2 Tariff-Proof Industrial Stocks to Buy Now

Tariff concerns are forcing many industrial companies to brace for trouble on their bottom lines. President Donald Trump's levy of a 10% global tariff that he has threatened to boost to 15% in some cases will likely have a substantial impact on businesses in the U.S. and abroad.

There's no such thing as a tariff-proof industrial company, but Mueller Water Products (NYSE: MWA) and Teledyne (NYSE: TDY) have specific structural and operational advantages that will insulate them from the worst effects of these import taxes.

Here's how each of these companies skirts tariff concerns and why they are good stocks to buy now.

Mueller: Dependable revenue flows from water products

Mueller, founded in 1857, provides products and solutions for the transmission, distribution, and measurement of water in North America, including engineered valves, fire hydrants, pipe connections, and meters. Its sales are benefiting from increased government investment in the country's aging water infrastructure.

Mueller makes most of its revenue from municipal water projects that often require Build America, Buy America certification. The company has a substantial domestic manufacturing presence, which reduces its dependence on imported finished goods. Even when it does have to import a part, it has strong pricing power, enabling it use targeted price increases to compensate for its higher costs.

In its fiscal 2026 first quarter, which ended Dec. 31, the company reported revenue of $318.2 million, up 4.6% year over year, and earnings per share (EPS) of $0.27, up 22.7%.

The company's shares are up more than 24% to start this year. Its dividend yields just under 1%, and it has increased its payouts for 11 consecutive years.

Teledyne: Specialized products and diversity give it pricing flexibility

Teledyne's resilience against tariffs is built on the specialized nature of its technology and its customer base. The company makes high-end sensors and digital imaging equipment, mainly for the aerospace and defense industries. Many of its contracts include "duty-free entry" clauses or specific exemptions for critical technology components that aren't readily available elsewhere.

Plus, the cost of its raw materials is a small fraction of the final price of its products. For example, a 15% tariff on a raw aluminum hose fitting that costs $15.11 is nothing compared to the price of a specialized underwater sensor or a loitering munitions drone.

On top of that, its revenue stream is balanced across the U.S., Asia, and Europe. If U.S. tariffs increase, it can leverage its European operations to serve international customers without the products it sells to them setting foot on U.S. soil.

Teledyne's shares are up more than 30% so far this year. The company reported record revenue and EPS in 2025, with $6.2 billion in sales, up 7.9%, and EPS of $18.88, up 9.7%. Management is guiding for EPS of $19.76 to $20.22 for 2026, which would be a 5.8% rise at the midpoint.

Over the past 15 years, Teledyne has transformed itself from a company largely focused on instrumentation and aerospace and defense electronics to one that is primarily driven by its rapidly expanding digital imaging business. That segment's offerings include technologies that register images in wavelengths beyond human sight, such as X-rays, infrared, ultraviolet, and microwave.

Many of the products it makes can't be easily copied because of the specialized and sometimes classified nature of its technology, which gives it pricing advantages and helps it compensate for the added costs of tariffs.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teledyne Technologies. The Motley Fool has a disclosure policy.