Ralliant beats its targets. Tariff refunds don't explain it all.
Ralliant raises its sales and profit forecasts after exceeding July targets. Operating demand, tariff refunds and weaker cash flow shape the comparison.
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Ralliant Corporation
Ralliant supplies precision sensors, safety systems and testing equipment used in power grids, defense, industrial production and electronics.
- Ticker
- RAL
- Exchange
- XNYS
- SEC CIK
- 0002041385
Ralliant sells sensors, safety systems and precision testing equipment used in power grids, defense, industrial production and electronics. It became independent from Fortive in 2025. Its fiscal third quarter ended October 2, 2026.
Quarterly record
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | 620.1 | 529.1 |
| Operating profit | 117.5 | 52.0 |
| Net income | 86.1 | 39.9 |
| Reported diluted EPS | 0.77 | 0.35 |
Adjusted EPS was $0.93. The company's normalized prior-year figure was $0.57, reflecting additional standalone costs after its separation from Fortive. Adjustments also remove acquisition-related amortization and specified separation, restructuring and tax items.
Expectations through the year
The annual sales forecast increased to $2.340 billion to $2.360 billion from July's $2.250 billion to $2.300 billion. Adjusted EPS increased to $3.10 to $3.16 from $2.76 to $2.90, with an adjusted EBITDA margin of about 21.5%.
The fourth-quarter outlook calls for $620 million to $640 million of revenue, a 23.5% to 24.5% adjusted EBITDA margin and adjusted EPS of $0.93 to $0.99. The analysis of Ralliant's sales and margin upgrade compares the latest delivery with July's targets.
The guidance includes tariff-refund cost benefits of $2 million in the second quarter, $7 million in the third and $5 million in the fourth. Expected productivity savings within 2026 rose to $16 million to $18 million from $10 million to $12 million. The separate target for the annualized savings rate at year-end is $30 million to $35 million.
Cash and capital returns
| Measure | 2026 | 2025 |
|---|---|---|
| Operating cash flow | 235.9 | 296.0 |
| Capital spending | 24.5 | 29.2 |
Higher working capital and the timing of compensation, tax, interest and other payments affected cash flow. Cash and equivalents were $365.8 million at quarter-end.
The company completed its accelerated share repurchase in the second quarter. Nine-month repurchase cash spending was $151.5 million, including taxes and fees. There were no third-quarter repurchases, and $400 million of authorization remained.
Borrowing
Debt principal was $1.15 billion, with a carrying value of $1.149 billion. A March refinancing left a $550 million term loan due in March 2029 and a $600 million loan due in June 2028. The $750 million revolving facility was undrawn, and the company reported compliance with its debt covenants.
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