Ralliant Q4 Adjusted EPS Beats, Impairment Triggers $1.4B Loss
Ralliant reported Q4 revenue of $554.6 million, up 1% year-over-year, delivering $0.69 adjusted EPS and $115.5 million adjusted EBITDA (20.8% margin) while generating $91.6 million free cash flow. A $1.4 billion non-cash goodwill impairment in Test & Measurement drove a GAAP net loss of $1.374 billion.
1. Q4 Financial Results
Ralliant delivered Q4 2025 revenue of $554.6 million, up 1% year-over-year and sequentially, producing $78.5 million adjusted net earnings and $0.69 adjusted EPS (vs. $0.67 consensus). Adjusted EBITDA reached $115.5 million with a 20.8% margin.
2. Non-Cash Goodwill Impairment
GAAP results included a $1.4 billion non-cash goodwill impairment in the Test & Measurement segment related to lower EV adoption projections for the EA Elektro-Automatik business, resulting in a $1.374 billion net loss and $(12.10) per share.
3. Cash Flow and Capital Returns
Operating cash flow was $101.6 million and free cash flow $91.6 million. The company declared a $0.05 quarterly dividend and retains a $200 million share repurchase authorization, underscoring solid liquidity and capital return capacity.
4. 2026 Guidance and Outlook
Q1 2026 revenue is forecast at $508–$522 million with adjusted EPS of $0.46–$0.52, while full-year 2026 revenue is guided to $2.1–$2.2 billion with $2.22–$2.42 adjusted EPS and >95% free cash flow conversion. Analysts maintain moderate buy to buy ratings with mid-$50s to low-$60s targets.