Ralliant Corporation (RAL)
NYSE:RAL
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Ralliant Corporation
(NYSE:RAL)
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Rating:49Neutral
Price Target:
$46.00
▼(-2.95% Downside)
Action:ReiteratedDate:04/02/26
The score is held down primarily by weak financial performance (large 2025 net loss and higher leverage) and bearish technicals (below key moving averages with negative MACD). These are partially offset by still-positive free cash flow, constructive (but mixed) 2026 guidance, and shareholder-return actions alongside a high dividend yield.
Positive Factors
Free cash flow conversion
Ralliant's very high FCF conversion (117% TTM) and positive quarterly FCF demonstrate durable cash-generation capacity despite accounting losses. Strong cash conversion supports debt service, capital reinvestment, dividends and buybacks, reducing dependence on external financing over the medium term.
Negative Factors
Large goodwill impairment
The $1.4B goodwill write-down materially reduced equity and signals prior over-optimistic forecasts for EA's markets. It reflects structural exposure to EV demand and policy shifts, lowers accounting headroom for future charges and undermines multi-year return metrics and investor confidence.
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Positive Factors
Negative Factors
Free cash flow conversion
Ralliant's very high FCF conversion (117% TTM) and positive quarterly FCF demonstrate durable cash-generation capacity despite accounting losses. Strong cash conversion supports debt service, capital reinvestment, dividends and buybacks, reducing dependence on external financing over the medium term.
Read all positive factors
Ralliant Corporation (RAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.96B
Dividend Yield0.19%
Average Volume (3M)1.18M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees7,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.69
Shares Outstanding111,758,070
10 Day Avg. Volume1,121,767
30 Day Avg. Volume1,183,190
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 Cap1.15
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda-5.35
Forecast
1Y Price Target
$49.75Price Target Upside4.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.35
Revenue Forecast (FY)$2.17B
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:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture. Operationally the company showed resilience: revenue slightly up year-over-year, sequential quarterly improvement, strong free cash flow conversion (117% TTM), healthy leverage (1.9x), and targeted strategic wins in defense, utilities and data centers. However, material negative items temper the tone: a $1.4 billion noncash goodwill impairment related to the EA business, persistent Test & Measurement weakness year-over-year (though improving sequentially), and near-term margin pressure driven by higher standalone costs and planned reinvestments. Guidance for 2026 shows modest revenue growth but contemplates lower margins in the near term due to structural spin-related costs and incremental investments. Overall, positives around cash generation, balance sheet discipline, customer wins and targeted investments are balanced by significant one-time impairment, segment-level softness, and margin headwinds.Positive Updates
Quarterly Revenue and Sequential Improvement
Q4 revenue of $555 million, up 1% year-over-year and showing 5% sequential growth quarter-over-quarter; company reported sequential revenue improvement every quarter in 2025.
Negative Updates
Large Goodwill Impairment
Recorded a $1.4 billion noncash goodwill impairment in Q4 related to the EA (Electroautomatique) business due to weaker-than-expected EV demand and revised long-term forecasts; EA carrying value was approximately $1.8 billion pre-impairment. The charge was excluded from adjusted results.
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Q4-2025 Updates
Positive
Negative
Quarterly Revenue and Sequential Improvement
Q4 revenue of $555 million, up 1% year-over-year and showing 5% sequential growth quarter-over-quarter; company reported sequential revenue improvement every quarter in 2025.
Read all positive updates
Company Guidance
Ralliant guided Q1 2026 revenue of $508–522 million (up 5–8% YoY, including ~2 points of FX benefit), adjusted EBITDA margin of 17–18% and adjusted EPS of $0.46–0.52; for full‑year 2026 it expects revenue of $2.1–2.2 billion (2–6% YoY, consistent with ~3% long‑term organic growth), adjusted EBITDA margin of 18–20% and adjusted EPS of $2.22–2.42. Management said revenue should increase sequentially each quarter through the year, plans CapEx of 2–3% of revenue, expects free‑cash‑flow conversion >95% TTM (Q4/2025 FCF conversion was 117%), targets net leverage of 1.5–2.0x (currently 1.9x), recently authorized a $0.05 quarterly dividend and has $200M repurchase capacity, and noted a ~250 bp Y/Y margin headwind from post‑spin run‑rate costs while expecting a 40–45% incremental adjusted EBITDA margin on a like‑for‑like basis; the company also plans to achieve $9–11M of annualized cost savings by 2026 (Q4 saved $1M / ~$4M annualized) and expects to fully offset known tariffs under current policy.Ralliant Corporation Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
66
Positive
| 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 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $6.96B | 41.28 | 8.35% | 0.89% | 1.46% | -0.14% | |
64 Neutral | $6.38B | 42.26 | 2.18% | ― | 44.73% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $4.62B | -73.03 | -2.08% | ― | 6.58% | 67.04% | |
52 Neutral | $5.05B | 72.43 | 2.24% | 0.22% | 2.98% | 35.08% | |
49 Neutral | $4.96B | -1.03 | -46.07% | 0.19% | ― | ― |
* Industrials Sector Average
RAL
Ralliant Corporation
43.62
-3.73
-7.87%
HXL
Hexcel
90.54
42.59
88.82%
MRCY
Mercury Systems
74.75
24.75
49.50%
VSEC
VSE
160.17
46.02
40.31%
AMTM
Amentum Holdings, Inc.
25.34
3.52
16.13%
Ralliant Corporation Corporate Events
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...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings
Ralliant Corporation Posts Q4 Results and Issues 2026 Outlook
Neutral
Feb 4, 2026
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 ...
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.