Teledyne (TDY) wins thermal imaging contract – July 11, 2024

Teledyne Technologies, Inc. (TDY – Free Report) Teledyne FLIR Defense business unit has won a $15 million contract to deliver more than 150 ThermoSight HISS-XLR sights to a NATO partner nation. The award was presented by the U.S. Army Contracting Command-Aberdeen Proving Ground.

Teledyne began delivering the above-mentioned weapon systems this spring, with the remaining deliveries scheduled to continue through 2024.

The Importance of the HISS-XLR Thermal Sight

The ThermoSight HISS-XLR is a sighting device that can identify and detect human-sized targets at over 2,000 meters away. It can be connected to a variety of day scopes and weapon platforms, and is designed to attach to any MILSTD-1913 rail interface in front of an existing sight.

With its unique capabilities, the HISS-XLR sight increases the chances of mission success for snipers and other long-range shooters.

Teledyne Unveils Military Thermal Sight Concept

TDY is a renowned manufacturer of advanced technology solutions for the aerospace and defense industries, including thermal weapon sights. These sights are critical components of modern military and law enforcement operations, enabling people to effectively detect, identify, and engage targets in a variety of environments where visibility is limited or difficult.

Its product portfolio includes a wide range of military thermal imaging sights such as THERMOSIGHT HISS-HD, ThermoSight V4000, ThermoSight T75 and MILSIGHT S140-D. Such significant products in its portfolio allow Teledyne to witness a stream of orders such as the latest one, which is likely to boost its revenue generation prospects.

Growth prospects

As technologies advance and become increasingly integrated into larger defense and security systems, there is an increasing demand from military and law enforcement agencies for military thermal imaging sights due to their ability to provide enhanced operational capabilities.

This may have prompted Technavio to predict that the global military thermal weapon sights market will register a CAGR of 6.7% between 2024 and 2028. This should bode well for Teledyne, which offers a wide range of thermal weapon sights for military operations.

Other defense industry heavyweights that have established themselves in the thermal imaging scopes industry for military weapons and could benefit from the anticipated expansion of this industry include:

Leonardo DRS, Inc. (DRS – Free Report): Improved Night/Day Observation Device Block III Thermal Sight allows the Special Forces sniper to see at night and in challenging battlefield or weather conditions by simply mounting the device in front of his current day sight. Some of the other famous military thermal sights by DRS are MINI SEE SPOT, SNIPER PRECISION ACQUISITION RIFLE THERMAL NIGHT SIGHT – ELEVATOR and several others.

DRS stock has a long-term earnings growth rate of 16.4%. The Zacks Consensus Estimate for DRS’s 2024 sales indicates a 6.8% improvement from the prior-year data.

BAE Systems (BASIA – Free Report): The company’s Enhanced Night Vision Goggle III and Family of Weapon Sight-Individual product features 12-micron thermal technology that delivers sharp thermal images day and night. BAESY’s OASYS product leverages the latest uncooled thermal technology to deliver unmatched thermal imaging and targeting products for the most demanding operators.

The stock has a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for BAESA’s 2024 sales indicates a 34.6% improvement from the prior-year reported level.

L3Harris Technologies (LHX – Free Report): The Light Weapon Thermal Sight by Light Weapon Thermal Sight – Long Range is a weapon-mounted thermal sight that can detect long-wave infrared. It can identify targets in challenging conditions, including low light and total darkness.

LHX stock has a long-term earnings growth rate of 9.3%. The Zacks Consensus Estimate for L3Harris’ 2024 sales is an improvement of 9.4% from the prior-year reported level.

Price Movement

Over the past three months, TDY shares have fallen 1.3%, while the industry has seen a 6.5% gain.

Image Source: Zacks Investment Research

Zack’s Rank

Teledyne currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.