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Ralliant Corporation
(NYSE:RAL)
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Rating:45Neutral
Price Target:
$69.00
▲(8.73% Upside)
Action:Reiterated
Date:08/30/26
The score is held down primarily by the severe 2025 earnings deterioration and higher leverage, reinforced by weak technical momentum (price below key moving averages and negative MACD). Positive operating/free cash flow provides some support, while valuation signals are constrained by negative earnings; the governance-related corporate event is a modest positive but secondary.
Positive Factors
Strong Revenue Growth
Revenue growth of 31.5% indicates continued expansion in the company’s business base and customer demand. Although earnings deteriorated sharply, a larger revenue platform can support recovery if Ralliant restores operating efficiency and converts growth into sustainable profitability.
Negative Factors
Severe Profitability Collapse
The shift from a large profit to a $1.21B loss is a major deterioration in earnings power and weakens confidence in near-term margin sustainability. Even with revenue growth and roughly 50% gross margin, negative operating profitability must be repaired before growth can create durable shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Revenue growth of 31.5% indicates continued expansion in the company’s business base and customer demand. Although earnings deteriorated sharply, a larger revenue platform can support recovery if Ralliant restores operating efficiency and converts growth into sustainable profitability.
Read all positive factors
Ralliant Corporation Key Performance Indicators (KPIs)
Ralliant Corporation (RAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.74B
Dividend Yield0.29%
Average Volume (3M)1.31M
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees7,000
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-10.92
Shares Outstanding110,640,010
10 Day Avg. Volume1,381,870
30 Day Avg. Volume1,306,773
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$80.43Price Target Upside26.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.86
Revenue Forecast (FY)$2.29B
Ralliant Corporation Business Overview & Revenue Model
Company Description
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 ...
Ralliant Corporation Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call communicated broad positive operational and financial momentum — above-guidance Q1 results, raised full-year guidance, strong defense backlog (> $1B), T&M order recovery and a formal productivity program. These positives are balanced against near-term headwinds: semiconductor lapping effects, regional softness in Europe/ROW, tariff exposure (~$25M) and the fact that most productivity savings are still to be realized. Management offset concerns by boosting shareholder returns (expanded buyback authorization and $100M ASR) and reaffirming strong free-cash-flow conversion.Positive Updates
Revenue Growth Above Guidance
Q1 revenue of $535 million, up 11% year-over-year reported and up 9% organic; results were above the high end of guidance with a book-to-bill above 1.1x.
Negative Updates
Semiconductor Revenue Headwind
Semiconductor organic revenue declined high-single-digits in Q1, driven by lapping a large customer project/credit from last year; management expects the headwind to persist for a couple more quarters and to be fully lapped by Q4.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Above Guidance
Q1 revenue of $535 million, up 11% year-over-year reported and up 9% organic; results were above the high end of guidance with a book-to-bill above 1.1x.
Read all positive updates
Company Guidance
Management raised its 2026 outlook after Q1 results beat the high end of guidance — Q1 revenue $535M (+11% YoY, +9% organic), adjusted EBITDA margin 18.6%, adjusted EPS $0.57 and trailing‑12‑month free cash flow conversion 105% — and noted a defense backlog >$1.0B; Q2 guidance is revenue $540–556M (7–10% organic), adjusted EBITDA margin 18.5–19.5% and adjusted EPS $0.58–0.64 with ~112M diluted shares after a planned $100M accelerated share repurchase; full‑year 2026 guidance was raised to $2.185–2.245B revenue, 19.5–20.5% adjusted EBITDA margin and $2.53–2.69 adjusted EPS; capital allocation updates include a $500M repurchase authorization, targeting buybacks ≈50% of free cash flow (returned $56M in Q1), a $0.05 quarterly dividend, ending Q1 cash $268M and capex of ~2–3% of revenue; they forecast a tariff headwind of ~ $25M in 2026 and have launched an enterprise productivity program targeting $50–60M of run‑rate annualized savings by 2028 (2026 in‑year savings $10–12M, exit‑2026 run‑rate ≈$20M) that is expected to add ~10 percentage points to incremental adjusted EBITDA margin in 2026 (total incremental margin ~45–50% in 2026 and ~50% in 2027–28), with a long‑term net leverage target of 1.5–2.0x adjusted EBITDA.Ralliant Corporation Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 2.19B | 2.07B | 2.15B | 2.16B |
| Gross Profit | 1.07B | 953.40M | 1.11B | 1.12B |
| EBITDA | -1.05B | -1.07B | 508.30M | 540.50M |
| Net Income | -1.23B | -1.22B | 303.00M | 416.80M |
Balance Sheet | ||||
| Total Assets | 3.71B | 3.82B | 4.72B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 270.90M | 318.80M | 0.00 | 0.00 |
| Total Debt | 1.15B | 1.15B | 71.70M | 47.10M |
| Total Liabilities | 2.17B | 2.19B | 956.60M | 800.20M |
| Stockholders Equity | 1.53B | 1.63B | 3.76B | 2.26B |
Cash Flow | ||||
| Free Cash Flow | 327.70M | 358.40M | 420.20M | 432.60M |
| Operating Cash Flow | 364.80M | 397.60M | 454.50M | 461.80M |
| Investing Cash Flow | -36.50M | -37.70M | -1.71B | -22.40M |
| Financing Cash Flow | -255.30M | -54.70M | 1.26B | -431.70M |
Ralliant Corporation Technical Analysis
Positive
63.46
Price Trends
66.96
Positive
65.94
Positive
56.44
Positive
Market Momentum
1.15
Negative
57.42
Neutral
69.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAL, the sentiment is Positive. The current price of 63.46 is below the 20-day moving average (MA) of 67.09, below the 50-day MA of 66.96, and above the 200-day MA of 56.44, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAL.
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.38B | 41.96 | 11.41% | 0.85% | 4.63% | 84.70% | |
72 Outperform | $4.44B | 21.83 | 4.44% | ― | 11.44% | 291.35% | |
67 Neutral | $4.82B | 59.89 | 3.73% | 0.24% | 23.35% | 56.45% | |
57 Neutral | $5.03B | -164.42 | -2.01% | 3.82% | 7.85% | 22.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | $7.74B | -6.33 | -60.82% | 0.29% | ― | ― |
* General Sector Average
RAL
Ralliant Corporation
69.17
25.12
57.01%
HXL
Hexcel
83.92
20.44
32.20%
MRCY
Mercury Systems
83.00
0.44
0.53%
VSEC
VSE
164.70
-0.66
-0.40%
AMTM
Amentum Holdings, Inc.
18.12
-7.03
-27.95%
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.