Ralliant Reports Second Quarter 2026 Results and Raises Full Year Guidance

• Revenue of $568 million, up 13% year-over-year with double-digit revenue growth in both segments
• Net earnings margin of 10.1%; adjusted EBITDA margin of 19.8% 
• Net earnings per diluted share (“EPS”) of $0.51; adjusted EPS of $0.68
• Trailing twelve-month (“TTM”) operating cash flow of $365 million and TTM free cash flow of $328 million
• Progressing against RBS-led Enterprise Productivity Program; on track to deliver $50-60 million of annualized run-rate savings by 2028
• Completed $100 million accelerated share repurchase (“ASR”) program in Q2, contributing to $161 million of total capital returned to shareholders year-to-date

RALEIGH, N.C.--(BUSINESS WIRE)--Ralliant Corporation (“Ralliant” or the “Company”) (NYSE: RAL) today announced financial results for the second quarter of 2026.

For the second quarter, revenue of $568 million was up 13% year-over-year on both a total and organic basis.

Net earnings were $57 million, and adjusted net earnings were $76 million, resulting in EPS of $0.51 and adjusted EPS of $0.68.

Net earnings margin was 10.1%, a 60 basis point improvement year-over-year. Adjusted EBITDA margin was 19.8%, flat year-over-year. On a normalized basis, adjusted EBITDA margin improved 390 basis points year-over-year¹.

“Our second quarter performance exceeded the high end of our guidance, and we are raising 2026 full year guidance,” said Tami Newcombe, President and Chief Executive Officer. “These results reflect the strength of our portfolio, the power of the Ralliant Business System, and the disciplined execution of our teams around the world.”

Ms. Newcombe continued, “As we celebrate Ralliant's first year as an independent company, we are making meaningful progress executing our profitable growth strategy. Our operating rigor is enabling us to help customers address critical needs across electrification and defense while converting strong secular demand into accelerated growth, share gains, and expanding profitability. At the same time, we are on track to deliver $10 to $12 million of savings this year with our Enterprise Productivity Program, which has already begun to add to margin expansion and cash generation, creating additional capacity to invest in strategic growth opportunities. Supported by a strong balance sheet and disciplined capital allocation, we remain well positioned to create long-term value for shareholders.”

Second Quarter 2026 Segment Highlights

(All results compared with the second quarter of 2025 unless otherwise noted.)

Sensors & Safety Systems (S&SS)

Power grid monitoring solutions, defense and space technologies, industrial sensors for demanding environments

• Revenue of $347 million, up 12%, and up 11% organically
• Operating profit of $99 million and operating profit margin of 28.4%, up 24% and up 290 basis points, respectively
• Adjusted EBITDA of $102 million and adjusted EBITDA margin of 29.4%, up 16% and up 100 basis points, respectively; up 350 basis points on a normalized basis

Industrial Manufacturing and Other end markets accelerated during the quarter, reflecting a broadening short-cycle industrial recovery. In Defense & Space, growth was driven by continued execution against a multi-year backlog supporting the replenishment of critical missile and munitions programs. Utilities delivered record quarterly orders and revenue as customers continued to invest in grid modernization and reliability projects supported by durable secular demand.

Operating profit margin and adjusted EBITDA margin expanded during the quarter, driven primarily by operating leverage on higher volumes, pricing actions, and productivity savings, partially offset by higher variable employee compensation. Operating profit margin also benefited from lapping pre-spin corporate cost allocations. On a normalized basis, adjusted EBITDA margin expansion was similarly driven by operating leverage, pricing benefits, and productivity savings.

Test & Measurement (T&M)

Precision instruments and services for advanced electronics

• Revenue of $221 million, up 15%, and up 16% organically
• Operating profit of $5 million and operating profit margin of 2.4%, up 138% and 980 basis points, respectively
• Adjusted EBITDA of $32 million and adjusted EBITDA margin of 14.7%, up 86% and 560 basis points, respectively; up 750 basis points on a normalized basis

Growth was broad-based across the segment during the quarter. Diversified Electronics continued to benefit from strong customer investment in electrification. Communications was supported by data center, defense, and government demand. Semiconductor returned to growth as market conditions improved, particularly in power semiconductor applications.

Profitability improved meaningfully, with both operating profit margin and adjusted EBITDA margin expanding year-over-year. Higher volume, pricing realization, and productivity savings drove strong operating leverage, partially offset by higher variable employee compensation. Operating profit margin also benefited from lapping prior-year pre-spin corporate cost allocations. On a normalized basis, adjusted EBITDA margin expansion was similarly driven by operating leverage, pricing benefits, and productivity savings.

Balance Sheet and Cash Flow

On a reported basis, the Company generated $106 million of cash flows from operating activities and invested $6 million in capital expenditures in the second quarter. On a TTM basis, the Company generated $365 million of cash flows from operating activities and $328 million in free cash flow. At the end of the second quarter, the Company had $271 million of cash and equivalents and $1.15 billion of long-term debt.

Year-to-date, the Company returned $161 million of capital to shareholders through $11 million of dividend payments, and $150 million towards the repurchase of an aggregate of 2.8 million shares for an average price per share of $54.74 (including repurchases under the previously announced ASR program). During the quarter, the Company repurchased 1.6 million shares of common stock for $100 million under the ASR program, which fully settled during the quarter. At the end of the second quarter, $400 million remained under the Company’s share repurchase authorization.

OUTLOOK²

Third Quarter 2026

For the third quarter of 2026, Ralliant is providing the following outlook:

• Revenue: $570 to $590 million
• Adjusted EBITDA margin: 20.5% to 21.5%
• Adjusted EPS: $0.72 to $0.78

Assumptions

• Net interest expense of $14 to $16 million
• Adjusted effective tax rate of 16% to 18%
• Weighted average diluted shares outstanding of approximately 112 million

Full Year 2026

For the full year 2026, Ralliant is providing the following updated outlook:

• Revenue: $2.250 to $2.300 billion
• Adjusted EBITDA margin: 20.0% to 21.0%
• Adjusted EPS: $2.76 to $2.90

Assumptions

• Tariff assumptions are based on policy announcements as of July 24, 2026; expect to continue to fully offset tariff cost; inclusive of small benefit from tariff refunds received through Q2 that will be recognized in cost of sales
• Geopolitical environment remains consistent without more severe disruption from Middle East conflict
• Corporate & Other costs of approximately $20-23 million per quarter in the second half of the year, an increase primarily driven by Enterprise Productivity Program stand-up costs, optimizing G&A costs across the enterprise that results in net savings, but shifts some costs from the segments into corporate, and higher variable compensation
• Net interest expense and adjusted effective tax rate consistent with Q3 guidance
• Diluted shares outstanding of approximately 112 million
• Share repurchases to represent approximately 50% of free cash flow

CONFERENCE CALL DETAILS

Ralliant will hold a conference call on Thursday, July 30, 2026, at 8:30 a.m. ET to discuss the quarterly results and future outlook. The audio webcast and accompanying slide presentation will be accessible on the “Investors” section of Ralliant’s website, investors.ralliant.com, under “Events/Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

The conference call can be accessed by dialing 877-407-8211 within the U.S. or +1 201-389-0902 outside the U.S. a few minutes before 8:30 a.m. ET and notifying the operator that you are dialing in for Ralliant’s earnings conference call. Access to the real-time audio webcast may be found on the Ralliant Investor Relations website at investors.ralliant.com, where related materials will be posted prior to the conference call and a replay of the webcast will be available for six months following the conference call.

ABOUT RALLIANT

Ralliant is a global provider of precision technologies that specializes in designing, developing, manufacturing, and servicing precision instruments and highly engineered products. Ralliant’s two strategic reporting segments — Sensors & Safety Systems and Test & Measurement — include well-known brands with leading positions in their markets. The Company’s businesses empower engineers with precision technologies essential for breakthrough innovation that brings advanced technologies to the market faster and more efficiently. With over 150 years of operating experience and enduring customer trust, the Company is known for delivering innovative, high-quality products with the precision that mission-critical systems demand. Ralliant is headquartered in Raleigh, North Carolina and employs a team of approximately 7,000 research and development, manufacturing, sales, distribution, service, and administrative employees. The Company’s global footprint enables a unique 'engineer to engineer' approach, which allows it to build enduring trust, credibility, and partnerships with customers across both Fortune 1000 companies and next-generation start-up enterprises. With a culture rooted in continuous improvement, the core of the Company’s operating model is the Ralliant Business System. For more information please visit: www.ralliant.com.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this earnings release also references “adjusted net earnings,” “adjusted EPS,” “adjusted EBITDA” (including segment adjusted EBITDA), “adjusted EBITDA margin” (including segment adjusted EBITDA margin), “normalized adjusted EBITDA margin” (including segment normalized adjusted EBITDA margin), “free cash flow,” “adjusted effective tax rate,” and “organic revenue growth” (including segment organic revenue growth), which are non-GAAP financial measures. The reasons why the Company believes these measures, when used in conjunction with the most directly GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, reconciliations of certain of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in “Reconciliation of GAAP to Non-GAAP Financial Measures and Other Information” below. Such non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Ralliant in this earnings release may be different from similarly-titled non-GAAP measures used by other companies.

FORWARD-LOOKING STATEMENTS

Certain statements included in this earnings release are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: anticipated financial results, outlook or guidance, assumptions underlying such outlook or guidance (including the effects of tariffs and our ability to offset them, and the geopolitical climate, including the ongoing conflict in the Middle East); cash flows, the Company’s liquidity position or other financial measures; management’s plans and strategies for future operations and growth, including statements relating to anticipated operating performance, cost reductions, productivity, and savings initiatives, restructuring activities, new product and service developments, customer demand, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, stockholder value creation, and capital allocation priorities, including stock repurchases and dividends; the effects of the separation from Fortive on the Company; growth, declines and other trends in markets the Company sells into, including the expected impact of trade and tariff policies (including tariff refunds), and increased demand in the Defense and Space end market; changes in government contracting requirements and federal spending; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, tax audits, and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; tax rates, tax provisions, and the impact of changes to tax laws; general economic and capital markets conditions, including expected impact of inflation or interest rate changes; impact of geopolitical events and other hostilities; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that the Company intends or believes will or may occur in the future.

Terminology such as “believe”, “expect”, “anticipate”, “forecast”, “positioned”, “intend”, “plan”, “project”, “estimate”, “grow”, “will”, “should”, “could”, “would”, “may”, “strategy”, “opportunity”, “possible”, “potential”, “outlook”, “assumptions”, “target”, and “guidance” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Forward-looking statements are based on assumptions and assessments made by management of the Company in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under “Information Relating to Forward-Looking Statements and Risk Factor Summary,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 26, 2026, and under “Information Relating to Forward-Looking Statements,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Reports on Form 10-Q filed with the SEC on May 12, 2026 and to be filed with the SEC on July 30, 2026.

Forward-looking statements are not guarantees of future performance and actual results may differ materially from the results, developments, and business decisions contemplated by the Company’s forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date of the document or other communication in which they are made (or such earlier date as may be specified in such statement). Ralliant assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise.

The timing and amount of share repurchases will be determined by Ralliant based on its evaluation of market conditions and other factors. The Company’s stated plans do not obligate Ralliant to acquire any particular amount of shares and may be suspended or discontinued at any time.

RALLIANT C

INVESTOR CONTACT
Nathan McCurren
Vice President, Investor Relations
Ralliant Corporation
Investors@ralliant.com

MEDIA CONTACT
Alvenia Scarborough
Vice President, Communications
Ralliant Corporation
Media@ralliant.com