Ralliant (RAL) Corporate presentation summary

Strategic and operational highlights

• Completed transition to a standalone public company, establishing a clear post-spin cost structure and focus on growth and profitability.

• Repurchased 935,000 shares for $39 million since Q4 2025, reflecting confidence in long-term value.

• Delivered results at or above guidance for every quarter as a public company, with positive outlook on end markets.

• Focused on expanding in defense technologies, grid modernization, and power electronics, leveraging a portfolio of ~2,200 active patents and serving ~90,000 customers.

• Emphasizes a people-first culture and precision expertise to drive growth and productivity.

Financial performance and guidance

• Reported ~$2.1B revenue for 2025, with 7,000 employees and 20 manufacturing sites.

• 2026 revenue guidance of $2.1–$2.2B, with 2–6% organic revenue growth in line with long-term targets.

• Adjusted EBITDA margin guidance for 2026 is 18–20%, below the long-term target of low-to-mid 20s, but with ~100 bps expansion from normalized 2025 margin.

• Incremental adjusted EBITDA margin expected at 40–45% in 2026, exceeding the long-term target of 30–35%.

• Free cash flow conversion expected to remain above 95%, continuing a strong track record (117% in 2025).

Segment and market overview

• Sensors & Safety Systems account for ~60% of revenue, focusing on power grid, defense, and industrial applications.

• Test & Measurement segment contributes ~40% of revenue, serving electronics, communications, and energy storage markets.

• Key end markets include industrial manufacturing (21%), defense & space (17%), utilities (15%), diversified electronics (19%), communications (12%), and semiconductors (8%).

• Long-term market growth expected at 5–7% for defense & space and utilities, 0–2% for industrial manufacturing, and 2–3% for test & measurement.