Ralliant Corp

Ralliant reported first-quarter 2026 revenue of $535 million, up 11% year over year and 9% organically, with a book-to-bill above 1.1x. Adjusted EBITDA margin was 18.6%, and adjusted EPS was $0.57; management said both were above the high end of guidance, and on a normalized basis EBITDA margin improved 270 basis points and EPS rose 39% versus the prior year. Free cash flow was $10 million, while trailing 12-month free cash flow conversion was 105%. For Q2, the company guided to revenue of $540 million-$556 million, adjusted EBITDA margin of 18.5%-19.5%, and adjusted EPS of $0.58-$0.64. For full-year 2026, it raised guidance to revenue of $2.185 billion-$2.245 billion, adjusted EBITDA margin of 19.5%-20.5%, and adjusted EPS of $2.53-$2.69.

Tamara Newcombe framed the quarter as a solid start to 2026 and said results were above the high end of guidance. She emphasized execution of the profitable growth strategy, especially in electrification and defense, and pointed to RBS, new product launches, and capacity investments as tools to capture secular demand. Her tone was confident but measured, repeatedly noting that the company is managing around macro uncertainty while focusing on what it can control.

Neill Reynolds said Q1 upside was driven by faster-than-expected improvement in shorter-cycle businesses and increased productivity savings. He highlighted normalized EBITDA margin expansion of 270 basis points and noted free cash flow conversion remains at 105%, above the company’s greater than 95% target, despite Q1 free cash flow of only $10 million due to seasonality and timing. He also detailed the capital structure actions: $268 million of cash on hand, refinancing of the 18-month term loan, $56 million returned to shareholders in the quarter, a new $500 million buyback authorization, and a planned $100 million accelerated share repurchase in Q2.

Analysts focused on the second-half sales growth pattern, defense backlog conversion, T&M momentum, margin phasing, utilities timing, semis, tariffs, and free cash flow. Management said the back-half guidance reflects some macro caution and potential supply disruptions, but demand trends are still strong; they also said defense backlog is a 2-3 year backlog and should support double-digit-plus growth, while semis still face one more quarter of tough comparisons before being fully lapped by Q4. On tariffs, CFO Neill Reynolds said 2026 tariff impact is about $25 million in the forecast, down from $30 million-$40 million last year, and that the company offsets costs with pricing, supply-chain actions, and value engineering.