Ralliant (RAL) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Opening remarks and company overview

• Celebrated early completion of spin-off and first two quarters as an independent public company.

• Maintained customer focus and innovation during transition, aiming for accelerated growth.

• Positioned as a global precision technologies provider serving mission-critical environments.

• Emphasized strong brand recognition and deep domain expertise in key markets.

• Highlighted enduring company vision and recent $39 million share buyback, with $200 million authorized.

Financial guidance and performance

• 2026 revenue growth guidance set at 4% midpoint, with 18%-20% adjusted EBITDA margin.

• Adjusted EPS projected at $2.22-$2.42; free cash flow conversion at 117%, targeting above 95%.

• OpEx costs higher than anticipated post-spin, normalized for a full year to establish a new baseline.

• Cost savings program of $9-$11 million initiated to address dyssynergies and improve margins.

• Multiple levers and countermeasures identified to achieve financial targets with high confidence.

Growth strategy and market outlook

• Growth driven by Ralliant Business System (RBS) for efficiency and innovation.

• Focused on secular growth in defense, utilities, and power electronics, with 30% of business outpacing market growth.

• Defense backlog nearly doubled; utilities benefiting from global electric grid expansion.

• Industrials showing signs of recovery; Test and Measurement segment returning to growth with new product launches.

• Capital allocation prioritizes organic investment, capacity expansion, and selective M&A, with ongoing share buybacks.