Ralliant (RAL) Q2 2026 earnings summary

Executive summary

• Q2 2026 results exceeded guidance, with revenue up 13% year-over-year to $568 million and both segments achieving double-digit organic growth and significant margin expansion.

• Strong execution in electrification, defense, and industrial markets, with book-to-bill above 1.1 in both segments and a defense backlog over $1 billion.

• Enterprise Productivity Program is delivering savings, targeting $50–$60 million annualized run-rate savings by 2028, with $10–$12 million in-year savings expected in 2026.

• Robust free cash flow enabled $161 million returned to shareholders in H1 2026, including a $100 million accelerated share repurchase.

• Liquidity remains strong with $271 million in cash and $1.15 billion in long-term debt at quarter-end.

Financial highlights

• Q2 revenue was $568 million, up 13% year-over-year on both reported and organic basis.

• Adjusted EBITDA margin reached 19.8%, a 390 bps improvement year-over-year; adjusted EPS was $0.68, up 58%.

• Free cash flow was $99 million in Q2, with trailing 12-month free cash flow conversion at 114%.

• Net earnings for the quarter were $57 million; adjusted net earnings reached $76 million.

• Diluted shares outstanding were approximately 112 million.

Outlook and guidance

• Q3 2026 revenue expected at $570–$590 million, adjusted EBITDA margin 20.5%–21.5%, and adjusted EPS $0.72–$0.78.

• Full-year 2026 guidance raised: revenue $2.25–$2.3 billion, adjusted EBITDA margin 20%–21%, adjusted EPS $2.76–$2.90.

• Corporate and other expenses expected at $20–$23 million per quarter in H2, up due to productivity program implementation and higher variable compensation.

• Guidance assumes stable geopolitical environment and ability to offset tariff costs.