Ralliant Delivers Strong Third Quarter 2025 Results, Demonstrating Resilience and Strategic Execution in Its First Full Quarter as an Independent Company
Ralliant Corporation has released its financial results for the third quarter of 2025, marking a significant milestone as its first full quarter operating as an independent, publicly traded company. The results underscore Ralliant’s ability to perform strongly amid a complex market environment, demonstrating effective execution of its strategic priorities, robust customer demand across key segments, and a disciplined approach to operational excellence.
Solid Financial Performance and Strategic Progress
For the third quarter of 2025, Ralliant reported revenue of $529 million, which remained flat year-over-year but represented a 5% sequential increase compared to the second quarter of 2025. The company’s ability to achieve sequential growth highlights its agility in responding to demand shifts and maintaining stability across diverse end markets.
Net earnings for the quarter were $40 million, while adjusted net earnings stood at $69 million, reflecting the company’s underlying operating strength after accounting for one-time and non-cash items. Correspondingly, earnings per share (EPS) came in at $0.35, and adjusted EPS was $0.60.
Although Ralliant’s net earnings margin of 7.5% reflected a 960-basis point decline year-over-year, and the adjusted EBITDA margin of 20.4% represented a 610-basis point reduction, the company maintained strong profitability despite cost headwinds, a transitioning operating structure, and evolving market dynamics following its separation.
CEO Commentary: Strong Execution in the Company’s First Full Independent Quarter
“In our first full quarter as an independent public company, our team demonstrated exceptional focus and operating discipline, enabling us to deliver results at or above the high end of our guidance range across every metric,” said Tami Newcombe, President and Chief Executive Officer of Ralliant. “We successfully translated ambition into performance and value creation as we executed our three strategic pillars: RBS Everywhere, Stronghold Positions, and Winning Growth Vectors.”
Newcombe emphasized that the company’s third-quarter performance reflects a strong foundation for sustainable growth and long-term shareholder value creation. The quarter’s achievements also highlight Ralliant’s ability to balance growth investments with financial prudence, improving working capital efficiency while funding innovation and customer-focused initiatives.
Segment Highlights
Ralliant operates through two primary business segments — Sensors & Safety Systems and Test & Measurement — both of which contributed to sequential revenue growth during the third quarter.
Sensors & Safety Systems
The Sensors & Safety Systems segment experienced a notable rise in demand, particularly within the Defense and Utilities markets. In the Defense sector, Ralliant benefited from heightened demand from the U.S. Department of Defense and allied nations investing to modernize armed forces and expand deterrent capabilities. As geopolitical tensions continue to drive increased defense budgets, Ralliant has focused on improving productivity and scaling output to meet urgent customer needs.
In the Utilities sector, Ralliant’s sensor technologies and safety solutions supported ongoing investments in power grid modernization and infrastructure resilience. The company’s advanced sensing solutions play a critical role in improving reliability, monitoring, and operational safety for large-scale energy systems, aligning with broader sustainability and electrification trends worldwide.
Test & Measurement
The Test & Measurement segment posted sequential revenue growth consistent with typical seasonal trends. However, Ralliant also achieved significant milestones through new product launches that are helping shape future opportunities in this segment. During the quarter, the company introduced two breakthrough products designed to enhance testing accuracy, speed, and reliability across industrial and scientific applications.
Customer reception to these innovations has been extremely positive, underscoring Ralliant’s reputation for technological excellence and customer-centric engineering. These products are expected to support stronger growth momentum in the quarters ahead, as adoption continues to expand across high-value industries.
Focus on Cash Flow and Capital Discipline
Ralliant also demonstrated robust operational discipline through its working capital improvements and strong cash flow generation during the quarter. The company’s focus on cash efficiency reinforces its capacity to invest organically in innovation and strategic growth initiatives while also returning capital to shareholders through disciplined financial management.
Newcombe noted that this balance between growth investment and financial discipline will continue to be a cornerstone of Ralliant’s strategy, especially as it seeks to strengthen its market leadership in core areas and explore adjacent growth opportunities.
Strategic Priorities and Long-Term Outlook
As outlined by the CEO, Ralliant continues to execute on three key strategic pillars:
- RBS Everywhere: This pillar reflects the company’s commitment to operational excellence through the Ralliant Business System (RBS), which standardizes processes, drives continuous improvement, and fosters a performance-driven culture across all business units.
- Stronghold Positions: Ralliant continues to leverage its leadership in core markets such as Defense, Utilities, and industrial safety to sustain a competitive edge. By deepening customer partnerships and focusing on mission-critical applications, the company aims to protect and expand its dominant market positions.
- Winning Growth Vectors: The company is actively investing in innovation, product differentiation, and emerging technologies that align with long-term market trends. This includes expanding its footprint in high-growth areas such as intelligent sensing, data-driven testing solutions, and advanced measurement systems.
Ralliant’s strategic execution is underpinned by its strong operational backbone, dedicated workforce, and a business system designed to deliver consistent, high-quality results even in challenging economic environments.
Positioned for Sustainable Growth
Ralliant’s third-quarter 2025 performance reflects a company that has not only successfully navigated its spin-off transition but is also laying the groundwork for sustained growth. Despite near-term margin pressures, the company’s steady revenue trajectory, innovation momentum, and strong end-market demand create a favorable outlook for future quarters.
Moreover, Ralliant’s exposure to defense modernization, energy infrastructure investment, and industrial automation trends provides a multi-year growth runway supported by global macroeconomic shifts. As governments and enterprises continue prioritizing safety, reliability, and technological modernization, Ralliant’s solutions are increasingly positioned at the center of this transformation.
Leadership Confidence in Continued Momentum
“We are proud of how our team has embraced this new chapter of independence with energy, focus, and accountability,” Newcombe added. “The results we achieved this quarter affirm that Ralliant’s strategy is working. We’re investing in innovation that matters, strengthening relationships with our customers, and delivering on our commitments to shareholders.”
Looking ahead, Ralliant remains focused on executing its strategy with precision while managing external uncertainties. The company expects continued sequential revenue growth, disciplined capital allocation, and margin improvement as operational efficiencies take hold and newly launched products scale.
Ralliant’s third-quarter 2025 results highlight a company that is performing with confidence and purpose. With strong leadership, disciplined execution, and a clear strategic framework, Ralliant is demonstrating its potential as a newly independent enterprise positioned for sustained, profitable growth. The company’s balanced approach combining operational rigor, innovation, and financial strength — sets the stage for continued success in 2026 and beyond.
