Ralliant (RAL) Investor Day 2025 summary

Strategic vision, direction, and leadership

• Transitioning to two independent companies, with Ralliant set to operate as a standalone public company after separation from Fortive on June 28, 2025, focusing on precision technologies and innovation-driven growth.

• Leadership teams emphasize continuous improvement, operational rigor, and a growth mindset, with deep experience in precision technologies, business systems, and global operations.

• Board and executive team bring diverse backgrounds from technology, industrials, semiconductors, and private equity/venture capital, supporting a culture of innovation and inclusion.

• High employee engagement and inclusion scores, with a culture focused on continuous improvement and leadership effectiveness above industry averages.

• Purpose-driven culture empowers teams to drive excellence, adaptability, and breakthrough results.

Business model, operational excellence, and innovation

• Core capabilities center on precision instruments, sensors, and safety systems, refined through strategic divestitures, focused innovation, and a platform approach to product development.

• Ralliant Business System (RBS) drives sustainable results, deploying strategy through scorecards, KPIs, and continuous improvement initiatives like Kaizen, enabling 2x new product introductions and ~15% increase in revenue per employee since 2019.

• Lean manufacturing, automation, and digital tools improved capacity and reduced backlog by ~50%, with a focus on supply chain resilience and working capital efficiency.

• Manufacturing, R&D, and sales are globally diversified, with a local-for-local approach to better serve customers and drive innovation.

• Customer-led innovation frameworks accelerated time to market and deepened customer relationships.

Growth strategy, market positioning, and segment highlights

• Three primary growth vectors: grid modernization, defense technologies, and power electronics, each with strong competitive moats and secular tailwinds.

• Recent acquisition of EA Elektroautomatik expands capabilities in DC power supply and power electronics, leveraging Tektronix’s global sales force for scale.

• Organic investment is prioritized, with disciplined tuck-in M&A aligned to growth vectors and a target of double-digit returns on capital within three years.

• Recurring services account for 25% of revenue, with strong positions in North America and balanced global reach.

• Test & Measurement segment accelerates margin recovery and innovation, Sensors & Safety Systems segment leads in regulated industries, and Defense is embedded in long-term programs with a flawless mission record.