Ralliant (RAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded guidance, leading to a raised full-year outlook for revenue, adjusted EBITDA margin, and EPS.

• Strong performance driven by secular demand in electrification and defense, with defense backlog surpassing $1 billion.

• Enterprise Productivity Program launched, targeting $50M–$60M annualized savings by 2028, with $20M already actioned.

• Accelerated capital return to shareholders, with $500M share repurchase authorization and $100M accelerated program in Q2.

• Focus on profitable growth strategy and productivity initiatives to capitalize on market trends.

Financial highlights

• Q1 2026 revenue was $535M, up 11% year-over-year; organic growth was 9%.

• Adjusted EBITDA margin reached 18.6%, a 270 bps improvement year-over-year on a normalized basis.

• Adjusted EPS was $0.57, up 39% year-over-year on a normalized basis.

• Trailing twelve-month free cash flow conversion was 105%.

• Q1 operating cash flow was $19M; free cash flow was $10M.

Outlook and guidance

• Q2 2026 revenue expected at $540M–$556M, representing 7%–10% organic growth year-over-year.

• Adjusted EBITDA margin for Q2 guided at 18.5%–19.5%; adjusted EPS expected between $0.58–$0.64.

• Full-year 2026 guidance raised: revenue of $2.185B–$2.245B, adjusted EBITDA margin of 19.5%–20.5%, and adjusted EPS of $2.53–$2.69.

• Guidance assumes stable geopolitical environment and continued offset of known tariffs.

• Productivity program savings of $10M–$12M anticipated for FY 2026.