Ralliant Corporation · NYSE:RAL
Ralliant — Q4 2025 Earnings Presentation
34 slides from Ralliant's earnings presentation, Nov 6, 2025
Slide 1: Ralliant Q4 and Full Year 2025 Results
Ralliant Q4 and Full Year 2025 Results February 5, 2026 2025 INVESTOR DAY 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures 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
Slide 3: Q4 and FY2025 Highlights and Strategic Update
Q4 and FY2025 Highlights and Strategic Update TAMI NEWCOMBE President and Chief Executive Officer 2025 INVESTOR DAY
Slide 4: Our Precision Technologies Create Confidence
ALT OPTION Our Precision Technologies Create Confidence… What we do We deliver instruments and sensors & safety systems for applications where accuracy, reliability, and safety matter. Why it matters Precision creates confidence for the innovators, scientists, and engineers we empower. Who we serve
Slide 5: Key Messages
Key Messages 01 02 03 04 05 In 2025, sharpened Exceeded Q4 revenue Q4 adj. EBITDA and Strong free cash flow Entered 2026 with long-term strategy, guidance as demand adj. EPS were both at in Q4, with Trailing momentum: strong ramped innovation, and trends were stable to or above the high end Twelve M
Slide 6: Q4 2025 Summary
Q4 2025 Summary Revenue Revenue Growth Adj. EBITDA Margin1 $555 Million +1% Y/Y | +5% Q/Q 20.8% Free Cash Flow Adj. Diluted EPS1 Net Leverage Conversion (TTM) $0.69 117% 1.9x Adjusted results exclude a non-cash goodwill impairment charge of $1.4 billion related to the Test & Measurement reporting un
Slide 7: Regional Trends
Regional Trends Quarterly Y/Y Revenue Growth Trends W. Europe % of Total North America +15% ‘25 Q1’25 Q2’25 Q3’25 Q4’25 FY ‘25 China Revenue Flat -10% N. America 54% -7% -5% +2% 0% -3% W. Europe 13% -28% -23% -6% +15% -12% China 14% -12% -1% -6% -10% -7% RoW Rest of 19% -4% +3% +1% +6% +1% +6% World
Slide 8: End Market Momentum
End Market Momentum LT Expected Served End Market % of Revenue1 2025 Revenue Y/Y Market Growth2 Sensors & Safety Systems ~60% +4% Industrial Manufacturing 21% +4% 0-2% Defense and Space 17% +4% 5-7% Utilities 15% +12% 5-7% Other3 9% (8%) 0-2% Test & Measurement ~40% (15%) Diversified Electronics4 19
Slide 9: Executing Our Profitable Growth Strategy
Executing Our Profitable Growth Strategy RBS Stronghold Winning Growth Everywhere Positions Vectors Continuing our Deepening our Expanding portfolio to operating discipline advantaged positions in capture outsized secular to unlock efficiency and target markets where growth in defense profitability
Slide 10: Customer Highlights
Customer Highlights DEFENSE TECHNOLOGIES GRID MODERNIZATION POWER ELECTRONICS Ramping Production to Meet Rising Supporting Global Grid Expansion With Enabling Physical AI in robotics, industrial Defense Demand Monitoring Solutions automation and defense PacSci EMC achieved record Q4 revenue, enabled
Slide 11: Investing for Growth
Investing for Growth Commercial Execution • Expand sales resources • Augment with AI and a digital platform Manufacturing Agility • Capacity expansion • Continue local-for-local 2 Innovation Acceleration • New product velocity • AI-enabled engineering workflows Fueling Above-Market Growth 11
Slide 12: Financial Overview & Outlook
Financial Overview & Outlook NEILL REYNOLDS Chief Financial Officer 2025 INVESTOR DAY
Slide 13: Q4 2025 Financial Results
Q4 2025 Financial Results ($ in millions, except Adj. EPS) Revenue Adj. EBITDA Margin1 Adj. EPS1,2 Free Cash Flow +1% Y/Y (500 bps) Y/Y (27%) Y/Y (37%) Y/Y +5% Q/Q +40 bps Q/Q +15% Q/Q (28)% Q/Q $548 $555 $147 25.8% 20.8% $0.95 $92 $0.69 Q4 2024 Q4 2025 Q4 2024 Q4 2025 Q4 2024 Q4 2025 Q4 2024 Q4 202
Slide 14: Segment Performance: Sensors & Safety Systems
Segment Performance: Sensors & Safety Systems Power grid monitoring solutions, defense and space technologies, industrial sensors for demanding environments REVENUE ($M) KEY DRIVERS $318 $337 Revenue • Defense & Space up 5% Y/Y and backlog continues to grow driven by demand for critical defense prog
Slide 15: Segment Performance: Test & Measurement
Segment Performance: Test & Measurement Precision instruments and essential software and services for advanced electronics REVENUE ($M) KEY DRIVERS Revenue • Diversified Electronics down (13)% Y/Y, but stabilized $230 broadly sequentially, up 10% Q/Q $217 • Communications up 29% driven by increased
Slide 16: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Closing 2025 with strong balance sheet and durable cash flow As of December 31, Balance Sheet 2025 Balance Sheet Cash and cash equivalents $319M • Net leverage steady Q/Q Debt $1.15B • $34M of Fortive commitments related to spinoff Net debt $831M paid in Q4 Net leverage1
Slide 17: Disciplined Capital Allocation Approach
Disciplined Capital Allocation Approach Strong cash generation allowing for strategic reinvestment Strategic Focus Recent Actions • Executed record product launch year in 2025 and will continue to invest in Organic Reinvestment new product innovation 01 Organically invest in high growth markets alig
Slide 18: Q1 and Full-Year 2026 Outlook
Q1 and Full-Year 2026 Outlook Q1 2026 Assumptions • 5% to 8% Y/Y growth, including approximately 2 percentage points FX favorability; sequential decline in Revenue $508 to $522M line with typical seasonality • Y/Y stepdown driven by higher operating expenses and investments into our growth strategy,
Slide 19: Closing Remarks
Closing Remarks TAMI NEWCOMBE President and Chief Executive Officer 2025 INVESTOR DAY
Slide 20: Key Takeaways
Key Takeaways 01 02 03 2025 was a pivotal year as we Since launching as a public Entering 2026 with strong refined long-term strategy, company, delivered quarterly secular tailwinds and ramped innovation, and performance at or above strategic clarity on growth enhanced growth culture, financial guid
Slide 21: Ralliant: Invest with Us
Ralliant: Invest with Us 01 People-First Culture • Seasoned business leaders • Amplified growth culture • Winning as one team 02 Executing Growth Strategy • RBS everywhere • Stronghold positions • Winning growth vectors 03 Financial Discipline • Continued operating rigor • Strong cash flow generatio
Slide 22: Appendix
Appendix 2025 INVESTOR DAY 22
Slide 23: End Markets
END MARKETS Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 ($ in millions) Test and Sensors and Test and Sensors and Total Measurement Safety Systems Total Measurement Safety Systems Diversified electronics $ 99.6 $ 99.6 $ — $ 114.2 $ 114.2 $ — Communications 82.7 82.7 — 6
Slide 24: Summary GAAP to Non-GAAP Bridge
Summary GAAP to Non-GAAP Bridge Refer to the following pages for the reconciliations of historical non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Three Months Ended December 31, 2025 ($ in millions, except per share amounts) Non-G
Slide 25: 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 26: Adjusted Net Earnings and Adjusted Diluted Net EPS (Quarter)
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS (UNAUDITED) Three Months Ended ($ in millions, except per share amounts) December 31, 2025 September 26, 2025 December 31, 2024 Per share Per share Per share values values values Net (loss) earnings and net diluted (loss) earnings per share (GAAP) $
Slide 27: Adjusted Net Earnings and Adjusted Diluted Net EPS (Year)
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS (UNAUDITED) Year Ended ($ in millions, except per share amounts) December 31, 2025 Per share values Net loss and net diluted loss per share (GAAP) $ (1,222.5) $ (10.78) Goodwill impairment 1,441.7 12.71 Amortization of acquisition related intangible
Slide 28: Adjusted EBITDA and Adjusted EBITDA Margin (Quarter)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (UNAUDITED) Three Months Ended December 31, September 26, December 31, ($ in millions) 2025 2025 2024 Revenue (GAAP) $ 554.6 $ 529.1 $ 548.1 Net (loss) earnings (GAAP) $ (1,373.9) $ 39.9 $ 82.7 Interest expense, net 16.0 16.3 — Income tax (benefit) expense
Slide 29: Adjusted EBITDA and Adjusted EBITDA Margin (Year)
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (UNAUDITED) Year Ended December 31, ($ in millions) 2025 Revenue (GAAP) $ 2,068.8 Net loss (GAAP) $ (1,222.5) Interest expense, net 32.3 Income tax expense 6.1 Depreciation 28.6 Amortization 86.9 EBITDA (Non-GAAP) (1,068.6) Goodwill impairment 1,441.7 Stock
Slide 30: Adjusted Operating Profit, Adjusted EBITDA and Margin Including Segments
ADJUSTED OPERATING PROFIT (LOSS), ADJUSTED EBITDA and ADJUSTED EBITDA MARGIN (including segments) (UNAUDITED) Three Months Ended December 31, 2025 September 26, 2025 December 31, 2024 Unallocated Unallocated Unallocated Sensors and Corporate Sensors and Corporate Sensors and Corporate Test and Safet
Slide 31: Organic Revenue Growth and Adjusted Gross Profit
ORGANIC REVENUE GROWTH (UNAUDITED) Three Months Ended December 31, 2025 vs. Comparable 2024 Period Ralliant Test and Measurement Sensors and Safety Systems Total revenue growth (GAAP) 1.2 % (5.6)% 6.1 % Impact of: Currency exchange rates (1.3)% (1.8)% (1.0)% Organic revenue growth (Non-GAAP) (0.1)%
Slide 32: Adjusted Operating Expenses
ADJUSTED OPERATING EXPENSES (UNAUDITED) Three Months Ended December 31, 2025 September 26, 2025 December 31, 2024 Unallocated Unallocated Unallocated Corporate Corporate Corporate Costs and Costs and Costs and ($ in millions) Ralliant Total Segments Other (a) Ralliant Total Segments Other (a) Rallia
Slide 33: Free Cash Flow and Free Cash Flow Conversion
FREE CASH FLOW AND FREE CASH FLOW CONVERSION (UNAUDITED) Three Months Ended ($ in millions) December 31, 2025 September 26, 2025 December 31, 2024 Operating cash flows (GAAP) $ 101.6 $ 138.6 $ 160.9 Less: Purchases of property, plant & equipment (capital expenditures) (GAAP) (10.0) (12.0) (14.4) Fre
Slide 34: Net Leverage
NET LEVERAGE (UNAUDITED) As of TTM ($ in millions) December 31, December 31, 2025 2025 Debt, gross $ 1,150.0 Cash and equivalents per credit agreement 292.8 Net debt per credit agreement $ 857.2 Net earnings (GAAP) $ (1,222.5) Interest expense, net 32.3 Income tax (benefit) expense 6.1 Depreciation