Ralliant Stock Earnings Reports

Ralliant reported Q4 2025 revenue of $555M, up 1% year-over-year and sequentially improving (+5% Q3→Q4). Adjusted EBITDA margin was 20.8% and adjusted EPS was $0.69; free cash flow remained strong with 117% conversion and net leverage ~1.9x. Sensors & Safety Systems (≈60% of revenue) led growth (+6% YoY) across defense, utilities and industrial manufacturing; Test & Measurement (≈40%) was down 6% YoY but showed sequential improvement, driven by communications and stabilized distributor activity in diversified electronics. Management recorded a $1.4B noncash goodwill impairment related to the EA Electroautomatique business (EV demand weakness), excluded from adjusted results. 2026 guidance: Q1 revenue $508M–$522M (5%–8% YoY), adjusted EBITDA margin 17%–18%, adjusted EPS $0.46–$0.52; full-year 2026 revenue $2.1B–$2.2B (2%–6% YoY), adjusted EBITDA margin 18%–20%, adjusted EPS $2.22–$2.42. The company is prioritizing organic reinvestment (commercial, innovation, manufacturing), modestly higher CapEx (2%–3% of revenue), dividend ($0.05/quarter) and a $200M buyback authorization. Management flagged structural margin headwinds from public-company stand-up costs (roughly a ~250 bp YoY headwind) and near-term investments—while reaffirming long-term targets (organic growth ~3% and mid-20s% adjusted EBITDA for Sensors & Safety; overall operating discipline via the Ralliant Business System and AI augmentation).