Ralliant Corporation engages in the design, development, manufacture, sale, and service of precision instruments and engineered products in the United States, China, ...
Ralliant Corporation is a global provider of precision technologies, formed through the separation of Fortive Corporation's Precision Technologies business. The company focuses on designing, developing, manufacturing, and servicing high-precision instruments and engineered products that enable innovation across various industries. Ralliant operates through two primary segments: - **Test and Measurement**: This ...Ralliant Corporation is a global provider of precision technologies, formed through the separation of Fortive Corporation's Precision Technologies business. The company focuses on designing, developing, manufacturing, and servicing high-precision instruments and engineered products that enable innovation across various industries.
Ralliant operates through two primary segments:
- **Test and Measurement**: This segment offers advanced test and measurement instruments, systems, and software under brands like Tektronix, Keithley Instruments, Sonix, and EA Electro-Automatik. Its portfolio includes oscilloscopes, probes, source measuring units, semiconductor test systems, high-power bi-directional power supplies, and measurement analysis software. These products are essential for engineers in semiconductor manufacturing, electronics, and communications.
- **Sensors and Safety Systems**: This segment provides power grid monitoring solutions, safety systems for defense and space applications, and sensing solutions for critical environments. Products include liquid level, flow, and pressure sensors, motion sensors, and hygienic sensors. Brands under this segment include Qualitrol, Gems Sensors, Setra Systems, Hengstler Dynapar, Anderson-Negele, Dover Motion, Specialty Product Technologies, and Pacific Scientific Energetic Materials Company.
Ralliant serves diverse industries including semiconductor, diversified electronics, communications, utilities, defense and space, and industrial manufacturing. Its mission is to drive innovation and power progress in an electrified, digital world, emphasizing mission-critical technologies and operational excellence through the Ralliant Business System.
Financially, Ralliant reported a market cap of approximately $7.46 billion, with a revenue per share of $19.62, indicating a substantial scale. The company had about 7,000 employees worldwide as of early 2025, and recent reports suggest around 7,020 employees. It is headquartered in Raleigh, North Carolina, where it established its global headquarters in 2026, investing $2.1 billion in the state. The company's leadership, under President and CEO Tami Newcombe, focuses on strategic growth and innovation, having evolved over the past five years into a global leader in mission-critical technologies. With a robust brand portfolio and a focus on precision technologies, Ralliant aims to deliver value to employees, customers, and shareholders globally.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.1B
-4.0%
+6.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-1.2B
-503.5%
+29.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+46.1%
-10.7%
+1.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+12.5%
-41.2%
+13.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-59.1%
-520.2%
+21.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$358.4M
-14.7%
+852.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.3%
-11.2%
+797.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
70.3%
+3589.0%
+2.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.84x
-27.4%
-5.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello. My name is Donna, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Ralliant Corporation's First Quarter 2026 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Nathan McCurren, Vice President of Investor Relations. Mr. McCurren, you may begin your conference.
Nathan McCurren: Thank you, Donna. Good morning, everyone, and thank you for joining Ralliant's First Quarter 2026 Earnings Call. I'm Nathan McCurren, Vice President of Investor Relations. Today, we'll walk through our results, highlight key operational progress and provide our outlook for the second quarter and full year 2026. I'm joined today by Tammy Newcombe, our President and Chief Executive Officer; and Neill Reynolds, our Chief Financial Officer. Our earnings release issued this morning and today's presentation can be accessed on the Investors section of our website at ralliant.com. Please note that we'll be discussing certain non-GAAP financials on today's call. A reconciliation of these items to U.S. GAAP can be found in the appendix to our presentation. During today's call, unless otherwise stated, we are comparing our first quarter 2026 results to the same period in 2025. During the call, we will make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, and actual results might differ materially from any forward-looking statements we make today. Information regarding these risks and uncertainties is available in our annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, and updated in our Form 10-Q to be filed after market today. With that, I'd like to turn the call over to Tammy.
Tamara Newcombe: Good morning, everyone, and thank you for joining us for our Q1 2026 earnings call. We started 2026 with a solid first quarter performance, reflecting the delivery of our strategy, supported by disciplined execution across the teams. For today's call, I'll begin with an overview of our financial performance, followed by an update on the progression of our profitable growth strategy. Then I'll invite Neill to walk through additional details and leave time for your questions at the end. Let's start on Slide 4 with the business and outlook update. First, our Q1 results were above the high end of our guidance. and we are raising the full year 2026 outlook as we expect test and measurement growth to remain elevated, and our defense backlog has now surpassed $1 billion. Second, we are capitalizing on higher growth secular demand across electrification and defense with a clear focus on executing our profitable growth strategy. Third, we initiated an enterprise productivity program expected to deliver $50 million to $60 million of run rate …