Ralliant Raises 2026 Guidance After Third Straight Lift

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter revenue reached $620 million, up 17% year-over-year, and the company lifted full-year sales to $2.340–$2.360 billion.

Ralliant Corporation (RAL), a global provider of precision instruments and engineered products, reported third-quarter revenue of $620 million, up 17% year-over-year on both a total and organic basis, and raised full-year 2026 guidance for a third consecutive quarter.

Growth had been 13% in the second quarter and 11% in the first. President and Chief Executive Officer Tami Newcombe said the company exceeded the high end of its expectations.

Net earnings were $86 million, or $0.77 a share, up 117% from a year earlier. Adjusted EPS was $0.93, up 64% on a normalized basis. Net earnings margin was 13.9%, a 630 basis point year-over-year improvement. Adjusted EBITDA margin was 23.5%, up 310 basis points year-over-year, or 400 basis points on a normalized basis.

Sensors & Safety Systems, which covers power-grid monitoring, defense and space technologies, and industrial sensors, generated $376 million of revenue, up 15% and 15% organically. Operating profit was $112 million, or a 29.7% margin, up 24% and 210 basis points. Adjusted EBITDA was $115 million, or a 30.5% margin. The company said Defense & Space growth continued against a multi-year backlog, Utilities delivered another record quarter of orders and revenue on grid-modernization spending, and Industrial Manufacturing and Other accelerated, primarily on data-center demand. It attributed margin expansion to operating leverage on higher volumes, pricing, higher defense margins, and productivity savings.

Test & Measurement, which sells precision instruments and services for advanced electronics, posted $244 million of revenue, up 20% and 21% organically. Operating profit swung to $22 million, or an 8.9% margin, from a $1.7 million loss and a 0.8% margin a year earlier. Adjusted EBITDA was $47 million, or a 19.3% margin. Growth was described as broad-based; Diversified Electronics continued to benefit from customer investment in compute and power infrastructure, and Communications was supported primarily by commercial communication demand. Semiconductors declined as acceleration in customer investments was more than offset by the expected headwind from a large customer project completed in the third quarter of 2025. The company said higher volume, pricing, and productivity savings drove operating leverage.

On a reported basis, the company generated $111 million of cash from operating activities in the third quarter and invested $9 million in capital expenditures. Trailing-twelve-month operating cash flow was $338 million and free cash flow $303 million. Cash and equivalents were $366 million; long-term debt was $1.15 billion. The board declared a $0.05 quarterly cash dividend. Year-to-date, the company returned $167 million of capital, including $150 million toward the repurchase of 2.8 million shares at an average $54.74 a share and $17 million of dividends. $400 million remained under the share-repurchase authorization.

The company said it is accelerating the RBS-led Enterprise Productivity Program and now expects to exit 2026 at $30–35 million of annualized run-rate savings, remaining on path to a $50–60 million target by 2028. In the second-quarter release it had described the program as on track to deliver $10–12 million of savings that year.

For the fourth quarter of 2026, Ralliant is providing an outlook of revenue of $620 million to $640 million, adjusted EBITDA margin of 23.5% to 24.5%, and adjusted EPS of $0.93 to $0.99. Full-year 2026 guidance is now revenue of $2.340 billion to $2.360 billion, adjusted EBITDA margin of approximately 21.5%, and adjusted EPS of $3.10 to $3.16. Assumptions include net interest expense of $13 million to $15 million a quarter, an adjusted effective tax rate of 16% to 18%, and about 113 million weighted-average diluted shares. Full-year guidance is inclusive of IEEPA tariff-refund cost-of-sales benefits of $2 million, $7 million, and $5 million in the second, third, and fourth quarters, respectively, and assumes full-year share repurchases of approximately 50% of free cash flow.