Teledyne FLIR Defense Awarded $74 Million IDIQ Contract to Modernize U.S. Coast Guard Surveillance Systems

Rhea-AI Summary

Teledyne FLIR Defense has secured a five-year IDIQ contract worth $74.2 million from the U.S. Coast Guard to provide modernized imaging surveillance systems. The company will deliver over 125 Electro-Optic Sensor System-Modernized (ESS-M) systems for USCG's MH-60 and MH-65 rotary wing aircraft.

The ESS-M platform features full-HD sensors, updated user interfaces, and advanced processing capabilities. These systems will provide high-definition daylight, low light, and infrared imagery supporting various Coast Guard missions, particularly search and rescue, living marine resources, and law enforcement. Additional applications include coastal security, drug and migrant interdiction, and ports protection.

Deliveries are scheduled to begin in Q4-2025. Teledyne FLIR Defense has been supporting USCG with legacy ESS systems since 2005.

Positive

• Secured significant $74.2 million contract with U.S. Coast Guard
• Large order volume of over 125 ESS-M systems
• Continues 20-year relationship with USCG, demonstrating strong customer retention

Negative

• Deliveries won't start until Q4-2025, indicating delayed revenue recognition

Insights

Defense Technology Analyst

The $74.2 million IDIQ contract represents a strategic win for Teledyne FLIR Defense in the maritime surveillance sector. The ESS-M system upgrade introduces full HD sensors and advanced processing capabilities that significantly enhance the Coast Guard's operational effectiveness. With 125+ units to be delivered, this contract provides stable revenue visibility through 2030.

The modernization effort addresses critical capabilities in maritime domain awareness, particularly in challenging environments where multi-spectral imaging (daylight, low-light and infrared) is essential. This technology edge is important for maintaining superiority in counter-narcotics operations and migrant interdiction missions.

Beyond the immediate contract value, this win reinforces Teledyne's position as a trusted supplier to the Coast Guard, potentially leading to follow-on opportunities across other maritime security programs. The contract's timing aligns with increased focus on maritime border security and search & rescue capabilities, suggesting potential for scope expansion.

Government Contracts Specialist

This IDIQ structure provides significant flexibility for both the Coast Guard and Teledyne, allowing for adjustments in delivery schedules and quantities based on operational needs. The five-year duration offers predictable revenue streams and helps offset R&D investments in the ESS-M platform.

The contract's timing is particularly strategic, as it comes amid increased federal funding for maritime security infrastructure. The modernization of legacy systems installed since 2005 demonstrates the Coast Guard's commitment to maintaining technological superiority in maritime operations. The Q4-2025 delivery timeline suggests careful planning for integration with existing systems and training protocols.

Financial Analyst

For Teledyne Technologies, this contract represents approximately 0.35% of its market cap, but its strategic value extends beyond the immediate financial impact. The deal provides steady revenue visibility and maintains Teledyne's strong positioning in the government contracts sector. The contract's structure, spanning five years, helps smooth out revenue recognition and supports long-term planning.

The modernization aspect is particularly noteworthy as it typically carries higher margins compared to new system sales. The potential for future software enhancements and system upgrades creates additional revenue opportunities beyond the base contract value. This type of contract often leads to recurring maintenance and support revenue streams that can extend well beyond the initial five-year period.

Company has provided Coast Guard imaging solutions used for search & rescue and other maritime missions for 20 years

BOSTON--(BUSINESS WIRE)-- Teledyne FLIR Defense, part of Teledyne Technologies Incorporated (NYSE:TDY), announced it has been awarded a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract worth up to $74.2 million to provide modernized imaging surveillance systems to the United States Coast Guard (USCG).

Teledyne FLIR Defense has been awarded a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract worth up to $74.2 million to provide modernized imaging surveillance systems to the United States Coast Guard. The systems provide operators with high-definition daylight, low light, and infrared imagery and will be used in support of all Coast Guard missions, with an emphasis on search and rescue, living marine resources, and law enforcement. The new technology also will augment coastal security, drug and migrant interdiction, ports and waterways protection, and other Coast Guard rapid response needs. (Photo: Business Wire)

FLIR Defense will deliver more than 125 Electro-Optic Sensor System-Modernized (ESS-M) systems for use on USCG rotary wing aircraft, specifically the MH-60 and MH-65. The advanced ESS-M platform features a full-HD sensor suite and updated user interfaces, as well as advanced processing capabilities and software enhancements that will support future growth.

The ESS-M systems provide operators with high-definition daylight, low light, and infrared imagery and will be used in support of all Coast Guard missions, with an emphasis on search and rescue, living marine resources, and law enforcement. The new technology also will augment coastal security, drug and migrant interdiction, ports and waterways protection, and other Coast Guard rapid response needs.

Teledyne FLIR Defense has been delivering and supporting legacy ESS systems for USCG medium- and short-range recovery aircraft since 2005.

“The significant updates through ESS-M will enable the U.S. Coast Guard to stay on technology’s cutting edge while conducting its wide range of key maritime operations,” said Dr. JihFen Lei, president of Teledyne FLIR Defense. “We’re proud to extend our history of support and look forward to building our relationship across all missions areas.”

Deliveries will begin in Q4-2025. For more on Teledyne FLIR’s maritime surveillance solutions, visit us online.

About Teledyne FLIR Defense

Teledyne FLIR Defense has been providing advanced, mission-critical technology and systems for more than 45 years. Our products are on the frontlines of the world’s most pressing military, security and public safety challenges. As a global leader in thermal imaging, we design and build sophisticated surveillance sensors for air, land and maritime use. We develop the most rugged, trusted unmanned air and ground platforms, as well as intelligent sensing devices used to detect chemicals, biological agents, radiation and explosives. At Teledyne FLIR Defense we bring together this expertise to deliver solutions that enable critical decisions and keep our world safe – from any threat, anywhere. To learn more, visit us online or follow @flir.

About Teledyne Technologies

Teledyne Technologies is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. Teledyne's operations are primarily located in the United States, the United Kingdom, Canada, and Western and Northern Europe. For more information, visit Teledyne's website at www.teledyne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113389652/en/

Media Contacts:

Joe Ailinger, Jr.

Teledyne FLIR

Phone: +1 781-801-6161

Email: joe.ailinger@teledyne.com

Ryan Williams

Targeted Victory

Phone: +1 617-697-9072

Email: rwilliams@targetedvictory.com

Source: Teledyne FLIR Defense

FAQ

What is the value of Teledyne FLIR's new contract with the U.S. Coast Guard (TDY)?

Teledyne FLIR Defense has been awarded a five-year IDIQ contract worth up to $74.2 million to provide modernized imaging surveillance systems to the U.S. Coast Guard.

How many ESS-M systems will Teledyne (TDY) deliver under the new Coast Guard contract?

Teledyne FLIR Defense will deliver more than 125 Electro-Optic Sensor System-Modernized (ESS-M) systems for use on USCG rotary wing aircraft.

When will Teledyne (TDY) begin deliveries of the new ESS-M systems to the Coast Guard?

Deliveries of the ESS-M systems will begin in Q4-2025.

What aircraft will the Teledyne FLIR ESS-M systems be used on (TDY)?

The ESS-M systems will be used specifically on the U.S. Coast Guard's MH-60 and MH-65 rotary wing aircraft.

What are the main applications for Teledyne's ESS-M systems (TDY)?

The ESS-M systems will be used for search and rescue, living marine resources, law enforcement, coastal security, drug and migrant interdiction, and ports and waterways protection.