Ralliant Corporation (RAL)
NYSE:RAL
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Ralliant Corporation
(NYSE:RAL)
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Rating:67Neutral
Price Target:
$64.00
▲(35.02% Upside)
Action:Reiterated
Date:05/13/26
RAL’s score is held back primarily by the severe 2025 earnings collapse and higher leverage despite positive free cash flow. Offsetting this, management delivered an above-guidance Q1 and raised 2026 outlook with strong defense backlog and capital return actions, while technicals remain supportive with price trading above key moving averages.
Positive Factors
Consistent cash generation
Despite a large 2025 accounting loss, Ralliant produced substantial operating and free cash flow and achieved 105% trailing‑12‑month FCF conversion. Durable positive cash generation supports debt servicing, targeted buybacks, dividends and reinvestment, underpinning financial flexibility over coming quarters.
Negative Factors
Large 2025 net loss and margin collapse
The magnitude of the 2025 net loss materially eroded prior earnings quality and retained earnings, creating lasting pressure on returns and capital adequacy. Even with good gross margins, such a large loss reduces strategic optionality and raises the bar for sustained operational recovery over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Despite a large 2025 accounting loss, Ralliant produced substantial operating and free cash flow and achieved 105% trailing‑12‑month FCF conversion. Durable positive cash generation supports debt servicing, targeted buybacks, dividends and reinvestment, underpinning financial flexibility over coming quarters.
Read all positive factors
Ralliant Corporation (RAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.01B
Dividend Yield0.19%
Average Volume (3M)1.75M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees7,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-11.01
Shares Outstanding111,933,150
10 Day Avg. Volume1,453,180
30 Day Avg. Volume1,753,503
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)3.51
Price to Sales (P/S)2.78
P/FCF Ratio16.02
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit7.96
Enterprise Value/Ebitda21.06
Forecast
1Y Price Target
$65.22Price Target Upside37.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.64
Revenue Forecast (FY)$2.23B
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 appl...
Ralliant Corporation Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call communicated broad positive operational and financial momentum — above-guidance Q1 results, raised full-year guidance, strong defense backlog (> $1B), T&M order recovery and a formal productivity program. These positives are balanced against near-term headwinds: semiconductor lapping effects, regional softness in Europe/ROW, tariff exposure (~$25M) and the fact that most productivity savings are still to be realized. Management offset concerns by boosting shareholder returns (expanded buyback authorization and $100M ASR) and reaffirming strong free-cash-flow conversion.Positive Updates
Revenue Growth Above Guidance
Q1 revenue of $535 million, up 11% year-over-year reported and up 9% organic; results were above the high end of guidance with a book-to-bill above 1.1x.
Negative Updates
Semiconductor Revenue Headwind
Semiconductor organic revenue declined high-single-digits in Q1, driven by lapping a large customer project/credit from last year; management expects the headwind to persist for a couple more quarters and to be fully lapped by Q4.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
Q1 revenue of $535 million, up 11% year-over-year reported and up 9% organic; results were above the high end of guidance with a book-to-bill above 1.1x.
Read all positive updates
Company Guidance
Management raised its 2026 outlook after Q1 results beat the high end of guidance — Q1 revenue $535M (+11% YoY, +9% organic), adjusted EBITDA margin 18.6%, adjusted EPS $0.57 and trailing‑12‑month free cash flow conversion 105% — and noted a defense backlog >$1.0B; Q2 guidance is revenue $540–556M (7–10% organic), adjusted EBITDA margin 18.5–19.5% and adjusted EPS $0.58–0.64 with ~112M diluted shares after a planned $100M accelerated share repurchase; full‑year 2026 guidance was raised to $2.185–2.245B revenue, 19.5–20.5% adjusted EBITDA margin and $2.53–2.69 adjusted EPS; capital allocation updates include a $500M repurchase authorization, targeting buybacks ≈50% of free cash flow (returned $56M in Q1), a $0.05 quarterly dividend, ending Q1 cash $268M and capex of ~2–3% of revenue; they forecast a tariff headwind of ~ $25M in 2026 and have launched an enterprise productivity program targeting $50–60M of run‑rate annualized savings by 2028 (2026 in‑year savings $10–12M, exit‑2026 run‑rate ≈$20M) that is expected to add ~10 percentage points to incremental adjusted EBITDA margin in 2026 (total incremental margin ~45–50% in 2026 and ~50% in 2027–28), with a long‑term net leverage target of 1.5–2.0x adjusted EBITDA.Ralliant Corporation Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 2.12B | 2.07B | 2.15B | 2.16B |
| Gross Profit | 980.30M | 953.40M | 1.11B | 1.12B |
| EBITDA | 370.70M | 374.20M | 508.30M | 542.50M |
| Net Income | -1.24B | -1.22B | 303.00M | 416.80M |
Balance Sheet | ||||
| Total Assets | 3.70B | 3.82B | 4.72B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 268.00M | 318.80M | 0.00 | 0.00 |
| Total Debt | 1.15B | 1.15B | 71.70M | 47.10M |
| Total Liabilities | 2.13B | 2.19B | 956.60M | 800.20M |
| Stockholders Equity | 1.57B | 1.63B | 3.76B | 2.26B |
Cash Flow | ||||
| Free Cash Flow | 301.60M | 358.40M | 420.20M | 432.60M |
| Operating Cash Flow | 343.90M | 397.60M | 454.50M | 461.80M |
| Investing Cash Flow | -42.30M | -37.70M | -1.71B | -22.40M |
| Financing Cash Flow | -40.40M | -54.70M | 1.26B | -431.70M |
Ralliant Corporation Risk Analysis
Ralliant Corporation disclosed 54 risk factors in its most recent earnings report. Ralliant Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ralliant Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $7.01B | -5.65 | -51.69% | 0.19% | ― | ― | |
64 Neutral | $5.66B | 38.41 | 3.27% | ― | 26.11% | 801.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $6.70B | -496.20 | -0.96% | ― | 8.95% | 78.82% | |
61 Neutral | $4.94B | 80.50 | 4.14% | 0.22% | 7.87% | 229.36% | |
60 Neutral | $6.64B | 57.76 | 8.35% | 0.89% | 1.46% | -0.14% |
* Industrials Sector Average
RAL
Ralliant Corporation
60.17
12.83
27.09%
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59.58%
MRCY
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109.39%
VSEC
VSE
180.56
47.24
35.43%
AMTM
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22.80
0.39
1.74%
Ralliant Corporation Corporate Events
Business Operations and StrategyStock Buyback
Ralliant Launches $100 Million Accelerated Share Repurchase
Positive
May 13, 2026
On May 12, 2026, Ralliant Corporation entered into a $100 million accelerated share repurchase program as part of its previously announced Board-approved share buyback authorization. The move underscores the company’s continued focus on retu...
Business Operations and StrategyPrivate Placements and Financing
Ralliant Corporation Amends Credit Agreement and Refinances Debt
Positive
Apr 1, 2026
On March 30, 2026, Ralliant Corporation amended its existing Credit Agreement, refinancing a $530.8 million term loan due December 2026 with a new $550 million term loan maturing in March 2029 at a borrowing rate that is 12.5 basis points higher t...
Business Operations and StrategyStock BuybackFinancial Disclosures
Ralliant Highlights Outlook and Share Buybacks at Conferences
Positive
Feb 17, 2026
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 an...
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.