Teledyne Technologies Incorporated 10-Q filed Oct 23, 2026

Modified · Trends and Other Matters Affecting Our Business

The global trade environment continues to be highly dynamic. There have been continuing significant tariffs and trade sanctions between the United States and other countries, including China. China has also restricted the export of certain rare earth minerals that we use in our products, which could disrupt the supply chain for these minerals and components made from these materials. Tariffs, trade restrictions and retaliatory measures could result in revenue reductions, cost increases on material used in our products or significant production delays, which could adversely affect our business, financial condition, operational results and cash flows. Our manufacturing facilities span across many countries which helps us mitigate the impact of certain tariffs and trade restrictions. Also, consistent with our strategy, we continually optimize our operations and take measures to contain costs to reduce the impact from tariffs or other inflationary pressures. We may also implementhave been implementing additional pricing actions to mitigate the impact of these tariffs or other inflationary pressures. We have been working to minimize potential delivery delays and shortages of components and raw materials needed for certain products we manufacture. To date, we believe our strategies have helped minimize our exposure to these conditions. In February 2026, the U.S. Supreme Court issued a ruling invalidating tariffs under the International Emergency Economic Powers Act (“IEEPA”). We filed for IEEPA refunds during the first half of 2026, and we began receiving received substantially all of these refunds in as of the secondend of the third quarter of 2026. We also continue to pay tariffs, as required. We will continue to assess these developments as additional information becomes available.