Ralliant Corp (RAL) Market Cap
Ralliant Corp has a market capitalization of —.
No quote data available.
CEO: Tamara S. Newcombe
Sector: Technology
Industry: Hardware, Equipment & Parts
IPO Date: 2025-06-25
Website: https://ralliant.com
Ralliant Corp (RAL) - Company Information
Market Cap: -|Sector: Technology
Company Profile
Ralliant Corporation engages in the design, development, manufacture, sale, and service of precision instruments and engineered products in the United States, China, and internationally. It operates through two segments, Test and Measurement; and Sensors and Safety Systems. The Test and Measurement segment provides precision test and measurement instruments, systems, software, and services markets under the TEKTRONIX, KEITHLEY INSTRUMENTS, SONIX, and EA ELECTRO-AUTOMATIK brand names. This segment offers a portfolio of industry solutions, including oscilloscopes, probes, source measuring units, semiconductor test systems, high-power bi-directional power supplies, and measurement analysis software packages. The Sensors and Safety Systems segment provides power grid monitoring solutions, safety systems for mission critical defense and space applications, and sensing solutions for critical environments, as well as sensing products encompassing liquid level, flow, and pressure sensors, motion sensors and components, and hygienic sensors. This segment markets its products under the QUALITROL, GEMS SENSORS, SETRA SYSTEMS, HENGSTLER DYNAPAR, ANDERSON-NEGELE, DOVER MOTION, SPECIALTY PRODUCT TECHNOLOGIES, and PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY. It serves semiconductor, diversified electronics, communications, utilities, defense and space, industrial manufacturing, and other industries. The company was formerly known as New Precision Technologies Company. Ralliant Corporation was incorporated in 2024 and is based in Raleigh, North Carolina.
Analyst Sentiment
From 11 Active Polls
1Y Forecast: $62.86
▲ +0.0% Potential Upside
Consensus Target Metrics
Low Bound
$45
Median
$65
High Bound
$78
Average
$63
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
Sentiment volume allocation data unavailable.
Historical valuation matrix unavailable.
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📊 AI Financial Analysis
Powered by StockMarketInfo"RAL reported Q2’26 revenue of $567.7M and net income of $57.2M (EPS $0.51). Versus Q1’26, revenue rose +6.2% QoQ ($534.6M → $567.7M) and net income increased +29.4% QoQ ($44.2M → $57.2M). Versus the same quarter last year (Q2’25), revenue grew +12.7% YoY ($503.3M → $567.7M) and net income improved +20.2% YoY ($47.6M → $57.2M). Profitability strengthened: gross margin expanded from 46.8% (Q1’26) to 55.5% (Q2’26), while net margin rose to 10.1% from 8.3% in Q1’26. Cash flow quality was solid—operating cash flow was $106.3M and free cash flow was $99.9M in Q2’26. The company continued shareholder distributions: it repurchased $101M of common stock and paid $5.5M in dividends (dividend yield ~0.07%), though financing outflows reduced net cash only slightly (+$2.9M cash at quarter end $270.9M). On valuation/return context, the stock is $47.4 with 1-year change -0.21% and no strong price momentum. Equity remained resilient with total assets roughly flat QoQ (~$3.70B) and equity down slightly (~$1.56B → $1.53B)."
Revenue Growth
Revenue +6.2% QoQ and +12.7% YoY indicates improving top-line momentum.
Profitability
Net income +29.4% QoQ and +20.2% YoY, with net margin expanding to 10.1% (from 8.3% in Q1’26). Gross margin also jumped to 55.5%.
Cash Flow Quality
Strong Q2’26 operating cash flow ($106.3M) and free cash flow ($99.9M) support earnings. Buybacks were meaningful ($101M) and dividends were small ($5.5M).
Leverage & Balance Sheet
Not a bank; focus on resilience. Total assets ~flat QoQ (~$3.70B). Long-term debt $1.15B is steady QoQ and equity eased slightly.
Shareholder Returns
Buybacks supported capital appreciation, but market performance is weak on a 1-year basis (-0.21%) and dividend yield is minimal (~0.07%).
Analyst Sentiment & Valuation
Consensus target ($62.86) implies upside vs $47.4 (~33%). Valuation multiples appear elevated (e.g., P/E ~33.5), offsetting the bull-case target.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
Ral’s Q1 2026 results delivered clear upside versus the high end of guidance: revenue grew 11% reported (+9% organic), book-to-bill exceeded 1.1x, adjusted EBITDA margin reached 18.6%, and adjusted EPS was $0.57—both above guidance ranges. The normalized margin story is especially strong: adjusted EBITDA margin improved 270 bps YoY and Test & Measurement added +700 bps normalized, supported by operating leverage and early enterprise productivity actions. Management raised full-year 2026 outlook across revenue, margin, and EPS, citing elevated Test & Measurement orders and a defense backlog now above $1B. Capital allocation tightened further with a $500M repurchase authorization and a $100M accelerated repurchase in Q2, targeting ~50% of free cash flow returns (FCF conversion remains resilient at 105%, above a >95% target). Key risks flagged were 2H macro/supply uncertainty and potential lumpy defense fee dynamics during backlog transitions, partially offset by high visibility from 90–120 day short-cycle funnels.
Growth Catalysts
- Defense & Space demand: multiyear defense backlog surpassed $1 billion; Defense & Space delivered >20% organic growth and robust replenishment/missiles & munitions shipments
- Test & Measurement rebound: returned to growth; highest quarterly book-to-bill since 2022 (between 1.1 and 1.2)
- Utilities strength: record orders reinforcing grid modernization/resiliency; utilities order strength improved visibility despite shipment-timing softness
- Semiconductor/Test & Measurement strength excluding laps: underlying CapEx-driven growth in power-related semiconductors (esp. wideband gap) after lapping a large customer credit
Business Development
- Defense modernization / priority munitions programs: supplier to the majority of the Pentagon’s priority munitions programs, including FAD, PAC-3, and Tomahawk (capacity scaling at ~2 to 5x historic levels)
- Portfolio backlog is customer-funded innovation in defense modernization: new-product programs up ~60% over the last 2 years (customer-funded, not surge-demand)
Financial Highlights
- Revenue $535M, +11% YoY reported and +9% organic; book-to-bill above 1.1x; both segments posted 9% organic revenue growth
- Q1 above guidance high end: adjusted EBITDA margin 18.6% (above high end of guidance); adjusted EPS $0.57 (above high end of guidance); normalized adjusted EBITDA margin +270 bps YoY
- EPS performance: adjusted diluted EPS +39% on a normalized basis driven by revenue growth and adjusted EBITDA margin expansion
- FCF conversion: trailing 12-month free cash flow conversion 105% vs target >95%; Q1 free cash flow $10M (down YoY due to timing)
- Segment margins: Sensors & Safety Systems adjusted EBITDA margin 28.4% (+70 bps normalized); Test & Measurement adjusted EBITDA margin 11.9% (+700 bps normalized)
- FX tailwind: total growth included ~2 percentage points FX benefit (primarily Western Europe and China)
Capital Funding
- Shareholder returns increased: $56M returned in Q1 via dividends and share repurchases
- Board authorization raised to $500M; targeting repurchases at ~50% of free cash flow going forward
- Accelerated share repurchase planned: $100M ARP in Q2
- Balance sheet liquidity: cash and cash equivalents $268M at quarter end
- Debt/capital structure: refinanced 18-month term loan; extended maturity and amended covenants (favorable terms)
Strategy & Ops
- Enterprise productivity program initiated/expanded: target $50M to $60M run-rate annualized savings by 2028; reporting team to CEO; RBS used to identify/track workflows and sustainment
- Savings progress: acted on ~ $20M of run-rate annualized savings to date; Q1 actions added ~ $10M annualized savings; 2026 in-year savings expected $10M to $12M (exiting 2026 at ~$20M annualized run-rate)
- Cost-of-sales initiatives: enterprise strategic sourcing and new group purchasing office
- G&A initiatives: simplification, AI-enhanced workflows, leveraging lower-cost locations to optimize labor
- Capacity expansion plans: expand precision sensor facility in Upstate New York later in 2026 (utilities demand support); defense capacity expansion ongoing with productivity/sourcing focus, with expectation of additional physical capacity toward out years
- Operations guidance sensitivity: short-cycle businesses have ~90 to 120 days visibility
Market Outlook
- Q2 2026 guidance: revenue $540M to $556M; 7% to 10% YoY organic; adjusted EBITDA margin 18.5% to 19.5%; adjusted EPS $0.58 to $0.64
- Q2 share count assumption: weighted average diluted shares ~112M after $100M accelerated repurchase
- Full-year 2026 updated guidance: revenue $2.185B to $2.245B; adjusted EBITDA margin 19.5% to 20.5%; adjusted EPS $2.53 to $2.69
- Incremental margin framework (2026 through 2028): 2026 assumes 35% to 40% baseline incremental adjusted EBITDA margin excluding productivity savings; productivity savings add ~10 percentage points incremental margin (total 45% to 50% for 2026); 2027–2028 incremental targets ~50%
Risks & Headwinds
- Macro uncertainty and potential supply disruptions in 2H 2026 cited as a reason to remain cautious on second-half demand despite strong cycle momentum
- Seasonality and quarter-to-quarter lumpy fees for defense products during backlog transition (lumpiness in both revenue and margins expected)
- Mix headwinds: defense strong growth carries some margin impact (defense products at margins below company average); utilities and defense mix can be lumpy
- Test & Measurement semis category: near-term lapping of a large customer credit continues to affect reported semiconductor organic revenue (partial headwind already mentioned)
Q&A: Analyst Interest
- Sales growth and 2H phasing: Management explained that T&M drove the full-year raise via Q1 order strength and book-to-bill, with 90–120 days visibility. They noted seasonal mix (approx. 48% 1H / 52% 2H historically) and said macro and supply-disruption uncertainty may keep 2H nearer the top end, not below.
- EBITDA margin outlook and 2H moderation: Management said margin performance is driven by a revenue-growth formula plus mix headwinds and the enterprise productivity program’s cost optimization. They did not frame it as a single factor but emphasized those three drivers—growth, mix, and productivity execution—as the reason 2H expansion is more muted.
- Defense backlog conversion to capacity and growth: Management clarified $1B backlog as a multiyear (2–3 years) order stream, with replenishment programs dominating and real orders supporting on-time delivery. They said capacity expansion has been underway for over 2 years via productivity and strategic sourcing, with potential additional physical capacity needed into out-years.
Sentiment: POSITIVE
Note: This summary was synthesized by AI from the RAL Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.