Let me start with the supply side: China's export controls on germanium and rare-earth magnets have in the past delayed and could limit shipments, so we're carrying extra inventory and machining germanium in-house as a cautious hedge. The structural irony — the threat driving our sensor demand also controls the inputs. Whether 2026 shipments or pricing are materially constrained remains unresolved. I'm a little conservative, as you know us to be.

Let me start with the Black Hornet franchise: we expect the Black Hornet nano‑drone, from BH‑3 to BH‑4, to generate about $500 million of cumulative revenue over the period, with orders in the United States, Europe and the Middle East. Management said we’ll remain with the $500 million for now, noting some pockets are growing faster than 10%. Rogue 1 is in full‑rate production and first contracts are expected to increase substantially with time. That’s not us – we remain disciplined and acknowledge larger defense orders are still pending and timing is lumpy.

John, let me start with the acquisition math: we have grown by disciplined acquisition – about 75 acquisitions and roughly $12.8 billion over 25 years, mostly funded with cash we generated; roughly $800‑$900 million was spent in the most recent 12‑13 months. We generate over $1 billion of free cash flow a year and are guiding toward roughly $1.1 billion. Unusually we’re favoring capex up about 35% year‑over‑year and R&D over deals because demand exceeds capacity. We won’t promise 20% a year like others do – government cycles are tedious, and that’s not us.

FLIR Defense, the unit that holds this position, was described as growing about 9%, with essentially all its product lines growing. Let me start with the fact that we supply cooled, visible and infrared detectors not only to our own drone manufacturers but to every drone maker worldwide, giving us a picks‑and‑shovels foothold at the sensor layer regardless of which airframe wins. As airframes commoditize, value shifts up to payload, though management did not directly address pricing pressure on high‑volume counter‑drone sensors.

Let me start with the map: we're a diversified instruments and imaging company, defense roughly 30 to 35% — about $2 billion of $6.1 billion. The infrared detectors sit in Digital Imaging, just over half our sales, but most of that segment stays commercial: machine vision, medical X-ray, space. Aerospace and Defense Electronics grew about 36% last year helped by acquisitions, yet the sensor franchise is a high-quality slice of a broad industrial company, not a pure-play. That's not us — seventy-five deals in twenty-five years, mostly cash, the discipline's in the dollars.

Let me start with Black Hornet: about $500 million cumulative revenue expected over the period, orders in the U.S., Europe, and the Middle East. Management said we'll remain with the $500 million for now, noting some pockets are growing faster than 10%. Rogue 1 is in full-rate production, first contracts expected to increase substantially with time, though larger defense orders are yet to come and timing is lumpy.

Let me start with the acquisition math: 75 deals over 25 years, roughly $12.8 billion, mostly cash we generated. Last 12 to 13 months: $800 to $900 million. Over $1 billion free cash flow, guiding toward $1.1 billion. Unusually, we're favoring capex — up 35% — and R&D over deals because demand exceeds capacity. Q1 book-to-bill 1.16, tenth straight quarter above one, backlog $4.6 billion. But we won't promise 20% a year like others do. Government cycles are tedious. On Golden Dome: we'll see how much budget goes in there in reality. Asking is one thing, getting it another. That's not us.

John, let me start with: Teledyne is a diversified instruments and imaging company, and our defense exposure – which we size at roughly 30 to 35% of the company, close to $2 billion of about $6.1 billion in annual revenue – spans drones, counter‑drone systems, electronic warfare, missiles and munitions. The highest‑value sensors sit in our Digital Imaging segment, just over half of sales, while the rest of Digital Imaging remains commercial. That's not us – we stay disciplined on capital, not hype.

Let me start with FLIR Defense: growing about 9%, essentially all product lines growing. We supply cooled, visible, and infrared detectors not only to our own drone makers but to everyone else building drones worldwide. That's the picks-and-shovels layer — we win at the sensor regardless of airframe. As airframes commoditize, value migrates to payload. Having said that, management didn't address pricing pressure on high-volume counter-drone sensors. That's not a promise of immunity. Seventy-five acquisitions in twenty-five years, mostly cash — the discipline's in the dollars.

Let me start with the two-sided China squeeze our filings disclose: the same threat driving our sensor demand also controls the germanium and rare-earth magnets our infrared windows need. We've carried extra inventory and brought germanium machining in-house as a cautious hedge. Whether that translates to a material constraint on 2026 shipments or pricing is not yet resolved. That's the discipline — we'll see how much budget goes in there in reality.

Let me start with the Black Hornet franchise: about $500 million cumulative revenue expected over the period, orders in the U.S., Europe, and the Middle East. Management said we'll remain with the $500 million for now, noting some pockets are growing faster than 10%. Rogue 1 is in full-rate production, first contracts expected to increase substantially with time. Unmanned subsea grew more than 20% in the first quarter with European orders. Counter-drone booked tens of millions in infrared cameras and subsystems early in the year. The larger defense orders are yet to come, and timing is lumpy.