Ralliant Corp (RAL)

Price$63.10Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because recovery is real, but the current price leaves little cushion.

Using 110.6 million shares and about $0.88 billion of net debt, the observed market price implies roughly $7.0 billion of equity value and $7.9 billion including debt. That is about 22 times the midpoint of 2026 adjusted earnings guidance and about 21 times trailing free cash flow, meaning cash left after running and investing in the business. The resulting cash yield is only about 4.7%. Those are reasonable multiples for sustained growth, but not a bargain if growth fades.

Big pictureSales are rebounding strongly, but cash generation has weakened from earlier years.

Revenue was nearly flat at about $2.15 billion in 2023 and 2024, then fell 4% to $2.07 billion in 2025. Free cash flow fell from about $433 million in 2023 to $420 million in 2024, $358 million in 2025, and $328 million over the latest twelve months. The rebound is now visible: first-half 2026 sales rose about 12%, helped by defense, grid spending, industrial recovery, and improving semiconductor demand. That mix is encouraging, but parts of Test and Measurement remain cyclical.

Business strengthThe strongest businesses are growing, while debt remains manageable but limits downside protection.

Sensors and Safety Systems produced a 28.4% operating margin in the latest quarter, while Test and Measurement returned to a positive 2.4% operating margin after a difficult 2025. The balance sheet held $271 million of cash against $1.15 billion of debt, leaving about $878 million of net debt. Ralliant also repurchased 2.8 million shares for $151.5 million in the first half, reducing shares outstanding from 112.9 million at year-end to 110.6 million despite ongoing stock compensation.

What could change the storyMore margin gains could justify today’s price, while stalled recovery would make it expensive.

An illustrative cash-flow valuation suggests the current market value roughly assumes free cash flow can grow around 8% annually for five years, followed by about 3% long-term growth, using a 9% required return. The bull case is credible if 2026 revenue reaches $2.25-$2.30 billion, margins reach 20%-21%, and the planned $50-$60 million of annual cost savings arrives by 2028. The bear case is that electric-vehicle weakness returns, Test and Measurement stalls, or cash flow keeps slipping while net debt stays high.

AI: News

Guidance raised againSecond-quarter growth beat guidance and management raised the full-year outlook again, supporting the recovery case.

On July 30, Ralliant reported $568 million of revenue, up 13% from a year earlier, with adjusted earnings of $0.68 per share. Full-year revenue guidance rose to $2.25-$2.30 billion and adjusted earnings guidance rose to $2.76-$2.90 per share. The stock finished roughly flat that day despite about 4.5 million shares trading. That timing suggests investors had already priced in some improvement, but it does not prove the results caused the muted reaction.

First-quarter expectations resetFirst-quarter results sharply improved expectations and showed the weak 2025 trend was starting to reverse.

On May 12, revenue rose 11% to $535 million and adjusted earnings reached $0.57 per share. Management lifted full-year adjusted earnings guidance to $2.53-$2.69, up from the February range of $2.22-$2.42, and raised the share-repurchase authorization to $500 million. The shares jumped about 19% that day on roughly 8.0 million shares of volume. The timing is consistent with a major expectations reset, although market moves can have several causes.

Goodwill write-downA large goodwill write-down exposed weaker electric-vehicle assumptions and reset confidence in the acquired business.

On February 4, Ralliant recorded a $1.44 billion non-cash goodwill impairment tied mainly to weaker expectations for EA Elektro-Automatik as electric-vehicle adoption forecasts slowed. The company also issued 2026 adjusted earnings guidance of $2.22-$2.42 per share. The next trading day, the stock fell about 32% on more than 10 million shares of volume. The timing strongly links the selloff to the outlook reset, though price timing alone cannot establish a single cause.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.07B	$2.15B	$2.16B	$2.09B
Gross profit	$1.04B	$1.11B	$1.12B	$1.05B
Gross margin	50.29%	51.61%	51.94%	50.16%
Research & development	$165.0M	$163.5M	$161.5M	$155.1M
Operating expenses	$781.6M	$715.6M	$607.9M	$574.4M
Operating income	−$1.18B	$459.6M	$511.8M	$473.8M
Operating margin	−57.18%	21.33%	23.74%	22.67%
EBITDA	−$1.07B	$572.6M	$542.5M	$512.1M
EBITDA margin	−51.60%	26.57%	25.17%	24.51%
Net income	−$1.22B	$354.6M	$416.8M	$370.7M
Net profit margin	−59.09%	16.46%	19.33%	17.74%
Basic EPSper basic share	-$10.84	$3.15	$3.70	$3.28
Diluted EPSper diluted share	-$10.84	$3.15	$3.70	$3.28

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of RAL
Holder	Shares held
BlackRock, Inc.	14.12M
Dodge & Cox	14.01M
VANGUARD PORTFOLIO MANAGEMENT LLC	7.68M
VANGUARD CAPITAL MANAGEMENT LLC	5.06M
MILLENNIUM MANAGEMENT LLC	4.5M
STATE STREET CORP	3.82M
FLOSSBACH VON STORCH SE	3.02M
MORGAN STANLEY	2.37M
FULLER & THALER ASSET MANAGEMENT, INC.	2.26M
T. Rowe Price Investment Management, Inc.	2.12M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.94M
GEODE CAPITAL MANAGEMENT, LLC	1.93M
Capital World Investors	1.9M
Invesco Ltd.	1.87M
Irenic Capital Management LP	1.74M
GOLDMAN SACHS GROUP INC	1.69M
NORGES BANK	1.62M
PRICE T ROWE ASSOCIATES INC /MD/	1.57M
Merewether Investment Management, LP	1.53M
DIMENSIONAL FUND ADVISORS LP	1.4M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$601.9K disclosed value

Sells (SEC code S)3$2.05M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 28, 2026Form 4	Osben TeoChief Accounting Officer	SellCommon Stock	27.1K	$62.44	$1.69M	47.7K
Mar 5, 2026Form 4 · 10b5-1	Bick Karen M.SVP - Chief People Officer	SellCommon Stock	2.5K	$46.50	$117.6K	42.7K
Mar 3, 2026Form 4 · 10b5-1	Bick Karen M.SVP - Chief People Officer	SellCommon Stock	5.5K	$45.00	$246.8K	46.8K
Feb 10, 2026Form 4	MITCHELL KATEDirector	BuyCommon Stock · indirect	2.4K	$42.48	$99.8K	8.4K
Feb 9, 2026Form 4	Sacks Anelise AngelinoDirector	BuyCommon Stock	2.0K	$41.25	$82.5K	5.4K

Review ownership filings at SEC.gov ↗

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Ralliant Corp (RAL)

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