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Earnings analysis · 10-Q

RAL earnings analysis

Filed November 4, 2026 · Our reading of the company's report

The latest report

Ralliant delivered a strong third quarter, with revenue up 17.2% to $620.1 million, gross margin up to 53.1%, operating margin up to 18.9%, and diluted EPS rising to $0.77 from $0.35. Growth was broad-based, led by Test…

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Ralliant delivered a strong third quarter, with revenue up 17.2% to $620.1 million, gross margin up to 53.1%, operating margin up to 18.9%, and diluted EPS rising to $0.77 from $0.35. Growth was broad-based, led by Test and Measurement revenue growth of 20.2% and a return to $21.7 million of segment operating profit. Cash generation remained positive, but nine-month operating cash flow declined by $60.1 million and debt remained elevated at $1,148.7 million. The filing provides no new explicit revenue or EPS guidance, although management cites $50 million to $60 million of expected annualized productivity savings by the end of 2028.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

53% Gross margin Operating margin Aug 2025 Nov 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $47 Operating expenses $34 Left as operating profit $19

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Sensors and Safety Systems 60.6% Test and Measurement 39.4%

Shares of the segments disclosed in this filing, largest first.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Aug 2025 Nov 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.77

What stood out

  • Revenue Growth Beat Estimates

    Third-quarter sales increased 17.2% year over year to $620.1 million from $529.1 million, driven by 13.4% volume growth and 3.8% favorable pricing. Revenue exceeded the provided consensus estimate of $584.5 million by approximately $35.6 million.

  • Material Margin Expansion

    Gross margin expanded to 53.1% from 50.8%, while operating margin increased to 18.9% from 9.8%, a 910-basis-point improvement. Management attributed the operating margin expansion to volume, pricing, tariff refunds, and productivity savings.

  • EPS and Net Income Improved

    Diluted GAAP EPS increased to $0.77 from $0.35, while net earnings rose to $86.1 million from $39.9 million. The filing reports a 16.7% effective tax rate for the quarter versus (13.4)% in the prior-year period.

  • Broad-Based Segment Growth

    Both operating segments grew: Sensors and Safety Systems revenue rose 15.3% to $375.9 million, while Test and Measurement revenue rose 20.2% to $244.2 million. Test and Measurement returned to operating profitability at $21.7 million versus a $1.7 million operating loss.

  • Solid Liquidity and Cash Generation

    Cash and equivalents increased to $365.8 million from $318.8 million at December 31, 2025. Nine-month operating cash flow was $235.9 million, and capital expenditures were $24.5 million, implying cash flow after capital expenditures of approximately $211.4 million.

  • Productivity Program Adds Upside

    Management expects the Enterprise Productivity Program to produce approximately $50 million to $60 million of net annualized savings once fully executed by the end of 2028. The program includes sourcing, labor productivity, spend optimization, and organization simplification actions.

What to watch

  • Operating Cash Flow Declined

    Nine-month operating cash flow declined to $235.9 million from $296.0 million, a decrease of $60.1 million. Management attributed the decline to higher working capital needs, timing differences, and volume expansion.

  • Working Capital Absorption

    Inventories increased to $344.3 million from $301.6 million at December 31, 2025, while accounts receivable increased to $322.4 million from $285.3 million. The increases consume working capital as the business scales.

  • Leverage and Interest Exposure

    Long-term debt was $1,148.7 million at October 2, 2026 versus $618.4 million classified as long-term debt at December 31, 2025, following the refinancing of the near-term maturity. Nine-month interest expense was $42.0 million.

  • Tariff and Trade Uncertainty

    The company states that changing tariff policies and retaliatory measures are expected to continue negatively affecting operations through supply-chain disruption, higher input costs, delayed shipments, and increased complexity. The company has received a majority of eligible refunds, but the timing and amount of remaining refunds is uncertain.

  • Foreign Exchange Volatility

    Foreign currency translation produced an $81.0 million year-to-date reduction in other comprehensive income, and accumulated other comprehensive loss reached $325.4 million at October 2, 2026. The company also reported that 47.5% of nine-month sales came from customers outside the United States.

  • Liquidity and Capital Allocation Risk

    The filing incorporates the Form 10-K risk factors and states that there have been no material changes to the legal-proceedings disclosures. Management nevertheless notes that additional financing may be required if operating cash flow and credit availability are insufficient, while the company had $400.0 million remaining under its repurchase authorization.

Management's outlook

The 10-Q does not provide explicit quantitative revenue or EPS guidance. It states that the Enterprise Productivity Program is estimated to generate approximately $50 million to $60 million of net annualized savings once fully executed by the end of 2028, and that the company believes liquidity is sufficient for at least the next 12 months.

Earlier filings 4

10-Q · May 12, 2026

Ralliant Corporation reported strong performance in Q1 2026 with revenue of $534.6 million, surpassing expectations and marking an 11% increase year-over-year. The company also achieved EPS of $0.57, exceeding estimates…

10-K · February 26, 2026

Ralliant Corporation's 10-K filing for the year ending December 31, 2025, reveals significant operational challenges marked by a notable goodwill impairment that impacted its earnings. The company reported total revenue…

10-Q · November 6, 2025

Ralliant Corporation's Q3 2025 performance showcased robust earnings exceeding expectations, with revenues of $529 million and an EPS of $0.60. However, the company faced operational challenges reflected in gross and…

10-Q · August 11, 2025

Ralliant Corporation reported Q2 2025 results reflecting a revenue decline of 5.7% year-over-year to $503.3 million and EPS of $0.67, beating estimates of $0.60. The Test and Measurement segment saw significant…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.