Ralliant Reports Third Quarter 2025 Results

Core Insights - Ralliant Corporation reported third quarter 2025 results with revenue of $529 million, flat year-over-year and up 5% sequentially, while net earnings were $40 million, leading to an EPS of $0.35 and adjusted EPS of $0.60 [2][4][12] Financial Performance - The net earnings margin was 7.5%, a decline of 960 basis points year-over-year, and the adjusted EBITDA margin was 20.4%, down 610 basis points year-over-year [3] - The company generated $139 million in cash flow from operating activities, with free cash flow of $127 million, compared to $138 million and $132 million respectively in the third quarter of 2024 [8] Segment Performance - In the Sensors & Safety Systems segment, robust demand in Utilities and Defense & Space led to double-digit revenue growth, driven by investments in power grid modernization and defense programs [5] - The Test & Measurement segment saw sequential revenue growth, particularly in the Communications and Semiconductor markets, with operating margin improvements of 660 basis points [6] Strategic Initiatives - The company executed its strategic pillars effectively, focusing on RBS Everywhere, Stronghold Positions, and Winning Growth Vectors, which contributed to performance and value creation [4] - Ralliant plans to deliver $9-$11 million in annualized cost savings by the end of 2026 as part of its Cost Savings Program [12] Capital Allocation - The Board of Directors declared a quarterly cash dividend of $0.05 per share, with a total of $200 million authorized for share repurchases, reflecting the company's commitment to return capital to shareholders [10][11]