RAL · Ralliant Corp.

Ralliant Corp. reported strong first quarter 2026 results, with revenue of $535 million, up 11% year-over-year, driven by double-digit growth in both Sensors & Safety Systems (S&SS) and Test & Measurement (T&M). S&SS revenue grew 11% (9% organic), benefiting from Defense & Space backlog execution and recovery in Industrial Manufacturing. T&M returned to growth with revenue up 12% (9% organic), fueled by electrification and defense demand, though Semiconductors declined due to a large customer project completion. Net earnings margin declined 500 bps to 8.3%, while adjusted EBITDA margin fell 250 bps to 18.6%, primarily due to higher employee costs. On a normalized basis, adjusted EBITDA margin improved 270 bps overall, with T&M up 700 bps on operating leverage. Management highlighted broad-based demand acceleration and raised full-year 2026 guidance: revenue $2.185-$2.245 billion, adjusted EBITDA margin 19.5%-20.5%, and adjusted EPS $2.53-$2.69. The company also announced an Enterprise Productivity Program targeting $50-60 million annualized savings by 2028, and increased share repurchase authorization to $500 million, with a $100 million accelerated share repurchase planned in Q2. The balance sheet remains healthy with $268 million cash and $1.15 billion debt. Overall, the results exceeded guidance and the raised outlook reflects confidence in sustained growth, particularly in Defense & Space and T&M recovery.