SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                     ---------------------------------------

                                    FORM 10-Q


   (mark one)

     [X]Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934 for the Quarter Ended July 1, 1995.

     [ ]Transition Report Pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934.


                          Commission File Number 1-8002


                           THERMO ELECTRON CORPORATION
             (Exact name of Registrant as specified in its charter)


   Delaware                                                    04-2209186
   (State or other jurisdiction of                       (I.R.S. Employer
   incorporation or organization)                     Identification No.)


   81 Wyman Street, P.O. Box 9046
   Waltham, Massachusetts                                      02254-9046
   (Address of principal executive offices)                    (Zip Code)

     Registrant's telephone number, including area code: (617)622-1000

      Indicate by check mark whether the Registrant (1) has filed all
      reports required to be filed by Section 13 or 15(d) of the
      Securities Exchange Act of 1934 during the preceding 12 months (or
      for such shorter period that the Registrant was required to file
      such reports), and (2) has been subject to such filing requirements
      for the past 90 days. Yes [X] No [ ]

      Indicate the number of shares outstanding of each of the issuer's
      classes of Common Stock, as of the latest practicable date.


                 Class                  Outstanding at July 28, 1995
      -----------------------------     ----------------------------
      Common Stock, $1.00 par value              83,122,563
PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   PART I - Financial Information

   Item 1 - Financial Statements

   (a)Consolidated Balance Sheet - Assets as of July 1, 1995 and
      December 31, 1994 (In thousands)

                                                  July 1,  December 31,
                                                     1995          1994
                                               ----------  ------------
   Current Assets:
    Cash and cash equivalents                  $  528,872    $  383,005
    Short-term available-for-sale
     investments, at quoted market value
     (amortized cost of $435,343 and $617,837)    440,570       614,915
    Accounts receivable, less allowances
     of $24,504 and $21,664                       395,182       347,444
    Unbilled contract costs and fees               74,060        59,906
    Inventories:
     Raw materials and supplies                   146,714       128,876
     Work in process                               67,246        44,711
     Finished goods                                68,861        59,795
    Prepaid income taxes                           53,295        57,824
    Prepaid expenses                               19,567        15,148
                                               ----------    ----------
                                                1,794,367     1,711,624
                                               ----------    ----------

   Property, Plant and Equipment, at Cost         921,073       811,325

    Less: Accumulated depreciation and
          amortization                            213,234       186,437
                                               ----------    ----------
                                                  707,839       624,888
                                               ----------    ----------
   Long-term Available-for-sale
    Investments, at Market Value
    (amortized cost of $64,237 and $65,218)        64,803        62,451
                                               ----------    ----------
   Long-term Held-to-maturity Investments
    (quoted market value of $23,887)               22,978             -
                                               ----------    ----------
   Other Assets                                    88,036        85,338
                                               ----------    ----------
   Cost in Excess of Net Assets of
    Acquired Companies                            637,639       577,634
                                               ----------    ----------
                                               $3,315,662    $3,061,935
                                               ==========    ==========

   The accompanying notes are an integral part of these consolidated financial
   statements. 





                                        2PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (a)Consolidated Balance Sheet - Liabilities and Shareholders' Investment
      as of July 1, 1995 and December 31, 1994 (In thousands except share
      amounts)

                                                  July 1,  December 31,
                                                     1995          1994
                                               ----------  ------------
   Current Liabilities:
    Notes payable and current maturities of
     long-term obligations                     $   99,677    $   94,003
    Accounts payable                              131,902       116,768
    Accrued payroll and employee benefits          84,426        79,849
    Accrued income taxes                           39,100        35,845
    Accrued installation and warranty costs        36,597        33,442
    Other accrued expenses                        221,284       200,985
                                               ----------    ----------
                                                  612,986       560,892
                                               ----------    ----------
   Deferred Income Taxes and Other Items          121,970       115,973
                                               ----------    ----------
   Long-term Obligations:
    Senior convertible obligations                568,037       620,000
    Subordinated convertible obligations          198,216       186,661
    Tax-exempt obligations                        131,016       130,985
    Nonrecourse tax-exempt obligations             94,700        95,300
    Other                                          80,058        16,904
                                               ----------    ----------
                                                1,072,027     1,049,850
                                               ----------    ----------
   Minority Interest                              367,870       327,734
                                               ----------    ----------
   Common Stock of Subsidiary Subject to
    Redemption ($18,450 redemption value)          17,357             -
                                               ----------    ----------

   Shareholders' Investment (Note 5):
    Common stock, $1 par value, 175,000,000
     shares authorized; 83,178,307 and
     53,558,248 shares issued                      83,178        53,558
    Capital in excess of par value                497,911       493,058
    Retained earnings                             534,528       472,396
    Treasury stock at cost, 97,991 and
     38,318 shares                                 (3,268)       (1,631)     
    Cumulative translation adjustment               9,380        (3,557)
    Deferred compensation                          (1,990)       (2,657)
    Net unrealized gain (loss) on available-
     for-sale investments                           3,713        (3,681)
                                               ----------    ----------
                                                1,123,452     1,007,486
                                               ----------    ----------
                                               $3,315,662    $3,061,935
                                               ==========    ==========


   The accompanying notes are an integral part of these consolidated financial
   statements.
                                        3PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (b)Consolidated Statement of Income for the three months ended July
      1, 1995 and July 2, 1994 (In thousands except per share amounts)

                                                      Three Months Ended
                                                     --------------------
                                                      July 1,     July 2,
                                                         1995        1994
                                                     --------  ----------
   Revenues:
    Product revenues                                 $423,638   $355,161
    Service revenues                                   54,398     33,299
    Research and development contract revenues         50,685     40,087
                                                     --------   --------
                                                      528,721    428,547
                                                     --------   --------
   Costs and Expenses:
    Cost of products                                  249,769    208,530
    Cost of services                                   36,676     24,391
    Expenses for research and development and
     new lines of business (a)                         68,649     57,360
    Selling, general and administrative expenses      115,955     94,025
    Costs associated with divisional and product
     restructuring                                        571          -
                                                     --------   --------
                                                      471,620    384,306
                                                     --------   --------

   Operating Income                                    57,101     44,241
   Gain on Issuance of Stock by Subsidiaries
    (Note 2)                                            9,690        229
   Other Income (Expense), Net (Note 3)                   (31)     9,299
                                                     --------   --------
   Income Before Income Taxes and Minority Interest    66,760     53,769
   Provision for Income Taxes                          23,923     22,653
   Minority Interest Expense                           10,253      6,698
                                                     --------   --------
   Net Income                                        $ 32,584   $ 24,418
                                                     ========   ========
   Earnings per Share:
    Primary                                          $    .39   $    .32
                                                     ========   ========
    Fully diluted                                    $    .35   $    .28
                                                     ========   ========
   Weighted Average Shares:
    Primary                                            82,856     76,203
                                                     ========   ========
    Fully diluted                                     104,852    102,094
                                                     ========   ========
   (a) Includes costs of:
        Research and development contracts           $ 43,458   $ 35,890
        Internally funded research and development     24,310     20,674
        Other expenses for new lines of business          881        796
                                                     --------   --------
                                                     $ 68,649   $ 57,360
                                                     ========   ========

   The accompanying notes are an integral part of these consolidated financial
   statements.
                                        4PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (b)Consolidated Statement of Income for the six months ended July 1, 1995
      and July 2, 1994 (In thousands except per share amounts)

                                                      Six Months Ended
                                                   ----------------------
                                                      July 1,     July 2,
                                                         1995        1994
                                                   ----------  ----------
   Revenues:
    Product revenues                               $  811,663  $  666,369
    Service revenues                                   98,306      65,685
    Research and development contract revenues         97,297      80,217
                                                   ----------  ----------
                                                    1,007,266     812,271
                                                   ----------  ----------
   Costs and Expenses:
    Cost of products                                  477,645     393,206
    Cost of services                                   67,247      47,779
    Expenses for research and development and
     new lines of business (a)                        131,792     111,018
    Selling, general and administrative expenses      225,538     177,813
    Costs associated with divisional and product
     restructuring                                      2,093           -
                                                   ----------  ----------
                                                      904,315     729,816
                                                   ----------  ----------
   Operating Income                                   102,951      82,455
   Gain on Issuance of Stock by Subsidiaries
    (Note 2)                                           22,573       8,723
   Other Income (Expense), Net (Note 3)                (3,378)      5,599
                                                   ----------  ----------
   Income Before Income Taxes and Minority Interest   122,146      96,777
   Provision for Income Taxes                          42,357      37,188
   Minority Interest Expense                           17,657      12,246
                                                   ----------  ----------
   Net Income                                      $   62,132  $   47,343
                                                   ==========  ==========
   Earnings per Share:
    Primary                                        $      .76  $      .62
                                                   ==========  ==========
    Fully diluted                                  $      .67  $      .56
                                                   ==========  ==========
   Weighted Average Shares:
    Primary                                            81,719      75,970
                                                   ==========  ==========
    Fully diluted                                     104,764      97,437
                                                   ==========  ==========
   (a) Includes costs of:
        Research and development contracts         $   84,261  $   71,530
        Internally funded research and development     45,842      37,689
        Other expenses for new lines of business        1,689       1,799
                                                   ----------  ----------
                                                   $  131,792  $  111,018
                                                   ==========  ==========

   The accompanying notes are an integral part of these consolidated financial
   statements.
                                        5PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (c)Condensed Consolidated Statement of Cash Flows for the six months ended
      July 1, 1995 and July 2, 1994 (In thousands)

                                                      Six Months Ended
                                                    --------------------
                                                       July 1,   July 2,
                                                          1995      1994
                                                     --------- ---------
   Operating Activities:
     Net cash provided by operating activities      $  66,416  $  65,588
                                                    ---------  ---------
   Investing Activities:
    Acquisitions, net of cash acquired                (98,385)  (141,289)
    Purchases of available-for-sale investments      (171,348)  (543,893)
    Purchases of held-to-maturity investments         (22,300)         -
    Proceeds from sale and maturities of
     available-for-sale investments                   357,557    234,722
    Purchases of property, plant and equipment        (26,184)   (28,374)
    Proceeds from sale of property, plant and
     equipment                                          3,725     17,245
    Decrease in net restricted funds                        -     23,420
    Other                                              (4,939)    (5,430)
                                                    ---------  ---------
     Net cash provided by (used in) investing
      activities                                       38,126   (443,599)
                                                    ---------  ---------
   Financing Activities:
    Increase (decrease) in short-term notes payable    (4,945)     1,194
    Proceeds from issuance of long-term
      obligations                                      37,994    378,105
    Repayment and repurchase of long-term
     obligations (Note 2)                             (13,619)   (12,112)
    Proceeds from issuance of Company and
     subsidiary common stock                           70,649     26,139
    Purchases of subsidiary common stock              (54,357)   (53,217)
    Other                                               1,733        128
                                                    ---------  ---------
     Net cash provided by financing activities         37,455    340,237
                                                    ---------  ---------
   Exchange Rate Effect on Cash                         3,870      1,818
                                                    ---------  ---------
   Increase (Decrease) in Cash and Cash Equivalents   145,867    (35,956)
   Cash and Cash Equivalents at Beginning of Period   383,005    325,989
                                                    ---------  ---------
   Cash and Cash Equivalents at End of Period       $ 528,872  $ 290,033
                                                    =========  =========









                                        6PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (c)Condensed Consolidated Statement of Cash Flows for the six months ended
      July 1, 1995 and July 2, 1994 (In thousands) (continued)


                                                      Six Months Ended
                                                    -------------------
                                                      July 1,    July 2,
                                                         1995       1994
                                                    ---------  ---------
   Supplemental Cash Flow Information:

    Provision for losses on accounts receivable     $   2,046  $   2,026

    Cash paid for:
     Interest                                       $  22,478  $  22,644
     Income taxes                                   $  25,626  $  12,925

    Noncash activities:
     Conversions of convertible obligations         $  73,908  $  18,560 
     Issuance of long-term debt in connection
      with acquisition                              $  22,300  $       -
     Acquisition of asset under capital lease       $  47,020  $       -


   The accompanying notes are an integral part of these consolidated financial
   statements.





























                                        7PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (d) Notes to Consolidated Financial Statements - July 1, 1995


   1. General

      The interim consolidated financial statements presented have been
   prepared by Thermo Electron Corporation (the Company) without audit and, in
   the opinion of management, reflect all adjustments of a normal recurring
   nature necessary for a fair statement of (a) the results of operations for
   the three- and six-month periods ended July 1, 1995 and July 2, 1994, (b)
   the financial position at July 1, 1995, and (c) the cash flows for the
   six-month periods ended July 1, 1995 and July 2, 1994. Interim results are
   not necessarily indicative of results for a full year.

      The consolidated balance sheet presented as of December 31, 1994, has
   been derived from the consolidated financial statements that have been
   audited by the Company's independent public accountants. The consolidated
   financial statements and notes are presented as permitted by Form 10-Q and
   do not contain certain information included in the annual financial
   statements and notes of the Company. The consolidated financial statements
   and notes included herein should be read in conjunction with the financial
   statements and notes included in the Company's Annual Report on Form 10-K
   for the fiscal year ended December 31, 1994, as amended, filed with the
   Securities and Exchange Commission.


   2. Transactions in Stock of Subsidiaries

      "Gain on issuance of stock by subsidiaries" in the accompanying
   statement of income for the three- and six-month periods ended July 1,
   1995, resulted primarily from the following:

         An initial public offering of 2,333,556 shares of Thermo
         Ecotek Corporation common stock in February 1995 at $12.75 per
         share for net proceeds of $27.5 million resulted in a gain of
         $7.9 million.

         Private placements of 1,601,500 shares of Thermo BioAnalysis
         Corporation common stock in March and April 1995 at $10.00 per
         share for net proceeds of $14.9 million resulted in a gain of
         $9.5 million that was recorded by the Company's Thermo
         Instrument Systems Inc. subsidiary.

         A private placement of 500,000 shares of Thermo Remediation
         Inc. common stock in May 1995 at $13.25 per share for net
         proceeds of $6.6 million resulted in a gain of $2.7 million
         that was recorded by the Company's Thermo Process Systems Inc.
         subsidiary.

         Private placements of 150,000 and 50,000 shares of ThermoLase
         Corporation common stock in June 1995 at $13.75 and $12.825
         per share, respectively, for net proceeds of $2.6 million
         resulted in a gain of $1.7 million that was recorded by the
         Company's ThermoTrex Corporation subsidiary.



                                        8PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (d) Notes to Consolidated Financial Statements - July 1, 1995 
       (continued)

   3. Other Income (Expense), Net

      The components of "Other income (expense), net" in the accompanying
   statement of income are:

                               Three Months Ended       Six Months Ended
                               ------------------     -------------------
                                July 1,   July 2,      July 1,    July 2,
   (In thousands)                   1995      1994        1995       1994
   ----------------------------------------------------------------------
   Interest income             $ 15,077   $ 10,711    $ 29,591   $ 17,910
   Interest expense             (17,980)   (16,481)    (36,371)   (26,828)
   Equity in income (loss) of
    unconsolidated subsidiaries     636       (631)        641     (1,838)
   Gain on sale of land               -     11,934           -     11,934
   Other income, net              2,236      3,766       2,761      4,421
                               --------   --------    --------   --------
                               $    (31)  $  9,299    $ (3,378)  $  5,599
                               ========   ========    ========   ========


   4. Acquisition

      On March 15, 1995, the Company acquired Coleman Research Corporation
   (Coleman Research) in exchange for 4,002,224 shares of Company common
   stock, including 202,861 shares reserved for issuance upon exercise of
   stock options. Coleman Research provides systems integration, systems
   engineering, and analytical services to government customers in the fields
   of information technology, energy and the environment, software
   engineering, launch systems, advanced radar and imaging, and health care
   systems. The acquisition has been accounted for under the
   pooling-of-interests method. Accordingly, all historical financial
   information presented has been restated to include the acquisition of
   Coleman Research. Revenues and net income for the three- and six-month
   periods ended July 2, 1994, as previously reported by the separate entities
   prior to the acquisition and as restated for the combined Company, are as
   follows:

                                    Three Months Ended   Six Months Ended
   (In thousands)                      July 2, 1994        July 2, 1994
   ----------------------------------------------------------------------
   Revenues:
    Previously reported                  $394,966            $745,442
    Coleman Research                       33,581              66,829
                                         --------            --------
                                         $428,547            $812,271
                                         ========            ========
   Net Income:
    Previously reported                  $ 24,150              46,691
    Coleman Research                          268                 652
                                         --------            --------
                                         $ 24,418            $ 47,343
                                         ========            ========


                                        9PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   (d) Notes to Consolidated Financial Statements - July 1, 1995 
       (continued)


   5. Stock Split

      In March 1995, the Company declared a three-for-two stock split in the
   form of a 50% stock dividend that was distributed on May 24, 1995, to
   shareholders of record as of April 26, 1995. Common shares outstanding as
   of July 1, 1995, and all weighted average share and per share amounts have
   been restated to reflect the stock split.


   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations

   Results of Operations

   Second Quarter 1995 Compared With Second Quarter 1994

      Sales for the second quarter of 1995 were a record $528.7 million, an
   increase of $100.2 million, or 23%, over the second quarter of 1994.
   Segment income was $64.3 million, compared with $49.5 million, an increase
   of 30%. (Segment income is income before corporate general and
   administrative expenses, costs associated with divisional and product
   restructuring, other income and expense, minority interest expense and
   income taxes.) Operating income was $57.1 million, compared with $44.2
   million in 1994, an increase of 29%. Financial results for 1994 have been
   restated to include Coleman Research, which was acquired in a
   pooling-of-interests transaction in March 1995 (Note 4).

      Sales from the Instruments segment were $185.7 million in 1995, an
   increase of $23.1 million, or 14%, over 1994. Sales increased $18.6 million
   due to Thermo Instrument's acquisitions of the Analytical Instruments
   Division of Baird Corporation in January 1995 and Gould Instrument Systems,
   Inc. in May 1995. An increase in revenues of $8.3 million as a result of
   the favorable effects of currency translation due to a weaker U.S. dollar
   in 1995 was offset in part by a decline in sales at Thermo Instrument's air
   monitoring instruments subsidiary and, to a lesser extent, certain other
   subsidiaries. The air monitoring instruments subsidiary's sales decreased
   as most orders in response to Phases I and II of the Clean Air Act of 1990
   have been completed. Orders booked by Thermo Instrument during the second
   quarter of 1995 exceeded its shipments by $10.7 million. Segment income
   margin (segment income margin is segment income as a percentage of sales)
   was 14.8% in 1995, compared with 16.5% in 1994. Segment income margin
   declined due to lower margins at acquired businesses and reduced shipments
   at the air monitoring instruments subsidiary.

      Sales from the Alternative-energy Systems segment were $81.3 million in
   1995, an increase of $10.4 million, or 15%, over 1994. Within this segment,
   revenues from Thermo Ecotek Corporation, which consist of revenues from
   alternative-energy power plant operations, were $34.0 million in 1995,
   compared with $32.7 million in 1994. The increase is primarily due to the
   Whitefield, New Hampshire, plant operating for the full quarter in 1995.
   During 1994, this plant did not operate for most of the quarter due to
   major damage to the turbine-generator. The plant returned to normal 

                                       10PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   Second Quarter 1995 Compared With Second Quarter 1994 (continued)

   operations late in the second quarter of 1994. Higher contractual energy
   rates in 1995 at all of Thermo Ecotek's facilities, except the Hemphill
   facility in New Hampshire, were substantially offset by utility-imposed
   curtailment of power output at the Woodland and Mendota plants in
   California. Sales at Peter Brotherhood Ltd. increased $5.1 million as a
   result of increased demand for turbine products and, to a lesser extent,
   increased demand for special machinery products from depressed 1994 levels.
   Sales from Thermo Power Corporation increased $4.1 million, to $27.5
   million. Within Thermo Power, sales increased $2.1 million at FES due to
   increased demand for refrigeration packages, and increased $1.1 million at
   Crusader Engines due to increased demand for marine engine-related
   products. Sales at Thermo Power's NuTemp, Inc. subsidiary, which was
   acquired in May 1994, increased $0.7 million.

      Segment income from the Alternative-energy Systems segment was $8.4
   million in 1995, compared with $7.4 million in 1994. Thermo Ecotek had
   segment income of $7.0 million, compared with $5.4 million in 1994. This
   improvement results from lower fuel costs at two of Thermo Ecotek's
   California plants and lower maintenance costs at certain facilities. In
   addition, higher contractual energy rates in 1995 were substantially offset
   by utility-imposed curtailment of power output at the Woodland and Mendota
   facilities. Lower lease expense in 1995 due to the conversion of the
   Mendota plant's operating lease to a capital lease was offset by higher
   depreciation expense on this facility. Thermo Ecotek's increased efforts to
   develop its international and domestic business lowered segment income
   margins by approximately 1%. Segment income margins at Thermo Power
   declined to 3.3% in 1995 from 6.3% in 1994 due to lower margins at NuTemp
   resulting from a change in the sales mix from higher-margin rental to
   lower-margin equipment sales. Rental revenues were adversely affected by
   the relatively cool spring season in certain of NuTemp's markets. Margins
   also declined approximately 1.7% as a result of increased research and
   development costs associated with gas-fueled lighting products and, to a
   lesser extent, natural gas-engine products. Margins were also slightly
   affected by an increase in warranty costs at Thermo Power's Crusader
   Engines division. Peter Brotherhood incurred a segment loss of $0.5 million
   in 1995, compared with a loss of $0.3 million in 1994, as a result of
   increased costs to complete jobs in process.

      Sales in the Process Equipment segment were $72.4 million in 1995, an
   increase of $26.6 million, or 58%, over 1994. Sales increased $22.0 million
   as a result of sales recorded under a $145 million contract for
   engineering, procurement, and construction services for an office
   wastepaper de-inking facility in Menominee, Michigan. The facility is
   expected to be completed in 1996. Sales also increased $2.5 million at
   Thermo Fibertek Inc.'s North American accessories business and increased
   $1.4 million at the Company's wholly owned Napco, Inc. subsidiary, which
   sells automated electroplating equipment, as a result of increased demand.
   Thermo Fibertek's sales also increased, to a lesser extent, due to the
   favorable effects of currency translation due to the weaker U.S. dollar in 


                                       11PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION


   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   Second Quarter 1995 Compared With Second Quarter 1994 (continued)

   1995. Segment income was $8.3 million in 1995, compared with $4.5 million
   in 1994. This improvement results from increased sales.

      Sales in the Biomedical Products segment were $55.1 million in 1995, an
   increase of $11.8 million, or 27%, over 1994 due primarily to increased
   demand for a number of the Company's biomedical products. Sales of
   ThermoTrex Corporation's mammography and needle-biopsy systems increased
   30% to $17.2 million; Thermo Cardiosystems Inc.'s implantable left
   ventricular-assist systems (LVAS) increased more than 100% to $5.6 million;
   skin-care products from CBI Laboratories, Inc., a subsidiary of ThermoLase
   Corporation, increased 22% to $5.6 million; neuro-diagnostic monitoring
   equipment sold by the Company's wholly owned Nicolet Biomedical Inc.
   subsidiary increased 14% to $13.2 million; and sales of blood
   coagulation-monitoring products and skin-incision devices sold by the
   Company's wholly owned International Technidyne Corporation subsidiary
   increased 24% to $8.6 million. Segment income margin improved to 14.4% from
   9.3% in 1994 as a result of increased sales and, to a lesser extent, price
   increases for Thermo Cardiosystems' air-driven LVAS.

      Sales in the Environmental Services segment were $54.4 million in 1995,
   an increase of $21.1 million, or 63%, over 1994. Within this segment, sales
   from Thermo Remediation Inc. were $13.2 million, compared with $11.6
   million in 1994. Thermo Remediation's soil-remediation sales increased 10%
   to $7.4 million due to the inclusion of $2.1 million in sales from acquired
   businesses. This increase was offset in part by lower revenues resulting
   from a decline in the volume of soil processed due to severe weather at one
   site, regulatory uncertainties at a second site, and competitive pressures
   at several locations. Thermo Remediation's nuclear services revenues
   increased 18% to $5.8 million due to a long-term environmental restoration
   contract for the U.S. Department of Energy's (DOE's) Hanford site
   (Hanford), offset in part by a decrease in radiochemistry laboratory work,
   reflecting a reduction in spending at the DOE. Sales of analytical
   laboratory and environmental consulting services increased $17.6 million,
   to $27.3 million, due to the inclusion of sales from acquired businesses.
   Sales of metallurgical services increased 11% to $11.8 million, due to
   increased demand. Segment income margin improved to 11.6% from 10.1% in
   1994 due to increased sales, offset in part by lower margins from nuclear
   services, primarily due to lower margins on sales under the Hanford
   contract and a decrease in sales from radiochemistry laboratory work.

      Sales from the Advanced Technologies segment were $80.9 million in
   1995, compared with $74.0 million in 1994. Sales increased due to the
   inclusion of revenues from acquired businesses and an increase of $8.5
   million in sales from Coleman Research due to increased contract funding.
   These increases were offset in part by a decline of $5.8 million in sales
   from Thermedics Detection Inc. Sales of Thermedics Detection's process
   detection systems declined to $4.2 million in 1995, from $9.9 million in
   1994 due to a decline in demand from its principal customer, which has
   substantially implemented its initial deployment of Alexus (TM) systems.
   Segment income margin improved to 7.2% from 4.7% in 1994, due to improved


                                       12PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION


   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   Second Quarter 1995 Compared With Second Quarter 1994 (continued)

   margins at Coleman Research and Ramsey Technology Inc., primarily due to
   efforts to control costs. These improvements were offset in part by a
   decline in segment income margin from Thermedics Detection, as a result of
   lower sales.

      The Company has adopted a strategy of spinning out certain of its
   businesses into separate subsidiaries and having these subsidiaries sell a
   minority interest to outside investors. The Company believes that this
   strategy provides additional motivation and incentives for the management
   of the subsidiaries through the establishment of subsidiary-level stock
   option incentive programs, as well as capital to support the subsidiaries'
   growth. As a result of the sale of stock by subsidiaries and the issuance
   of stock by subsidiaries upon conversion of convertible debentures, the
   Company recorded gains of $9.7 million in 1995 and $0.2 million in 1994
   (Note 2). Although the Company expects to continue this strategy in the
   future, its goal is to continue increasing segment income over the next few
   years so that gains resulting from the sale of stock by its subsidiaries
   will represent a decreasing portion of net income. The size and timing of
   these transactions are dependent on market and other conditions that are
   beyond the Company's control. Accordingly, there can be no assurance that
   the Company will be able to realize gains from such transactions in the
   future.

   First Six Months 1995 Compared With First Six Months 1994

      Sales for the first six months of 1995 were $1,007.3 million, an
   increase of $195.0 million, or 24%, over the 1994 period. Segment income
   was $117.0 million, an increase of $24.7 million, or 27%, over 1994.
   Operating income was $103.0 million in 1995, compared with $82.5 million in
   1994.

      Sales for the Instruments segment were $358.7 million, an increase of
   $48.4 million, or 16%, over 1994. Sales increased due primarily to
   acquisitions, which added revenues of $46.7 million in the first six months
   of 1995. An increase in revenues of $15.7 million due to the favorable
   effects of currency translation due to a weaker U.S. dollar in 1995 was
   substantially offset by a decline in revenues from Thermo Instrument's air
   monitoring instruments subsidiary and, to a lesser extent, certain other
   subsidiaries. The decline in the air monitoring instruments subsidiary's
   revenues is discussed in the results for the second quarter. Orders booked
   by Thermo Instrument during the first six months of 1995 exceeded its
   shipments by $16.9 million. Segment income margin declined to 14.6% in
   1995, compared with 17.1% in 1994 due to lower margins at acquired
   businesses and reduced shipments of air monitoring products.

      Sales from the Alternative-energy Systems segment were $155.5 million
   in 1995, an increase of $22.6 million, or 17%, over 1994. Within this
   segment, revenues from Thermo Ecotek were $65.1 million in 1995, compared
   with $61.9 million in 1994. This increase is primarily due to the
   Whitefield, New Hampshire plant operating for the full 1995 period, and
   higher contractual energy rates in 1995, largely offset by utility-imposed 

                                       13PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)

   First Six Months 1995 Compared With First Six Months 1994 (continued)

   curtailment of power output at the Woodland and Mendota plants in
   California. Sales from the Company's wholly owned Energy Systems division
   increased $3.7 million to $12.5 million as a result of a waste-recycling
   facility in San Diego County (the County) that commenced operations in the
   first quarter of 1994. The County has announced its desire to purchase the
   facility and terminate the service agreement under which the Company
   derives revenues from the operation of the facility. Termination of the
   service agreement would require the County to pay the Company a termination
   fee and reimburse the Company for certain other expenses incurred in
   connection with the facility. The Company is currently negotiating the
   terms of this termination, however, no assurance can be given that the
   Company will reach an agreement with the County. Sales from Thermo Power
   increased 16% to $52.4 million as a result of increased demand for marine
   products, the acquisition of NuTemp in May 1994, which increased sales by
   $2.6 million and, to a lesser extent, increased demand for cooling and
   cogeneration systems and refrigeration packages. Sales of Peter Brotherhood
   steam turbines and special purpose machinery increased $8.8 million due to
   higher demand, as discussed in the results for the second quarter.

      Segment income from the Alternative-energy Systems segment was $14.5
   million in 1995, compared with $10.9 million in 1994. Thermo Ecotek had
   segment income of $10.4 million in 1995, compared with $8.4 million in
   1994. This improvement results primarily from lower fuel expense at two of
   the California plants. In addition, higher contractual energy rates and
   higher generated output were substantially offset by utility-imposed
   curtailment of power output and increased spending on new business
   development. Segment income from the Company's Energy Systems division
   increased $1.4 million in 1995 as a result of the waste-recycling facility
   that commenced operations in the first quarter of 1994. Segment income at
   Thermo Power and Peter Brotherhood were about the same level as in 1994.

      Sales in the Process Equipment segment were $129.9 million in 1995,
   compared with $88.8 million in 1994. Sales from Thermo Fibertek increased
   $18.4 million to $93.3 million in 1995, due primarily to an increase of
   $11.2 million in sales of paper-recycling equipment, which includes $7.6
   million of sales under a subcontract with Thermo Electron to supply
   equipment for the office wastepaper de-inking facility discussed in the
   results for the second quarter. Sales also increased $5.4 million due to
   increased demand for accessories in North America and, to a lesser extent,
   the favorable effects of currency translation resulting from the weaker
   U.S. dollar in 1995. In addition to sales recorded by Thermo Fibertek under
   the office wastepaper de-inking facility project, Thermo Electron had sales
   of $19.5 million from the project. Sales of automated electroplating
   equipment from the Company's Napco subsidiary were $9.6 million, compared
   with a depressed level of $6.5 million in 1994. Segment income margin
   improved to 11.2%, compared with 9.7% in 1994 as a result of increased
   sales.

      Sales in the Biomedical Products segment were $109.3 million in 1995,
   an increase of $25.0 million, or 30%, over 1994, due primarily to increased
   demand for a number of the Company's biomedical products. Sales of 

                                       14PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   First Six Months 1995 Compared With First Six Months 1994 (continued)

   ThermoTrex's mammography and needle-biopsy systems increased 33% to $33.3
   million; Thermo Cardiosystems' LVAS increased more than 100% to $10.0
   million; skin-care products from CBI Laboratories, a subsidiary of
   ThermoLase, increased 38% to $11.8 million; neuro-diagnostic monitoring
   equipment sold by the Company's wholly owned Nicolet Biomedical subsidiary
   increased 15% to $26.3 million; and sales of blood coagulation-monitoring
   products and skin-incision devices sold by the Company's wholly owned
   International Technidyne subsidiary increased 21% to $16.5 million. Segment
   income margin improved to 13.2% from 7.8% in 1994 as a result of increased
   sales and, to a lesser extent, price increases for Thermo Cardiosystems'
   air-driven LVAS.

      Sales in the Environmental Services segment were $98.3 million in 1995,
   an increase of $32.6 million, or 50%, over 1994. Within this segment, sales
   from Thermo Remediation were $26.8 million, compared with $19.4 million in
   1994. Thermo Remediation's soil-remediation sales increased 6%, to $15.3
   million, due to the inclusion of sales from acquired businesses, offset in
   part by lower revenues at existing sites, as discussed in the results for
   the second quarter. Thermo Remediation's nuclear services revenues
   increased 23% to $11.4 million, primarily due to revenues from the
   long-term environmental restoration Hanford contract. Sales of analytical
   laboratory and environmental consulting services increased $26.0 million,
   to $44.3 million, due primarily to the inclusion of sales from acquired
   businesses. Sales of metallurgical services increased 11% due to increased
   demand. Segment income was $10.1 million in 1995, compared with $6.7
   million in 1994. Segment income increased due to higher sales, offset in
   part by higher legal expenses incurred within the environmental consulting
   services operations.

      Sales from the Advanced Technologies segment were $158.2 million in
   1995, compared with $132.6 million in 1994. Sales increased primarily due
   to the inclusion of sales from acquired businesses and an increase of $15.0
   million in sales from Coleman Research due to increased contract funding.
   These increases were offset in part by a decline in sales from Thermedics
   Detection, as discussed in the results for the second quarter. Segment
   income margin improved to 7.0% from 4.8% in 1994, due to increased sales
   and efforts to reduce costs. This improvement was offset in part by a
   decline in segment income margin from Thermedics Detection, as a result of
   lower sales.

      In the first six months of 1995, the Company recorded restructuring
   charges, classified as "Costs associated with divisional and product
   restructuring" in the accompanying statement of income, of $2.1 million, of
   which $1.5 million resulted from the decision to close its metallurgical
   services division located in Albuquerque, New Mexico. The costs primarily
   represent severance costs and the write-off of costs in excess of net
   assets of acquired companies and leasehold improvements. The facility was
   closed by the end June 1995. The remaining $0.6 million represents
   adjustments to previously established reserves.


                                       15PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   First Six Months 1995 Compared With First Six Months 1994 (continued)

      The Company recorded gains as a result of the sale of stock by
   subsidiaries of $22.6 million in 1995 and $8.7 million in 1994 (Note 2).
   Minority interest expense increased to $17.7 million in 1995 from $12.2
   million in 1994. Minority interest expense includes $3.1 million in 1995
   and $0.1 million in 1994, relating to gains recorded by the Company's
   majority-owned subsidiaries as a result of the sale of stock by their
   subsidiaries.

   Financial Condition

   Liquidity and Capital Resources

      Consolidated working capital was $1,181.4 million at July 1, 1995,
   compared with $1,150.7 million at December 31, 1994. Included in working
   capital were cash and available-for-sale investments of $969.4 million at
   July 1, 1995, compared with $997.9 million at December 31, 1994. In
   addition, at July 1, 1995, the Company had $64.8 million of long-term
   available-for-sale investments and $23.0 million of long-term
   held-to-maturity investments, compared with $62.5 million of long-term
   available-for-sale investments at December 31, 1994.

      On March 1, 1995, the Company's Thermo Instrument subsidiary entered
   into an agreement to acquire the Scientific Instruments Division (the
   Division) of Fisons plc for approximately 202 million British pounds
   sterling. On April 13, 1995, Thermo Instrument announced that it had
   received a "second request" for information regarding the transaction from
   the U.S. Federal Trade Commission (FTC). The FTC and other national
   regulatory competition authorities have expressed concern that completion
   of the transaction in its original form would affect competition in markets
   for certain product lines to be acquired by Thermo Instrument, including
   the market for mass spectrometers. On June 30, 1995, Thermo Instrument and
   Fisons plc agreed to extend the termination date under the agreement from
   June 30, 1995 to August 15, 1995 to allow for the negotiation of potential
   modifications to the transaction. The Company anticipates that this date
   will be further extended prior to August 15. In addition to receipt of
   required antitrust regulatory approvals, completion of the transaction is
   subject to consent of certain third parties, and the satisfaction of other
   customary closing conditions.

      During the first six months of 1995, the Company expended $98.4 million
   for acquisitions and $26.2 million for purchases of property, plant and
   equipment. Including the Fisons transaction discussed above, the Company
   has agreements or letters of intent to expend approximately $522 million on
   the acquisition of new businesses. These transactions are subject to
   various conditions to closing, and there can be no assurance that all of
   the transactions will be consummated. The Company has no material
   commitments for purchases of property, plant and equipment and expects
   that, for 1995, such expenditures will approximate the 1994 level.



                                       16PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



   Item 2 - Management's Discussion and Analysis of Financial Condition and
   Results of Operations (continued)


   Liquidity and Capital Resources (continued)

      During the first six months of 1995, the Company and its majority-owned
   subsidiaries issued long-term obligations of $38.0 million and repaid and
   repurchased long-term obligations of $13.6 million. Proceeds from the
   issuance of Company and subsidiary common stock totaled $70.6 million in
   the first six months of 1995. In addition, the Company and its
   majority-owned subsidiaries expended $54.4 million to purchase common stock
   of the Company's subsidiaries during the first six months of 1995. The
   Company expects that these purchases will continue although the amount of
   repurchases in a given reporting period may vary significantly.

      Subsequent to the end of the second quarter, Thermo Instrument's
   ThermoSpectra subsidiary sold 1,725,000 shares of its common stock in an
   initial public offering at $14.00 per share for net proceeds of
   approximately $21.7 million. In addition, Thermo Instrument's wholly owned
   ThermoQuest Corporation subsidiary issued and sold $96.2 million principal
   amount of 5% subordinated convertible debentures due 2000. The Company
   purchased $10 million of these debentures.


   PART II - Other Information

   Item 4 - Submission of Matters to a Vote of Security Holders

      On May 23, 1995, at the Annual Meeting of Shareholders, the
   shareholders elected a class of four incumbent directors to a three-year
   term expiring in 1998. The Directors reelected at the meeting were:
   Dr. Elias P. Gyftopoulos, Mr. Frank Jungers, Dr. Frank E. Morris, and
   Mr. Donald E. Noble. Dr. Gyftopoulos received 43,285,914 shares voted in
   favor of his election and 111,218 shares against, Mr. Jungers received
   43,283,470 shares voted in favor of his election and 113,662 shares
   against, Dr. Morris received 43,270,202 shares voted in favor of his
   election and 126,930 shares against, and Mr. Noble received 43,254,599
   shares voted in favor of his election and 142,533 shares against. No broker
   nonvotes were recorded on the election of directors.

      The shareholders also approved a proposal to amend the Company's
   Directors Stock Option Plan to change the formula for the award to outside
   Directors of stock options to purchase common stock of the Company's
   majority-owned subsidiaries as follows: 39,353,160 shares voted in favor,
   3,102,500 shares voted against, 687,277 shares abstained, and there were
   254,195 broker nonvotes.


   Item 6 - Exhibits

      See Exhibit Index on the page immediately preceding exhibits.





                                       17PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



                                   SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act of 1934,
   the Registrant has duly caused this report to be signed on its behalf by
   the undersigned thereunto duly authorized as of the 9th day of August 1995.

                                           THERMO ELECTRON CORPORATION



                                           Paul F. Kelleher
                                           ---------------------------
                                           Paul F. Kelleher
                                           Vice President, Finance



                                           John N. Hatsopoulos
                                           ---------------------------
                                           John N. Hatsopoulos
                                           Chief Financial Officer


































                                       18PAGE

                                                                     FORM 10-Q
                                                                  July 1, 1995
                           THERMO ELECTRON CORPORATION



                                  EXHIBIT INDEX


   Exhibit Number Document                                          Page
   -------------- --------                                          ----

        11        Statement re: Computation of earnings per share.

        27        Financial Data Schedule.












































                                       19