Ralliant Corp. reported third‑quarter 2025 results that included $529 million in revenue, flat year‑over‑year, and $39.9 million in net earnings, translating to an earnings per share of $0.35. Adjusted net earnings rose to $69 million and adjusted EPS reached $0.60, while the adjusted EBITDA margin fell to 20.4 % and the net earnings margin contracted to 7.5 %. The company also declared a quarterly dividend of $0.05 per share and reaffirmed its $200 million share‑repurchase authorization.
The quarter’s revenue mix shifted markedly: the Sensors & Safety Systems segment grew 11 % year‑over‑year to $326 million and generated an operating profit of $90.1 million, driven by robust demand in defense and utilities. In contrast, the Test & Measurement segment declined 14 % year‑over‑year to $203 million and posted an operating loss of $1.7 million, reflecting customer caution in capital‑intensive projects and the impact of lapping large contracts from the prior year.
Margin compression was driven by a combination of lower volume in Test & Measurement, which created operating deleverage, and higher post‑spin‑off employee costs. Net earnings margin fell 960 basis points and adjusted EBITDA margin fell 610 basis points year‑over‑year, underscoring the pressure on profitability despite the strong Sensors & Safety Systems performance.
Management guided for Q4 2025 revenue of $535 million to $550 million and adjusted EPS of $0.62 to $0.68, signaling confidence in sequential growth. The guidance reflects expectations of continued demand in defense and utilities, while the company remains focused on cost discipline to mitigate margin pressure.
President and CEO Tami Newcombe highlighted the company’s “exceptional focus and operating discipline” and emphasized that the Sensors & Safety Systems segment is capturing rising demand in defense and utilities. She noted that the Test & Measurement segment benefited from seasonal demand and the launch of two breakthrough products, and that the company’s working‑capital improvements are generating significant cash flow to support organic investment and shareholder returns.
Investors responded positively to the results, with the market citing the revenue beat, the adjusted EPS meeting expectations, and the strong performance of the Sensors & Safety Systems segment as key drivers of the favorable reaction. The company’s optimistic Q4 outlook and continued focus on cost control were also highlighted as reassuring signals for the near‑term outlook.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.