Ralliant Posts $555M Q4 Revenue with 29% Communications Surge, $1.4B Impairment
Ralliant reported Q4 2025 revenue of $555 million, a 1% year-over-year gain that surpassed guidance, driven by 29% Communications and 6% Sensors & Safety growth despite a 6% Test & Measurement decline. The quarter featured a $1.4B goodwill impairment on its Elektro-Automatik unit and 250bp margin headwinds in 2026.
1. Q4 2025 Financial Results
Ralliant reported Q4 2025 revenue of $555 million, surpassing guidance with a 1% year-over-year increase. Adjusted results offset challenges from uneven segment performance and major non-cash charges.
2. Segment Highlights
Growth was concentrated in Communications, which surged 29%, and Sensors & Safety Systems, which grew 6%. The Test & Measurement division contracted by 6% as customers tightened capital spending.
3. Goodwill Impairment
The company recorded a $1.4 billion non-cash goodwill impairment related to its Elektro-Automatik unit. Management attributed the write-down to a slowdown in electric vehicle demand and shifts in global subsidy structures.
4. 2026 Outlook
For full-year 2026, Ralliant forecasts revenue of $2.1 billion to $2.2 billion and adjusted EPS of $2.22 to $2.42. The outlook includes 250 basis points of margin headwinds from spin-off costs and underscores a focus on AI investments and strategic tuck-in acquisitions.