What does Ralliant do and what are its main business segments?

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What is the market's earnings forecast for Ralliant next quarter?

What factors drove the changes in Ralliant's revenue and profit?

What is the revenue and EPS growth rate for Ralliant year over year?

What is Ralliant's gross profit margin?

What were the key takeaways from Ralliant's earnings call?

What is Ralliant's latest dividend and current dividend yield?

- **Revenue Resilience**: Q4 2025 revenue growth of 1% YoY, with sequential improvement across all segments. Full-year 2025 revenue up 2% YoY.
- **Strategic Investments**: $9-11 million annualized cost savings, 2-3% of revenue in CapEx for defense and utilities expansion.
- **Margin Challenges**: 250bps YoY margin headwind from post-spin costs, partially offset by 40-45% incremental margin on revenue growth.
- **Key Growth Drivers**: Defense programs (PacSci EMC record Q4), grid modernization (Qualitrol cloud provider win), and AI validation (Tektronix robotics partnership). 
- **Risk Management**: 117% free cash flow conversion, net leverage 1.9x (within target range), and $200M share buyback authorization.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 2025 revenue of $555 million (+1% YoY, +5% sequential), driven by Sensors & Safety Systems (+6% YoY) and Test & Measurement (+7% sequential). Full-year 2025 revenue growth of 2% YoY.
- **Segment Performance**: 
  - **Sensors & Safety Systems**: Defense & Space (+5% YoY), Utilities (+6% YoY), Industrial Manufacturing (+6% YoY). Adjusted EBITDA margin 28% (down 280bps due to higher costs).
  - **Test & Measurement**: Diversified Electronics (+10% sequential), Communications (+29% YoY). Semi revenue lapping a large project.
- **Strategic Investments**: 
  - **AI & Digital Platforms**: Enhancing RBS (Ralliant Business System) for faster execution.
  - **Sales Resources**: Expanding reach in defense, energy, and electronics.
  - **Manufacturing**: Capacity expansion for defense and utilities growth.
- **Regional Trends**: North America (+1% YoY), Western Europe (+1% YoY), Rest of World (+12% YoY). China cautious due to export controls.
- **Free Cash Flow**: $92 million Q4, 117% conversion rate (TTM >95% target).

**【CFO Financial Commentary】**
- **Q4 2025 Results**: 
  - GAAP net loss $1.4 billion (goodwill impairment of EA Elektro-Automatik). Adjusted EBITDA $115 million (20.8% margin), adjusted EPS $0.69.
  - Free cash flow $92 million, net leverage 1.9x (target 1.5-2.0x).
- **FY2026 Guidance**: 
  - Revenue $2.1-2.2 billion (+2-6% YoY). Adjusted EBITDA margin 18-20% (down 50-250bps YoY due to post-spin costs).
  - Adjusted EPS $2.22-2.42 (down 15% YoY). Q1 2026 revenue $508-522 million (+5-8% YoY). 
- **Cost Dynamics**: 
  - $175 million quarterly OpEx run rate (includes $50 million corporate costs). 
  - 250bps YoY margin headwind from post-spin expenses. 
  - $9-11 million annualized cost savings program (Q4: $1M savings). 

**【Q&A Highlights】**
- **Test & Measurement Recovery**: Diversified Electronics (+10% sequential), Communications (+36% sequential). Semi orders stabilizing. 
- **Sensors Margin Pressure**: Defense growth at lower margins (mid-20s EBITDA vs. segment average high-20s). 
- **M&A Strategy**: Focused on tuck-in acquisitions in defense, energy, and electronics. 
- **China Risks**: Export controls limiting semi growth, but utilities and sensors showing early recovery. 
- **2026 Investment Plan**: 2-3% of revenue in CapEx, with focus on defense and utilities capacity. 


Ralliant Corporation (RAL) Q4 2025 Earnings Call Transcript

- **Defense Super Cycle**: 18% YoY Defense growth, backlog >2x revenue, with $3T global defense spending by 2030.
- **Test & Measurement Recovery**: Sequential +6% growth, new MP5000 platform targets automated validation workflows.
- **Utilities Expansion**: 11% YoY Utilities growth from grid modernization, Industrial Manufacturing +9% YoY.
- **Free Cash Flow Excellence**: Q3 185% conversion, trailing 12-month 124%, exceeding 95%+ target.
- **Cost Savings Program**: $9-11M annualized savings by end-2026, supporting margin expansion.

**【Management Opening Remarks】**
- Ralliant reported Q3 2025 revenue of $529 million, flat year-over-year, with sequential growth of 5% driven by Defense and Test & Measurement. 
- Adjusted EBITDA margin expanded 60 bps sequentially to 20.4%, near the low end of the long-term target range.
- Free cash flow conversion rate of 185% in Q3, trailing 12-month average of 124%, exceeding the 95%+ target.

**【CEO Commentary】**
- **Defense Growth**: Sensors & Safety Systems revenue up 11% YoY, driven by 18% Defense & Space growth. Backlog over 2x annual revenue, with production scaling for safety systems.
- **Utilities Expansion**: Utilities revenue +11% YoY from grid modernization. Industrial Manufacturing grew 9% YoY with data center sensor wins.
- **Test & Measurement Recovery**: Sequential +6% growth, with Q3 orders at highest level of the year. New DPO7000 and MP5000 platforms target AI, robotics, and automated testing.
- **China Restructuring**: Test & Measurement China revenue down 30% YoY, but India/Southeast Asia investments showing early momentum.

**【CFO Financial Commentary】**
- Q3 GAAP net income $420M, Non-GAAP EPS $0.60 (inline with $0.54-0.60 guidance). Free cash flow $127M (185% conversion).
- Q4 Outlook: Revenue $535-550M, EBITDA margin 20-21%, EPS $0.62-0.68. FY25 free cash flow >95% conversion.
- **Cost Savings Program**: $9-11M annualized savings by end-2026, with $35M remaining Fortive payments due in Q4.

**【Q&A Highlights】**
- **Defense Visibility**: 12-year defense budget growth (~$3T by 2030) driving PacSci EMC safety systems backlog expansion.
- **Test & Measurement Recovery**: North America orders stable at 1:1 book-to-bill, with sequential improvement in Industrial and Test & Measurement.
- **Semiconductor Shift**: Customers deferring R&D to AI, but DPO7000 low-noise architecture positions for next-gen electronics.
- **Margin Dynamics**: Test & Measurement EBITDA margin expansion on volume, Sensors margin tempered by Defense mix.
- **M&A Strategy**: 1-2% long-term growth from tuck-ins focused on Utility and Defense adjacencies.

Actual	0.67	0.6	0.69
Forecast	0.5606	0.5727	0.6622
Surprise	+19.51%	+4.77%	+4.20%

Actual	503.30M	529.10M	554.60M
Forecast	501.60M	520.97M	545.43M
Surprise	+0.34%	+1.56%	+1.68%

RAL

RAL fundamentals

RAL Q4 2025 Earnings

Earnings Call

You can ask Aime

RAL

RAL fundamentals

RAL Q4 2025 Earnings

Earnings Call

RAL Earnings Call Summary for Q4/20258:30 AM on Feb 5, 2026

RAL Earnings Call Summary for Q3/20258:30 AM on Nov 6, 2025

RAL Earnings Call Summary for Q2/20258:30 AM on Aug 12, 2025

You can ask Aime