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Ralliant Corporation (RAL)
NYSE:RAL
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Ralliant Corporation
(NYSE:RAL)
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Rating:83Outperform
Price Target:
$60.00
▲(23.10% Upside)
RAL scores well primarily due to strong financial quality—minimal leverage and robust free cash flow—supported by attractive valuation (moderate P/E and very high dividend yield). Technicals are constructive with positive trend and moderate momentum, while the earnings outlook is generally positive but tempered by regional and segment-level demand headwinds and the prior profitability reset.
Ralliant Corporation (RAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.78B
Dividend Yield0.19%
Average Volume (3M)1.01M
Price to Earnings (P/E)16.7
Beta (1Y)0.81
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorServices
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.60
Shares Outstanding112,805,824
10 Day Avg. Volume833,383
30 Day Avg. Volume1,009,833
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.43
Price to Sales (P/S)2.49
P/FCF Ratio12.77
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue4.62
Enterprise Value/Gross Profit9.20
Enterprise Value/Ebitda25.95
Forecast
1Y Price Target
$58.83Price Target Upside20.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ralliant Corporation Business Overview & Revenue Model
Company DescriptionRalliant Corporation specializes in the design, development, and manufacturing of precision instruments and engineered products. The company offers test and measurement systems, advanced specialty sensors, and subsystems for defense and space applications.
How the Company Makes Money
Ralliant Corporation Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements such as exceeding financial guidance, growth in key markets, and significant free cash flow, but also highlighted challenges like revenue declines in specific segments and geopolitical issues affecting performance in certain regions.Q3-2025 Updates
Positive Updates
Financial Performance Exceeds Guidance
All financial results for Q3 2025 were at or above the high end of guidance ranges, showing commitment to delivering results while executing long-term strategic priorities.
Growth in Defense and Utilities
High growth in the Utilities and Defense end markets with sequential improvement in Test & Measurement and Industrial Manufacturing. Defense revenue grew 18% year-over-year and Utilities revenue grew 11% year-over-year.
Significant Free Cash Flow
Generated $127 million in free cash flow with a conversion rate of 185% in Q3, significantly exceeding the long-term target of over 95%.
New Product Launches
Tektronix launched two new high-performance precision instruments, the DPO7000 and the MP5000, which are expected to drive growth and innovation.
Negative Updates
Revenue Decline in Test & Measurement
Year-over-year revenue declined 14% in Test & Measurement due to cautious customer investment and a comparison against large projects in the prior year.
Challenges in Western Europe and China
Western Europe experienced a 6% decline in revenue due to customer cautiousness, and China is also down 6% year-over-year amid geopolitical headwinds and export controls.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin declined year-over-year, driven by lower Test & Measurement volume and increased operating expenses.
Company Guidance
During Ralliant Corporation's Third Quarter 2025 Earnings Call, the company presented a positive outlook for the fourth quarter, with expectations for revenue between $535 million and $550 million, and an adjusted EBITDA margin of 20% to 21%. The company achieved significant free cash flow in Q3, with a conversion rate well above the long-term target of over 95%. Key financial highlights included a 5% sequential revenue growth over Q2, driven by strong performance in Defense and a seasonal step-up in Test & Measurement. The Sensors & Safety Systems segment saw an 11% year-over-year revenue increase, while adjusted EBITDA margins expanded by 60 basis points sequentially to 20.4%. Ralliant's cost savings program aims to deliver $9 million to $11 million in annualized savings by the end of 2026. Despite facing geopolitical headwinds in China and cautiousness in Western Europe, the company reported a 3% year-over-year revenue growth in North America.Ralliant Corporation Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 1.51B | 2.15B | 2.16B |
| Gross Profit | 760.30M | 1.11B | 1.12B |
| EBITDA | 269.40M | 508.30M | 542.50M |
| Net Income | 138.50M | 303.00M | 416.80M |
Balance Sheet | |||
| Total Assets | 5.27B | 4.72B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 264.20M | 0.00 | 0.00 |
| Total Debt | 1.15B | 71.70M | 47.10M |
| Total Liabilities | 2.30B | 956.60M | 800.20M |
| Stockholders Equity | 2.96B | 3.76B | 2.26B |
Cash Flow | |||
| Free Cash Flow | 266.80M | 420.20M | 432.60M |
| Operating Cash Flow | 296.00M | 454.50M | 461.80M |
| Investing Cash Flow | -27.70M | -1.71B | -22.40M |
| Financing Cash Flow | -16.80M | 1.26B | -431.70M |
Ralliant Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $5.78B | 16.69 | ― | 0.19% | ― | ― | |
74 Outperform | $7.91B | 119.55 | 1.47% | ― | ― | ― | |
73 Outperform | $6.32B | 95.16 | 4.36% | 0.89% | -0.37% | -34.97% | |
73 Outperform | $4.67B | 155.21 | 5.28% | 0.22% | 9.22% | 65.05% | |
57 Neutral | $5.33B | -157.62 | -2.24% | ― | 8.63% | 72.72% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% |
* Services Sector Average
RAL
Ralliant Corporation
51.20
3.30
6.89%
HXL
Hexcel
79.39
14.35
22.06%
MRCY
Mercury Systems
88.74
46.99
112.55%
VSEC
VSE
199.49
105.71
112.72%
AMTM
Amentum Holdings, Inc.
32.47
9.65
42.29%
Ralliant Corporation Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ralliant Corporation Amends Credit Agreement with PNC Bank
Positive
Nov 25, 2025
On November 24, 2025, Ralliant Corporation entered into an amendment to its Credit Agreement with PNC Bank, which reduces the Term SOFR interest rate by 0.10%, eliminates a ratings-based pricing grid, and permanently reduces undrawn commitments to $0, removing a 0.125% ticking fee. These changes are expected to impact the company’s financial operations by lowering borrowing costs and simplifying its credit structure.
The most recent analyst rating on (RAL) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Ralliant Corporation stock, see the RAL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.