Ralliant Corporation · NYSE:RAL
Ralliant — Q1 2026 Earnings Presentation
35 slides from Ralliant's earnings presentation, May 12, 2026
Slide 1: Ralliant Q1 2026 Results
Ralliant Q1 2026 Results May 12, 2026 2025 INVESTOR DAY 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements included in this presentation and the oral remarks made in connection herewith are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statement
Slide 3: Q1 2026 Highlights and Business Update
Q1 2026 Highlights and Business Update TAMI NEWCOMBE President and Chief Executive Officer 2025 INVESTOR DAY
Slide 4: Business and Outlook Update
Business and Outlook Update Q1 results above the high end of guidance and raising full-year 2026 guidance as we expect Test & Measurement growth to remain elevated and defense backlog is now over $1 billion Capitalizing on secular demand across electrification and defense with a clear focus on execu
Slide 5: Q1 2026 Summary
Q1 2026 Summary Revenue Adjusted EBITDA Margin Adjusted Diluted EPS $535 Million 18.6% $0.57 Revenue Normalized Adjusted Free Cash Flow Growth (Y/Y) EBITDA Margin Conversion (TTM) +11% Total +270 bps Y/Y 105% +9% Organic Further discussion regarding our use of Non-GAAP financial measures and reconci
Slide 6: Regional Trends
Regional Trends Q1 2026 Y/Y Organic Revenue Growth of +9% % of Total Q1 2026 Revenue1 N. America Rest of +16% World 17% W. Europe (4)% China 15% N. America 56% China +5% W. Europe 13% Rest of World (1)% 1. Numbers may not foot due to rounding. North America includes the U.S. and Canada, China repres
Slide 7: End Market Trends
End Market Trends Q1 2026 Y/Y Organic Revenue Growth % of Total Q1 2026 Revenue1 Test & Sensors & Safety Measurement Systems Sensors & Safety Systems +9% ~40% ~60% Semi Industrial Manufacturing +4% 7% Industrial Manufacturing Defense and Space +21% Communications 20% 12% Utilities +1% Other2 +10% De
Slide 8: Our Profitable Growth Strategy
Our Profitable Growth Strategy 01 02 03 Winning Growth Stronghold RBS Everywhere Vectors Positions Capitalizing on long-term Deepening our advantaged Unifying culture and investment cycles across positions where we have business system to deliver electrification and longstanding customer disciplined
Slide 9: Winning Growth Vectors
Winning Growth Vectors | Exposure to Secular Drivers PHYSICAL AI DEFENSE SURGE Robotics / Humanoids Defense Budgets Increasing Autonomous Vehicles / Consumer Golden Dome IOT / Factory Automation Critical Missiles & Munitions SENSORS & N TRIFICATIO DATACENTER INFRASTRUCTURE SAFETY SYSTEMS DEFENSE MOD
Slide 10: RBS Everywhere | Enterprise Growth Enablers
RBS Everywhere | Enterprise Growth Enablers Commercial Execution • Expand sales resources • Augment with AI and digital platforms Manufacturing Agility • Capacity expansion • Local-for-local in region 2 Innovation Acceleration • New product velocity • AI-enabled engineering workflows 10
Slide 11: RBS Everywhere | Enterprise Productivity Program
RBS Everywhere | Enterprise Productivity Program Program Overview Drivers of Savings • Executing a multi-year, CEO-sponsored Cost of Sales: Materials, Maintenance, and Facility Services productivity program to support our Profitable • Group Purchasing Office (GPO) for centralized buying Growth Strat
Slide 12: Well-Positioned for Value Creation
Well-Positioned for Value Creation GROWTH P R O F I TA B I L I T Y FREE CASH FLOW RETURNS Revenue Growth Adjusted EBITDA Growth Strong and Durable Disciplined Capital Extension Faster than Revenue Free Cash Flow Allocation CONSISTENT EARNINGS GROWTH AND SHAREHOLDER RETURNS 12
Slide 13: Financial Overview and Outlook
Financial Overview and Outlook NEILL REYNOLDS Chief Financial Officer 2025 INVESTOR DAY
Slide 14: Q1 2026 Financial Results
Q1 2026 Financial Results ($ in millions, except adjusted EPS) Revenue Adjusted EBITDA Margin Adjusted EPS Free Cash Flow Conversion (TTM) +11% Total Y/Y +270 bps Y/Y1 +39% Y/Y1 +9% Organic Y/Y $535 105% $482 18.6% 15.9% 95%+ $0.57 $0.41 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Target Q1 2026
Slide 15: Segment Performance: Sensors & Safety Systems
Segment Performance: Sensors & Safety Systems Power grid solutions, defense technologies, industrial sensors for demanding environments REVENUE ($M) KEY DRIVERS $324 Organic Revenue $293 • Defense & Space up 21% driven by strong shipments; backlog continues to build with robust demand for critical p
Slide 16: Segment Performance: Test & Measurement
Segment Performance: Test & Measurement Precision instruments and services for advanced electronics REVENUE ($M) KEY DRIVERS Organic Revenue • Communications revenue up 14% driven by continued demand from defense and government customers $210 $189 • Diversified Electronics up 13% on broad improvemen
Slide 17: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Strong balance sheet and durable cash flow to support growth Balance Sheet As of April 3, 2026 Balance Sheet Cash and cash equivalents $268M • Net leverage steady and within long-term target range Debt $1.15B • Completed refinancing of 18-month term loan extending maturit
Slide 18: Raising Full-Year 2026 Guidance and Introducing Q2 2026 Guidance
Raising Full-Year 2026 Guidance and Introducing Q2 2026 Guidance 2026 Guide1 2026 Guide1 Q2 20261 Prior Revised Additional Assumptions Revenue $540M to $556M $2.1B to $2.2B $2.185B to $2.245B • Tariff assumptions are based on policy announcements as of May 8, 2026; expect to Y/Y organic growth +7% t
Slide 19: Productivity Program Supporting Path to Mid-Point of Margin Range By 2028
Productivity Program Supporting Path to Mid-Point of Margin Range By 2028 $50-60 million of annualized run-rate savings by 2028 expected to contribute to ~50% incremental adj. EBITDA margins Enterprise Productivity Program Expected Savings Path to Mid-Point of Through-Cycle Margin Range In-Year Savi
Slide 20: Disciplined Capital Allocation Approach
Disciplined Capital Allocation Approach Strong cash generation allowing for strategic reinvestment and significant capital return • Enabling organic revenue growth through RBS Everywhere 01 Organic Reinvestment • Investing in capacity expansion in Defense and Utilities to serve identified demand • T
Slide 21: Closing Remarks
Closing Remarks TAMI NEWCOMBE President and Chief Executive Officer 2025 INVESTOR DAY
Slide 22: Key Takeaways
Key Takeaways 01 Executing Growth Strategy 02 Driving Margin Expansion 03 Returning Capital Ralliant does not provide a reconciliation for non-GAAP estimates for adjusted EBITDA margin on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of re
Slide 23: Appendix
Appendix 2025 INVESTOR DAY
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports financial results in accordance with GAAP. However, this presentation contains references to certain non-GAAP measures, which are not recognized financial measures under GAAP, because management believes they assist investors and analysts in comparing
Slide 25: Adjusted Net Earnings and Adjusted Diluted EPS
ADJUSTED NET EARNINGS, ADJUSTED DILUTED NET EPS, NORMALIZED ADJUSTED NET EARNINGS, & NORMALIZED ADJUSTED DILUTED NET EPS (UNAUDITED) Three Months Ended ($ in millions, except per share amounts) April 3, 2026 December 31, 2025 March 28, 2025 Per share values Per share values Per share values Net earn
Slide 26: Adjusted Net Earnings and Adjusted Diluted EPS
ADJUSTED NET EARNINGS, ADJUSTED DILUTED NET EPS, NORMALIZED ADJUSTED NET EARNINGS, & NORMALIZED ADJUSTED DILUTED NET EPS (UNAUDITED) Three Months Ended Year Ended ($ in millions, except per share amounts) March 28, 2025 June 27, 2025 September 26, 2025 December 31, 2025 December 31, 2025 Per share P
Slide 27: Adjusted EBITDA and Margin
ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, NORMALIZED ADJUSTED EBITDA, & NORMALIZED ADJUSTED EBITDA MARGIN (UNAUDITED) Three Months Ended April 3, December 31, March 28, ($ in millions) 2026 2025 2025 Revenue (GAAP) $ 534.6 $ 554.6 $ 481.8 Net earnings (loss) (GAAP) $ 44.2 $ (1,373.9) $ 63.9 Interest
Slide 28: Adjusted EBITDA and Margin
ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, NORMALIZED ADJUSTED EBITDA, & NORMALIZED ADJUSTED EBITDA MARGIN (UNAUDITED) Three Months Ended Year Ended March 28, June 27, September 26, December 31, December 31, ($ in millions) 2025 2025 2025 2025 2025 Revenue (GAAP) $ 481.8 $ 503.3 $ 529.1 $ 554.6 $ 2,06
Slide 29: Segment Adjusted EBITDA and Margin
SEGMENT ADJUSTED EBITDA, SEGMENT ADJUSTED EBITDA MARGIN, SEGMENT NORMALIZED ADJUSTED EBITDA, & SEGMENT NORMALIZED ADJUSTED EBITDA MARGIN (UNAUDITED) Three Months Ended April 3, 2026 December 31, 2025 March 28, 2025 Unallocated Unallocated Unallocated Sensors and Corporate Sensors and Corporate Senso
Slide 30: Segment Adjusted EBITDA and Margin
SEGMENT ADJUSTED EBITDA, SEGMENT ADJUSTED EBITDA MARGIN, SEGMENT NORMALIZED ADJUSTED EBITDA, & SEGMENT NORMALIZED ADJUSTED EBITDA MARGIN (UNAUDITED) Three Months Ended March 28, 2025 June 27, 2025 September 26, 2025 December 31, 2025 Unallocated Unallocated Unallocated Unallocated Sensors and Corpor
Slide 31: Segment Adjusted EBITDA and Margin
SEGMENT ADJUSTED EBITDA, SEGMENT ADJUSTED EBITDA MARGIN, SEGMENT NORMALIZED ADJUSTED EBITDA, & SEGMENT NORMALIZED ADJUSTED EBITDA MARGIN (UNAUDITED) Year Ended December 31, 2025 Unallocated Sensors and Corporate Safety Test and Costs and ($ in millions) Systems Measurement Other (a) Revenue (GAAP) $
Slide 32: Organic Revenue Growth
ORGANIC REVENUE GROWTH (UNAUDITED) Three Months Ended April 3, 2026 vs. Comparable 2025 Period Ralliant Sensors and Safety Systems Test and Measurement Total revenue growth (GAAP) 11.0 % 10.6 % 11.6 % Impact of: Currency exchange rates (2.2)% (1.8)% (2.9)% Organic revenue growth (Non-GAAP) 8.8 % 8.8
Slide 33: Adjusted Operating Expenses
ADJUSTED OPERATING EXPENSES (UNAUDITED) Three Months Ended April 3, 2026 December 31, 2025 March 28, 2025 Unallocated Unallocated Unallocated Corporate Corporate Corporate Costs and Costs and Costs and ($ in millions) Ralliant Total Segments Other (a) Ralliant Total Segments Other (a) Ralliant Total
Slide 34: Free Cash Flow and Conversion
FREE CASH FLOW AND FREE CASH FLOW CONVERSION (UNAUDITED) Three Months Ended ($ in millions) April 3, 2026 December 31, 2025 March 28, 2025 Operating cash flows (GAAP) $ 19.1 $ 101.6 $ 72.0 Less: Purchases of property, plant & equipment (capital expenditures) (GAAP) (8.7) (10.0) (5.6) Free cash flow
Slide 35: Net Leverage
NET LEVERAGE (UNAUDITED) As of TTM As of TTM April 3, April 3, December 31, December 31, ($ in millions) 2026 2026 2025 2025 Long-term debt, gross $ 1,150.0 $ 1,150.0 Cash and cash equivalents 268.0 292.8 Net debt per credit agreement $ 882.0 $ 857.2 Net earnings (GAAP) $ (1,242.2) $ (1,222.5) Inter