On August 11, 2025, Ralliant Corporation announced its financial results for the second quarter of 2025, reporting total sales of $503.3 million, a 5.7% decrease year-over-year, with organic revenue also declining by 5.8%. Net earnings were $48 million, and adjusted net earnings reached $76 million, resulting in an EPS of $0.42 and adjusted EPS of $0.67.
The Test and Measurement segment faced significant challenges, with sales decreasing by 14.9% to $192.5 million and organic revenue declining by 16.8%, leading to an operating loss of $14.3 million (-7.4% margin) compared to a $24.6 million profit in Q2 2024. Conversely, the Sensors and Safety Systems segment demonstrated resilience, with sales increasing by 1.1% to $310.8 million and 2.2% organic revenue growth, maintaining a strong operating profit margin of 25.6%.
Consolidated operating profit margin declined by 800 basis points to 11.7% in Q2 2025, primarily due to volume reductions, higher salaries and wages, increased corporate costs associated with establishing a standalone public company, and the net impact of tariffs. Ralliant generated $86 million in cash flow from operating activities and $74 million in free cash flow, ending the quarter with $199 million in cash and equivalents and $1.15 billion in debt.
In response to the operational challenges, particularly in Test and Measurement, Ralliant is launching a Cost Savings Program targeting $9-11 million of annualized savings, with $4 million in annual run-rate savings expected by the fourth quarter of 2025. This program aims to mitigate spin-related dis-synergies and contribute to adjusted EBITDA margin expansion for the Test and Measurement segment starting in the third quarter of 2025.
The company reiterated its commitment to shareholder returns, referencing the previously approved $200 million share repurchase authorization and the recently declared quarterly cash dividend of $0.05 per share. Management highlighted strong order demand in Sensors and Safety Systems, driven by investments in grid modernization and defense programs, as a key area of strength.
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