Ralliant Reports Third Quarter 2026 Results and Raises Full Year Guidance

• Revenue of $620 million, up 17% year-over-year with double-digit revenue growth in both segments
• Significant margin expansion year-over-year, resulting in net earnings margin of 13.9%; adjusted EBITDA margin of 23.5%
• Net earnings per diluted share (“EPS”) of $0.77; adjusted EPS of $0.93
• Trailing twelve-month (“TTM”) operating cash flow of $338 million and TTM free cash flow of $303 million
• Accelerating RBS-led Enterprise Productivity Program (“EPP”); now expect to exit 2026 at $30-35 million annualized run-rate savings, on path to $50-60 million annualized run-rate savings target by 2028

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

For the third quarter, revenue of $620 million was up 17% year-over-year on both a total and organic basis.

Net earnings were $86 million, and adjusted net earnings were $104 million, resulting in EPS increasing 117% year-over-year to $0.77 and adjusted EPS increasing 64% year-over-year on a normalized basis¹ to $0.93.

Net earnings margin was 13.9%, a 630 basis point improvement year-over-year. Adjusted EBITDA margin was 23.5%, a 310 basis point improvement year-over-year. On a normalized basis, adjusted EBITDA margin improved 400 basis points year-over-year.

“We delivered another strong quarter, exceeding the high end of our expectations and contributing to raised full-year 2026 guidance,” said Tami Newcombe, President and Chief Executive Officer. “Our RBS-driven operating rigor is translating into strong growth, expanded margins and strong cash flow.”

Ms. Newcombe continued, “Our profitable growth strategy is gaining momentum. We are investing organically to strengthen our opportunities across mission-critical defense programs, power grid modernization, and AI enablement, where customer investment continues to accelerate. Our revenue growth has continued to accelerate across both segments with book-to-bill above 1.1, and we see significant runway ahead. At the same time, productivity and strong cash management give us greater capacity to invest and extend that growth runway, expand margins, and return capital to compound long-term value for shareholders.”

Third Quarter 2026 Segment Highlights
(All results compared with the third 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 $376 million, up 15%, and up 15% organically
• Operating profit of $112 million and operating profit margin of 29.7%, up 24% and up 210 basis points, respectively
• Adjusted EBITDA of $115 million and adjusted EBITDA margin of 30.5%, up 23% and up 185 basis points, respectively; up 270 basis points on a normalized basis

In Defense & Space, growth was driven by continued execution against a multi-year backlog. Utilities delivered another record quarter of orders and of revenue as customers continued to invest in grid modernization. Industrial Manufacturing and Other end markets continued to accelerate during the quarter, primarily driven by data center demand.

Operating profit margin and adjusted EBITDA margin expanded during the quarter, driven primarily by operating leverage on higher volumes, pricing, higher defense margins and productivity savings.

Test & Measurement (T&M)
Precision instruments and services for advanced electronics

• Revenue of $244 million, up 20%, and up 21% organically
• Operating profit of $22 million and operating profit margin of 8.9%, up 1,420% and 970 basis points, respectively
• Adjusted EBITDA of $47 million and adjusted EBITDA margin of 19.3%, up 68% and 550 basis points, respectively; up 670 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 across compute and power infrastructure. Communications was supported primarily by commercial communication demand. Semiconductors declined as acceleration in customer investments was more than offset by the expected headwind from a large customer project completed in Q3 2025.

Profitability continued to improve, with both operating profit margin and adjusted EBITDA margin expanding significantly year-over-year. Higher volume, pricing, and productivity savings drove strong operating leverage.

Balance Sheet and Cash Flow

On a reported basis, the Company generated $111 million of cash from operating activities and invested $9 million in capital expenditures in the third quarter. On a TTM basis, the Company generated $338 million of cash from operating activities and $303 million in free cash flow. At the end of the third quarter, the Company had $366 million of cash and equivalents and $1.15 billion of long-term debt.

On October 30, 2026, the Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock. The fourth quarter 2026 dividend is payable on December 23, 2026, to stockholders of record as of the close of business on December 8, 2026.

Year-to-date, the Company has returned $167 million of capital to shareholders through $150 million towards the repurchase of an aggregate of 2.8 million shares for an average price per share of $54.74 and $17 million of dividend payments. At the end of the third quarter, $400 million remained under the Company’s share repurchase authorization.

OUTLOOK²

Fourth Quarter 2026

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

• Revenue: $620 to $640 million
• Adjusted EBITDA margin: 23.5% to 24.5%
• Adjusted EPS: $0.93 to $0.99

Assumptions

• Net interest expense of $13 to $15 million
• Adjusted effective tax rate of 16% to 18%
• Weighted average diluted shares outstanding of approximately 113 million

Full Year 2026

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

• Revenue: $2.340 to $2.360 billion
• Adjusted EBITDA margin: approximately 21.5%
• Adjusted EPS: $3.10 to $3.16

Assumptions

• Tariff assumptions are based on policy announcements as of October 30, 2026;
  • Guidance inclusive of cost of sales benefit from IEEPA tariff refunds of $2, $7, $5 million in Q2, Q3, Q4, respectively
• Geopolitical environment remains consistent without more severe disruption from Middle East conflict
• Corporate & Other costs of $16 to $20 million in Q4
• FY 2026 net interest expense of $13 to $15 million per quarter and adjusted effective tax rate of 16-18%
• Q4 and FY 2026 diluted shares outstanding of approximately 113 million
• FY 2026 share repurchases to represent approximately 50% of FCF

CONFERENCE CALL DETAILS

Ralliant will hold a conference call on Wednesday, November 4, 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,” “normalized adjusted net earnings,” “adjusted EPS,” “normalized adjusted EPS,” “adjusted EBITDA” (including segment adjusted EBITDA), “normalized 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 July 30, 2026 and to be filed with the SEC on November 4, 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 CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AND OTHER INFORMATION

This earnings release includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP below. Management believes that each of the non-GAAP financial measures described below provide useful information to investors by reflecting additional ways of viewing aspects of the operations of Ralliant Corporation (“Ralliant”, the “Company”, “its”, or “their”), that when reconciled to the corresponding most directly comparable GAAP measure, help its investors to understand the long-term profitability trends of its business, and facilitate comparisons of its operational performance and profitability to prior and future periods and to its peers.

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