2026년 2월 7일 · Unknown · financial · 출처 Yahoo Finance
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Key Points
Ralliant beat Q4 revenue guidance with $555 million in sales, delivered adjusted EBITDA margin of 20.8% and robust cash generation (Q4 free cash flow $92 million, full-year conversion 117%), while ending the quarter with $319 million in cash and 1.9x net leverage. The company recorded a $1.4 billion non-cash goodwill impairment tied to the Elektro‑Automatik acquisition after EV demand and industry forecasts weakened, though management says the technology remains valuable and is being refocused to other energy storage applications. Ralliant guided 2026 revenue of $2.1–$2.2 billion, adjusted EBITDA margin of 18–20% and adjusted EPS of $2.22–$2.42, noting near-term margin pressure from post‑spin structural costs and increased reinvestment, while maintaining a $0.05 quarterly dividend and a $200 million repurchase authorization. Interested in Ralliant Corporation? Here are five stocks we like better.
Ralliant (NYSE:RAL) executives said the company closed its first full year as a standalone public company by exceeding fourth-quarter revenue guidance, delivering results at or above the high end of its profitability outlook, and generating strong free cash flow, while also recording a large non-cash goodwill impairment tied to an electric-vehicle-related acquisition.
Fourth-quarter and full-year highlights
President and CEO Tami Newcombe said 2025 was “a pivotal year,” marked by the company sharpening its long-term strategy, accelerating innovation across the portfolio, and strengthening its culture following the separation. For the fourth quarter, the company reported revenue of $555 million, up 1% year-over-year, with Newcombe noting sequential improvement each quarter of 2025 and 5% sequential growth in Q4.
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Newcombe said trends were “stable to improving across most of our end markets,” and that adjusted EBITDA and adjusted EPS were “at or above the high end” of guidance ranges. She also highlighted “robust” free cash flow, with full-year conversion at 117%, above the company’s long-term target of greater than 95%.
CFO Neill Reynolds said Q4 adjusted EBITDA margin was 20.8% and adjusted diluted EPS was $0.69. He attributed the year-over-year margin decline to lower test and measurement volume and higher operating expenses, including standalone public company costs and higher employee costs such as healthcare. Sequentially, he said adjusted EBITDA margin improved by 40 basis points, driven by higher revenue and the company’s cost savings program.
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Story Continues
Free cash flow in the quarter was $92 million, which Reynolds said reflected disciplined capital spending and working capital management. The company ended the quarter with $319 million in cash and cash equivalents and maintained 1.9x net leverage to adjusted EBITDA, in line with its target leverage range.
Goodwill impairment tied to Elektro-Automatik
Reynolds addressed a $1.4 billion non-cash goodwill impairment recorded in the fourth quarter as part of the company’s annual impairment testing. The impairment was tied to the EA (Elektro-Automatik) business, acquired in January 2024 as part of Fortive, which he said has faced electric vehicle demand headwinds and is trending below prior expectations.
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Reynolds said EA was purchased for EUR 1.6 billion (about $1.7 billion at the time), and that due to foreign exchange movements the carrying value was about $1.8 billion immediately prior to the impairment. He said the company revised long-term revenue and operating profit expectations lower amid slower-than-anticipated progress and reduced industry forecasts for EV adoption. In the Q&A, management cited changes in EV subsidies and write-downs at large auto OEMs as factors that prompted a reassessment of forecasts.
Newcombe added that EA “fits nicely” within the test and measurement business, describing it as “best-in-class” measurement technology with an engineering team and advanced manufacturing facility. Management said the technology is being directed toward other energy storage applications as the automotive EV opportunity has become smaller. Executives also said they did not see similar issues elsewhere in the test and measurement portfolio.
Segment performance: Sensors and Safety Systems vs. Test and Measurement
Reynolds said Q4 organic revenue was flat year-over-year, with pricing actions and healthy demand in Sensors and Safety Systems mostly offset by lower test and measurement volume.
Sensors and Safety Systems (SSS): Q4 revenue increased 6% year-over-year and 3% sequentially, with mid-single-digit or better growth across the segment’s end markets. Defense and space revenue rose 5% year-over-year on robust demand and higher shipments, while backlog continued to grow. Utilities revenue increased 6%, supported by grid modernization and expansion driven by electrification and data center demand. Industrial manufacturing was also up 6%. SSS adjusted EBITDA margin was 28%, down 280 basis points year-over-year, primarily due to higher employee costs. In response to a question on why SSS margin fell sequentially despite higher revenue, Newcombe cited mix, including strong defense performance at a lower margin profile than the segment average. Test and Measurement (TSM): Q4 revenue was $217 million, down 6% year-over-year but up 7% sequentially. Diversified electronics (about half of TSM) declined year-over-year amid cautious customer capital spending, but grew 10% sequentially as revenue stabilized. Communications grew 29% year-over-year and 36% sequentially, with management describing aerospace and defense as the majority of that category and hyperscalers as the remainder. Semiconductor results were affected by the completion of a large customer project production cycle in Q3 2025, which management sa…