Does New MK11 SEAL Delivery Vehicle Spares Contract Sharpen Teledyne Technologies’ (TDY) Defense Edge?
- Earlier this month, Teledyne Brown Engineering, a subsidiary of Teledyne Technologies, received a US$42,882,299 firm-fixed-price contract modification from the U.S. Naval Sea Systems Command to provide Provisioned Items Order spares for the MK11 SEAL Delivery Vehicle program, supporting the fleet’s ongoing operational readiness.
- The award highlights Teledyne Brown Engineering’s position as the first company to meet all current NAVSEA 07 Deep Submergence System certification requirements, underscoring its specialized capabilities in complex undersea defense systems.
- Next, we’ll explore how this sizeable MK11 SEAL Delivery Vehicle spares contract may influence Teledyne’s defense-focused investment narrative.
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Teledyne Technologies Investment Narrative Recap
To own Teledyne, you need to believe in its role as a diversified provider of high-spec imaging, instrumentation and defense electronics, with long-cycle defense and sensing demand offsetting softer short-cycle exposure and integration challenges. The new US$42,882,299 MK11 SEAL Delivery Vehicle spares award reinforces Teledyne’s defense positioning but is unlikely to materially change the key near term catalyst, which remains execution on higher-margin defense and sensing programs, or the main risk around margin pressure from mix, integration and cost inflation.
The most relevant recent announcement alongside this contract is Teledyne’s raised full year 2025 GAAP diluted EPS guidance to US$17.83 to US$18.05, which reflects management’s confidence in earnings despite prior cash flow and margin headwinds. Together with robust defense and unmanned systems demand, this guidance backdrop provides useful context for assessing how incremental wins like the MK11 spares contract contribute to the broader earnings quality and capital allocation story.
Yet against this, investors should be aware of how ongoing tariff exposure and supply chain costs could still challenge...
Read the full narrative on Teledyne Technologies (it's free!)
Teledyne Technologies' narrative projects $6.9 billion revenue and $1.1 billion earnings by 2028. This requires 5.2% yearly revenue growth and an earnings increase of about $241 million from $859.0 million today.
Uncover how Teledyne Technologies' forecasts yield a $623.09 fair value, a 21% upside to its current price.
Exploring Other Perspectives
Two fair value estimates from the Simply Wall St Community currently span roughly US$581 to US$623 per share, underscoring how differently individuals can assess Teledyne’s prospects. You can weigh these views against the risk that sustained cost inflation and tariff exposure may pressure margins and influence how the company converts defense demand into long term earnings power.
Explore 2 other fair value estimates on Teledyne Technologies - why the stock might be worth just $581.45!
Build Your Own Teledyne Technologies Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Teledyne Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Teledyne Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Teledyne Technologies' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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