Ralliant Corporation (RAL) AI Stock Analysis

• Market Cap: $5.09B
• Dividend Yield: 0.19%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.69
• Shares Outstanding: 112,805,824
• 10 Day Avg. Volume: 1,614,974
• 30 Day Avg. Volume: 1,107,218
• PEG Ratio: <0.01
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 16.02
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 5.84
• Enterprise Value/Ebitda: -5.68
• 1Y Price Target: $48.50
• Price Target Upside: 7.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): $2.17B

• Rating: 55 Neutral
• Price Target: $46.00 ▲(2.00% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by the sharp 2025 earnings collapse and weaker balance sheet/leverage profile, alongside a technically weak price trend. These are partly offset by still-strong cash generation, constructive (though cautious) 2026 guidance with high free-cash-flow conversion targets, and shareholder-return signals (very high dividend yield and initiated buybacks).

Positive Factors

Strong free cash flow generation and conversion

Sustained free-cash-flow generation and a 117% TTM conversion rate provide durable internal funding for capex, dividends and buybacks, reduce reliance on external financing, and give management flexibility to de-lever or invest through cyclicality without depending on near-term earnings.

Diversified end markets with structural tailwinds

A diversified portfolio spanning defense, utilities, data centers and communications reduces single-market cyclicality. Structural themes (grid modernization, defense replenishment, data-center monitoring) underpin steady demand and make revenue less dependent on one cyclical end market over a 2–6 month horizon.

Improved financing terms and capital-return actions

Lowered borrowing costs and simplified credit terms improve interest expense predictability and liquidity. Simultaneous repurchases and a dividend signal disciplined capital allocation and management confidence, supporting shareholder returns while retaining flexibility to meet leverage targets.

Negative Factors

Large noncash goodwill impairment and earnings hit

A $1.4B impairment reflects a durable downward revision to long-term cash-flow expectations for the EA business and reduces reported equity, constrains accounting flexibility and investor confidence, and signals structural demand or forecast changes that can persist beyond one fiscal quarter.

Material increase in leverage and weakened balance sheet

Higher absolute debt and materially weaker equity reduce financial resilience. Elevated leverage increases interest and refinancing risk, limits ability to fund acquisitions or aggressive investment, and makes the company more sensitive to cash-flow volatility over the medium term.

Structural margin headwinds from post-spin costs and soft T&M demand

Persisting standalone OpEx increases and slower Test & Measurement demand compress margins and reduce free-cash-flow upside. The post-spin run-rate costs are recurring, meaning margin recovery depends on sustained volume gains or realization of targeted cost savings over multiple quarters.

Ralliant Corporation Business Overview & Revenue Model

Company Description

Ralliant 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 Financial Statement Overview

Summary

Financials are mixed with elevated risk: 2025 results swung to a ~$1.21B net loss despite revenue growth (~+31.5% YoY), and leverage stepped up materially (debt ~$1.15B; ~0.70x debt-to-equity). Offsetting this, operating cash flow (~$398M) and free cash flow (~$358M) remained solid and positive, though the cash-flow cushion weakened versus 2024.

Income Statement

Results deteriorated sharply in 2025: revenue grew to ~$2.07B (+31.5% YoY), but profitability collapsed, swinging from a ~$303M profit in 2024 to a ~$1.21B loss in 2025 and turning margins deeply negative. While gross margin held around ~50%, the magnitude of the net loss and negative operating profitability in 2025 overwhelm the otherwise solid 2023–2024 earnings profile.

Balance Sheet

The balance sheet weakened materially in 2025, with debt rising to ~$1.15B and leverage increasing to ~0.70x debt-to-equity (vs ~0.02x in 2023–2024). Equity also declined meaningfully, and returns turned sharply negative in 2025, signaling that the large loss is pressuring capital strength despite a still sizable asset base.

Cash Flow

Cash generation remains a relative strength: 2025 produced ~$398M of operating cash flow and ~$358M of free cash flow, staying positive despite the large net loss. That said, free cash flow fell year over year and cash generation covered only about a third of obligations in 2025 (down from ~85% in 2024), indicating reduced cushion and higher dependence on continued cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	2.07B	2.15B	2.16B
Gross Profit	1.04B	1.11B	1.12B
EBITDA	-1.07B	508.30M	542.50M
Net Income	-1.21B	303.00M	416.80M
Balance Sheet
Total Assets	3.82B	4.72B	3.06B
Cash, Cash Equivalents and Short-Term Investments	318.80M	0.00	0.00
Total Debt	1.15B	71.70M	47.10M
Total Liabilities	2.19B	956.60M	800.20M
Stockholders Equity	1.63B	3.76B	2.26B
Cash Flow
Free Cash Flow	358.40M	420.20M	432.60M
Operating Cash Flow	397.60M	454.50M	461.80M
Investing Cash Flow	-37.70M	-1.71B	-22.40M
Financing Cash Flow	-54.70M	1.26B	-431.70M

Ralliant Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMTM	67 Neutral	$7.36B	73.35	2.17%	―	―	―
VSEC	66 Neutral	$6.46B	172.75	5.28%	0.22%	9.22%	65.05%
HXL	64 Neutral	$7.01B	67.59	7.87%	0.89%	-0.37%	-34.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAL	55 Neutral	$5.09B	-4.29	―	0.19%	―	―
MRCY	55 Neutral	$5.33B	-172.79	-2.08%	―	8.63%	72.72%

Ralliant Corporation Corporate Events

Ralliant Highlights Outlook and Share Buybacks at Conferences

Ralliant Corporation, a precision technologies provider of instruments, sensors and safety systems for mission-critical applications, reported 2025 revenue of about $2.1 billion, supported by some 7,000 employees, roughly 20 manufacturing sites and around 90,000 customers. The company focuses on sensors and safety systems and test and measurement products that serve utilities, aerospace, defense, communications, energy storage and industrial manufacturing, emphasizing its people-first culture and the Ralliant Business System as key differentiators.

On February 17, 2026, Ralliant posted an investor presentation outlining its performance and outlook ahead of appearances at Citi’s 2026 Global Industrial Tech and Mobility Conference and Barclays’ 43rd Annual Industrial Select Conference, highlighting that it has completed its transition to a standalone public company and clarified its post-spin cost structure. Management said Ralliant has consistently delivered quarterly results at or above guidance since listing, remains incrementally more positive on its end markets despite normalized 2025 and below-target 2026 adjusted EBITDA margin guidance, and has begun open-market share repurchases—buying 935,000 shares for $39 million between February 6 and February 16, 2026—in a move that underscores confidence in its long-term value and profitable growth strategy centered on defense technologies, grid modernization and power electronics.

The most recent analyst rating on (RAL) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Ralliant Corporation stock, see the RAL Stock Forecast page.

Ralliant Corporation Posts Q4 Results and Issues 2026 Outlook

On February 4, 2026, Ralliant Corporation reported fourth-quarter 2025 revenue of $555 million, up 1% year-on-year and 5% sequentially, alongside a net loss of $1.4 billion driven by a non-cash goodwill impairment in its Test & Measurement segment linked to revised expectations for the EA Elektro-Automatik business amid softer electric-vehicle adoption forecasts; excluding this charge, adjusted net earnings were $79 million with an adjusted EBITDA margin of 20.8%, and the company generated $92 million of free cash flow while ending the quarter with $319 million in cash and $1.15 billion of total debt. Segment results highlighted solid growth and margin pressure in Sensors & Safety Systems due to higher employee costs, and weaker but sequentially improving sales and profitability in Test & Measurement, while the board reinforced its capital-return strategy with a quarterly dividend and an unused $200 million share repurchase authorization, and management emphasized its post-separation momentum and long-term strategic priorities by issuing 2026 guidance that anticipates continued revenue growth and strong free cash flow conversion; also on February 4, 2026, Ralliant announced it would hold its first annual meeting of stockholders on June 5, 2026, setting a February 14, 2026 deadline for shareholder nominations and proposals.

The most recent analyst rating on (RAL) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Ralliant Corporation stock, see the RAL Stock Forecast page.