Ralliant raises 2026 forecast as Q3 profit tops estimates

Ralliant (RAL) said on Nov. 4 it raised its full-year 2026 forecast after third-quarter results that topped the consensus estimates for profit and revenue.

Shares were little changed in regular trading as of 3:59 p.m. ET, from a regular-session close of $71.31.

Ralliant is a global provider of precision technologies, with two reporting segments, Sensors & Safety Systems and Test & Measurement.

Adjusted earnings per share were 93 cents, above the 78 cents consensus estimate. Revenue was $620.1 million, above the $591.51 million estimate and up 17% from a year earlier, the company said in its press release.

Here's how the company did:

• Adjusted EPS: 93 cents vs. 78 cents expected
• Revenue: $620.1 million vs. $591.51 million expected
• Net earnings: $86.1 million, or 77 cents per diluted share, vs. $39.9 million, or 35 cents, a year earlier
• Adjusted EBITDA margin: 23.5%, up 310 basis points from a year earlier

Diluted EPS rose 117% from a year earlier, and the net earnings margin improved 630 basis points to 13.9%, the company said.

Net income swung from a loss of $1.37 billion in the fourth quarter of 2025 to a profit of $44.2 million in the first quarter of fiscal 2026, according to its SEC filings.

“We delivered another strong quarter, exceeding the high end of our expectations and contributing to raised full-year 2026 guidance,” said Tami Newcombe, President and Chief Executive Officer.

Segment results

Sensors & Safety Systems revenue rose 15% to $376 million. Operating profit was $112 million, up 24%, and the operating profit margin reached 29.7%.

The company said utilities delivered another record quarter of orders and revenue as customers kept investing in grid modernization.

Test & Measurement revenue rose 20% to $244 million. Adjusted EBITDA was $47 million, with a margin of 19.3%, up 550 basis points from a year earlier.

Semiconductors declined, the company said, because a large customer project completed in the third quarter of 2025 weighed on sales.

Guidance

For the fourth quarter, the company expects revenue of $620 million to $640 million and adjusted EPS of 93 cents to 99 cents.

For the full year, it raised its outlook to revenue of $2.34 billion to $2.36 billion, an adjusted EBITDA margin of about 21.5% and adjusted EPS of $3.10 to $3.16.

The outlook includes cost of sales benefits from IEEPA tariff refunds of $2 million, $7 million and $5 million in the second, third and fourth quarters, respectively.

Cash and capital returns

Operating cash flow was $338 million on a trailing twelve-month basis, and free cash flow was $303 million over the same period.

Year to date, the company has returned $167 million to shareholders, including $150 million for the repurchase of 2.8 million shares at an average price of $54.74 and $17 million in dividends. About $400 million remained under its share repurchase authorization at the end of the quarter.

The board declared a quarterly cash dividend of 5 cents per share on Oct. 30. It is payable Dec. 23 to stockholders of record as of Dec. 8.

The company said it expects share repurchases in 2026 to represent about 50% of free cash flow.