. And is there, like, you know, how, how should we read the success on one versus like, into, you know, foreshadowing success elsewhere? I mean, I assume that they're looking for the same characteristics as in, in this- I would think so. We're getting good feedback. Yeah. Um, yeah. Okay. We spoke with the team on-site about the Drone Dominance Program. Mm-hmm. It was an interesting discussion, right? So you guys are selling camera cores, right- Mm-hmm ... into these things and not making the drones themselves. They seem pretty bearish on the actual devices that are- Yeah ... being- On the systems. Correct, correct. Yeah. Like, as being viable in- Yeah ... in the field. So maybe, how should we think about Teledyne's exposure to something like that, and like, what is, like, the optimal way of this playing out? So I think it's important to know, you know, when we think about business that we're going to pursue, right, what do we normally think about? We normally think about a business that, A, we're confident we can technically do, and B, is gonna have relatively limited competition, right? We're gonna be competing with one or two or three other competitors. Yep. Not 25, right? So to the extent we're talking about drone dominance and driving, you know, drones down to 3,000- Right ... $2,000-$1,000 a unit, that's not a space that we're interested in competing in. Yeah. To the extent that some of those at some level would need uncooled IR cores, for example, could benefit us. But in general, we're providing higher performance drones, right? In that kind of $10,000-$100,000+ range. Yep. Yep. So is there ways that we should think about that is if those, if families of platforms like that in a few thousand dollars can succeed, you'll probably sell some components there, and if they ultimately they don't, and the end game is something more sophisticated, that's where you can come in as a platform. Well, I still think you're going to need... So take our SkyRaider, for example- Yeah ... right, that has imaging devices and can have chemical, biological, radiological and nuclear detectors. You're not going to do that with a $1,000 drone. Sure. Right? So, so there's always going to be a market for that. Yes. Think about our Black Hornet that can fly in a GPS-denied environment. Yeah. It's got great imaging capability, et cetera. Again, you're going to need a more robust platform to do some of those things. So yeah, I think the niches we're in, we feel good, and they're sustainable to the extent there's a mass proliferation of lower cost devices- You can just supply them. ... then we can supply those. Yeah. Okay. Yeah, I think it's fair to say that I think of us as a low-cost producer of highly capable drones. Right. Again, if you want to order maybe- It's all about- Like George said, $10,000-$100,000 GPS-denied environment. FLIR. All have thermal, not just visible. But yeah, if you're looking for a DJI replacement, that's first-person view, maybe not thermal imaging, only visible, maybe no radio, maybe a fiber optic tether, thousands of dollars might - we don't want to be in that business. Right. Yeah. I mean, even the cores are, would be half the price of the drone at that point, something like that, right? 100s-1,000. Yeah. Something like that. Okay. We also got to see counter-UAV there, which is- Mm ... which is interesting. Now, how large is that specifically, and where can that go? 'Cause it seems like it's a less fully, like, fully fleshed out. Yeah. So- I'd say for us, that's probably right now in the mid-10s of millions of dollars a year. What are we doing? We're providing imaging devices and radars primarily. Mm. We've got our own integrated kind of detection classification device for that, and then we're also selling to partners- Yep ... that are pairing our kind of eyes and ears with their kinetic device, right? So- Yep ... again, that's, there are a lot of people playing in that complete integrated solution, right? With whatever modality they're using to defeat the drone. And so much like the rest of our business, we're open to selling to all those people. Yep. Our infrared devices, our radar devices. We do have, I mean, again, we, we do have kind of an integrated device for that, but we're not, at the moment, we're not playing in the full system ourselves- Right ... with the kinetic solution. Is that interesting to you, to have the full solution? Again, I think there are a number of people in that space, so it's interesting, but we'd be very methodical about whether or not we thought we had a real advantage that would be sustainable over time and not be in a very crowded space. Yeah, my view is that- Yeah ... there's probably too many market participants. Yeah. Okay. I mean, there are people who have kinetic solutions like George, and they shoot the drone. Right. There's people who have electronic warfare- Right ... drop the drone. There's other people who have directed energy, microwave the drone. But there's probably too many. Clearly, counter-drone is going to be a growing market. Yep. I mean, all you have to do is not just look at Ukraine, Israel- Mm ... Houthis, Red Sea. I mean, clearly, there's a need for those type of products, but there's a lot of market participants. So at the moment, we've taken, if someone wants to do the last mile solution, kinetic, directed energy, the microwave, EW- Yeah ... that's fine, but they need to see it, they need to identify it, they need to classify it. Yeah. Is it a bird, is it a drone? What am I gonna do? We're happy to sell gear at that level right now. Are you exclusive? Like, when you pick a pa- I think they mentioned something like, I think it was BAE for one and Kongsberg for- Not exclusive. Not exclusive. Not exclusive. Okay. So, and they, they mentioned that you, there's no partner currently for, like, directed energy. If you make something like... If you do something like that, you make a partnership, it's just, that's all it is? It's just go-to-market framework, and you can keep selling to other players- Typically ... and that type of thing, typically? Yeah. Okay. That makes sense. A couple other things from the trip that I thought was interesting and wanted to talk. They mentioned that the teams there, when they're building these drones and designing these drones, they don't really use a lot, or as much as they should, from, like, the rest of the Teledyne portfolio. Mm. I think, maybe just talk us through what the potential is for that, and how do you break behavior? 'Cause I know these are legacy, FLIR, like, you know, been doing this a long time. Sure. Like, how do they get either the knowledge of the totality of the portfolio? Yep ... or, like, get comfortable using it? So I'd say a couple things. I mean, one, we do have, we do expose people to the broader portfolio- Yeah ... on a regular basis. We have quarterly operations reviews. Lots of people come in from around the business. But the other thing we have done, even just recently, is the FLIR defense business. JihFen Lei, who runs that business, now also has responsibility for our aerospace and defense electronics business- Okay ... for example. So those teams are a lot more connected, or getting more connected, on understanding what they do and areas that they could perhaps cooperate in. They also mentioned, like, I would have thought that the, they're almost doing like an offense versus defense scrimmage, right? Mm. Like at these buildings, where you have people making drones, and you have people stopping drones. Yeah. Like, how can I...? What makes your life miserable? I wanna focus on it. Yeah, yeah, yeah. Right? And they said that there isn't as much sharing on that as you would think, and that struck me as somewhat odd. Yeah. How, what can you do as, like, a leadership team to, you know, push that kind of behavior, incentivize that type of behavior? Sure. No, I think it's important. Look, as we've acquired all the, we've acquired 75, 76 companies over the last 25 years, right? And really built scale in a couple of these areas. It is, certainly, it's more about bringing these groups together so that they kind of collaborate more across them. Having said that, you always have to separate out what's the theoretical collaboration that could happen with what's actually the specific thing that could add value to the business. You know, we're talking about big potential growth in some of these things, budgets, people talking 50% increases. Who knows where that shakes out? But if it is on the larger side, do you feel like you have capacity, and if you need to ramp significantly for some of these things- Yeah ... if you win, like, what does that entail from a spend standpoint? Yeah, no, I think we do. I mean, if you take space imaging, for example, that's still a relatively low-volume application. Yeah. We've invested CapEx there. The government has invested CapEx there. So when it comes to infrared detectors for space, for example, we've got the capacity to do that. When we think about missiles and munitions, we provide a variety of electronic components. There are a lot of, you know, those factories where we do that, we have the ability to add shifts, for example. Where we do camera cores, we're investing more CapEx in that business, invested more last year, invest more this year to ramp. So again, I think it's we can adjust in many of our facilities. We certainly have the ability just to start by adding additional shifts. And maybe just last on this topic, like, how should we think about your business to U.S. DoD versus, like, and, and- Yeah ... the Rest of the World? The 30% defense is about, about 22% of that is U.S., and about 8% is the Rest of the World. What do you think, like, where can that go on the Rest of the World type applications? Yeah, I mean- Like, how penetrated do you feel like you are in some of these? Sure. I feel like we've got good opportunities, you know, continuing in border surveillance, in ground vehicle sensors, for example- Mm ... in Europe, a lot in the Middle East, certainly APAC as well. So, Yeah ... it's been a growing area. I think it'll continue to grow. And some- Yeah ... some of those, would those be the same solutions that you're selling to, like, DHS for? Yes ... southern border control and things like that? Yeah, if anything, some of the pockets of faster growth, like unmanned, they're probably a little bit more weighted. Rather than that 22/8, they're probably a little bit more European-weighted- Right ... in part because things like our drones are actually not made in the U.S. Yeah. They're made in Canada, Norway, Iceland. Some of the specialty sonars, some of the other subsea infrastructure stuff is made in the UK and/or Denmark. So it's been, it has been an area for growth, but it's been an area for growth in the growthier areas. Mm ... as well. There seemed like there was some regulatory elements to where can you what amount of a particular item you can manufacture overseas, and then you have to bring it here to complete certain elements of it. So you're probably referring to in our R70, R80 drone, which is a larger quadcopter, there are certain elements that make it ITAR-controlled, so produced in Canada- Yeah. Yep ... but then imported in the United States, features added to it- Yeah ... then for the U.S. government. Okay. Yeah. That's all, like, that's all purely regulatory-based, where you're- Correct. Yeah. Okay. Mm-hmm. All right, let's move over to space. You mentioned it's $400 million. Mm-hmm. Maybe you wanna flesh out the brand. Yeah, sure ... what, what brings that up for you? Yeah, so it's mostly imaging devices, infrared and visible imaging devices, again, primarily used for things like missile tracking, earth observation, climate studies, for example. It's become much more defense-weighted compared to historically, it was kinda probably more NASA- Yeah ... you know, deep space missions, astronomy, things like that. It's been much more about earth observation. And then we provide a variety of other electronic components, space glass for satellites, things like that, but primarily imaging is what's driving it and what's driving the growth. Within that, like, which of the specific programs that are driving the majority of the- Yeah, it's really the Space Development Agency tranche programs- Yeah ... have been very big for us- Yeah ... and certainly the largest programs that we have. Yeah. You mentioned Tranche 3 now. Mm-hmm. What does that imply for, like, the expansion of that program from, like, current levels to the next level? Yeah. I mean, look, I would keep in mind, this is Tranche 3. There was Tranche 1, Tranche 2- Mm-hmm ... right? It's been kind of a continuing business. Yeah. Tends to be a little bit, you know, kinda over a two to three-year period. We tend to deliver on the earlier side of that. So again, the Tranche 3 is worth more than $100 million to us. Yeah ... in total. Yeah. You know, maybe some incremental in 2026 just based on timing there. Okay. And so as we move forward towards, like, Golden Dome- Mm-hmm ... like a fully fleshed-out Golden Dome, like, what does that mean for you? Well, I think when we get the details on what fully fleshed-out Golden Dome- Yeah ... actually means, then that'll be an easier question to answer. But having said that, look, we've been pretty dominant in space-based imaging, particularly for missile tracking. Yeah. Yeah. That's one element to it. Then, to the extent that some of it is more tactical Earth-based, whether it's drones, whether it's more like an Iron Dome missile shield, for example, then certainly our imaging capabilities and other capabilities would play there. What about on the commercial side? Mm-hmm. Like, what have been the developments there? I know we're talking about, you know, there's these huge constellations, people talking about million satellite constellations, talking about moon colonies. Like, where can you play in a, as these things- Yeah ... unfold? Again, so we provide imaging devices, both the kind of exquisite ones that look down at Earth, but others that could be used for what I call space situational awareness, if you wanna know- Yeah ... what's around you- Yeah ... for example, on a satellite. Variety of hardened, you know, rad-hard semiconductor solutions, electronics, things like that. So to the extent you've got growth in space, it's good for us. To the extent it's defense-exquisite imagers, it's very good for us. Generically, growth in space is good for us. Is there a major difference in, like, the margin profile of stuff you're doing on the defense side versus things you might do on the commercial side? No. I mean, in general, we're selling- Same thing ... we're selling pretty standard products- Yeah ... with tweaks. Yeah. I'd say our share of wallet is greater on a missile tracking satellite that needs infrared to see heat or see through clouds- Yeah ... than, say, a visible sensor- Yeah ... on a Planet Labs. I mean, they're all generically good for us, but our dollar content on the infrared side would be, would be more, yeah. What about the NASA business, like DOGE, you know, DOGE implications, and where are we with that? Yeah, so of that $400 million, that does not include... We do have a space services contract at the Marshall Space Flight Center. It's about $60 million a year. Yeah. That really, I mean, maybe it was 70, now it's gonna be 60. We haven't taken much of an impact there. It's a low-margin business. On the space hardware side, on that $400 million, not really seeing much of an impact there. Hmm. Most of what we're doing, even on the civil side, is more like NOAA weather satellites, things like that. Yep. Yeah. It seemed like there was maybe more fear earlier in 2025- It- ... about what those businesses might look like. At least for us, it hasn't. Yeah. It hasn't, just hasn't materialized? No. Okay, maybe we shift a little bit more broad to the rest of the portfolio. Mm-hmm. You wanna give us maybe an update on, on the non-aero defense markets, where we stand? Sure. and what you're thinking? Sure. So yeah, I mean, if you look at the corporation as a whole, about half of it is that longer cycle, which is aerospace, defense, space. The other piece of that probably to call out is energy. That part of the business continued to be strong. It's on the order of, call it, $250 million-$280 million a year for us. That's where we're providing connectors for subsea, data and power to, subsea trees and oil production. Continues to be strong. If I switch over to the short cycle side, so the other half of the business, really, you know, been a story of recovery over the last few quarters and stabilization. So, industrial and machine vision, we're seeing, kind of starting to see some growth there. Our environmental business, where we're doing, you know, selling lab equipment, we're selling, process, air quality and safety equipment, so air quality monitoring equipment, safety equipment to find gas leaks, for example, again, that business has been growing, has grown, you know, over the last kinda three quarters, year-over-year. And then, test and measurement business as well, where we're selling oscilloscopes and protocol analyzers. Kinda five consecutive quarters of very modest, but, you know, quarter-over-quarter growth. So what I would say about all those short cycle businesses, and I'll come back to one, we see kinda modest growth, and we're thinking about low single-digit modest growth in 2026. Healthcare, where we provide X-ray sensors, both for surgical X-ray, and dental, and also some radiotherapy equipment, there it's kind of flat- Yeah ... in 2026. But overall, what I would say, I mean, if I went back to last year when I was sitting here, I think there was a lot more uncertainty on the short cycle side. Yeah. Now, it's short cycle, by its nature, there is uncertainty in it, right? But when we listen to our customers, see the order flow, look at what's happened over the last few quarters, that short cycle business has really started to recover at a modest pace, which I think is giving us more confidence in the overall picture, which is the long cycle business remains strong. We're in good spots, right? Unmanned, all the things we talked about. Short cycle business, we're not filling any holes. We're not seeing any holes that we're gonna need to fill, so we're starting to see more of that long cycle strength come through. Now, on the short cycle side, I know there's still a lot of debate out there as to, like, where we are. Does it strike you...? So, I mean, within the understanding that it's a guidance, you're being prudent here- Mm-hmm ... but, like, is low single-digit growth coming off of, like, a kind of a multi-year kinda sluggishness? It doesn't feel like much. Does it feel like a normal cycle to you? Or, how... We're seeing this everywhere, right? It just seems like we've- Yeah ... had this lull, and like, we're not coming out very forcefully out of it. Yeah. All I can do, I guess all I would say is, all we can do is listen to our customers and look at our order flow- Yeah ... and look at our pipelines, and that's how we generate the guidance, and then we can hope things are gonna be better than that. Yep. I would certainly say there's still a lot of caution in the market, right? When it comes to placing orders for CapEx, be it test equipment, be it something else. Yep. I mean, people are still in this pattern where they're probably more likely to wait than to lean forward and place an order. Yeah. Having said that, the order flow's been pretty good, and we're seeing that kind of low single digit year-over-year growth. So when you look at that, which areas of those markets do you think have, like, if you were wrong, have the most upside bias, and which ones maybe have the most downside bias? Yeah, that's a good question. I think the industrial and machine vision business, which is a good business for us, did go through a trough. It started to recover. It's a higher margin business. Given that we've got some semiconductor inspection exposure there, and things like that, and electronics inspection exposure, perhaps it's got some upside potential, but it's all theoretical, right? Yep. From a downside perspective, there's no individual one of those markets I look at and I'm more worried about than the other. Okay. Um, yeah. What's required to get some of those medical businesses moving again? Yeah. So really, the downturn we had in that medical business was related to dental X-ray- Mm-hmm ... where, and, you know, some of that is really extra-oral dental X-ray, and some of that was just probably related to higher interest rates, making, you know, small dentist offices not want to spend as much money. Yeah. There was competition there. So I think from this point, from where we are, we'll see, you know, reasonably steady growth once we get through 2026- Mm ... in the core kinda things we do, which is X-ray for large surgical equipment, cancer radiotherapy, and so forth. Yeah. Maybe we could just talk quick on the test and measurement piece. Mm-hmm. Can you just walk us through kinda like where you play in that? Mm-hmm. 'Cause I think there's been a lot of differing reads, right? Yeah. From- Yeah ... from Rohde versus- Mm-hmm ... versus National Instruments, and we'll see what Keysight says. Yeah. Like, maybe walk us through the competitive landscape there and where you're targeting. Sure. The business is about half oscilloscopes, half protocol analyzers. Yeah. On the oscilloscope side, we're selling into high bandwidth applications, where we compete with the Keysight, for example. That business has been pretty good for us over the last year. We also are selling into certain power applications, like people building power supplies for data centers, for example, and in-vehicle networks, so, you know, moving data around the vehicle, additional cameras, et cetera, right? So development of all those things. So for us, and I know some of the comparisons, right, people have suffered a little bit when they were probably heavier weighted to electric vehicles, for example. Yeah, for sure. That really didn't impact us as much because we still had that mix of high bandwidth plus mid-range oscilloscopes that were playing in that, some in the EV, but really, we've been able to pick a lot of that up in the power supply development, et cetera. On the protocol side, you know, that's really about protocols like PCI Express and HDMI and Bluetooth and Wi-Fi, and what we've seen there is we're a little bit between kind of product cycles that... the pace of that business has a lot to do with when chips are released and the next generation chips. Okay. Seeing a little bit of a, I'd say, a gap there, kinda in between product cycles. There we're primarily competing with a VIAVI, for example. Yeah. But we feel good about our position there, and it's a good business, right? If we're talking about moving more data, managing power, moving data, lower power, et cetera, it's good for us. So fair to think the orders, you know, for the oscilloscope business should be, you know, tracking, like, well above revenues, kinda like these other, these other competitors? I think the oscilloscope side has been a little stronger over the last- Yeah ... year, for example. Yeah. What about on the, on the marine energy side? Mm-hmm. It's been a great business. Yeah. It's been strong. I feel like we've almost been waiting for it to weaken, and it really hasn't. And, what, what's the outlook there? Yeah, no, so- Any change post some of these developments with- No, it's interesting. With well. I mean, that is an area, obviously, that we keep a close eye on. Yeah. Right? And what we're hearing from our customers and what we're seeing, you know, in commentary, and we really look at the number of trees that are gonna be awarded- Yeah ... that number over the next two to three years looks like it's gonna be stable or increasing. Yeah. And so, yeah, the business grew dramatically, say, from 2023 to 2025. I don't think it grows at the same rate, 2026 and beyond, but it certainly in the next year or two at least, based on everything we're seeing and hearing from our customers, it doesn't feel like the business is gonna decline. Yeah, and I felt like maybe a year or so ago, maybe we were thinking that that could, right? Like, is that- Yeah, I think we were getting a little... Look, as you saw oil prices come down a little bit, kinda naturally thinking about where that's gonna go. I think oil price is in the $60s, again, and, and we've got close relationships. We've got good, good customers there, close relationships with our customers. Feel like the outlook is good, again, at least as far as we can see. Yeah, that's fair. I wanted to touch on AI a little bit. Mm-hmm. Maybe first we start about what you're doing internally. Sure ... to harness it and use it as a tool. Yeah. So we've spent the last, I would say, year and a half on what I'd call prototyping and projects, right? So we've had just a number of disparate teams, because we run a fairly decentralized organization, just testing various applications, right? So for code development, marketing generation, customer support, technical support, things like that. We're kinda reaching the phase now where it's about implementation, but like everything we do, it's gonna be like a methodical, very methodical approach, right? Of, okay, we've had a few business units demonstrate a capability in code development, for example. Now, how do we take that, create a blueprint for that, put it across the corporation, do it in a way that we know we're gonna get return on it, and that it makes sense for us? Yeah. Right, and then we can manage all the risks. So, I'd say we're exiting what I'd call that prototyping and test and evaluation phase and stepping into that next phase. But like everything we do, we don't do... Like, we're not a company that does, like, some big bang of like- Yeah ... now this is all gonna happen everywhere, all at once, in every international facility. That makes no sense, right? We're gonna just take a methodical approach and make sure that we're getting return for whatever that investment is. Who owns this? Like, do you want AI to look differently across all the elements of Teledyne? I think from the internal functions, it should look pretty similar. Okay. I mean, where we see benefit in the things I said, which are the primary areas I think that we're gonna benefit from on the first go. I think we wanna see similar utilization for code development and things like that. Yep. Yeah. It's like idea generation is maybe coming from the BU side, and it's scaling from the corporate? That's exactly right. So... that's the beauty of a company like Teledyne, right, with the diversification. You can have all these teams doing all this kind of testing- Yeah ... see what works, then, that's right. Then at the corporate level, we bring it in, we look at it, and we lay out a plan. Working with the people in the business unit, you got champions, whatever, right, to go do it, again, without moving either too slow or too quickly, right? I think it's the kind of thing we have to be prudent about, but we have seen some opportunity there. Have you had to create new roles within the organization for this, or is it outside of, you know, the expertise of? Yeah, we've actually- Yeah ... we've brought a couple people in who have experience, and then we've had some people who are highly capable within the organization, who know the organization and kind of know the lay of the land- Yeah ... who I think will be able to manage it. What about external threats from AI- Yeah ... from a competitive standpoint? Look, I know obviously that's a topic, right? Yeah. But it, for us, we don't see it as much as a threat to us. Why is that? Because primarily we're providing hardware. Yeah. We do, we provide software with our hardware. Typically, we're not charging for that software; it just comes with the hardware. And if anything, you know, we're a sensor provider. We're providing not just the ability to see, but often coupled with a processor that then allows somebody to put their solution on it, right? So we're kinda thinking about it a couple ways. One is making sure we embed the right AI tools in our products for target recognition, target tracking- Yeah ... license plate reading from gimbals, whatever it is, but then also making sure the architecture we're creating for our customers allows them to very easily use our sensors to run whatever application they wanna run, right? Yeah. 'Cause I think if you're a sensor provider, you understand you can't possibly solve every problem that your sensor could be used for, and you'd be foolish to go off and try to do all those things. So you wanna provide the best sensor with the right architecture that allows other people to go do that niche thing they're trying to do with the sensor. The thought process of AI makes it easier to do any of these things is just patent. You just disagree with the premise of that? AI makes it easier to do what? To take the output of a sensor and either make sense to track something or do any of those- Oh, no, I think it- tasks. Yeah, no, certainly it makes it easier to take the output of the sensor. I guess what I'm saying is we wanna provide the sensor and the ability for our customers to go do that. Okay. In certain cases where it's important to us strategically, we wanna have the capability in our product, so autonomy, target recognition- Mm ... things like that. But what I'm saying is, our sensors are used across, you know, 100+ different applications, right? We wouldn't wanna go try to solve each of those things because we don't necessarily understand each of those end applications as well as our customers do. So we wanna create that capability for our customer then to use AI tools with our sensor- Gotcha ... to solve their problem. Yeah. Yeah. Gotcha. Yep. Okay, let's move on to capital deployment, 'cause it's such a critical element of it. Maybe first, walk us through your process and how target identification and what the process internally is for, you know, for diligence, and towards execution, and what sort of metrics you're looking to. Sure. You wanna take that? Sure. So, you know, by unit count here, typical Teledyne bolt-on acquisition, that's been, you know, call it 60 of the 75 companies we've bought. But basically an answer to an open-ended question from the businesses themselves, what is that other provider in the market that sells a complementary product to a market you're already in, to a customer base you already serve? And that's your classic Teledyne bolt-on, like the one we bought two weeks ago. A small company in the U.K., $20 million in revenue, called DD-Scientific. Yep. Makes gas sensors for industrial air monitoring, continuous emissions monitoring. That's great. That's your average Teledyne bolt-on. So I'd call it a bottom up from the business, a head of engineering, a head of sales, a general manager. That's sort of the bread and butter. The larger deals that I would call maybe a little bit more top-down, a public company, a FLIR, the Excelitas divestiture of this company, Qioptiq, that we bought. That's largely from a couple of people, largely me, in some case, you know, tracking those for many, many years. And either the timing's right for us, the timing's right for them, or both, and you know, the first meeting we had with FLIR was 10 years before we bought the company. Right. We looked at pieces of Excelitas before it was Excelitas, when it was PerkinElmer, before it was PerkinElmer, it was EG&G. Been tracking the company for 25 years. Finally, it was a time that the private equity firm who owned it just needed to divest and de-lever, so the timing was right. Yeah. But it's usually a long process. We get banker books, teasers come in my email, like, I get five a day. But pretty much everything we've bought, either top-down or bottom-up, has been something we've looked at for a long, long time. It just, the timing is right. And, you know, the price has to be right. We're not a bottom fisher, but we're- Yeah ... also not gonna pay 20-22x EBITDA for an average industrial business. That's not us. We'll buy our own stock if it's the lowest risk, best price available, and we- Yeah ... did that in Q4. But we can be very, you know, very mobile. I mean, middle of, you know, April 2024, we were all-in stock buyback. Then some people got punished for overpaying, some which we made reference to, and markets got a little bit more rational, and we did nearly $1 billion of transactions between Qioptiq and a half of those in bolt-ons. Then we went all-in buyback again in Q4. Yeah. Now we'll see where we are. It's fluid. Depends on what week you ask me, which alternative it'll be. The preference is still to buy companies that fit well with Teledyne. That's the overwhelming preference, but sometimes it makes sense, sometimes it doesn't. I mean, you've definitely showed the willingness and ability to be tactical with the buyback. Is that something, is that how we should think about it in the future? Is it something, do you wanna use it more consistently as a baseline and then flex it? Or should it just be like, this is... we're gonna be traders on this? It's opportunistic. I mean, again, the preference is good companies that fit well with Teledyne, that we understand, that are in markets we know, not a big risk, not a gamble, not a change of strategy. That's clearly the preference. But, you know, if our stock trades down, we're trading at 15, 16 times, and people are paying 20, 22, we'll do the former all day long. Yeah. Again, the preference is to grow. And now, what, what's the landscape today? I mean, valuations are tough. Aerospace, popular market, it's hard to find things, so where, where are you looking now? Yeah, there's certainly more available now, sort of across the spectrum. I mean, not just aerospace and defense, a lot's available. General industrial land, there's from private equity exits that were maybe vintaged 2021, 2022, eventually are looking for an exit, or they have to divest and de-lever in the higher rate environment. A lot available, but pricing is high. Yeah. And it's hard to predict the pricing. We've looked at a handful of things this year that were, you know, consideration was, you know, $1.2 billion or $1.4 billion, where we thought the businesses were worth maybe more like $900 million-$1 billion. And if someone wants to pay that, then, you know, we're not gonna chase it just to, just to chase it. But, but the availability is good. I would say, if I had to guess, maybe the next 18 months look like the last 18 months, that one of those will be attractive and, you know, either it'll be at the right price or we'll- we're deemed the best buyer, that's high certainty to close, either from a financial point of view or a regulatory point of view. So yeah, maybe there's a medium-sized deal and a half a dozen bolt-ons over the next 18 months. Spend $1 billion like we did over the last 18 months, which is still less than one year's free cash flow, so- Yeah ... still, could do more. Have the, you know, bandwidth financially and management-wise to do more. Sure ... but again, we're not gonna do anything stupid. And, I'll say this up front, this is a stupid question, so I appreciate that. Do you feel like, in a way, you've almost been punished or martyred for being held to, like, a high standard of return? Like, when we start, when everyone starts to add back amortization and create fake earnings, and, you know, you guys have very strict mandate on what your return profile is, but I feel like it's easier to show accretion now, and it's easier to show, kind of, massage the numbers, and valuations are high. So, like, are you passing on things that maybe you would not be punished for chasing to some extent? I think you're ultimately rewarded or punished appropriately. Although that may not be the case in the ultra short- Hope so ... ultra short term. Premise of- Well said. No, no, but, but it's true. I think, people, you know, in certain environments, people like M&A, regardless of the returns, regardless of the price, but then that ends up in a sell side model, that ends up with a hurdle you have to hit, and then things tend to reverse themselves. And that happened with some of the, you know, the T&M peers or other people as well, that, you know, that chase certain things. So eventually, you know, things are rational in the... not even in the long term, in the intermediate term, things are rational. But yeah, we're not gonna chase something in a given quarter just, just, you know, out of silly- Sometimes it's hard to wait. To do something silly. That's a, that's a- It is. I mean, to my point before on a lot of what we bought, we've looked at not just for years, but many years, occasionally for decades. There was one of those things I made reference to, those north of $1 billion in 2025, I had personally visited sites 20 years ago. Yeah. But, you know, too high, you know, so we didn't do it. Fair enough. I mean, you've been asked multiple times, many times by me, about a dividend as part of the capital structure. What are your thoughts there? You know, look, never say never, but we've never done it to date. So the logical assumption should probably be no. Maybe, maybe at some point, I mean, if it goes three, four years, and we're still underspending free cash flow, and we're net cash on the balance sheet, maybe that's different. But today, the preference has been to buy good companies that fit with what we do. And we're not at the law of large numbers yet, so I think we'll be able to- Okay ... you know, fill that use of funds for, you know, the foreseeable future. But 10 years from now, who knows? So. Maybe last in a few minutes here on we'll touch on margins. Some of the pushback I get from, like, a pitch standpoint is that you look at the portfolio, it's high margin, high quality. There's not a lot of obvious upside when I look at things like, you know, the instrumentation business is high, aerospace electronics is high, engineered systems is cost plus. You know, so I think there's, yes, there's opportunities in DI, but across the portfolio, where's the juice? So, like, how should I think about that, and what are you pushing internally? Yeah, probably a couple ways to think about it. So number one, DI margins, which you mentioned, right? Yeah. Which got better in Q4, projecting to be better in 2026, and there's some room to continue to improve there. There's also just, well, you know, what's our model? We go buy companies- Yeah ... and we typically are resetting margins in each segment on a pretty regular basis, right? Because we're going and buying a company that is quality, that might have 20% margins, and then we work to bring them up to our standard margin. And then beyond that, what I would say is, you know, we've got a pretty good track record of kinda 50 basis points a year improvement over the long term, from one place or another, and that remains kinda the benchmark that we strive for, notwithstanding the fact we've got high margins. Just maybe last on the aerospace and defense electronics specifically- Mm-hmm. ... I mean, that's an area where the margins picked up huge. I know some of it was mix. I know, I think there was a point where even you guys publicly were like: I don't know how much higher this can go. Yeah. Maybe there's downside. It's held up really well. Like, is this a number that we're now more comfortable with as being, like, a forward number? I think it is. I mean, you do have to keep in mind, as OE increases- Yep ... as defense increases versus commercial aerospace aftermarket, that's a little detrimental to margins. Having said that, we have these new acquisitions. We're improving their margins- Yep ... as we go. So I think this level we're sitting at is sustainable. Yeah. Any last-minute questions from, from the audience here? All right, I think I'll leave it there then. Guys, thank you very much. It was a pleasure to see you. Thanks, Joe. Have a good rest of the day. Thanks, everyone. Okay, thanks.

Speaker 3: All right, we're gonna get started here. Thanks, everyone, for joining us. My name is Joe Giordano. I'm the Industrial Analyst at TD. Excited to have Teledyne with us today. We got George and Jason, and we're just gonna jump right into the conversation. If anyone has any questions, just raise your hand. I'm happy to stop, and we can do that. Otherwise, I'll just kick it off. Guys, thanks a lot for being here. All right, we're gonna get started here. all right we're gonna get started here Thanks, everyone, for joining us. thanks everyone for joining us My name is Joe Giordano. my name is joe giordano I'm the Industrial Analyst at TD. i'm the industrial analyst at td Excited to have Teledyne with us today. excited to have teledyne with us today We got George and Jason, and we're just gonna jump right into the conversation. we got george and jason and we're just gonna jump right into the conversation If anyone has any questions, just raise your hand. if anyone has any questions just raise your hand I'm happy to stop, and we can do that. i'm happy to stop and we can do that Otherwise, I'll just kick it off. otherwise i'll just kick it off Guys, thanks a lot for being here. guys thanks a lot for being here

Speaker 1: Sure. Sure. sure

Speaker 3: Appreciate it. You know, maybe just given the theme of the conference, and we're gonna dive into, like, the components of it. Maybe just frame out for everybody what your- how your A&D exposure is, and, and then we'll dive into, like, the subcomponents and what- Appreciate it. appreciate it You know, maybe just given the theme of the conference, and we're gonna dive into, like, the components of it. you know maybe just given the theme of the conference and we're gonna dive into like the components of it Maybe just frame out for everybody what your- how your A&D exposure is, and, and then we'll dive into, like, the subcomponents and what- maybe just frame out for everybody what your- how your a&d exposure is and and then we'll dive into like the subcomponents and what-

Speaker 1: Sure, sure. So there's about 30% of our business is defense. And I can break that down at some point. About 5% of the business is commercial aviation, and another, you know, call it, 6%-7% is space. Sure, sure. sure sure So there's about 30% of our business is defense. so there's about 30% of our business is defense And I can break that down at some point. and i can break that down at some point About 5% of the business is commercial aviation, and another, you know, call it, 6%-7% is space. about 5% of the business is commercial aviation and another you know call it 6%-7% is space

Speaker 3: Okay. So I wanted to dive into the unmanned stuff first- Okay. okay So I wanted to dive into the unmanned stuff first- so i wanted to dive into the unmanned stuff first-

Speaker 1: Mm Mm mm

Speaker 3: ... 'cause that's where we're getting a ton of questions. So you've said this, it's $500 million. It's growing, you know, maybe 10% in 2026. What's driving that right now? ... 'cause that's where we're getting a ton of questions. 'cause that's where we're getting a ton of questions So you've said this, it's $500 million. so you've said this it's $500 million It's growing, you know, maybe 10% in 2026. it's growing you know maybe 10% in 2026 What's driving that right now? what's driving that right now

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Which parts of it? Which parts of it? which parts of it

Speaker 1: Probably good to understand what makes up that 500- Probably good to understand what makes up that 500- probably good to understand what makes up that 500-

Speaker 3: Let's do that. Let's do that. let's do that

Speaker 1: Right. So about $200 million of that $500 million is unmanned aerial systems, like our Black Hornet drone- Right. right So about $200 million of that $500 million is unmanned aerial systems, like our Black Hornet drone- so about $200 million of that $500 million is unmanned aerial systems like our black hornet drone-

Speaker 3: Yep Yep yep

Speaker 1: ... our SkyRaider, our Rogue 1 loitering munition. About $150 million of that is components that go primarily onto unmanned aerial systems, built by other people, or onto unmanned surface vehicles or subsea vehicles- ... our SkyRaider, our Rogue 1 loitering munition. our skyraider our rogue 1 loitering munition About $150 million of that is components that go primarily onto unmanned aerial systems, built by other people, or onto unmanned surface vehicles or subsea vehicles- about $150 million of that is components that go primarily onto unmanned aerial systems built by other people or onto unmanned surface vehicles or subsea vehicles-

Speaker 3: Yep Yep yep

Speaker 1: ... for example. Then maybe about $100 million, round numbers, is subsea vehicles that we make, including our autonomous gliders and our Gavia self-propelled vehicles, and then about another $50 million of ground robots, basically. What's driving that is obviously, you know, the Black Hornet sales, the Rogue 1 loitering munition, which we just got our first production contract on, and then selling a lot of components to others who are making unmanned aerial vehicles. And then finally, subsea, you know, places like the Black Sea, the Baltic Sea, UK Royal Navy, purchasing a, you know, pretty significant number of our subsea vehicles. ... for example. for example Then maybe about $100 million, round numbers, is subsea vehicles that we make, including our autonomous gliders and our Gavia self-propelled vehicles, and then about another $50 million of ground robots, basically. then maybe about $100 million round numbers is subsea vehicles that we make including our autonomous gliders and our gavia self-propelled vehicles and then about another $50 million of ground robots basically What's driving that is obviously, you know, the Black Hornet sales, the Rogue 1 loitering munition, which we just got our first production contract on, and then selling a lot of components to others who are making unmanned aerial vehicles. what's driving that is obviously you know the black hornet sales the rogue 1 loitering munition which we just got our first production contract on and then selling a lot of components to others who are making unmanned aerial vehicles And then finally, subsea, you know, places like the Black Sea, the Baltic Sea, UK Royal Navy, purchasing a, you know, pretty significant number of our subsea vehicles. and then finally subsea you know places like the black sea the baltic sea uk royal navy purchasing a you know pretty significant number of our subsea vehicles

Speaker 3: It strikes me as a conservative estimate here, so, like, it, you know... Is it one, or is there things that we should consider as headwinds from a funding standpoint anywhere? It strikes me as a conservative estimate here, so, like, it, you know... it strikes me as a conservative estimate here so like it you know Is it one, or is there things that we should consider as headwinds from a funding standpoint anywhere? is it one or is there things that we should consider as headwinds from a funding standpoint anywhere

Speaker 1: Well, I think we're probably always prudent in guidance, right? Well, I think we're probably always prudent in guidance, right? well i think we're probably always prudent in guidance right

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Particularly as it relates to government funding and timing of government funding. Particularly as it relates to government funding and timing of government funding. particularly as it relates to government funding and timing of government funding

Speaker 3: Yeah. Yeah. yeah

Speaker 1: So, yeah. So, yeah. so yeah

Speaker 3: What, what are the key things, like the programs that we should all be tracking for you? What, what are the key things, like the programs that we should all be tracking for you? what what are the key things like the programs that we should all be tracking for you

Speaker 1: I mentioned the Organic Precision Fires-Light, or OPF-L, which is a U.S. Marine Corps contract. Just got our first production contract for the Rogue 1 loitering munition. I mentioned the Organic Precision Fires-Light, or OPF-L, which is a U.S. i mentioned the organic precision fires-light or opf-l which is a u.s Marine Corps contract. marine corps contract Just got our first production contract for the Rogue 1 loitering munition. just got our first production contract for the rogue 1 loitering munition

Speaker 3: Yep. Yep. yep

Speaker 1: So that has entered production. Then there's an Army program called LASSO, L-A-S-S-O. Similar program that we think will be more development this year, production next year. So that has entered production. so that has entered production Then there's an Army program called LASSO, L-A-S-S-O. then there's an army program called lasso l-a-s-s-o Similar program that we think will be more development this year, production next year. similar program that we think will be more development this year production next year

Speaker 3: Yeah. Okay. Yeah, so we were just talking, we were at one of the production facilities, yes, two days ago. They seemed very bullish on Rogue 1. Yeah. yeah Okay. okay Yeah, so we were just talking, we were at one of the production facilities, yes, two days ago. yeah so we were just talking we were at one of the production facilities yes two days ago They seemed very bullish on Rogue 1. they seemed very bullish on rogue 1

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Can you maybe talk about the outlook there and the opportunity, and what are the competitive dynamics with that program? Can you maybe talk about the outlook there and the opportunity, and what are the competitive dynamics with that program? can you maybe talk about the outlook there and the opportunity and what are the competitive dynamics with that program

Speaker 1: Sure. I mean, it's a very versatile platform, right? It's you know we compete, for example, on the OPF-L. We you know we're competing with companies like Anduril and AeroVironment. Sure. sure I mean, it's a very versatile platform, right? i mean it's a very versatile platform right It's you know we compete, for example, on the OPF-L. it's you know we compete for example on the opf-l We you know we're competing with companies like Anduril and AeroVironment. we you know we're competing with companies like anduril and aerovironment

Speaker 3: Yeah. Yeah. yeah

Speaker 1: It has the ability to be recalled, right? So it's not just a one-way munition. It has the ability to be recalled, right? it has the ability to be recalled right So it's not just a one-way munition. so it's not just a one-way munition

Speaker 3: Yeah. Yeah. yeah

Speaker 1: It can actually be recalled up to very, very close to when it strikes. Good, and it's, you know, been a robust platform. It's pretty lightweight. It weighs about 10 lbs. It can actually be recalled up to very, very close to when it strikes. it can actually be recalled up to very very close to when it strikes Good, and it's, you know, been a robust platform. good and it's you know been a robust platform It's pretty lightweight. it's pretty lightweight It weighs about 10 lbs. it weighs about 10 lbs

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Yeah, so. Yeah, so. yeah so

Speaker 3: Is that program... I think DoD budgeting is almost for, like, a $50 million increase just in 2026 for just Rogue 1, right? Is that program... is that program I think DoD budgeting is almost for, like, a $50 million increase just in 2026 for just Rogue 1, right? i think dod budgeting is almost for like a $50 million increase just in 2026 for just rogue 1 right

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Is that, is that the right number? Is that, is that the right number? is that is that the right number

Speaker 1: For us, for us in 2026, it's probably more like $30 million. For us, for us in 2026, it's probably more like $30 million. for us for us in 2026 it's probably more like $30 million

Speaker 3: Okay. Okay. okay

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Yeah, I mean, technically, the ceiling on that initial contract was a $250 million ceiling. The initial development contracts were all small. Yeah, I mean, technically, the ceiling on that initial contract was a $250 million ceiling. yeah i mean technically the ceiling on that initial contract was a $250 million ceiling The initial development contracts were all small. the initial development contracts were all small

Speaker 3: Okay. Okay. okay

Speaker 2: I think it was like, you know, $10-ish million for AeroVironment, Anduril, Teledyne. I think we're the only production contract so far that I've seen, but that's only 42, so it could be more- I think it was like, you know, $10-ish million for AeroVironment, Anduril, Teledyne. i think it was like you know $10-ish million for aerovironment anduril teledyne I think we're the only production contract so far that I've seen, but that's only 42, so it could be more- i think we're the only production contract so far that i've seen but that's only 42 so it could be more-

Speaker 3: Right Right right

Speaker 2: ... 'cause the contract ceiling's there. But, you know, how much and when, you know, TBD. But also on programs, I mean, unmanned is clearly significant. It's about $500 million a year of business. But another area where there actually is a larger program that's been in the news is roughly the $400 million of space business we have. ... 'cause the contract ceiling's there. 'cause the contract ceiling's there But, you know, how much and when, you know, TBD. but you know how much and when you know tbd But also on programs, I mean, unmanned is clearly significant. but also on programs i mean unmanned is clearly significant It's about $500 million a year of business. it's about $500 million a year of business But another area where there actually is a larger program that's been in the news is roughly the $400 million of space business we have. but another area where there actually is a larger program that's been in the news is roughly the $400 million of space business we have

Speaker 3: Oh. Oh. oh

Speaker 2: On December 19th, the latest version, Tranche 3 Tracking Layer, was awarded. We're on three of the four prime teams, and- On December 19th, the latest version, Tranche 3 Tracking Layer, was awarded. on december 19th the latest version tranche 3 tracking layer was awarded We're on three of the four prime teams, and- we're on three of the four prime teams and-

Speaker 3: Yep Yep yep

Speaker 2: ... we were basically on all of the teams to that date on Tranche 0, Tranche 1, Tranche 2. So space-based imaging, either the current version of Tracking Layer or whatever the future architecture for a Golden Dome may be, that's a good area for us. ... we were basically on all of the teams to that date on Tranche 0, Tranche 1, Tranche 2. we were basically on all of the teams to that date on tranche 0 tranche 1 tranche 2 So space-based imaging, either the current version of Tracking Layer or whatever the future architecture for a Golden Dome may be, that's a good area for us. so space-based imaging either the current version of tracking layer or whatever the future architecture for a golden dome may be that's a good area for us

Speaker 3: Yeah. Yeah. yeah

Speaker 2: Yeah. Yeah. yeah

Speaker 3: And, we're definitely gonna dive into that. And, we're definitely gonna dive into that. and we're definitely gonna dive into that

Speaker 2: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: I just wanted to finish off on, on some of the- I just wanted to finish off on, on some of the- i just wanted to finish off on on some of the-

Speaker 1: Sure Sure sure

Speaker 3: ... the unmanned first, and then I wanna dive into space for sure. You mentioned LASSO. How should we think about the potential for something like that compared to the Marine Corps program and where that can potentially- ... the unmanned first, and then I wanna dive into space for sure. the unmanned first and then i wanna dive into space for sure You mentioned LASSO. you mentioned lasso How should we think about the potential for something like that compared to the Marine Corps program and where that can potentially- how should we think about the potential for something like that compared to the marine corps program and where that can potentially-

Speaker 1: You know, I think, I think it's a very similar kind of similar track. So if you look at the Marine Corps program, it was a year of development, relatively small amount, then into production. I think LASSO looks pretty similar, maybe later this year, development phase. You know, I think, I think it's a very similar kind of similar track. you know i think i think it's a very similar kind of similar track So if you look at the Marine Corps program, it was a year of development, relatively small amount, then into production. so if you look at the marine corps program it was a year of development relatively small amount then into production I think LASSO looks pretty similar, maybe later this year, development phase. i think lasso looks pretty similar maybe later this year development phase

Speaker 3: Yep. Yep. yep

Speaker 1: Development/testing, followed by production phase in 2026. Development/testing, followed by production phase in 2026. development/testing followed by production phase in 2026

Speaker 3: And is there, like, you know, how, how should we read the success on one versus like, into, you know, foreshadowing success elsewhere? I mean, I assume that they're looking for the same characteristics as in, in this- And is there, like, you know, how, how should we read the success on one versus like, into, you know, foreshadowing success elsewhere? and is there like you know how how should we read the success on one versus like into you know foreshadowing success elsewhere I mean, I assume that they're looking for the same characteristics as in, in this- i mean i assume that they're looking for the same characteristics as in in this-

Speaker 1: I would think so. We're getting good feedback. I would think so. i would think so We're getting good feedback. we're getting good feedback

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Um, yeah. Um, yeah. um yeah

Speaker 3: Okay. We spoke with the team on-site about the Drone Dominance Program. Okay. okay We spoke with the team on-site about the Drone Dominance Program. we spoke with the team on-site about the drone dominance program

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: It was an interesting discussion, right? So you guys are selling camera cores, right- It was an interesting discussion, right? it was an interesting discussion right So you guys are selling camera cores, right- so you guys are selling camera cores right-

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 3: ... into these things and not making the drones themselves. They seem pretty bearish on the actual devices that are- ... into these things and not making the drones themselves. into these things and not making the drones themselves They seem pretty bearish on the actual devices that are- they seem pretty bearish on the actual devices that are-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... being- ... being- being-

Speaker 1: On the systems. On the systems. on the systems

Speaker 3: Correct, correct. Correct, correct. correct correct

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Like, as being viable in- Like, as being viable in- like as being viable in-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... in the field. So maybe, how should we think about Teledyne's exposure to something like that, and like, what is, like, the optimal way of this playing out? ... in the field. in the field So maybe, how should we think about Teledyne's exposure to something like that, and like, what is, like, the optimal way of this playing out? so maybe how should we think about teledyne's exposure to something like that and like what is like the optimal way of this playing out

Speaker 1: So I think it's important to know, you know, when we think about business that we're going to pursue, right, what do we normally think about? We normally think about a business that, A, we're confident we can technically do, and B, is gonna have relatively limited competition, right? We're gonna be competing with one or two or three other competitors. So I think it's important to know, you know, when we think about business that we're going to pursue, right, what do we normally think about? so i think it's important to know you know when we think about business that we're going to pursue right what do we normally think about We normally think about a business that, A, we're confident we can technically do, and B, is gonna have relatively limited competition, right? we normally think about a business that a we're confident we can technically do and b is gonna have relatively limited competition right We're gonna be competing with one or two or three other competitors. we're gonna be competing with one or two or three other competitors

Speaker 3: Yep. Yep. yep

Speaker 1: Not 25, right? So to the extent we're talking about drone dominance and driving, you know, drones down to 3,000- Not 25, right? not 25 right So to the extent we're talking about drone dominance and driving, you know, drones down to 3,000- so to the extent we're talking about drone dominance and driving you know drones down to 3,000-

Speaker 3: Right Right right

Speaker 1: ... $2,000-$1,000 a unit, that's not a space that we're interested in competing in. ... $2,000-$1,000 a unit, that's not a space that we're interested in competing in. $2,000-$1,000 a unit that's not a space that we're interested in competing in

Speaker 3: Yeah. Yeah. yeah

Speaker 1: To the extent that some of those at some level would need uncooled IR cores, for example, could benefit us. But in general, we're providing higher performance drones, right? In that kind of $10,000-$100,000+ range. To the extent that some of those at some level would need uncooled IR cores, for example, could benefit us. to the extent that some of those at some level would need uncooled ir cores for example could benefit us But in general, we're providing higher performance drones, right? but in general we're providing higher performance drones right In that kind of $10,000-$100,000+ range. in that kind of $10,000-$100,000+ range

Speaker 3: Yep. Yep. yep

Speaker 1: Yep. Yep. yep

Speaker 3: So is there ways that we should think about that is if those, if families of platforms like that in a few thousand dollars can succeed, you'll probably sell some components there, and if they ultimately they don't, and the end game is something more sophisticated, that's where you can come in as a platform. So is there ways that we should think about that is if those, if families of platforms like that in a few thousand dollars can succeed, you'll probably sell some components there, and if they ultimately they don't, and the end game is something more sophisticated, that's where you can come in as a platform. so is there ways that we should think about that is if those if families of platforms like that in a few thousand dollars can succeed you'll probably sell some components there and if they ultimately they don't and the end game is something more sophisticated that's where you can come in as a platform

Speaker 1: Well, I still think you're going to need... So take our SkyRaider, for example- Well, I still think you're going to need... well i still think you're going to need So take our SkyRaider, for example- so take our skyraider for example-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... right, that has imaging devices and can have chemical, biological, radiological and nuclear detectors. You're not going to do that with a $1,000 drone. ... right, that has imaging devices and can have chemical, biological, radiological and nuclear detectors. right that has imaging devices and can have chemical biological radiological and nuclear detectors You're not going to do that with a $1,000 drone. you're not going to do that with a $1,000 drone

Speaker 3: Sure. Sure. sure

Speaker 1: Right? So, so there's always going to be a market for that. Right? right So, so there's always going to be a market for that. so so there's always going to be a market for that

Speaker 3: Yes. Yes. yes

Speaker 1: Think about our Black Hornet that can fly in a GPS-denied environment. Think about our Black Hornet that can fly in a GPS-denied environment. think about our black hornet that can fly in a gps-denied environment

Speaker 3: Yeah. Yeah. yeah

Speaker 1: It's got great imaging capability, et cetera. Again, you're going to need a more robust platform to do some of those things. So yeah, I think the niches we're in, we feel good, and they're sustainable to the extent there's a mass proliferation of lower cost devices- It's got great imaging capability, et cetera. it's got great imaging capability et cetera Again, you're going to need a more robust platform to do some of those things. again you're going to need a more robust platform to do some of those things So yeah, I think the niches we're in, we feel good, and they're sustainable to the extent there's a mass proliferation of lower cost devices- so yeah i think the niches we're in we feel good and they're sustainable to the extent there's a mass proliferation of lower cost devices-

Speaker 3: You can just supply them. You can just supply them. you can just supply them

Speaker 1: ... then we can supply those. ... then we can supply those. then we can supply those

Speaker 3: Yeah. Okay. Yeah. yeah Okay. okay

Speaker 2: Yeah, I think it's fair to say that I think of us as a low-cost producer of highly capable drones. Yeah, I think it's fair to say that I think of us as a low-cost producer of highly capable drones. yeah i think it's fair to say that i think of us as a low-cost producer of highly capable drones

Speaker 1: Right. Right. right

Speaker 2: Again, if you want to order maybe- Again, if you want to order maybe- again if you want to order maybe-

Speaker 1: It's all about- It's all about- it's all about-

Speaker 2: Like George said, $10,000-$100,000 GPS-denied environment. FLIR. All have thermal, not just visible. But yeah, if you're looking for a DJI replacement, that's first-person view, maybe not thermal imaging, only visible, maybe no radio, maybe a fiber optic tether, thousands of dollars might - we don't want to be in that business. Like George said, $10,000-$100,000 GPS-denied environment. like george said $10,000-$100,000 gps-denied environment FLIR. flir All have thermal, not just visible. all have thermal not just visible But yeah, if you're looking for a DJI replacement, that's first-person view, maybe not thermal imaging, only visible, maybe no radio, maybe a fiber optic tether, thousands of dollars might - we don't want to be in that business. but yeah if you're looking for a dji replacement that's first-person view maybe not thermal imaging only visible maybe no radio maybe a fiber optic tether thousands of dollars might - we don't want to be in that business

Speaker 3: Right. Right. right

Speaker 2: Yeah. Yeah. yeah

Speaker 3: I mean, even the cores are, would be half the price of the drone at that point, something like that, right? I mean, even the cores are, would be half the price of the drone at that point, something like that, right? i mean even the cores are would be half the price of the drone at that point something like that right

Speaker 1: 100s-1,000. 100s-1,000. 100s-1,000

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Something like that. Something like that. something like that

Speaker 3: Okay. We also got to see counter-UAV there, which is- Okay. okay We also got to see counter-UAV there, which is- we also got to see counter-uav there which is-

Speaker 1: Mm Mm mm

Speaker 3: ... which is interesting. Now, how large is that specifically, and where can that go? 'Cause it seems like it's a less fully, like, fully fleshed out. ... which is interesting. which is interesting Now, how large is that specifically, and where can that go? 'Cause it seems like it's a less fully, like, fully fleshed out. now how large is that specifically and where can that go 'cause it seems like it's a less fully like fully fleshed out

Speaker 1: Yeah. Yeah. yeah

Speaker 3: So- So- so-

Speaker 1: I'd say for us, that's probably right now in the mid-10s of millions of dollars a year. What are we doing? We're providing imaging devices and radars primarily. I'd say for us, that's probably right now in the mid-10s of millions of dollars a year. i'd say for us that's probably right now in the mid-10s of millions of dollars a year What are we doing? what are we doing We're providing imaging devices and radars primarily. we're providing imaging devices and radars primarily

Speaker 3: Mm. Mm. mm

Speaker 1: We've got our own integrated kind of detection classification device for that, and then we're also selling to partners- We've got our own integrated kind of detection classification device for that, and then we're also selling to partners- we've got our own integrated kind of detection classification device for that and then we're also selling to partners-

Speaker 3: Yep Yep yep

Speaker 1: ... that are pairing our kind of eyes and ears with their kinetic device, right? So- ... that are pairing our kind of eyes and ears with their kinetic device, right? that are pairing our kind of eyes and ears with their kinetic device right So- so-

Speaker 3: Yep Yep yep

Speaker 1: ... again, that's, there are a lot of people playing in that complete integrated solution, right? With whatever modality they're using to defeat the drone. And so much like the rest of our business, we're open to selling to all those people. ... again, that's, there are a lot of people playing in that complete integrated solution, right? again that's there are a lot of people playing in that complete integrated solution right With whatever modality they're using to defeat the drone. with whatever modality they're using to defeat the drone And so much like the rest of our business, we're open to selling to all those people. and so much like the rest of our business we're open to selling to all those people

Speaker 3: Yep. Yep. yep

Speaker 1: Our infrared devices, our radar devices. We do have, I mean, again, we, we do have kind of an integrated device for that, but we're not, at the moment, we're not playing in the full system ourselves- Our infrared devices, our radar devices. our infrared devices our radar devices We do have, I mean, again, we, we do have kind of an integrated device for that, but we're not, at the moment, we're not playing in the full system ourselves- we do have i mean again we we do have kind of an integrated device for that but we're not at the moment we're not playing in the full system ourselves-

Speaker 3: Right Right right

Speaker 1: ... with the kinetic solution. ... with the kinetic solution. with the kinetic solution

Speaker 3: Is that interesting to you, to have the full solution? Is that interesting to you, to have the full solution? is that interesting to you to have the full solution

Speaker 1: Again, I think there are a number of people in that space, so it's interesting, but we'd be very methodical about whether or not we thought we had a real advantage that would be sustainable over time and not be in a very crowded space. Again, I think there are a number of people in that space, so it's interesting, but we'd be very methodical about whether or not we thought we had a real advantage that would be sustainable over time and not be in a very crowded space. again i think there are a number of people in that space so it's interesting but we'd be very methodical about whether or not we thought we had a real advantage that would be sustainable over time and not be in a very crowded space

Speaker 2: Yeah, my view is that- Yeah, my view is that- yeah my view is that-

Speaker 1: Yeah Yeah yeah

Speaker 2: ... there's probably too many market participants. ... there's probably too many market participants. there's probably too many market participants

Speaker 1: Yeah. Okay. Yeah. yeah Okay. okay

Speaker 2: I mean, there are people who have kinetic solutions like George, and they shoot the drone. I mean, there are people who have kinetic solutions like George, and they shoot the drone. i mean there are people who have kinetic solutions like george and they shoot the drone

Speaker 1: Right. Right. right

Speaker 2: There's people who have electronic warfare- There's people who have electronic warfare- there's people who have electronic warfare-

Speaker 1: Right Right right

Speaker 2: ... drop the drone. There's other people who have directed energy, microwave the drone. But there's probably too many. Clearly, counter-drone is going to be a growing market. ... drop the drone. drop the drone There's other people who have directed energy, microwave the drone. there's other people who have directed energy microwave the drone But there's probably too many. but there's probably too many Clearly, counter -drone is going to be a growing market. clearly counter -drone is going to be a growing market

Speaker 1: Yep. Yep. yep

Speaker 2: I mean, all you have to do is not just look at Ukraine, Israel- I mean, all you have to do is not just look at Ukraine, Israel- i mean all you have to do is not just look at ukraine israel-

Speaker 1: Mm Mm mm

Speaker 2: ... Houthis, Red Sea. I mean, clearly, there's a need for those type of products, but there's a lot of market participants. So at the moment, we've taken, if someone wants to do the last mile solution, kinetic, directed energy, the microwave, EW- ... Houthis, Red Sea. houthis red sea I mean, clearly, there's a need for those type of products, but there's a lot of market participants. i mean clearly there's a need for those type of products but there's a lot of market participants So at the moment, we've taken, if someone wants to do the last mile solution, kinetic, directed energy, the microwave, EW- so at the moment we've taken if someone wants to do the last mile solution kinetic directed energy the microwave ew-

Speaker 1: Yeah Yeah yeah

Speaker 2: ... that's fine, but they need to see it, they need to identify it, they need to classify it. ... that's fine, but they need to see it, they need to identify it, they need to classify it. that's fine but they need to see it they need to identify it they need to classify it

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Is it a bird, is it a drone? What am I gonna do? We're happy to sell gear at that level right now. Is it a bird, is it a drone? is it a bird is it a drone What am I gonna do? what am i gonna do We're happy to sell gear at that level right now. we're happy to sell gear at that level right now

Speaker 3: Are you exclusive? Like, when you pick a pa- I think they mentioned something like, I think it was BAE for one and Kongsberg for- Are you exclusive? are you exclusive Like, when you pick a pa- I think they mentioned something like, I think it was BAE for one and Kongsberg for- like when you pick a pa- i think they mentioned something like i think it was bae for one and kongsberg for-

Speaker 1: Not exclusive. Not exclusive. not exclusive

Speaker 3: Not exclusive. Not exclusive. not exclusive

Speaker 1: Not exclusive. Not exclusive. not exclusive

Speaker 3: Okay. So, and they, they mentioned that you, there's no partner currently for, like, directed energy. If you make something like... If you do something like that, you make a partnership, it's just, that's all it is? It's just go-to-market framework, and you can keep selling to other players- Okay. okay So, and they, they mentioned that you, there's no partner currently for, like, directed energy. so and they they mentioned that you there's no partner currently for like directed energy If you make something like... if you make something like If you do something like that, you make a partnership, it's just, that's all it is? if you do something like that you make a partnership it's just that's all it is It's just go-to-market framework, and you can keep selling to other players- it's just go-to-market framework and you can keep selling to other players-

Speaker 1: Typically Typically typically

Speaker 3: ... and that type of thing, typically? ... and that type of thing, typically? and that type of thing typically

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Okay. That makes sense. A couple other things from the trip that I thought was interesting and wanted to talk. They mentioned that the teams there, when they're building these drones and designing these drones, they don't really use a lot, or as much as they should, from, like, the rest of the Teledyne portfolio. Okay. okay That makes sense. that makes sense A couple other things from the trip that I thought was interesting and wanted to talk. a couple other things from the trip that i thought was interesting and wanted to talk They mentioned that the teams there, when they're building these drones and designing these drones, they don't really use a lot, or as much as they should, from, like, the rest of the Teledyne portfolio. they mentioned that the teams there when they're building these drones and designing these drones they don't really use a lot or as much as they should from like the rest of the teledyne portfolio

Speaker 1: Mm. Mm. mm

Speaker 3: I think, maybe just talk us through what the potential is for that, and how do you break behavior? 'Cause I know these are legacy, FLIR, like, you know, been doing this a long time. I think, maybe just talk us through what the potential is for that, and how do you break behavior? 'Cause I know these are legacy, FLIR, like, you know, been doing this a long time. i think maybe just talk us through what the potential is for that and how do you break behavior 'cause i know these are legacy flir like you know been doing this a long time

Speaker 1: Sure. Sure. sure

Speaker 3: Like, how do they get either the knowledge of the totality of the portfolio? Like, how do they get either the knowledge of the totality of the portfolio? like how do they get either the knowledge of the totality of the portfolio

Speaker 1: Yep Yep yep

Speaker 3: ... or, like, get comfortable using it? ... or, like, get comfortable using it? or like get comfortable using it

Speaker 1: So I'd say a couple things. I mean, one, we do have, we do expose people to the broader portfolio- So I'd say a couple things. so i'd say a couple things I mean, one, we do have, we do expose people to the broader portfolio- i mean one we do have we do expose people to the broader portfolio-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... on a regular basis. We have quarterly operations reviews. Lots of people come in from around the business. But the other thing we have done, even just recently, is the FLIR defense business. JihFen Lei, who runs that business, now also has responsibility for our aerospace and defense electronics business- ... on a regular basis. on a regular basis We have quarterly operations reviews. we have quarterly operations reviews Lots of people come in from around the business. lots of people come in from around the business But the other thing we have done, even just recently, is the FLIR defense business. but the other thing we have done even just recently is the flir defense business JihFen Lei, who runs that business, now also has responsibility for our aerospace and defense electronics business- jihfen lei who runs that business now also has responsibility for our aerospace and defense electronics business-

Speaker 3: Okay Okay okay

Speaker 1: ... for example. So those teams are a lot more connected, or getting more connected, on understanding what they do and areas that they could perhaps cooperate in. ... for example. for example So those teams are a lot more connected, or getting more connected, on understanding what they do and areas that they could perhaps cooperate in. so those teams are a lot more connected or getting more connected on understanding what they do and areas that they could perhaps cooperate in

Speaker 3: They also mentioned, like, I would have thought that the, they're almost doing like an offense versus defense scrimmage, right? They also mentioned, like, I would have thought that the, they're almost doing like an offense versus defense scrimmage, right? they also mentioned like i would have thought that the they're almost doing like an offense versus defense scrimmage right

Speaker 1: Mm. Mm. mm

Speaker 3: Like at these buildings, where you have people making drones, and you have people stopping drones. Like at these buildings, where you have people making drones, and you have people stopping drones. like at these buildings where you have people making drones and you have people stopping drones

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Like, how can I...? What makes your life miserable? I wanna focus on it. Like, how can I...? like how can i What makes your life miserable? what makes your life miserable I wanna focus on it. i wanna focus on it

Speaker 1: Yeah, yeah, yeah. Yeah, yeah, yeah. yeah yeah yeah

Speaker 3: Right? And they said that there isn't as much sharing on that as you would think, and that struck me as somewhat odd. Right? right And they said that there isn't as much sharing on that as you would think, and that struck me as somewhat odd. right and they said that there isn't as much sharing on that as you would think and that struck me as somewhat odd

Speaker 1: Yeah. Yeah. yeah

Speaker 3: How, what can you do as, like, a leadership team to, you know, push that kind of behavior, incentivize that type of behavior? How, what can you do as, like, a leadership team to, you know, push that kind of behavior, incentivize that type of behavior? how what can you do as like a leadership team to you know push that kind of behavior incentivize that type of behavior

Speaker 1: Sure. No, I think it's important. Look, as we've acquired all the, we've acquired 75, 76 companies over the last 25 years, right? And really built scale in a couple of these areas. It is, certainly, it's more about bringing these groups together so that they kind of collaborate more across them. Having said that, you always have to separate out what's the theoretical collaboration that could happen with what's actually the specific thing that could add value to the business. Sure. sure No, I think it's important. no i think it's important Look, as we've acquired all the, we've acquired 75, 76 companies over the last 25 years, right? look as we've acquired all the we've acquired 75 76 companies over the last 25 years right And really built scale in a couple of these areas. and really built scale in a couple of these areas It is, certainly, it's more about bringing these groups together so that they kind of collaborate more across them. it is certainly it's more about bringing these groups together so that they kind of collaborate more across them Having said that, you always have to separate out what's the theoretical collaboration that could happen with what's actually the specific thing that could add value to the business. having said that you always have to separate out what's the theoretical collaboration that could happen with what's actually the specific thing that could add value to the business

Speaker 3: You know, we're talking about big potential growth in some of these things, budgets, people talking 50% increases. Who knows where that shakes out? But if it is on the larger side, do you feel like you have capacity, and if you need to ramp significantly for some of these things- You know, we're talking about big potential growth in some of these things, budgets, people talking 50% increases. you know we're talking about big potential growth in some of these things budgets people talking 50% increases Who knows where that shakes out? who knows where that shakes out But if it is on the larger side, do you feel like you have capacity, and if you need to ramp significantly for some of these things- but if it is on the larger side do you feel like you have capacity and if you need to ramp significantly for some of these things-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... if you win, like, what does that entail from a spend standpoint? ... if you win, like, what does that entail from a spend standpoint? if you win like what does that entail from a spend standpoint

Speaker 1: Yeah, no, I think we do. I mean, if you take space imaging, for example, that's still a relatively low-volume application. Yeah, no, I think we do. yeah no i think we do I mean, if you take space imaging, for example, that's still a relatively low-volume application. i mean if you take space imaging for example that's still a relatively low-volume application

Speaker 3: Yeah. Yeah. yeah

Speaker 1: We've invested CapEx there. The government has invested CapEx there. So when it comes to infrared detectors for space, for example, we've got the capacity to do that. When we think about missiles and munitions, we provide a variety of electronic components. There are a lot of, you know, those factories where we do that, we have the ability to add shifts, for example. Where we do camera cores, we're investing more CapEx in that business, invested more last year, invest more this year to ramp. So again, I think it's we can adjust in many of our facilities. We certainly have the ability just to start by adding additional shifts. We've invested CapEx there. we've invested capex there The government has invested CapEx there. the government has invested capex there So when it comes to infrared detectors for space, for example, we've got the capacity to do that. so when it comes to infrared detectors for space for example we've got the capacity to do that When we think about missiles and munitions, we provide a variety of electronic components. when we think about missiles and munitions we provide a variety of electronic components There are a lot of, you know, those factories where we do that, we have the ability to add shifts, for example. there are a lot of you know those factories where we do that we have the ability to add shifts for example Where we do camera cores, we're investing more CapEx in that business, invested more last year, invest more this year to ramp. where we do camera cores we're investing more capex in that business invested more last year invest more this year to ramp So again, I think it's we can adjust in many of our facilities. so again i think it's we can adjust in many of our facilities We certainly have the ability just to start by adding additional shifts. we certainly have the ability just to start by adding additional shifts

Speaker 3: And maybe just last on this topic, like, how should we think about your business to U.S. DoD versus, like, and, and- And maybe just last on this topic, like, how should we think about your business to U.S. and maybe just last on this topic like how should we think about your business to u.s DoD versus, like, and, and- dod versus like and and-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... the Rest of the World? ... the Rest of the World? the rest of the world

Speaker 1: The 30% defense is about, about 22% of that is U.S., and about 8% is the Rest of the World. The 30% defense is about, about 22% of that is U.S., and about 8% is the Rest of the World. the 30% defense is about about 22% of that is u.s and about 8% is the rest of the world

Speaker 3: What do you think, like, where can that go on the Rest of the World type applications? What do you think, like, where can that go on the Rest of the World type applications? what do you think like where can that go on the rest of the world type applications

Speaker 1: Yeah, I mean- Yeah, I mean- yeah i mean-

Speaker 3: Like, how penetrated do you feel like you are in some of these? Like, how penetrated do you feel like you are in some of these? like how penetrated do you feel like you are in some of these

Speaker 1: Sure. I feel like we've got good opportunities, you know, continuing in border surveillance, in ground vehicle sensors, for example- Sure. sure I feel like we've got good opportunities, you know, continuing in border surveillance, in ground vehicle sensors, for example- i feel like we've got good opportunities you know continuing in border surveillance in ground vehicle sensors for example-

Speaker 3: Mm Mm mm

Speaker 1: ... in Europe, a lot in the Middle East, certainly APAC as well. So, ... in Europe, a lot in the Middle East, certainly APAC as well. in europe a lot in the middle east certainly apac as well So, so

Speaker 3: Yeah Yeah yeah

Speaker 1: ... it's been a growing area. I think it'll continue to grow. ... it's been a growing area. it's been a growing area I think it'll continue to grow. i think it'll continue to grow

Speaker 3: And some- And some- and some-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... some of those, would those be the same solutions that you're selling to, like, DHS for? ... some of those, would those be the same solutions that you're selling to, like, DHS for? some of those would those be the same solutions that you're selling to like dhs for

Speaker 1: Yes Yes yes

Speaker 3: ... southern border control and things like that? ... southern border control and things like that? southern border control and things like that

Speaker 2: Yeah, if anything, some of the pockets of faster growth, like unmanned, they're probably a little bit more weighted. Rather than that 22/8, they're probably a little bit more European-weighted- Yeah, if anything, some of the pockets of faster growth, like unmanned, they're probably a little bit more weighted. yeah if anything some of the pockets of faster growth like unmanned they're probably a little bit more weighted Rather than that 22/8, they're probably a little bit more European-weighted- rather than that 22/8 they're probably a little bit more european-weighted-

Speaker 1: Right Right right

Speaker 2: ... in part because things like our drones are actually not made in the U.S. ... in part because things like our drones are actually not made in the U.S. in part because things like our drones are actually not made in the u.s

Speaker 1: Yeah. Yeah. yeah

Speaker 2: They're made in Canada, Norway, Iceland. Some of the specialty sonars, some of the other subsea infrastructure stuff is made in the UK and/or Denmark. So it's been, it has been an area for growth, but it's been an area for growth in the growthier areas. They're made in Canada, Norway, Iceland. they're made in canada norway iceland Some of the specialty sonars, some of the other subsea infrastructure stuff is made in the UK and/or Denmark. some of the specialty sonars some of the other subsea infrastructure stuff is made in the uk and/or denmark So it's been, it has been an area for growth, but it's been an area for growth in the growthier areas. so it's been it has been an area for growth but it's been an area for growth in the growthier areas

Speaker 1: Mm Mm mm

Speaker 2: ... as well. ... as well. as well

Speaker 3: There seemed like there was some regulatory elements to where can you what amount of a particular item you can manufacture overseas, and then you have to bring it here to complete certain elements of it. There seemed like there was some regulatory elements to where can you what amount of a particular item you can manufacture overseas, and then you have to bring it here to complete certain elements of it. there seemed like there was some regulatory elements to where can you what amount of a particular item you can manufacture overseas and then you have to bring it here to complete certain elements of it

Speaker 1: So you're probably referring to in our R70, R80 drone, which is a larger quadcopter, there are certain elements that make it ITAR-controlled, so produced in Canada- So you're probably referring to in our R70, R80 drone, which is a larger quadcopter, there are certain elements that make it ITAR-controlled, so produced in Canada- so you're probably referring to in our r70 r80 drone which is a larger quadcopter there are certain elements that make it itar-controlled so produced in canada-

Speaker 3: Yeah. Yep Yeah. yeah yep Yep yep

Speaker 1: ... but then imported in the United States, features added to it- ... but then imported in the United States, features added to it- but then imported in the united states features added to it-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... then for the U.S. government. ... then for the U.S. government. then for the u.s government

Speaker 3: Okay. Okay. okay

Speaker 1: Yeah. Yeah. yeah

Speaker 3: That's all, like, that's all purely regulatory-based, where you're- That's all, like, that's all purely regulatory-based, where you're- that's all like that's all purely regulatory-based where you're-

Speaker 1: Correct. Correct. correct

Speaker 3: Yeah. Okay. Yeah. yeah Okay. okay

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: All right, let's move over to space. You mentioned it's $400 million. All right, let's move over to space. all right let's move over to space You mentioned it's $400 million. you mentioned it's $400 million

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: Maybe you wanna flesh out the brand. Maybe you wanna flesh out the brand. maybe you wanna flesh out the brand

Speaker 1: Yeah, sure Yeah, sure yeah sure

Speaker 3: ... what, what brings that up for you? ... what, what brings that up for you? what what brings that up for you

Speaker 1: Yeah, so it's mostly imaging devices, infrared and visible imaging devices, again, primarily used for things like missile tracking, earth observation, climate studies, for example. It's become much more defense-weighted compared to historically, it was kinda probably more NASA- Yeah, so it's mostly imaging devices, infrared and visible imaging devices, again, primarily used for things like missile tracking, earth observation, climate studies, for example. yeah so it's mostly imaging devices infrared and visible imaging devices again primarily used for things like missile tracking earth observation climate studies for example It's become much more defense-weighted compared to historically, it was kinda probably more NASA- it's become much more defense-weighted compared to historically it was kinda probably more nasa-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... you know, deep space missions, astronomy, things like that. It's been much more about earth observation. And then we provide a variety of other electronic components, space glass for satellites, things like that, but primarily imaging is what's driving it and what's driving the growth. ... you know, deep space missions, astronomy, things like that. you know deep space missions astronomy things like that It's been much more about earth observation. it's been much more about earth observation And then we provide a variety of other electronic components, space glass for satellites, things like that, but primarily imaging is what's driving it and what's driving the growth. and then we provide a variety of other electronic components space glass for satellites things like that but primarily imaging is what's driving it and what's driving the growth

Speaker 3: Within that, like, which of the specific programs that are driving the majority of the- Within that, like, which of the specific programs that are driving the majority of the- within that like which of the specific programs that are driving the majority of the-

Speaker 1: Yeah, it's really the Space Development Agency tranche programs- Yeah, it's really the Space Development Agency tranche programs- yeah it's really the space development agency tranche programs-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... have been very big for us- ... have been very big for us- have been very big for us-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... and certainly the largest programs that we have. Yeah. ... and certainly the largest programs that we have. and certainly the largest programs that we have Yeah. yeah

Speaker 3: You mentioned Tranche 3 now. You mentioned Tranche 3 now. you mentioned tranche 3 now

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: What does that imply for, like, the expansion of that program from, like, current levels to the next level? What does that imply for, like, the expansion of that program from, like, current levels to the next level? what does that imply for like the expansion of that program from like current levels to the next level

Speaker 1: Yeah. I mean, look, I would keep in mind, this is Tranche 3. There was Tranche 1, Tranche 2- Yeah. yeah I mean, look, I would keep in mind, this is Tranche 3. i mean look i would keep in mind this is tranche 3 There was Tranche 1, Tranche 2- there was tranche 1 tranche 2-

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... right? It's been kind of a continuing business. ... right? right It's been kind of a continuing business. it's been kind of a continuing business

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Tends to be a little bit, you know, kinda over a two to three-year period. We tend to deliver on the earlier side of that. So again, the Tranche 3 is worth more than $100 million to us. Tends to be a little bit, you know, kinda over a two to three -year period. tends to be a little bit you know kinda over a two to three -year period We tend to deliver on the earlier side of that. we tend to deliver on the earlier side of that So again, the Tranche 3 is worth more than $100 million to us. so again the tranche 3 is worth more than $100 million to us

Speaker 3: Yeah Yeah yeah

Speaker 1: ... in total. ... in total. in total

Speaker 3: Yeah. Yeah. yeah

Speaker 1: You know, maybe some incremental in 2026 just based on timing there. You know, maybe some incremental in 2026 just based on timing there. you know maybe some incremental in 2026 just based on timing there

Speaker 3: Okay. And so as we move forward towards, like, Golden Dome- Okay. okay And so as we move forward towards, like, Golden Dome- and so as we move forward towards like golden dome-

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 3: ... like a fully fleshed-out Golden Dome, like, what does that mean for you? ... like a fully fleshed-out Golden Dome, like, what does that mean for you? like a fully fleshed-out golden dome like what does that mean for you

Speaker 1: Well, I think when we get the details on what fully fleshed-out Golden Dome- Well, I think when we get the details on what fully fleshed-out Golden Dome- well i think when we get the details on what fully fleshed-out golden dome-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... actually means, then that'll be an easier question to answer. But having said that, look, we've been pretty dominant in space-based imaging, particularly for missile tracking. ... actually means, then that'll be an easier question to answer. actually means then that'll be an easier question to answer But having said that, look, we've been pretty dominant in space-based imaging, particularly for missile tracking. but having said that look we've been pretty dominant in space-based imaging particularly for missile tracking

Speaker 3: Yeah. Yeah. Yeah. yeah Yeah. yeah

Speaker 1: That's one element to it. Then, to the extent that some of it is more tactical Earth-based, whether it's drones, whether it's more like an Iron Dome missile shield, for example, then certainly our imaging capabilities and other capabilities would play there. That's one element to it. that's one element to it Then, to the extent that some of it is more tactical Earth-based, whether it's drones, whether it's more like an Iron Dome missile shield, for example, then certainly our imaging capabilities and other capabilities would play there. then to the extent that some of it is more tactical earth-based whether it's drones whether it's more like an iron dome missile shield for example then certainly our imaging capabilities and other capabilities would play there

Speaker 3: What about on the commercial side? What about on the commercial side? what about on the commercial side

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: Like, what have been the developments there? I know we're talking about, you know, there's these huge constellations, people talking about million satellite constellations, talking about moon colonies. Like, where can you play in a, as these things- Like, what have been the developments there? like what have been the developments there I know we're talking about, you know, there's these huge constellations, people talking about million satellite constellations, talking about moon colonies. i know we're talking about you know there's these huge constellations people talking about million satellite constellations talking about moon colonies Like, where can you play in a, as these things- like where can you play in a as these things-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... unfold? ... unfold? unfold

Speaker 1: Again, so we provide imaging devices, both the kind of exquisite ones that look down at Earth, but others that could be used for what I call space situational awareness, if you wanna know- Again, so we provide imaging devices, both the kind of exquisite ones that look down at Earth, but others that could be used for what I call space situational awareness, if you wanna know- again so we provide imaging devices both the kind of exquisite ones that look down at earth but others that could be used for what i call space situational awareness if you wanna know-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... what's around you- ... what's around you- what's around you-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... for example, on a satellite. Variety of hardened, you know, rad-hard semiconductor solutions, electronics, things like that. So to the extent you've got growth in space, it's good for us. To the extent it's defense-exquisite imagers, it's very good for us. Generically, growth in space is good for us. ... for example, on a satellite. for example on a satellite Variety of hardened, you know, rad-hard semiconductor solutions, electronics, things like that. variety of hardened you know rad-hard semiconductor solutions electronics things like that So to the extent you've got growth in space, it's good for us. so to the extent you've got growth in space it's good for us To the extent it's defense-exquisite imagers, it's very good for us. to the extent it's defense-exquisite imagers it's very good for us Generically, growth in space is good for us. generically growth in space is good for us

Speaker 3: Is there a major difference in, like, the margin profile of stuff you're doing on the defense side versus things you might do on the commercial side? Is there a major difference in, like, the margin profile of stuff you're doing on the defense side versus things you might do on the commercial side? is there a major difference in like the margin profile of stuff you're doing on the defense side versus things you might do on the commercial side

Speaker 1: No. I mean, in general, we're selling- No. no I mean, in general, we're selling- i mean in general we're selling-

Speaker 3: Same thing Same thing same thing

Speaker 1: ... we're selling pretty standard products- ... we're selling pretty standard products- we're selling pretty standard products-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... with tweaks. ... with tweaks. with tweaks

Speaker 3: Yeah. Yeah. yeah

Speaker 2: I'd say our share of wallet is greater on a missile tracking satellite that needs infrared to see heat or see through clouds- I'd say our share of wallet is greater on a missile tracking satellite that needs infrared to see heat or see through clouds- i'd say our share of wallet is greater on a missile tracking satellite that needs infrared to see heat or see through clouds-

Speaker 3: Yeah Yeah yeah

Speaker 2: ... than, say, a visible sensor- ... than, say, a visible sensor- than say a visible sensor-

Speaker 3: Yeah Yeah yeah

Speaker 2: ... on a Planet Labs. I mean, they're all generically good for us, but our dollar content on the infrared side would be, would be more, yeah. ... on a Planet Labs. on a planet labs I mean, they're all generically good for us, but our dollar content on the infrared side would be, would be more, yeah. i mean they're all generically good for us but our dollar content on the infrared side would be would be more yeah

Speaker 3: What about the NASA business, like DOGE, you know, DOGE implications, and where are we with that? What about the NASA business, like DOGE, you know, DOGE implications, and where are we with that? what about the nasa business like doge you know doge implications and where are we with that

Speaker 1: Yeah, so of that $400 million, that does not include... We do have a space services contract at the Marshall Space Flight Center. It's about $60 million a year. Yeah, so of that $400 million, that does not include... yeah so of that $400 million that does not include We do have a space services contract at the Marshall Space Flight Center. we do have a space services contract at the marshall space flight center It's about $60 million a year. it's about $60 million a year

Speaker 3: Yeah. Yeah. yeah

Speaker 1: That really, I mean, maybe it was 70, now it's gonna be 60. We haven't taken much of an impact there. It's a low-margin business. On the space hardware side, on that $400 million, not really seeing much of an impact there. That really, I mean, maybe it was 70, now it's gonna be 60. that really i mean maybe it was 70 now it's gonna be 60 We haven't taken much of an impact there. we haven't taken much of an impact there It's a low-margin business. it's a low-margin business On the space hardware side, on that $400 million, not really seeing much of an impact there. on the space hardware side on that $400 million not really seeing much of an impact there

Speaker 3: Hmm. Hmm. hmm

Speaker 1: Most of what we're doing, even on the civil side, is more like NOAA weather satellites, things like that. Most of what we're doing, even on the civil side, is more like NOAA weather satellites, things like that. most of what we're doing even on the civil side is more like noaa weather satellites things like that

Speaker 3: Yep. Yep. yep

Speaker 1: Yeah. Yeah. yeah

Speaker 3: It seemed like there was maybe more fear earlier in 2025- It seemed like there was maybe more fear earlier in 2025- it seemed like there was maybe more fear earlier in 2025-

Speaker 1: It- It- it-

Speaker 3: ... about what those businesses might look like. ... about what those businesses might look like. about what those businesses might look like

Speaker 1: At least for us, it hasn't. Yeah. At least for us, it hasn't. at least for us it hasn't Yeah. yeah

Speaker 3: It hasn't, just hasn't materialized? It hasn't, just hasn't materialized? it hasn't just hasn't materialized

Speaker 1: No. No. no

Speaker 3: Okay, maybe we shift a little bit more broad to the rest of the portfolio. Okay, maybe we shift a little bit more broad to the rest of the portfolio. okay maybe we shift a little bit more broad to the rest of the portfolio

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: You wanna give us maybe an update on, on the non-aero defense markets, where we stand? You wanna give us maybe an update on, on the non-aero defense markets, where we stand? you wanna give us maybe an update on on the non-aero defense markets where we stand

Speaker 1: Sure. Sure. sure

Speaker 3: and what you're thinking? and what you're thinking? and what you're thinking

Speaker 1: Sure. So yeah, I mean, if you look at the corporation as a whole, about half of it is that longer cycle, which is aerospace, defense, space. The other piece of that probably to call out is energy. That part of the business continued to be strong. It's on the order of, call it, $250 million-$280 million a year for us. That's where we're providing connectors for subsea, data and power to, subsea trees and oil production. Continues to be strong. If I switch over to the short cycle side, so the other half of the business, really, you know, been a story of recovery over the last few quarters and stabilization. So, industrial and machine vision, we're seeing, kind of starting to see some growth there. Sure. sure So yeah, I mean, if you look at the corporation as a whole, about half of it is that longer cycle, which is aerospace, defense, space. so yeah i mean if you look at the corporation as a whole about half of it is that longer cycle which is aerospace defense space The other piece of that probably to call out is energy. the other piece of that probably to call out is energy That part of the business continued to be strong. that part of the business continued to be strong It's on the order of, call it, $250 million-$280 million a year for us. it's on the order of call it $250 million-$280 million a year for us That's where we're providing connectors for subsea, data and power to, subsea trees and oil production. that's where we're providing connectors for subsea data and power to subsea trees and oil production Continues to be strong. continues to be strong If I switch over to the short cycle side, so the other half of the business, really, you know, been a story of recovery over the last few quarters and stabilization. if i switch over to the short cycle side so the other half of the business really you know been a story of recovery over the last few quarters and stabilization So, industrial and machine vision, we're seeing, kind of starting to see some growth there. so industrial and machine vision we're seeing kind of starting to see some growth there Our environmental business, where we're doing, you know, selling lab equipment, we're selling, process, air quality and safety equipment, so air quality monitoring equipment, safety equipment to find gas leaks, for example, again, that business has been growing, has grown, you know, over the last kinda three quarters, year-over-year. And then, test and measurement business as well, where we're selling oscilloscopes and protocol analyzers. Kinda five consecutive quarters of very modest, but, you know, quarter-over-quarter growth. So what I would say about all those short cycle businesses, and I'll come back to one, we see kinda modest growth, and we're thinking about low single-digit modest growth in 2026. Healthcare, where we provide X-ray sensors, both for surgical X-ray, and dental, and also some radiotherapy equipment, there it's kind of flat- Our environmental business, where we're doing, you know, selling lab equipment, we're selling, process, air quality and safety equipment, so air quality monitoring equipment, safety equipment to find gas leaks, for example, again, that business has been growing, has grown, you know, over the last kinda three quarters, year-over-year. our environmental business where we're doing you know selling lab equipment we're selling process air quality and safety equipment so air quality monitoring equipment safety equipment to find gas leaks for example again that business has been growing has grown you know over the last kinda three quarters year-over-year And then, test and measurement business as well, where we're selling oscilloscopes and protocol analyzers. and then test and measurement business as well where we're selling oscilloscopes and protocol analyzers Kinda five consecutive quarters of very modest, but, you know, quarter-over-quarter growth. kinda five consecutive quarters of very modest but you know quarter-over-quarter growth So what I would say about all those short cycle businesses, and I'll come back to one, we see kinda modest growth, and we're thinking about low single-digit modest growth in 2026. so what i would say about all those short cycle businesses and i'll come back to one we see kinda modest growth and we're thinking about low single-digit modest growth in 2026 Healthcare, where we provide X-ray sensors, both for surgical X-ray, and dental, and also some radiotherapy equipment, there it's kind of flat- healthcare where we provide x-ray sensors both for surgical x-ray and dental and also some radiotherapy equipment there it's kind of flat-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... in 2026. But overall, what I would say, I mean, if I went back to last year when I was sitting here, I think there was a lot more uncertainty on the short cycle side. ... in 2026. in 2026 But overall, what I would say, I mean, if I went back to last year when I was sitting here, I think there was a lot more uncertainty on the short cycle side. but overall what i would say i mean if i went back to last year when i was sitting here i think there was a lot more uncertainty on the short cycle side

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Now, it's short cycle, by its nature, there is uncertainty in it, right? But when we listen to our customers, see the order flow, look at what's happened over the last few quarters, that short cycle business has really started to recover at a modest pace, which I think is giving us more confidence in the overall picture, which is the long cycle business remains strong. We're in good spots, right? Unmanned, all the things we talked about. Short cycle business, we're not filling any holes. We're not seeing any holes that we're gonna need to fill, so we're starting to see more of that long cycle strength come through. Now, it's short cycle, by its nature, there is uncertainty in it, right? now it's short cycle by its nature there is uncertainty in it right But when we listen to our customers, see the order flow, look at what's happened over the last few quarters, that short cycle business has really started to recover at a modest pace, which I think is giving us more confidence in the overall picture, which is the long cycle business remains strong. but when we listen to our customers see the order flow look at what's happened over the last few quarters that short cycle business has really started to recover at a modest pace which i think is giving us more confidence in the overall picture which is the long cycle business remains strong We're in good spots, right? we're in good spots right Unmanned, all the things we talked about. unmanned all the things we talked about Short cycle business, we're not filling any holes. short cycle business we're not filling any holes We're not seeing any holes that we're gonna need to fill, so we're starting to see more of that long cycle strength come through. we're not seeing any holes that we're gonna need to fill so we're starting to see more of that long cycle strength come through

Speaker 3: Now, on the short cycle side, I know there's still a lot of debate out there as to, like, where we are. Does it strike you...? So, I mean, within the understanding that it's a guidance, you're being prudent here- Now, on the short cycle side, I know there's still a lot of debate out there as to, like, where we are. now on the short cycle side i know there's still a lot of debate out there as to like where we are Does it strike you...? does it strike you So, I mean, within the understanding that it's a guidance, you're being prudent here- so i mean within the understanding that it's a guidance you're being prudent here-

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 3: ... but, like, is low single-digit growth coming off of, like, a kind of a multi-year kinda sluggishness? It doesn't feel like much. Does it feel like a normal cycle to you? Or, how... We're seeing this everywhere, right? It just seems like we've- ... but, like, is low single-digit growth coming off of, like, a kind of a multi-year kinda sluggishness? but like is low single-digit growth coming off of like a kind of a multi-year kinda sluggishness It doesn't feel like much. it doesn't feel like much Does it feel like a normal cycle to you? does it feel like a normal cycle to you Or, how... or how We're seeing this everywhere, right? we're seeing this everywhere right It just seems like we've- it just seems like we've-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... had this lull, and like, we're not coming out very forcefully out of it. ... had this lull, and like, we're not coming out very forcefully out of it. had this lull and like we're not coming out very forcefully out of it

Speaker 1: Yeah. All I can do, I guess all I would say is, all we can do is listen to our customers and look at our order flow- Yeah. yeah All I can do, I guess all I would say is, all we can do is listen to our customers and look at our order flow- all i can do i guess all i would say is all we can do is listen to our customers and look at our order flow-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... and look at our pipelines, and that's how we generate the guidance, and then we can hope things are gonna be better than that. ... and look at our pipelines, and that's how we generate the guidance, and then we can hope things are gonna be better than that. and look at our pipelines and that's how we generate the guidance and then we can hope things are gonna be better than that

Speaker 3: Yep. Yep. yep

Speaker 1: I would certainly say there's still a lot of caution in the market, right? When it comes to placing orders for CapEx, be it test equipment, be it something else. I would certainly say there's still a lot of caution in the market, right? i would certainly say there's still a lot of caution in the market right When it comes to placing orders for CapEx, be it test equipment, be it something else. when it comes to placing orders for capex be it test equipment be it something else

Speaker 3: Yep. Yep. yep

Speaker 1: I mean, people are still in this pattern where they're probably more likely to wait than to lean forward and place an order. I mean, people are still in this pattern where they're probably more likely to wait than to lean forward and place an order. i mean people are still in this pattern where they're probably more likely to wait than to lean forward and place an order

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Having said that, the order flow's been pretty good, and we're seeing that kind of low single digit year-over-year growth. Having said that, the order flow's been pretty good, and we're seeing that kind of low single digit year-over-year growth. having said that the order flow's been pretty good and we're seeing that kind of low single digit year-over-year growth

Speaker 3: So when you look at that, which areas of those markets do you think have, like, if you were wrong, have the most upside bias, and which ones maybe have the most downside bias? So when you look at that, which areas of those markets do you think have, like, if you were wrong, have the most upside bias, and which ones maybe have the most downside bias? so when you look at that which areas of those markets do you think have like if you were wrong have the most upside bias and which ones maybe have the most downside bias

Speaker 1: Yeah, that's a good question. I think the industrial and machine vision business, which is a good business for us, did go through a trough. It started to recover. It's a higher margin business. Given that we've got some semiconductor inspection exposure there, and things like that, and electronics inspection exposure, perhaps it's got some upside potential, but it's all theoretical, right? Yeah, that's a good question. yeah that's a good question I think the industrial and machine vision business, which is a good business for us, did go through a trough. i think the industrial and machine vision business which is a good business for us did go through a trough It started to recover. it started to recover It's a higher margin business. it's a higher margin business Given that we've got some semiconductor inspection exposure there, and things like that, and electronics inspection exposure, perhaps it's got some upside potential, but it's all theoretical, right? given that we've got some semiconductor inspection exposure there and things like that and electronics inspection exposure perhaps it's got some upside potential but it's all theoretical right

Speaker 3: Yep. Yep. yep

Speaker 1: From a downside perspective, there's no individual one of those markets I look at and I'm more worried about than the other. From a downside perspective, there's no individual one of those markets I look at and I'm more worried about than the other. from a downside perspective there's no individual one of those markets i look at and i'm more worried about than the other

Speaker 3: Okay. Okay. okay

Speaker 1: Um, yeah. Um, yeah. um yeah

Speaker 3: What's required to get some of those medical businesses moving again? What's required to get some of those medical businesses moving again? what's required to get some of those medical businesses moving again

Speaker 1: Yeah. So really, the downturn we had in that medical business was related to dental X-ray- Yeah. yeah So really, the downturn we had in that medical business was related to dental X-ray- so really the downturn we had in that medical business was related to dental x-ray-

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... where, and, you know, some of that is really extra-oral dental X-ray, and some of that was just probably related to higher interest rates, making, you know, small dentist offices not want to spend as much money. ... where, and, you know, some of that is really extra-oral dental X-ray, and some of that was just probably related to higher interest rates, making, you know, small dentist offices not want to spend as much money. where and you know some of that is really extra-oral dental x-ray and some of that was just probably related to higher interest rates making you know small dentist offices not want to spend as much money

Speaker 3: Yeah. Yeah. yeah

Speaker 1: There was competition there. So I think from this point, from where we are, we'll see, you know, reasonably steady growth once we get through 2026- There was competition there. there was competition there So I think from this point, from where we are, we'll see, you know, reasonably steady growth once we get through 2026- so i think from this point from where we are we'll see you know reasonably steady growth once we get through 2026-

Speaker 3: Mm Mm mm

Speaker 1: ... in the core kinda things we do, which is X-ray for large surgical equipment, cancer radiotherapy, and so forth. ... in the core kinda things we do, which is X-ray for large surgical equipment, cancer radiotherapy, and so forth. in the core kinda things we do which is x-ray for large surgical equipment cancer radiotherapy and so forth

Speaker 3: Yeah. Maybe we could just talk quick on the test and measurement piece. Yeah. yeah Maybe we could just talk quick on the test and measurement piece. maybe we could just talk quick on the test and measurement piece

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: Can you just walk us through kinda like where you play in that? Can you just walk us through kinda like where you play in that? can you just walk us through kinda like where you play in that

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: 'Cause I think there's been a lot of differing reads, right? 'Cause I think there's been a lot of differing reads, right? 'cause i think there's been a lot of differing reads right

Speaker 1: Yeah. Yeah. yeah

Speaker 3: From- From- from-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... from Rohde versus- ... from Rohde versus- from rohde versus-

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 3: ... versus National Instruments, and we'll see what Keysight says. ... versus National Instruments, and we'll see what Keysight says. versus national instruments and we'll see what keysight says

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Like, maybe walk us through the competitive landscape there and where you're targeting. Like, maybe walk us through the competitive landscape there and where you're targeting. like maybe walk us through the competitive landscape there and where you're targeting

Speaker 1: Sure. The business is about half oscilloscopes, half protocol analyzers. Sure. sure The business is about half oscilloscopes, half protocol analyzers. the business is about half oscilloscopes half protocol analyzers

Speaker 3: Yeah. Yeah. yeah

Speaker 1: On the oscilloscope side, we're selling into high bandwidth applications, where we compete with the Keysight, for example. That business has been pretty good for us over the last year. We also are selling into certain power applications, like people building power supplies for data centers, for example, and in-vehicle networks, so, you know, moving data around the vehicle, additional cameras, et cetera, right? So development of all those things. So for us, and I know some of the comparisons, right, people have suffered a little bit when they were probably heavier weighted to electric vehicles, for example. On the oscilloscope side, we're selling into high bandwidth applications, where we compete with the Keysight, for example. on the oscilloscope side we're selling into high bandwidth applications where we compete with the keysight for example That business has been pretty good for us over the last year. that business has been pretty good for us over the last year We also are selling into certain power applications, like people building power supplies for data centers, for example, and in-vehicle networks, so, you know, moving data around the vehicle, additional cameras, et cetera, right? we also are selling into certain power applications like people building power supplies for data centers for example and in-vehicle networks so you know moving data around the vehicle additional cameras et cetera right So development of all those things. so development of all those things So for us, and I know some of the comparisons, right, people have suffered a little bit when they were probably heavier weighted to electric vehicles, for example. so for us and i know some of the comparisons right people have suffered a little bit when they were probably heavier weighted to electric vehicles for example

Speaker 3: Yeah, for sure. Yeah, for sure. yeah for sure

Speaker 1: That really didn't impact us as much because we still had that mix of high bandwidth plus mid-range oscilloscopes that were playing in that, some in the EV, but really, we've been able to pick a lot of that up in the power supply development, et cetera. On the protocol side, you know, that's really about protocols like PCI Express and HDMI and Bluetooth and Wi-Fi, and what we've seen there is we're a little bit between kind of product cycles that... the pace of that business has a lot to do with when chips are released and the next generation chips. That really didn't impact us as much because we still had that mix of high bandwidth plus mid-range oscilloscopes that were playing in that, some in the EV, but really, we've been able to pick a lot of that up in the power supply development, et cetera. that really didn't impact us as much because we still had that mix of high bandwidth plus mid-range oscilloscopes that were playing in that some in the ev but really we've been able to pick a lot of that up in the power supply development et cetera On the protocol side, you know, that's really about protocols like PCI Express and HDMI and Bluetooth and Wi-Fi, and what we've seen there is we're a little bit between kind of product cycles that... the pace of that business has a lot to do with when chips are released and the next generation chips. on the protocol side you know that's really about protocols like pci express and hdmi and bluetooth and wi-fi and what we've seen there is we're a little bit between kind of product cycles that the pace of that business has a lot to do with when chips are released and the next generation chips

Speaker 3: Okay. Okay. okay

Speaker 1: Seeing a little bit of a, I'd say, a gap there, kinda in between product cycles. There we're primarily competing with a VIAVI, for example. Seeing a little bit of a, I'd say, a gap there, kinda in between product cycles. seeing a little bit of a i'd say a gap there kinda in between product cycles There we're primarily competing with a VIAVI, for example. there we're primarily competing with a viavi for example

Speaker 3: Yeah. Yeah. yeah

Speaker 1: But we feel good about our position there, and it's a good business, right? If we're talking about moving more data, managing power, moving data, lower power, et cetera, it's good for us. But we feel good about our position there, and it's a good business, right? but we feel good about our position there and it's a good business right If we're talking about moving more data, managing power, moving data, lower power, et cetera, it's good for us. if we're talking about moving more data managing power moving data lower power et cetera it's good for us

Speaker 3: So fair to think the orders, you know, for the oscilloscope business should be, you know, tracking, like, well above revenues, kinda like these other, these other competitors? So fair to think the orders, you know, for the oscilloscope business should be, you know, tracking, like, well above revenues, kinda like these other, these other competitors? so fair to think the orders you know for the oscilloscope business should be you know tracking like well above revenues kinda like these other these other competitors

Speaker 1: I think the oscilloscope side has been a little stronger over the last- I think the oscilloscope side has been a little stronger over the last- i think the oscilloscope side has been a little stronger over the last-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... year, for example. Yeah. ... year, for example. year for example Yeah. yeah

Speaker 3: What about on the, on the marine energy side? What about on the, on the marine energy side? what about on the on the marine energy side

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: It's been a great business. It's been a great business. it's been a great business

Speaker 1: Yeah. Yeah. yeah

Speaker 3: It's been strong. I feel like we've almost been waiting for it to weaken, and it really hasn't. And, what, what's the outlook there? It's been strong. it's been strong I feel like we've almost been waiting for it to weaken, and it really hasn't. i feel like we've almost been waiting for it to weaken and it really hasn't And, what, what's the outlook there? and what what's the outlook there

Speaker 1: Yeah, no, so- Yeah, no, so- yeah no so-

Speaker 3: Any change post some of these developments with- Any change post some of these developments with- any change post some of these developments with-

Speaker 1: No, it's interesting. No, it's interesting. no it's interesting

Speaker 3: With well. With well. with well

Speaker 1: I mean, that is an area, obviously, that we keep a close eye on. I mean, that is an area, obviously, that we keep a close eye on. i mean that is an area obviously that we keep a close eye on

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Right? And what we're hearing from our customers and what we're seeing, you know, in commentary, and we really look at the number of trees that are gonna be awarded- Right? right And what we're hearing from our customers and what we're seeing, you know, in commentary, and we really look at the number of trees that are gonna be awarded- and what we're hearing from our customers and what we're seeing you know in commentary and we really look at the number of trees that are gonna be awarded-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... that number over the next two to three years looks like it's gonna be stable or increasing. ... that number over the next two to three years looks like it's gonna be stable or increasing. that number over the next two to three years looks like it's gonna be stable or increasing

Speaker 3: Yeah. Yeah. yeah

Speaker 1: And so, yeah, the business grew dramatically, say, from 2023 to 2025. I don't think it grows at the same rate, 2026 and beyond, but it certainly in the next year or two at least, based on everything we're seeing and hearing from our customers, it doesn't feel like the business is gonna decline. And so, yeah, the business grew dramatically, say, from 2023 to 2025. and so yeah the business grew dramatically say from 2023 to 2025 I don't think it grows at the same rate, 2026 and beyond, but it certainly in the next year or two at least, based on everything we're seeing and hearing from our customers, it doesn't feel like the business is gonna decline. i don't think it grows at the same rate 2026 and beyond but it certainly in the next year or two at least based on everything we're seeing and hearing from our customers it doesn't feel like the business is gonna decline

Speaker 3: Yeah, and I felt like maybe a year or so ago, maybe we were thinking that that could, right? Like, is that- Yeah, and I felt like maybe a year or so ago, maybe we were thinking that that could, right? yeah and i felt like maybe a year or so ago maybe we were thinking that that could right Like, is that- like is that-

Speaker 1: Yeah, I think we were getting a little... Look, as you saw oil prices come down a little bit, kinda naturally thinking about where that's gonna go. I think oil price is in the $60s, again, and, and we've got close relationships. We've got good, good customers there, close relationships with our customers. Feel like the outlook is good, again, at least as far as we can see. Yeah, I think we were getting a little... yeah i think we were getting a little Look, as you saw oil prices come down a little bit, kinda naturally thinking about where that's gonna go. look as you saw oil prices come down a little bit kinda naturally thinking about where that's gonna go I think oil price is in the $60s, again, and, and we've got close relationships. i think oil price is in the $60s again and and we've got close relationships We've got good, good customers there, close relationships with our customers. we've got good good customers there close relationships with our customers Feel like the outlook is good, again, at least as far as we can see. feel like the outlook is good again at least as far as we can see

Speaker 3: Yeah, that's fair. I wanted to touch on AI a little bit. Yeah, that's fair. yeah that's fair I wanted to touch on AI a little bit. i wanted to touch on ai a little bit

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: Maybe first we start about what you're doing internally. Maybe first we start about what you're doing internally. maybe first we start about what you're doing internally

Speaker 1: Sure Sure sure

Speaker 3: ... to harness it and use it as a tool. ... to harness it and use it as a tool. to harness it and use it as a tool

Speaker 1: Yeah. So we've spent the last, I would say, year and a half on what I'd call prototyping and projects, right? So we've had just a number of disparate teams, because we run a fairly decentralized organization, just testing various applications, right? So for code development, marketing generation, customer support, technical support, things like that. We're kinda reaching the phase now where it's about implementation, but like everything we do, it's gonna be like a methodical, very methodical approach, right? Of, okay, we've had a few business units demonstrate a capability in code development, for example. Now, how do we take that, create a blueprint for that, put it across the corporation, do it in a way that we know we're gonna get return on it, and that it makes sense for us? Yeah. yeah So we've spent the last, I would say, year and a half on what I'd call prototyping and projects, right? so we've spent the last i would say year and a half on what i'd call prototyping and projects right So we've had just a number of disparate teams, because we run a fairly decentralized organization, just testing various applications, right? so we've had just a number of disparate teams because we run a fairly decentralized organization just testing various applications right So for code development, marketing generation, customer support, technical support, things like that. so for code development marketing generation customer support technical support things like that We're kinda reaching the phase now where it's about implementation, but like everything we do, it's gonna be like a methodical, very methodical approach, right? we're kinda reaching the phase now where it's about implementation but like everything we do it's gonna be like a methodical very methodical approach right Of, okay, we've had a few business units demonstrate a capability in code development, for example. of okay we've had a few business units demonstrate a capability in code development for example Now, how do we take that, create a blueprint for that, put it across the corporation, do it in a way that we know we're gonna get return on it, and that it makes sense for us? now how do we take that create a blueprint for that put it across the corporation do it in a way that we know we're gonna get return on it and that it makes sense for us

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Right, and then we can manage all the risks. So, I'd say we're exiting what I'd call that prototyping and test and evaluation phase and stepping into that next phase. But like everything we do, we don't do... Like, we're not a company that does, like, some big bang of like- Right, and then we can manage all the risks. right and then we can manage all the risks So, I'd say we're exiting what I'd call that prototyping and test and evaluation phase and stepping into that next phase. so i'd say we're exiting what i'd call that prototyping and test and evaluation phase and stepping into that next phase But like everything we do, we don't do... but like everything we do we don't do Like, we're not a company that does, like, some big bang of like- like we're not a company that does like some big bang of like-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... now this is all gonna happen everywhere, all at once, in every international facility. That makes no sense, right? We're gonna just take a methodical approach and make sure that we're getting return for whatever that investment is. ... now this is all gonna happen everywhere, all at once, in every international facility. now this is all gonna happen everywhere all at once in every international facility That makes no sense, right? that makes no sense right We're gonna just take a methodical approach and make sure that we're getting return for whatever that investment is. we're gonna just take a methodical approach and make sure that we're getting return for whatever that investment is

Speaker 3: Who owns this? Like, do you want AI to look differently across all the elements of Teledyne? Who owns this? who owns this Like, do you want AI to look differently across all the elements of Teledyne? like do you want ai to look differently across all the elements of teledyne

Speaker 1: I think from the internal functions, it should look pretty similar. I think from the internal functions, it should look pretty similar. i think from the internal functions it should look pretty similar

Speaker 3: Okay. Okay. okay

Speaker 1: I mean, where we see benefit in the things I said, which are the primary areas I think that we're gonna benefit from on the first go. I think we wanna see similar utilization for code development and things like that. I mean, where we see benefit in the things I said, which are the primary areas I think that we're gonna benefit from on the first go. i mean where we see benefit in the things i said which are the primary areas i think that we're gonna benefit from on the first go I think we wanna see similar utilization for code development and things like that. i think we wanna see similar utilization for code development and things like that

Speaker 3: Yep. Yep. yep

Speaker 1: Yeah. Yeah. yeah

Speaker 3: It's like idea generation is maybe coming from the BU side, and it's scaling from the corporate? It's like idea generation is maybe coming from the BU side, and it's scaling from the corporate? it's like idea generation is maybe coming from the bu side and it's scaling from the corporate

Speaker 1: That's exactly right. So... that's the beauty of a company like Teledyne, right, with the diversification. You can have all these teams doing all this kind of testing- That's exactly right. that's exactly right So... that's the beauty of a company like Teledyne, right, with the diversification. so that's the beauty of a company like teledyne right with the diversification You can have all these teams doing all this kind of testing- you can have all these teams doing all this kind of testing-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... see what works, then, that's right. Then at the corporate level, we bring it in, we look at it, and we lay out a plan. Working with the people in the business unit, you got champions, whatever, right, to go do it, again, without moving either too slow or too quickly, right? I think it's the kind of thing we have to be prudent about, but we have seen some opportunity there. ... see what works, then, that's right. see what works then that's right Then at the corporate level, we bring it in, we look at it, and we lay out a plan. then at the corporate level we bring it in we look at it and we lay out a plan Working with the people in the business unit, you got champions, whatever, right, to go do it, again, without moving either too slow or too quickly, right? working with the people in the business unit you got champions whatever right to go do it again without moving either too slow or too quickly right I think it's the kind of thing we have to be prudent about, but we have seen some opportunity there. i think it's the kind of thing we have to be prudent about but we have seen some opportunity there

Speaker 3: Have you had to create new roles within the organization for this, or is it outside of, you know, the expertise of? Have you had to create new roles within the organization for this, or is it outside of, you know, the expertise of? have you had to create new roles within the organization for this or is it outside of you know the expertise of

Speaker 1: Yeah, we've actually- Yeah, we've actually- yeah we've actually-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... we've brought a couple people in who have experience, and then we've had some people who are highly capable within the organization, who know the organization and kind of know the lay of the land- ... we've brought a couple people in who have experience, and then we've had some people who are highly capable within the organization, who know the organization and kind of know the lay of the land- we've brought a couple people in who have experience and then we've had some people who are highly capable within the organization who know the organization and kind of know the lay of the land-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... who I think will be able to manage it. ... who I think will be able to manage it. who i think will be able to manage it

Speaker 3: What about external threats from AI- What about external threats from AI- what about external threats from ai-

Speaker 1: Yeah Yeah yeah

Speaker 3: ... from a competitive standpoint? ... from a competitive standpoint? from a competitive standpoint

Speaker 1: Look, I know obviously that's a topic, right? Look, I know obviously that's a topic, right? look i know obviously that's a topic right

Speaker 3: Yeah. Yeah. yeah

Speaker 1: But it, for us, we don't see it as much as a threat to us. Why is that? Because primarily we're providing hardware. But it, for us, we don't see it as much as a threat to us. but it for us we don't see it as much as a threat to us Why is that? why is that Because primarily we're providing hardware. because primarily we're providing hardware

Speaker 3: Yeah. Yeah. yeah

Speaker 1: We do, we provide software with our hardware. Typically, we're not charging for that software; it just comes with the hardware. And if anything, you know, we're a sensor provider. We're providing not just the ability to see, but often coupled with a processor that then allows somebody to put their solution on it, right? So we're kinda thinking about it a couple ways. One is making sure we embed the right AI tools in our products for target recognition, target tracking- We do, we provide software with our hardware. we do we provide software with our hardware Typically, we're not charging for that software; it just comes with the hardware. typically we're not charging for that software it just comes with the hardware And if anything, you know, we're a sensor provider. and if anything you know we're a sensor provider We're providing not just the ability to see, but often coupled with a processor that then allows somebody to put their solution on it, right? we're providing not just the ability to see but often coupled with a processor that then allows somebody to put their solution on it right So we're kinda thinking about it a couple ways. so we're kinda thinking about it a couple ways One is making sure we embed the right AI tools in our products for target recognition, target tracking- one is making sure we embed the right ai tools in our products for target recognition target tracking-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... license plate reading from gimbals, whatever it is, but then also making sure the architecture we're creating for our customers allows them to very easily use our sensors to run whatever application they wanna run, right? ... license plate reading from gimbals, whatever it is, but then also making sure the architecture we're creating for our customers allows them to very easily use our sensors to run whatever application they wanna run, right? license plate reading from gimbals whatever it is but then also making sure the architecture we're creating for our customers allows them to very easily use our sensors to run whatever application they wanna run right

Speaker 3: Yeah. Yeah. yeah

Speaker 1: 'Cause I think if you're a sensor provider, you understand you can't possibly solve every problem that your sensor could be used for, and you'd be foolish to go off and try to do all those things. So you wanna provide the best sensor with the right architecture that allows other people to go do that niche thing they're trying to do with the sensor. 'Cause I think if you're a sensor provider, you understand you can't possibly solve every problem that your sensor could be used for, and you'd be foolish to go off and try to do all those things. 'cause i think if you're a sensor provider you understand you can't possibly solve every problem that your sensor could be used for and you'd be foolish to go off and try to do all those things So you wanna provide the best sensor with the right architecture that allows other people to go do that niche thing they're trying to do with the sensor. so you wanna provide the best sensor with the right architecture that allows other people to go do that niche thing they're trying to do with the sensor

Speaker 3: The thought process of AI makes it easier to do any of these things is just patent. You just disagree with the premise of that? The thought process of AI makes it easier to do any of these things is just patent. the thought process of ai makes it easier to do any of these things is just patent You just disagree with the premise of that? you just disagree with the premise of that

Speaker 1: AI makes it easier to do what? AI makes it easier to do what? ai makes it easier to do what

Speaker 3: To take the output of a sensor and either make sense to track something or do any of those- To take the output of a sensor and either make sense to track something or do any of those- to take the output of a sensor and either make sense to track something or do any of those-

Speaker 1: Oh, no, I think it- Oh, no, I think it- oh no i think it-

Speaker 3: tasks. tasks. tasks

Speaker 1: Yeah, no, certainly it makes it easier to take the output of the sensor. I guess what I'm saying is we wanna provide the sensor and the ability for our customers to go do that. Yeah, no, certainly it makes it easier to take the output of the sensor. yeah no certainly it makes it easier to take the output of the sensor I guess what I'm saying is we wanna provide the sensor and the ability for our customers to go do that. i guess what i'm saying is we wanna provide the sensor and the ability for our customers to go do that

Speaker 3: Okay. Okay. okay

Speaker 1: In certain cases where it's important to us strategically, we wanna have the capability in our product, so autonomy, target recognition- In certain cases where it's important to us strategically, we wanna have the capability in our product, so autonomy, target recognition- in certain cases where it's important to us strategically we wanna have the capability in our product so autonomy target recognition-

Speaker 3: Mm Mm mm

Speaker 1: ... things like that. But what I'm saying is, our sensors are used across, you know, 100+ different applications, right? We wouldn't wanna go try to solve each of those things because we don't necessarily understand each of those end applications as well as our customers do. So we wanna create that capability for our customer then to use AI tools with our sensor- ... things like that. things like that But what I'm saying is, our sensors are used across, you know, 100+ different applications, right? but what i'm saying is our sensors are used across you know 100+ different applications right We wouldn't wanna go try to solve each of those things because we don't necessarily understand each of those end applications as well as our customers do. we wouldn't wanna go try to solve each of those things because we don't necessarily understand each of those end applications as well as our customers do So we wanna create that capability for our customer then to use AI tools with our sensor- so we wanna create that capability for our customer then to use ai tools with our sensor-

Speaker 3: Gotcha Gotcha gotcha

Speaker 1: ... to solve their problem. ... to solve their problem. to solve their problem

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Gotcha. Yep. Okay, let's move on to capital deployment, 'cause it's such a critical element of it. Maybe first, walk us through your process and how target identification and what the process internally is for, you know, for diligence, and towards execution, and what sort of metrics you're looking to. Gotcha. gotcha Yep. yep Okay, let's move on to capital deployment, 'cause it's such a critical element of it. okay let's move on to capital deployment 'cause it's such a critical element of it Maybe first, walk us through your process and how target identification and what the process internally is for, you know, for diligence, and towards execution, and what sort of metrics you're looking to. maybe first walk us through your process and how target identification and what the process internally is for you know for diligence and towards execution and what sort of metrics you're looking to

Speaker 1: Sure. You wanna take that? Sure. sure You wanna take that? you wanna take that

Speaker 2: Sure. So, you know, by unit count here, typical Teledyne bolt-on acquisition, that's been, you know, call it 60 of the 75 companies we've bought. But basically an answer to an open-ended question from the businesses themselves, what is that other provider in the market that sells a complementary product to a market you're already in, to a customer base you already serve? And that's your classic Teledyne bolt-on, like the one we bought two weeks ago. A small company in the U.K., $20 million in revenue, called DD-Scientific. Sure. sure So, you know, by unit count here, typical Teledyne bolt-on acquisition, that's been, you know, call it 60 of the 75 companies we've bought. so you know by unit count here typical teledyne bolt-on acquisition that's been you know call it 60 of the 75 companies we've bought But basically an answer to an open-ended question from the businesses themselves, what is that other provider in the market that sells a complementary product to a market you're already in, to a customer base you already serve? but basically an answer to an open-ended question from the businesses themselves what is that other provider in the market that sells a complementary product to a market you're already in to a customer base you already serve And that's your classic Teledyne bolt-on, like the one we bought two weeks ago. and that's your classic teledyne bolt-on like the one we bought two weeks ago A small company in the U.K., $20 million in revenue, called DD- Scientific. a small company in the u.k $20 million in revenue called dd- scientific

Speaker 1: Yep. Yep. yep

Speaker 2: Makes gas sensors for industrial air monitoring, continuous emissions monitoring. That's great. That's your average Teledyne bolt-on. So I'd call it a bottom up from the business, a head of engineering, a head of sales, a general manager. That's sort of the bread and butter. The larger deals that I would call maybe a little bit more top-down, a public company, a FLIR, the Excelitas divestiture of this company, Qioptiq, that we bought. That's largely from a couple of people, largely me, in some case, you know, tracking those for many, many years. And either the timing's right for us, the timing's right for them, or both, and you know, the first meeting we had with FLIR was 10 years before we bought the company. Makes gas sensors for industrial air monitoring, continuous emissions monitoring. makes gas sensors for industrial air monitoring continuous emissions monitoring That's great. that's great That's your average Teledyne bolt-on. that's your average teledyne bolt-on So I'd call it a bottom up from the business, a head of engineering, a head of sales, a general manager. so i'd call it a bottom up from the business a head of engineering a head of sales a general manager That's sort of the bread and butter. that's sort of the bread and butter The larger deals that I would call maybe a little bit more top-down, a public company, a FLIR, the Excelitas divestiture of this company, Qioptiq, that we bought. the larger deals that i would call maybe a little bit more top-down a public company a flir the excelitas divestiture of this company qioptiq that we bought That's largely from a couple of people, largely me, in some case, you know, tracking those for many, many years. that's largely from a couple of people largely me in some case you know tracking those for many many years And either the timing's right for us, the timing's right for them, or both, and you know, the first meeting we had with FLIR was 10 years before we bought the company. and either the timing's right for us the timing's right for them or both and you know the first meeting we had with flir was 10 years before we bought the company

Speaker 3: Right. Right. right

Speaker 2: We looked at pieces of Excelitas before it was Excelitas, when it was PerkinElmer, before it was PerkinElmer, it was EG&G. Been tracking the company for 25 years. Finally, it was a time that the private equity firm who owned it just needed to divest and de-lever, so the timing was right. We looked at pieces of Excelitas before it was Excelitas, when it was PerkinElmer, before it was PerkinElmer, it was EG&G. we looked at pieces of excelitas before it was excelitas when it was perkinelmer before it was perkinelmer it was eg&g Been tracking the company for 25 years. been tracking the company for 25 years Finally, it was a time that the private equity firm who owned it just needed to divest and de-lever, so the timing was right. finally it was a time that the private equity firm who owned it just needed to divest and de-lever so the timing was right

Speaker 3: Yeah. Yeah. yeah

Speaker 2: But it's usually a long process. We get banker books, teasers come in my email, like, I get five a day. But pretty much everything we've bought, either top-down or bottom-up, has been something we've looked at for a long, long time. It just, the timing is right. And, you know, the price has to be right. We're not a bottom fisher, but we're- But it's usually a long process. but it's usually a long process We get banker books, teasers come in my email, like, I get five a day. we get banker books teasers come in my email like i get five a day But pretty much everything we've bought, either top-down or bottom-up, has been something we've looked at for a long, long time. but pretty much everything we've bought either top-down or bottom-up has been something we've looked at for a long long time It just, the timing is right. it just the timing is right And, you know, the price has to be right. and you know the price has to be right We're not a bottom fisher, but we're- we're not a bottom fisher but we're-

Speaker 3: Yeah Yeah yeah

Speaker 2: ... also not gonna pay 20-22x EBITDA for an average industrial business. That's not us. We'll buy our own stock if it's the lowest risk, best price available, and we- ... also not gonna pay 20-22x EBITDA for an average industrial business. also not gonna pay 20-22x ebitda for an average industrial business That's not us. that's not us We'll buy our own stock if it's the lowest risk, best price available, and we- we'll buy our own stock if it's the lowest risk best price available and we-

Speaker 3: Yeah Yeah yeah

Speaker 2: ... did that in Q4. But we can be very, you know, very mobile. I mean, middle of, you know, April 2024, we were all-in stock buyback. Then some people got punished for overpaying, some which we made reference to, and markets got a little bit more rational, and we did nearly $1 billion of transactions between Qioptiq and a half of those in bolt-ons. Then we went all-in buyback again in Q4. ... did that in Q4. did that in q4 But we can be very, you know, very mobile. but we can be very you know very mobile I mean, middle of, you know, April 2024, we were all-in stock buyback. i mean middle of you know april 2024 we were all-in stock buyback Then some people got punished for overpaying, some which we made reference to, and markets got a little bit more rational, and we did nearly $1 billion of transactions between Qioptiq and a half of those in bolt-ons. then some people got punished for overpaying some which we made reference to and markets got a little bit more rational and we did nearly $1 billion of transactions between qioptiq and a half of those in bolt-ons Then we went all-in buyback again in Q4. then we went all-in buyback again in q4

Speaker 3: Yeah. Yeah. yeah

Speaker 2: Now we'll see where we are. It's fluid. Depends on what week you ask me, which alternative it'll be. The preference is still to buy companies that fit well with Teledyne. That's the overwhelming preference, but sometimes it makes sense, sometimes it doesn't. Now we'll see where we are. now we'll see where we are It's fluid. it's fluid Depends on what week you ask me, which alternative it'll be. depends on what week you ask me which alternative it'll be The preference is still to buy companies that fit well with Teledyne. the preference is still to buy companies that fit well with teledyne That's the overwhelming preference, but sometimes it makes sense, sometimes it doesn't. that's the overwhelming preference but sometimes it makes sense sometimes it doesn't

Speaker 3: I mean, you've definitely showed the willingness and ability to be tactical with the buyback. Is that something, is that how we should think about it in the future? Is it something, do you wanna use it more consistently as a baseline and then flex it? Or should it just be like, this is... we're gonna be traders on this? I mean, you've definitely showed the willingness and ability to be tactical with the buyback. i mean you've definitely showed the willingness and ability to be tactical with the buyback Is that something, is that how we should think about it in the future? is that something is that how we should think about it in the future Is it something, do you wanna use it more consistently as a baseline and then flex it? is it something do you wanna use it more consistently as a baseline and then flex it Or should it just be like, this is... we're gonna be traders on this? or should it just be like this is we're gonna be traders on this

Speaker 2: It's opportunistic. I mean, again, the preference is good companies that fit well with Teledyne, that we understand, that are in markets we know, not a big risk, not a gamble, not a change of strategy. That's clearly the preference. But, you know, if our stock trades down, we're trading at 15, 16 times, and people are paying 20, 22, we'll do the former all day long. It's opportunistic. it's opportunistic I mean, again, the preference is good companies that fit well with Teledyne, that we understand, that are in markets we know, not a big risk, not a gamble, not a change of strategy. i mean again the preference is good companies that fit well with teledyne that we understand that are in markets we know not a big risk not a gamble not a change of strategy That's clearly the preference. that's clearly the preference But, you know, if our stock trades down, we're trading at 15, 16 times, and people are paying 20, 22, we'll do the former all day long. but you know if our stock trades down we're trading at 15 16 times and people are paying 20 22 we'll do the former all day long

Speaker 3: Yeah. Yeah. yeah

Speaker 2: Again, the preference is to grow. Again, the preference is to grow. again the preference is to grow

Speaker 3: And now, what, what's the landscape today? I mean, valuations are tough. Aerospace, popular market, it's hard to find things, so where, where are you looking now? And now, what, what's the landscape today? and now what what's the landscape today I mean, valuations are tough. i mean valuations are tough Aerospace, popular market, it's hard to find things, so where, where are you looking now? aerospace popular market it's hard to find things so where where are you looking now

Speaker 2: Yeah, there's certainly more available now, sort of across the spectrum. I mean, not just aerospace and defense, a lot's available. General industrial land, there's from private equity exits that were maybe vintaged 2021, 2022, eventually are looking for an exit, or they have to divest and de-lever in the higher rate environment. A lot available, but pricing is high. Yeah, there's certainly more available now, sort of across the spectrum. yeah there's certainly more available now sort of across the spectrum I mean, not just aerospace and defense, a lot's available. i mean not just aerospace and defense a lot's available General industrial land, there's from private equity exits that were maybe vintaged 2021, 2022, eventually are looking for an exit, or they have to divest and de-lever in the higher rate environment. general industrial land there's from private equity exits that were maybe vintaged 2021 2022 eventually are looking for an exit or they have to divest and de-lever in the higher rate environment A lot available, but pricing is high. a lot available but pricing is high

Speaker 3: Yeah. Yeah. yeah

Speaker 2: And it's hard to predict the pricing. We've looked at a handful of things this year that were, you know, consideration was, you know, $1.2 billion or $1.4 billion, where we thought the businesses were worth maybe more like $900 million-$1 billion. And if someone wants to pay that, then, you know, we're not gonna chase it just to, just to chase it. But, but the availability is good. I would say, if I had to guess, maybe the next 18 months look like the last 18 months, that one of those will be attractive and, you know, either it'll be at the right price or we'll- we're deemed the best buyer, that's high certainty to close, either from a financial point of view or a regulatory point of view. And it's hard to predict the pricing. and it's hard to predict the pricing We've looked at a handful of things this year that were, you know, consideration was, you know, $1.2 billion or $1.4 billion, where we thought the businesses were worth maybe more like $900 million-$1 billion. we've looked at a handful of things this year that were you know consideration was you know $1.2 billion or $1.4 billion where we thought the businesses were worth maybe more like $900 million-$1 billion And if someone wants to pay that, then, you know, we're not gonna chase it just to, just to chase it. and if someone wants to pay that then you know we're not gonna chase it just to just to chase it But, but the availability is good. but but the availability is good I would say, if I had to guess, maybe the next 18 months look like the last 18 months, that one of those will be attractive and, you know, either it'll be at the right price or we'll- we're deemed the best buyer, that's high certainty to close, either from a financial point of view or a regulatory point of view. i would say if i had to guess maybe the next 18 months look like the last 18 months that one of those will be attractive and you know either it'll be at the right price or we'll- we're deemed the best buyer that's high certainty to close either from a financial point of view or a regulatory point of view So yeah, maybe there's a medium-sized deal and a half a dozen bolt-ons over the next 18 months. Spend $1 billion like we did over the last 18 months, which is still less than one year's free cash flow, so- So yeah, maybe there's a medium-sized deal and a half a dozen bolt-ons over the next 18 months. so yeah maybe there's a medium-sized deal and a half a dozen bolt-ons over the next 18 months Spend $1 billion like we did over the last 18 months, which is still less than one year's free cash flow, so- spend $1 billion like we did over the last 18 months which is still less than one year's free cash flow so-

Speaker 3: Yeah Yeah yeah

Speaker 2: ... still, could do more. Have the, you know, bandwidth financially and management-wise to do more. ... still, could do more. still could do more Have the, you know, bandwidth financially and management-wise to do more. have the you know bandwidth financially and management-wise to do more

Speaker 3: Sure Sure sure

Speaker 2: ... but again, we're not gonna do anything stupid. ... but again, we're not gonna do anything stupid. but again we're not gonna do anything stupid

Speaker 3: And, I'll say this up front, this is a stupid question, so I appreciate that. Do you feel like, in a way, you've almost been punished or martyred for being held to, like, a high standard of return? Like, when we start, when everyone starts to add back amortization and create fake earnings, and, you know, you guys have very strict mandate on what your return profile is, but I feel like it's easier to show accretion now, and it's easier to show, kind of, massage the numbers, and valuations are high. So, like, are you passing on things that maybe you would not be punished for chasing to some extent? And, I'll say this up front, this is a stupid question, so I appreciate that. and i'll say this up front this is a stupid question so i appreciate that Do you feel like, in a way, you've almost been punished or martyred for being held to, like, a high standard of return? do you feel like in a way you've almost been punished or martyred for being held to like a high standard of return Like, when we start, when everyone starts to add back amortization and create fake earnings, and, you know, you guys have very strict mandate on what your return profile is, but I feel like it's easier to show accretion now, and it's easier to show, kind of, massage the numbers, and valuations are high. like when we start when everyone starts to add back amortization and create fake earnings and you know you guys have very strict mandate on what your return profile is but i feel like it's easier to show accretion now and it's easier to show kind of massage the numbers and valuations are high So, like, are you passing on things that maybe you would not be punished for chasing to some extent? so like are you passing on things that maybe you would not be punished for chasing to some extent

Speaker 2: I think you're ultimately rewarded or punished appropriately. Although that may not be the case in the ultra short- I think you're ultimately rewarded or punished appropriately. i think you're ultimately rewarded or punished appropriately Although that may not be the case in the ultra short- although that may not be the case in the ultra short-

Speaker 3: Hope so Hope so hope so

Speaker 2: ... ultra short term. ... ultra short term. ultra short term

Speaker 3: Premise of- Premise of- premise of-

Speaker 1: Well said. Well said. well said

Speaker 2: No, no, but, but it's true. I think, people, you know, in certain environments, people like M&A, regardless of the returns, regardless of the price, but then that ends up in a sell side model, that ends up with a hurdle you have to hit, and then things tend to reverse themselves. And that happened with some of the, you know, the T&M peers or other people as well, that, you know, that chase certain things. So eventually, you know, things are rational in the... not even in the long term, in the intermediate term, things are rational. But yeah, we're not gonna chase something in a given quarter just, just, you know, out of silly- No, no, but, but it's true. no no but but it's true I think, people, you know, in certain environments, people like M&A, regardless of the returns, regardless of the price, but then that ends up in a sell side model, that ends up with a hurdle you have to hit, and then things tend to reverse themselves. i think people you know in certain environments people like m&a regardless of the returns regardless of the price but then that ends up in a sell side model that ends up with a hurdle you have to hit and then things tend to reverse themselves And that happened with some of the, you know, the T&M peers or other people as well, that, you know, that chase certain things. and that happened with some of the you know the t&m peers or other people as well that you know that chase certain things So eventually, you know, things are rational in the... not even in the long term, in the intermediate term, things are rational. so eventually you know things are rational in the not even in the long term in the intermediate term things are rational But yeah, we're not gonna chase something in a given quarter just, just, you know, out of silly- but yeah we're not gonna chase something in a given quarter just just you know out of silly-

Speaker 3: Sometimes it's hard to wait. Sometimes it's hard to wait. sometimes it's hard to wait

Speaker 2: To do something silly. To do something silly. to do something silly

Speaker 3: That's a, that's a- That's a, that's a- that's a that's a-

Speaker 2: It is. I mean, to my point before on a lot of what we bought, we've looked at not just for years, but many years, occasionally for decades. There was one of those things I made reference to, those north of $1 billion in 2025, I had personally visited sites 20 years ago. It is. it is I mean, to my point before on a lot of what we bought, we've looked at not just for years, but many years, occasionally for decades. i mean to my point before on a lot of what we bought we've looked at not just for years but many years occasionally for decades There was one of those things I made reference to, those north of $1 billion in 2025, I had personally visited sites 20 years ago. there was one of those things i made reference to those north of $1 billion in 2025 i had personally visited sites 20 years ago

Speaker 3: Yeah. Yeah. yeah

Speaker 2: But, you know, too high, you know, so we didn't do it. But, you know, too high, you know, so we didn't do it. but you know too high you know so we didn't do it

Speaker 3: Fair enough. I mean, you've been asked multiple times, many times by me, about a dividend as part of the capital structure. What are your thoughts there? Fair enough. fair enough I mean, you've been asked multiple times, many times by me, about a dividend as part of the capital structure. i mean you've been asked multiple times many times by me about a dividend as part of the capital structure What are your thoughts there? what are your thoughts there

Speaker 2: You know, look, never say never, but we've never done it to date. So the logical assumption should probably be no. Maybe, maybe at some point, I mean, if it goes three, four years, and we're still underspending free cash flow, and we're net cash on the balance sheet, maybe that's different. But today, the preference has been to buy good companies that fit with what we do. And we're not at the law of large numbers yet, so I think we'll be able to- You know, look, never say never, but we've never done it to date. you know look never say never but we've never done it to date So the logical assumption should probably be no. so the logical assumption should probably be no Maybe, maybe at some point, I mean, if it goes three, four years, and we're still underspending free cash flow, and we're net cash on the balance sheet, maybe that's different. maybe maybe at some point i mean if it goes three, four years and we're still underspending free cash flow and we're net cash on the balance sheet maybe that's different But today, the preference has been to buy good companies that fit with what we do. but today the preference has been to buy good companies that fit with what we do And we're not at the law of large numbers yet, so I think we'll be able to- and we're not at the law of large numbers yet so i think we'll be able to-

Speaker 3: Okay Okay okay

Speaker 2: ... you know, fill that use of funds for, you know, the foreseeable future. But 10 years from now, who knows? So. ... you know, fill that use of funds for, you know, the foreseeable future. you know fill that use of funds for you know the foreseeable future But 10 years from now, who knows? but 10 years from now who knows So. so

Speaker 3: Maybe last in a few minutes here on we'll touch on margins. Some of the pushback I get from, like, a pitch standpoint is that you look at the portfolio, it's high margin, high quality. There's not a lot of obvious upside when I look at things like, you know, the instrumentation business is high, aerospace electronics is high, engineered systems is cost plus. You know, so I think there's, yes, there's opportunities in DI, but across the portfolio, where's the juice? So, like, how should I think about that, and what are you pushing internally? Maybe last in a few minutes here on we'll touch on margins. maybe last in a few minutes here on we'll touch on margins Some of the pushback I get from, like, a pitch standpoint is that you look at the portfolio, it's high margin, high quality. some of the pushback i get from like a pitch standpoint is that you look at the portfolio it's high margin high quality There's not a lot of obvious upside when I look at things like, you know, the instrumentation business is high, aerospace electronics is high, engineered systems is cost plus. there's not a lot of obvious upside when i look at things like you know the instrumentation business is high aerospace electronics is high engineered systems is cost plus You know, so I think there's, yes, there's opportunities in DI, but across the portfolio, where's the juice? you know so i think there's yes there's opportunities in di but across the portfolio where's the juice So, like, how should I think about that, and what are you pushing internally? so like how should i think about that and what are you pushing internally

Speaker 1: Yeah, probably a couple ways to think about it. So number one, DI margins, which you mentioned, right? Yeah, probably a couple ways to think about it. yeah probably a couple ways to think about it So number one, DI margins, which you mentioned, right? so number one di margins which you mentioned right

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Which got better in Q4, projecting to be better in 2026, and there's some room to continue to improve there. There's also just, well, you know, what's our model? We go buy companies- Which got better in Q4, projecting to be better in 2026, and there's some room to continue to improve there. which got better in q4 projecting to be better in 2026 and there's some room to continue to improve there There's also just, well, you know, what's our model? there's also just well you know what's our model We go buy companies- we go buy companies-

Speaker 3: Yeah Yeah yeah

Speaker 1: ... and we typically are resetting margins in each segment on a pretty regular basis, right? Because we're going and buying a company that is quality, that might have 20% margins, and then we work to bring them up to our standard margin. And then beyond that, what I would say is, you know, we've got a pretty good track record of kinda 50 basis points a year improvement over the long term, from one place or another, and that remains kinda the benchmark that we strive for, notwithstanding the fact we've got high margins. ... and we typically are resetting margins in each segment on a pretty regular basis, right? and we typically are resetting margins in each segment on a pretty regular basis right Because we're going and buying a company that is quality, that might have 20% margins, and then we work to bring them up to our standard margin. because we're going and buying a company that is quality that might have 20% margins and then we work to bring them up to our standard margin And then beyond that, what I would say is, you know, we've got a pretty good track record of kinda 50 basis points a year improvement over the long term, from one place or another, and that remains kinda the benchmark that we strive for, notwithstanding the fact we've got high margins. and then beyond that what i would say is you know we've got a pretty good track record of kinda 50 basis points a year improvement over the long term from one place or another and that remains kinda the benchmark that we strive for notwithstanding the fact we've got high margins

Speaker 3: Just maybe last on the aerospace and defense electronics specifically- Just maybe last on the aerospace and defense electronics specifically- just maybe last on the aerospace and defense electronics specifically-

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 3: ... I mean, that's an area where the margins picked up huge. I know some of it was mix. I know, I think there was a point where even you guys publicly were like: I don't know how much higher this can go. ... I mean, that's an area where the margins picked up huge. i mean that's an area where the margins picked up huge I know some of it was mix. i know some of it was mix I know, I think there was a point where even you guys publicly were like: I don't know how much higher this can go. i know i think there was a point where even you guys publicly were like i don't know how much higher this can go

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Maybe there's downside. It's held up really well. Like, is this a number that we're now more comfortable with as being, like, a forward number? Maybe there's downside. maybe there's downside It's held up really well. it's held up really well Like, is this a number that we're now more comfortable with as being, like, a forward number? like is this a number that we're now more comfortable with as being like a forward number

Speaker 1: I think it is. I mean, you do have to keep in mind, as OE increases- I think it is. i think it is I mean, you do have to keep in mind, as OE increases- i mean you do have to keep in mind as oe increases-

Speaker 3: Yep Yep yep

Speaker 1: ... as defense increases versus commercial aerospace aftermarket, that's a little detrimental to margins. Having said that, we have these new acquisitions. We're improving their margins- ... as defense increases versus commercial aerospace aftermarket, that's a little detrimental to margins. as defense increases versus commercial aerospace aftermarket that's a little detrimental to margins Having said that, we have these new acquisitions. having said that we have these new acquisitions We're improving their margins- we're improving their margins-

Speaker 3: Yep Yep yep

Speaker 1: ... as we go. So I think this level we're sitting at is sustainable. ... as we go. as we go So I think this level we're sitting at is sustainable. so i think this level we're sitting at is sustainable

Speaker 3: Yeah. Any last-minute questions from, from the audience here? All right, I think I'll leave it there then. Guys, thank you very much. It was a pleasure to see you. Yeah. yeah Any last-minute questions from, from the audience here? any last-minute questions from from the audience here All right, I think I'll leave it there then. all right i think i'll leave it there then Guys, thank you very much. guys thank you very much It was a pleasure to see you. it was a pleasure to see you

Speaker 2: Thanks, Joe. Thanks, Joe. thanks joe

Speaker 3: Have a good rest of the day. Thanks, everyone. Have a good rest of the day. have a good rest of the day Thanks, everyone. thanks everyone

Speaker 1: Okay, thanks. Okay, thanks. okay thanks