Teledyne Technologies, Inc.’s TDY business unit, Teledyne FLIR Defense, recently declared that it would be shipping its UltraFORCE 380X-HDc multi-spectral imaging systems to NL EASP AIR, a Dutch service provider for aerial maritime surveillance, Coast Guard, Search and Rescue, and Intelligence, Surveillance and Reconnaissance operations.
NL EASP AIR will install the multi-spectral imaging systems on their three fixed-wing Dornier DO328-110 multi-mission maritime patrol aircraft. The shipment to NL EASP AIR is expected to be completed by early 2025.
Significance of TDY’s UltraFORCE 380-HDc
The UltraFORCE 380-HDc provides unrivaled stabilized HD multi-spectral imaging in a compact, low-profile design. With its low 14.6-inch height profile and weighing only 31.3 kg (69 lbs), the UltraFORCE 380X-HDc gimbal is intended to increase ground clearance in rotary aircraft while maintaining capability and performance. Its laser pointer enables operators to silently "light up" targets or places of interest for coordinating observers employing night vision goggles or other infrared gear. A low-light camera, SWIR thermal imager, laser rangefinder and pointer are all available payload options.
Its exceptional capabilities to zoom on Electro-Optical (EO), long-range daylight spotter and IR sensors for uninterrupted viewing paired with its long DRI range make it optimal for airborne reconnaissance, patrol and search and rescue missions.
TDY’s Place in Military Imaging Market
With the advancement and integration of technology into larger defense and security systems, military imaging systems are witnessing increasing demand from military and law enforcement sectors for enhanced operational capabilities.
This is likely to have prompted the Market Research Future firm to predict that the Military imaging system market will witness a CAGR of 8.6% during the 2024-2032 period. This market growth prospect is anticipated to bode well for Teledyne, which offers airborne and maritime surveillance systems and services to more than 20 European countries and more than 70 countries worldwide.
TDY is a well-known producer of sophisticated technological solutions for the aerospace and defense industries, including multi-spectral imaging systems. These systems are critical for modern military and law enforcement operations, allowing aircraft to detect, identify and engage targets effectively in various environments where visibility is limited or obstructed.
Its product portfolio includes a wide variety of multi-spectral imaging systems, such as Star SAFIRE 380X, Star SAFIRE 380-HD, Star SAFIRE 380-HLD, Star SAFIRE 380-HDc, UltraFORCE 350-HD and TALON MMS. Such significant products in its portfolio enable Teledyne to witness a stream of order flows, which is likely to boost its revenue generation prospects.
Opportunities for Other Aerospace Defense Companies
Other defense majors who have established themselves in the military imaging business and stand to gain from the anticipated expansion of this industry are as follows:
RTX Corporation RTX: The company's MS-110 multispectral imagery system represents the next generation of the widely deployed DB-110 dual band airborne reconnaissance system, which provides day and night, wide-area, long-range imagery coverage. It provides comprehensive coverage of all bands and offers improved area surveillance at long ranges.
RTX stock boasts a long-term (three to five years) earnings growth rate of 10.2%. The Zacks Consensus Estimate for 2024 sales indicates an improvement of 7.2% from the previous year’s figure.
Lockheed Martin LMT: The company’s Next Generation Infrared Sensing is a multi-spectral, highly configurable imaging focal plane array. It serves a range of missions, including full-spectrum targeting, infrared search and track, missile warning sensors, intelligence, surveillance and reconnaissance, platform situation awareness, and supporting operations in degraded visual situations.
The stock boasts a long-term earnings growth rate of 4.6%. The Zacks Consensus Estimate for LMT’s 2024 sales implies an improvement of 5.4% from the previous year’s level.
L3Harris Technologies LHX: The company’s WESCAM MX-8 EO/IR fully-digital ultra-low-weight imaging system is suitable for small manned or unmanned aircraft carrying out tactical surveillance and reconnaissance missions.
LHX stock boasts a long-term earnings growth rate of 9.2%. The Zacks Consensus Estimate for L3Harris’ 2024 sales implies an improvement of 9.7% from the previous year’s level.
TDY Stock Price Movement
In the past three months, TDY shares have risen 14.6% compared with the industry’s 10.8% growth.
Image Source: Zacks Investment Research
TDY’s Zacks Rank
Teledyne currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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