What Teledyne Technologies Incorporated told the SEC could break it.

China's restrictions on exporting certain rare earth minerals and permanent magnets used in Teledyne products have delayed and could further limit its ability to sell affected products or lower their margins.

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

Teledyne buys some items from limited or single sources due to specialized technology, especially in R&D-heavy Defense Electronics where customer qualification of a new supplier is lengthy/expensive; FLIR's components unit is also a single source of certain sensors used across FLIR.

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

Sales to the U.S. Government (incl. Department of War) as prime contractor or subcontractor were ~25% of total net sales in 2025; results depend on continuing Congressional appropriations and are exposed to continuing-resolution/shutdown funding risk.

“Department of War, as prime contractor or subcontractor, represented 25% and 24% of our total net sales in 2025 and 2024, respectively. Performance under government contracts has inherent risks that could have a material effect on our business, results of operations, and financial condition. Government contracts are conditioned upon the continuing availability of Congressional appropriations, and the failure of Congress to appropriate funds for programs in which we participate could negatively affect our results of operations.”

With ~48% of sales international, a China-Taiwan military conflict would likely materially hurt Teledyne's ability to sell into those areas and disrupt its supply chain, alongside Middle East and Russia/Ukraine instability.

“A military conflict between China and Taiwan would likely have a material adverse impact on our ability to sell products to customers in these areas and on our supply chain. Ongoing instability in the Middle East and the conflict between Russia and Ukraine could result in supply chain and other business disruptions.”

New/proposed U.S. tariffs (notably China, and proposed EU/Canada/Mexico) raise Teledyne's material costs; it also faces intensifying export controls and sanctions tied to China and Russia.

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