What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-05-12 · 190 added, 122 removed, 404 unchanged (44% of the section changed)

3 unchanged sentences

($ and shares in millions, except per share amounts)

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Current assets:

39 unchanged sentences

($ and shares in millions, except per share amounts) (Unaudited)

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Sales $ 567.8 $ 503.3 $ 1,102.3 $ 985.1

7 unchanged sentences

Interest expense, net ( 13.8 ) — ( 28.4 ) —

Other non-operating expenses, net ( 0.5 ) ( 0.5 )

Other non-operating income (expense), net 0.1 — ( 0.4 ) ( 0.5 )

Earnings before income taxes 68.5 58.9 121.5 132.2

9 unchanged sentences

RALLIANT CORPORATION AND SUBSIDIARIES

CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

($ in millions) (Unaudited)

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Net earnings $ 57.2 $ 47.6 $ 101.4 $ 111.5

3 unchanged sentences

Total other comprehensive (loss) income, net of income taxes ( 3.9 ) 167.7 ( 69.6 ) 253.7

Comprehensive (loss) income

$ ( 21.5 ) $ 149.9

Comprehensive income $ 53.3 $ 215.3 $ 31.8 $ 365.2

See the accompanying Notes to Consolidated and Combined Condensed Financial Statements.

15 unchanged sentences

Balance, April 3, 2026 111.9 1.1 3,232.2 ( 50.5 ) ( 1,306.7 ) ( 310.6 ) — 1,565.5

— — — — 57.2 — — 57.2

Other comprehensive income — — — — — ( 3.9 ) — ( 3.9 )

Dividends to common stockholders ( 0.05 per common stock)

— — — — ( 5.5 ) — — ( 5.5 )

Stock-based compensation 0.3 — 22.4 — — — — 22.4

Common stock repurchases ( 1.6 ) — ( 101.0 ) — — — ( 101.0 )

Shares withheld for taxes — — ( 0.8 ) — — — — ( 0.8 )

Balance, July 3, 2026 110.6 $ 1.1 $ 3,253.8 $ ( 151.5 ) $ ( 1,255.0 ) $ ( 314.5 ) $ — $ 1,533.9

RALLIANT CORPORATION AND SUBSIDIARIES

CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF CHANGES IN EQUITY

($ and shares in millions) (Unaudited)

Common Stock Additional Paid-In Capital Treasury Stock

8 unchanged sentences

Balance, March 28, 2025 — — — — — ( 405.3 ) 4,251.9 3,846.6

Net earnings for the period — — — — — — 47.6 47.6

Recapitalization 112.7 1.1 — — — ( 1.1 ) —

Consideration paid to Former Parent in connection with the Separation — — — — — — ( 1,150.0 ) ( 1,150.0 )

Net transfers to Former Parent — — — — — — 119.8 119.8

Other comprehensive loss — — — — — 167.7 — 167.7

Stock-based compensation — — — — — — 8.1 8.1

Balance, June 27, 2025 112.7 $ 1.1 $ — $ — $ — $ ( 237.6 ) $ 3,276.3 $ 3,039.8

See the accompanying Notes to Consolidated and Combined Condensed Financial Statements.

2 unchanged sentences

($ in millions) (Unaudited)

Three Months Ended

April 3, 2026 March 28, 2025

Six Months Ended

July 3, 2026 June 27, 2025

Cash flows from operating activities:

4 unchanged sentences

Stock-based compensation 22.9 14.6

Gain on settlement of investments ( 0.6 ) —

Change in accounts receivable, net ( 8.1 ) 13.8

6 unchanged sentences

Purchases of property, plant and equipment ( 15.1 ) ( 17.2 )

Proceeds from settlement of investments

Proceeds from sale of property — 1.5

1 unchanged sentence

Cash flows from financing activities:

Payments of debt issuance costs

Net transfers to Former Parent

Net proceeds from borrowings 59.2 1,146.8

Repayment of borrowings ( 60.0 ) —

Repurchase of common shares ( 151.5 ) —

1 unchanged sentence

Other financing activities 6.9 —

Net cash used in financing activities ( 59.1 ) ( 72.6 )

Consideration paid to Former Parent in connection with separation — ( 1,150.0 )

Net transfers from Former Parent

Net cash (used in) provided by financing activities ( 156.5 ) 44.1

Effect of exchange rate changes on cash and equivalents ( 1.5 ) 12.8

25 unchanged sentences

Following the Separation, the consolidated financial statements included the accounts of Ralliant and its wholly-owned subsidiaries and no longer included any allocations from Fortive.

• The Consolidated Condensed Balance Sheets at April 3, 2026 and December 31, 2025 consisted of Ralliant’s consolidated balances.

• The Consolidated Condensed Statements of Earnings, Statements of Comprehensive Income, Statements of Changes in Equity, and Statements of Cash Flows for the three months ended April 3, 2026 consisted of Ralliant’s consolidated results.

The Combined Condensed Statements of Earnings, Statements of Comprehensive Income, Statements of Changes in Equity, and Statements of Cash Flows for the three months ended March 28, 2025 consisted of the combined results of the Ralliant businesses.

• The Consolidated Condensed Balance Sheets at July 3, 2026 and December 31, 2025 consisted of Ralliant’s consolidated balances.

• The Consolidated Condensed Statements of Earnings, Statements of Comprehensive Income, and Statements of Changes in Equity for the three and six months ended July 3, 2026 consisted of Ralliant’s consolidated results.

The Combined Condensed Statements of Earnings, Statements of Comprehensive Income, and Statements of Changes in Equity for the three and six months ended June 27, 2025 consisted of the combined results of the Ralliant businesses.

• The Consolidated Condensed Statements of Cash Flows for the six months ended July 3, 2026 consisted of Ralliant’s consolidated results.

The Combined Condensed Statements of Cash Flows for the six months ended June 27, 2025 consisted of the combined results of the Ralliant businesses.

Prior to the Separation, Ralliant was dependent upon Fortive for all of its working capital and financing requirements under Fortive’s centralized approach to cash management and financing of its operations.

Because the Company was part of Fortive during the three months ended March 28, 2025, only cash, cash equivalents, and borrowings clearly associated with Ralliant and related to the Separation have been included in these combined condensed financial statements.

Other financial transactions relating to the business operations of the Company during the three months ended March 28, 2025 were accounted for through the Net Former Parent investment account of the Company.

Because the Company was part of Fortive during the three and six months ended June 27, 2025, only cash, cash equivalents, and borrowings clearly associated with Ralliant and related to the Separation have been included in these combined condensed financial statements.

Other financial transactions relating to the business operations of the Company during the three and six months ended June 27, 2025 were accounted for through the Net Former Parent investment account of the Company.

Net Former Parent investment, which includes retained earnings prior to the Separation, represents Fortive’s interest in the recorded net assets of Ralliant.

All significant transactions between Ralliant and Fortive have been included in the accompanying combined condensed financial statements for the three months ended March 28, 2025.

All significant transactions between Ralliant and Fortive have been included in the accompanying combined condensed financial statements for the three and six months ended June 27, 2025.

Transactions with Fortive are reflected in the accompanying combined condensed statement of changes in equity as “Net transfers to Former Parent.”

All significant intercompany accounts and transactions between the operations comprising Ralliant have been eliminated in the accompanying Consolidated and Combined Condensed Statements of Earnings for the three months ended April 3, 2026 and March 28, 2025 and the Consolidated Condensed Balance Sheets as of April 3, 2026 and December 31, 2025.

All significant intercompany accounts and transactions between the operations comprising Ralliant have been eliminated in the accompanying Consolidated and Combined Condensed Statements of Earnings for the three and six months ended July 3, 2026 and June 27, 2025 and the Consolidated Condensed Balance Sheets as of July 3, 2026 and December 31, 2025.

The Company prepared the unaudited consolidated and combined condensed financial statements included herein in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC applicable for interim periods.

6 unchanged sentences

Such change to the Company’s reporting process is not material to the Company’s consolidated and combined financial statements.

The consolidated and combined condensed financial statements contained herein may not be indicative of future performance and the combined condensed financial statements for the three months ended March 28, 2025 do not necessarily reflect what the combined condensed statement of earnings and combined condensed statement of cash flows would have been had the Company operated as a separate business entirely during such period.

The consolidated and combined condensed financial statements contained herein may not be indicative of future performance and the combined condensed financial statements for the three and six months ended June 27, 2025 do not necessarily reflect what the combined condensed statement of earnings and combined condensed statement of cash flows would have been had the Company operated as a separate business entirely during such periods.

Segment Presentation

Ralliant operates through two reportable segments that are also its two operating segments Sensors and Safety Systems, which provides leading power grid monitoring solutions, safety systems for mission critical aero, defense, and space applications, and sensing solutions for critical environments where uptime, precision, and reliability are essential, and Test and Measurement, which provides precision test and measurement instruments, systems, and services.

Ralliant operates through two reportable segments that are also its two operating segments:

Sensors and Safety Systems, which provides leading power grid monitoring solutions, safety systems for mission critical aero, defense, and space applications, and sensing solutions for critical environments where uptime, precision, and reliability are essential, and Test and Measurement, which provides precision test and measurement instruments, systems, and services.

Allowances for Credit Losses

2 unchanged sentences

Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances.

During the three months ended April 3, 2026 and March 28, 2025, the activity was immaterial.

During the three and six months ended July 3, 2026 and June 27, 2025, the activity was immaterial.

New Accounting Pronouncements

Issued and Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”), which amends certain disclosure requirements related to income taxes on an annual basis.

This standard is effective for fiscal year ending December 31, 2025, and interim periods thereafter.

For the year ended December 31, 2025, the Company adopted ASU 2023-09 using a prospective basis and updated the applicable annual disclosure to align with the new standard in Note 7.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides all entities with a practical expedient in developing reasonable and supportable forecasts as part of estimating expected credit losses.

18 unchanged sentences

Foreign currency translation ( 1.7 ) ( 55.9 ) ( 57.6 )

Balance, April 3, 2026 $ 770.0 $ 847.3 $ 1,617.3

Balance, July 3, 2026 $ 769.4 $ 845.4 $ 1,614.8

FAIR VALUE MEASUREMENTS

10 unchanged sentences

(Level 3) Total

April 3, 2026

Deferred compensation liabilities $ — $ 11.0 $ — $ 11.0

10 unchanged sentences

However, these assets are required to be assessed for impairment, at least annually for goodwill and other indefinite-lived intangible assets, or whenever events or circumstances indicate that their carrying value may not be fully recoverable.

The Company evaluated events or circumstances that may indicate the carrying value of its non-financial assets may not be fully recoverable during the three months ended April 3, 2026 and March 28, 2025, and recorded no impairments.

The Company evaluated events or circumstances that may indicate the carrying value of its non-financial assets may not be fully recoverable during the three and six months ended July 3, 2026 and June 27, 2025, and recorded no impairments.

Fair Value of Financial Instruments

As of April 3, 2026 and December 31, 2025, the Company’s long-term debt was categorized as Level 2.

As of July 3, 2026 and December 31, 2025, the Company’s long-term debt was categorized as Level 2.

The Company’s fair value of long-term borrowings approximates their carrying amount due to the variable market-based interest rate.

1 unchanged sentence

The components of the Company’s long-term debt were as follows:

Effective Interest Rate April 3, 2026 December 31, 2025

Effective Interest Rate July 3, 2026 December 31, 2025

USD Term Loan due March 2029

18 unchanged sentences

None of these covenants are considered restrictive to Ralliant’s operations.

As of April 3, 2026, Ralliant was in compliance with all of the covenants under the Credit Agreement, as amended.

As of July 3, 2026, Ralliant was in compliance with all of the covenants under the Credit Agreement, as amended.

ACCUMULATED OTHER COMPREHENSIVE INCOME

3 unchanged sentences

Foreign currency translation adjustments Pension & post-retirement plan benefit adjustments (a)

For the Three Months Ended April 3, 2026:

Balance, December 31, 2025 $ ( 229.8 ) $ ( 15.1 ) $ ( 244.9 )

Other comprehensive income before reclassifications:

For the Three Months Ended July 3, 2026:

Balance, April 3, 2026 $ ( 295.7 ) $ ( 14.9 ) $ ( 310.6 )

Other comprehensive loss before reclassifications:

Decrease ( 4.7 ) — ( 4.7 )

3 unchanged sentences

Increase — 0.1 0.1

Income tax impact — — (c)

Income tax impact — — (b)

Amounts reclassified from AOCI into income, net of income tax expense — 0.1 0.1

Net current period other comprehensive (loss) income ( 4.0 ) 0.1 ( 3.9 )

Balance, April 3, 2026 $ ( 295.7 ) $ ( 14.9 ) $ ( 310.6 )

For the Three Months Ended March 28, 2025:

Balance, July 3, 2026 $ ( 299.7 ) $ ( 14.8 ) $ ( 314.5 )

For the Three Months Ended June 27, 2025:

Balance, March 28, 2025 $ ( 388.7 ) $ ( 16.6 ) $ ( 405.3 )

Other comprehensive income before reclassifications:

Increase 183.8 — 183.8

Income tax impact ( 16.5 ) — ( 16.5 )

Other comprehensive income before reclassifications, net of income tax expense 167.3 — 167.3

Amounts reclassified from AOCI into income:

Increase — 0.5 (c)

Income tax impact — ( 0.1 ) ( 0.1 )

Amounts reclassified from AOCI into income, net of income tax expense — 0.4 0.4

Net current period other comprehensive income 167.3 0.4 167.7

Balance, June 27, 2025 $ ( 221.4 ) $ ( 16.2 ) $ ( 237.6 )

(a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans.

(b) The income tax impact amount was rounded to zero.

(c) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in the Company’s Notes to the Consolidated and Combined Financial Statements included in the Form 10-K for additional details).

Foreign currency translation adjustments Pension & post-retirement plan benefit adjustments (a)

For the Six Months Ended July 3, 2026:

Balance, December 31, 2025 $ ( 229.8 ) $ ( 15.1 ) $ ( 244.9 )

Other comprehensive loss before reclassifications:

Decrease ( 73.3 ) — ( 73.3 )

Income tax impact 3.4 — 3.4

Other comprehensive income before reclassifications, net of income tax expense ( 69.9 ) — ( 69.9 )

Amounts reclassified from AOCI into income:

Increase — 0.4 0.4

Income tax impact — ( 0.1 ) ( 0.1 )

Amounts reclassified from AOCI into income, net of income tax expense — 0.3 0.3

Net current period other comprehensive (loss) income ( 69.9 ) 0.3 ( 69.6 )

Balance, July 3, 2026 $ ( 299.7 ) $ ( 14.8 ) $ ( 314.5 )

For the Six Months Ended June 27, 2025:

Balance, December 31, 2024 $ ( 474.5 ) $ ( 16.8 ) $ ( 491.3 )

Other comprehensive income before reclassifications:

4 unchanged sentences

Increase — 0.7 (b)

Income tax impact — — (c)

Income tax impact — ( 0.1 ) ( 0.1 )

Amounts reclassified from AOCI into income, net of income tax expense — 0.6 0.6

Net current period other comprehensive income 253.1 0.6 253.7

Balance, March 28, 2025 $ ( 388.7 ) $ ( 16.6 ) $ ( 405.3 )

Balance, June 27, 2025 $ ( 221.4 ) $ ( 16.2 ) $ ( 237.6 )

(a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans.

(b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in the Company’s Notes to the Consolidated and Combined Financial Statements included in the Form 10-K for additional details).

Ralliant derives revenue primarily from the sale of products, with additional revenue from the sale of services.

6 unchanged sentences

The Company’s contract liabilities consisted of the following:

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Deferred revenue - current $ 163.1 $ 154.6

1 unchanged sentence

Total contract liabilities $ 201.5 $ 193.3

In the three months ended April 3, 2026, the Company recognized $ 44.4 million of revenue related to its contract liabilities at December 31, 2025.

The change in the Company’s contract liabilities from December 31, 2025 to April 3, 2026 was primarily due to revenue recognized as products were delivered to customers.

For the three and six months ended July 3, 2026, the Company recognized $ 26.5 million and $ 70.9 million, respectively, of revenue related to its contract liabilities at December 31, 2025.

The change in the Company’s contract liabilities from December 31, 2025 to July 3, 2026 was primarily due to customer deposits received partially offset by revenue recognized as products were delivered to customers.

Remaining Performance Obligations — Ralliant’s remaining performance obligations represent the transaction price of firm, non-cancelable orders, for which work has not yet been performed.

1 unchanged sentence

The aggregate remaining performance obligations by segment were:

April 3, 2026

Test and Measurement $ 54.4

4 unchanged sentences

The Company disaggregates revenue from contracts with customers by geographic locations and end markets for each of its segments as the Company believes it best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

For the three months ended April 3, 2026 and March 28, 2025, no country other than those presented had material sales individually.

Disaggregation of revenue for the three months ended April 3, 2026 was:

For the three and six months ended July 3, 2026 and June 27, 2025, no country other than those presented had material sales individually.

Disaggregation of revenue for the three months ended July 3, 2026 was:

Total Sensors and Safety Systems

12 unchanged sentences

Total $ 567.8 $ 346.5 $ 221.3

Disaggregation of revenue for the three months ended March 28, 2025 was:

Disaggregation of revenue for the three months ended June 27, 2025 was:

Total Sensors and Safety Systems

12 unchanged sentences

Total $ 503.3 $ 310.8 $ 192.5

Ralliant’s effective tax rate was 16.5 % for the three months ended April 3, 2026 compared with 12.8 % for the three months ended March 28, 2025.

The increase in the effective tax rate for the three months ended April 3, 2026 compared with the three months ended March 28, 2025 was primarily attributable to the effects of various tax credits and deductions provided by law, including those associated with state income taxes, U.S.

international taxes, non-deductible executive compensation, and changes in the Company’s uncertain tax position reserves.

Ralliant’s effective tax rate for the three months ended April 3, 2026 differs from the U.S.

federal statutory rate of 21% due primarily to credits and deductions provided by law.

STOCK-BASED COMPENSATION

The Ralliant Corporation 2025 Stock Incentive Plan (the “Stock Plan”) provides for the grants of stock appreciation rights, restricted stock units (“RSUs”) and performance stock units (“PSUs”) (collectively, “Stock Awards”), stock options, or any other stock-based awards.

For a full description of the Stock Plan, refer to the disclosures in Note 15 of the Notes to the Consolidated and Combined Financial Statements included in the Form 10-K.

Changes with respect to Stock Awards granted under the Stock Plan are described below.

Stock Awards Granted

Ralliant granted PSUs under the Stock Plan for the first time during the three months ended April 3, 2026.

PSUs are subject to both market and performance-based conditions.

For awards granted after the Separation under the Stock Plan, the fair values of RSUs and PSUs subject to performance-based conditions were measured using the closing price of Ralliant’s common stock on the date of grant.

The fair value of the market-based portion of PSUs was determined using a Monte Carlo pricing model.

PSUs are entitled to dividend equivalent rights, which are subject to the same performance and vesting conditions as the underlying awards.

Dividend equivalent rights do not carry voting rights, and shares underlying PSUs are not considered issued or outstanding until the awards vest and shares are issued.

For RSUs granted prior to 2026, the grant-date fair value was adjusted for the absence of dividend rights during the vesting period.

Beginning in 2026, RSUs are entitled to dividend equivalent rights during the vesting period, which are subject to the same vesting conditions as the underlying awards;

accordingly, the fair value of RSUs granted in 2026 and thereafter is not adjusted for dividends forgone prior to vesting.

No stock options were granted during the three months ended April 3, 2026.

Under the Stock Plan, the Company granted the following Stock Awards during the three months ended April 3, 2026:

Number of awards 0.6

Fair value per share

Number of awards 0.2

Weighted-average fair value per share

The estimated fair value for the market-based portion of PSUs was calculated using a Monte Carlo pricing model based on the following assumptions for those granted in the three months ended April 3, 2026:

Risk-free interest rate 3.3 %

Volatility (a)

Dividend yield

(a) Expected volatility is the measure of the amount by which the stock price has fluctuated or is expected to fluctuate.

As the Company does not have sufficient historical data, peer volatility was used instead, which was calculated using an average of the expected term-matching lookback volatilities of peer companies as of the grant date.

Stock-Based Compensation Expense

Ralliant recognizes compensation expense for stock-based awards over the requisite service period, which is generally the vesting period, but may be shorter if an employee becomes retirement eligible prior to the end of the stated vesting period.

Ralliant estimates pre-vesting forfeitures at the time of grant based on historical experience and revises those estimates in subsequent periods as actual forfeitures experience differs.

Ultimately, the total compensation expense recognized will equal the grant date fair value of awards that actually vest.

PSUs provide for the issuance of shares of Ralliant’s common stock at no cost to the holder and vest between 0 % and 200 % of the target number of shares based on achievement of specified performance conditions.

PSUs granted in 2026 vest based on achievement of a combination of an internal growth metric and relative total stockholder return compared with the Standard & Poor’s 400 Mid Cap Index, each measured over a three-year performance period.

PSUs will vest following the end of the performance period based on achievement and certification of the performance conditions.

Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the Consolidated and Combined Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest.

Disaggregation of revenue for the six months ended July 3, 2026 was:

Total Sensors and Safety Systems

Test and Measurement

United States $ 575.2 $ 407.2 $ 168.0

China 172.1 68.0 104.1

All other 355.0 195.6 159.4

Total $ 1,102.3 $ 670.8 $ 431.5

Industrial manufacturing $ 225.3 $ 225.3 $ —

Defense and space 189.5 189.5 —

Utilities 154.9 154.9 —

Other 101.1 101.1 —

Diversified electronics 229.7 — 229.7

Communications 125.1 — 125.1

Semiconductors 76.7 — 76.7

Total $ 1,102.3 $ 670.8 $ 431.5

Disaggregation of revenue for the six months ended June 27, 2025 was:

Total Sensors and Safety Systems

Test and Measurement

United States $ 497.6 $ 364.3 $ 133.3

China 157.6 61.2 96.4

All other 329.9 178.6 151.3

Total $ 985.1 $ 604.1 $ 381.0

Industrial manufacturing $ 205.4 $ 205.4 $ —

Defense and space 161.6 161.6 —

Utilities 149.1 149.1 —

Other 88.0 88.0 —

Diversified electronics 193.0 — 193.0

Communications 110.9 — 110.9

Semiconductors 77.1 — 77.1

Total $ 985.1 $ 604.1 $ 381.0

Ralliant’s effective tax rate was 16.5 % for the three and six months ended July 3, 2026 compared with 19.2 % and 15.7 % for the three and six months ended June 27, 2025, respectively.

The decrease in the effective tax rate for the three months ended July 3, 2026 compared with the three months ended June 27, 2025 was primarily attributable to the mix of earnings between jurisdictions, uncertain tax positions, and valuation allowances.

The increase in the effective tax rate for the six months ended July 3, 2026 compared with the six months ended June 27, 2025 was primarily attributable to the impacts of changes in the Company’s uncertain tax positions and valuation allowances.

Ralliant’s effective tax rate for the three and six months ended July 3, 2026 differs from the U.S.

federal statutory rate of 21% due primarily to the impact of state income taxes, U.S.

international tax provisions, tax credits and deductions, non-deductible executive compensation, and changes in the Company’s uncertain tax positions.

COMMITMENTS AND CONTINGENCIES

5 unchanged sentences

There have been no material changes to the disclosures in Note 14 of the Notes to the Consolidated and Combined Financial Statements included in the Form 10-K.

Warranty Costs

Ralliant generally accrues estimated warranty costs at the time of sale.

In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained.

Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product.

The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and, in certain instances, estimated property damage.

The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.

During the three months ended April 3, 2026 and March 28, 2025, warranty related activity was immaterial.

Operating lease costs for each period are presented as follows:

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Operating lease costs $ 4.3 $ 5.1 $ 9.0 $ 10.2

Supplemental balance sheet and cash flow information related to operating leases for each period is presented as follows:

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Right-of-use (“ROU”) assets (a)

4 unchanged sentences

(b) Operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Accrued expenses and other current liabilities and Other long-term liabilities.

The increase in ROU assets and operating lease liabilities was primarily related to the commencement of the corporate headquarters lease during the three months ended April 3, 2026.

Three Months Ended

April 3, 2026 March 28, 2025

The increase in ROU assets and operating lease liabilities as of July 3, 2026 was primarily related to the commencement of the corporate headquarters lease.

Six Months Ended

July 3, 2026 June 27, 2025

Cash paid for operating leases $ 9.2 $ 8.3

4 unchanged sentences

Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact.

Anti-dilutive options excluded from the diluted EPS calculation for the three months ended April 3, 2026 were 0.6 million.

For the three months ended March 28, 2025, there were no anti-dilutive options.

Anti-dilutive options excluded from the diluted EPS calculation for the three and six months ended July 3, 2026 were 0.3 million and 0.5 million, respectively.

For the three and six months ended June 27, 2025, there were no anti-dilutive options.

The total number of shares outstanding at the time of the Separation was 112.7 million and is utilized for the calculation of both basic and diluted EPS for all periods prior to the Separation.

Information related to the calculation of net earnings per share of common stock is summarized as follows:

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Net earnings $ 57.2 $ 47.6 $ 101.4 $ 111.5

7 unchanged sentences

On June 28, 2025, the Company’s Board of Directors (the “Board”) approved a share repurchase authorization of up to $ 200.0 million of the Company’s common stock.

During the three months ended April 3, 2026, the Company repurchased 1.2 million shares of its common stock at an average price of $ 42.40 per share for a total cost of $ 50.5 million (including $ 0.5 million in taxes and fees), leaving $ 150.0 million remaining under the share repurchase authorization.

Share repurchases are recorded within Treasury stock, at cost, in the Consolidated Condensed Balance Sheets.

During the first quarter of 2026, the Company repurchased 1.2 million shares of its common stock at an average price of $ 42.40 per share for a total cost of $ 50.5 million (including $ 0.5 million in taxes and fees) in the open market.

On May 8, 2026, the Board raised the share repurchase authorization to $ 500.0 million.

The share repurchase authorization has no expiration date, does not obligate the Company to acquire any particular amount of shares, and may be suspended or discontinued at any time.

On May 12, 2026, the Company entered into an accelerated share repurchase (“ASR”) program to execute $ 100 million of the Company’s share repurchase authorization.

During the three months ended July 3, 2026, the ASR was fully settled, and the Company received 1.6 million shares of its common stock for a total cost of $ 101.0 million (including $ 1.0 million in taxes), based on a share price of $ 64.05 .

The shares repurchased under the ASR program were based on the average of the daily Rule 10b-18 volume-weighted average prices of Ralliant’s common stock during the term of the ASR program, less a discount, and pursuant to the terms and conditions of the ASR agreement.

During the six months ended July 3, 2026, the Company repurchased an aggregate of 2.8 million shares of its common stock under the share repurchase authorization for a total cost of $ 151.5 million (including $ 1.5 million in taxes and fees), at an average price per share of $ 54.74 , inclusive of shares purchased under the ASR.

As of July 3, 2026, $ 400.0 million is remaining under the share repurchase authorization.

Share repurchases are recorded within Treasury stock, at cost, in the Consolidated Condensed Balance Sheets.

SEGMENT INFORMATION

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Through its portfolio of industry leading solutions, including oscilloscopes, probes, source measuring units, semiconductor test systems, high-power bi-directional power supplies, and measurement analysis software packages, the Test and Measurement segment empowers scientists, engineers, and technicians to create and realize technological advances with greater efficiency, speed, and accuracy.

Segment results for the three months ended April 3, 2026 were:

Segment results for the three months ended July 3, 2026 were:

Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other (a)

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Operating profit (loss) 82.2 98.5 5.4 ( 21.7 )

Non-operating income (expense), net

Non-operating expense, net:

Interest (expense) income, net ( 13.8 ) ( 0.1 ) 0.5 ( 14.2 )

Other non-operating expenses, net ( 0.5 ) — — ( 0.5 )

Other non-operating income (expense), net 0.1 — 0.6 ( 0.5 )

Earnings (loss) before income taxes $ 68.5 $ 98.4 $ 6.5 $ ( 36.4 )

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Capital expenditures $ ( 6.4 ) $ ( 2.9 ) $ ( 3.5 ) $ —

(a) Amounts primarily related to standalone public company costs.

Segment results for the three months ended March 28, 2025 were:

Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other

(a) Operating expenses primarily related to standalone public company costs.

Segment results for the three months ended June 27, 2025 were:

Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other (a)

Sales $ 503.3 $ 310.8 $ 192.5 $ —

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Non-operating expense, net:

Other non-operating (expenses) income, net ( 0.5 ) ( 0.2 ) ( 0.3 ) —

Earnings before income taxes $ 73.3 $ 86.8 $ ( 12.2 ) $ ( 1.3 )

Other non-operating (expense) income, net — ( 0.1 ) 0.1 —

Earnings (loss) before income taxes $ 58.9 $ 79.4 $ ( 14.2 ) $ ( 6.3 )

Depreciation and amortization expenses $ ( 28.6 ) $ ( 3.5 ) $ ( 25.1 ) $ —

Capital expenditures $ ( 11.6 ) $ ( 4.5 ) $ ( 7.1 ) $ —

(a) Operating expenses primarily related to standalone public company costs.

Segment results for the six months ended July 3, 2026 were:

Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other (a)

Sales $ 1,102.3 $ 670.8 $ 431.5 $ —

Cost of sales ( 537.1 ) ( 347.7 ) ( 189.4 ) —

Operating expenses ( 414.9 ) ( 135.8 ) ( 240.0 ) ( 39.1 )

Operating profit (loss) 150.3 187.3 2.1 ( 39.1 )

Non-operating expense, net:

Interest (expense) income, net ( 28.4 ) ( 0.2 ) 0.9 ( 29.1 )

Other non-operating (expense) income, net ( 0.4 ) — 0.6 ( 1.0 )

Earnings (loss) before income taxes $ 121.5 $ 187.1 $ 3.6 $ ( 69.2 )

Depreciation and amortization expenses $ ( 59.7 ) $ ( 6.7 ) $ ( 52.8 ) $ ( 0.2 )

Capital expenditures $ ( 15.1 ) $ ( 9.1 ) $ ( 5.9 ) $ ( 0.1 )

(a) Operating expenses primarily related to standalone public company costs.

Segment results for the six months ended June 27, 2025 were:

Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other (a)

Sales $ 985.1 $ 604.1 $ 381.0 $ —

Cost of sales ( 493.4 ) ( 317.2 ) ( 176.2 ) —

Operating expenses ( 359.0 ) ( 120.4 ) ( 231.0 ) ( 7.6 )

Operating profit (loss) 132.7 166.5 ( 26.2 ) ( 7.6 )

Non-operating expense, net:

Other non-operating expense, net ( 0.5 ) ( 0.3 ) ( 0.2 ) —

Earnings (loss) before income taxes $ 132.2 $ 166.2 $ ( 26.4 ) $ ( 7.6 )

Depreciation and amortization expenses $ ( 55.5 ) $ ( 6.9 ) $ ( 48.6 ) $ —

Capital expenditures $ ( 17.2 ) $ ( 7.2 ) $ ( 10.0 ) $ —

(a) Operating expenses primarily related to standalone public company costs.

Segment Assets:

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Sensors and Safety Systems $ 1,333.0 $ 1,306.4

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Pursuant to the terms of the Tax Matters Agreement, Ralliant is required to reimburse Fortive or pay taxing authorities directly for an amount contractually agreed with Fortive of approximately $ 51.0 million, of which substantially all was paid in 2025.

During the three months ended April 3, 2026, $ 0.8 million of tax transaction costs was paid.

No tax transaction costs were paid in the three months ended July 3, 2026 and $ 0.8 million was paid during the six months ended July 3, 2026.

Transition Services Agreement

In connection with the Separation, the Company entered into the Transition Services Agreement with Fortive, pursuant to which Fortive and the Company will provide to each other certain specified services on a temporary basis, including various information technology, financial, and administrative services.

The cost of these services are negotiated between the Company and Fortive as set forth in the Transition Services Agreement and were immaterial during the three months ended April 3, 2026.

The cost of these services are negotiated between the Company and Fortive as set forth in the Transition Services Agreement and were immaterial during the three and six months ended July 3, 2026.

Allocations of Expenses Prior to the Separation

Prior to the Separation, certain shared costs were allocated to Ralliant by Fortive, and were reflected as expenses in the Combined Condensed Statement of Earnings.

Prior to the Separation, certain shared costs were allocated to Ralliant by Fortive, and were reflected as Operating expenses in the Combined Condensed Statement of Earnings.

For a full description of these related party expenses, refer to Note 18 in the Form 10-K.

The amounts of related party expenses allocated to Ralliant from Fortive and its non-Ralliant subsidiaries were as follows:

Three Months Ended

March 28, 2025

Three Months Ended Six Months Ended

June 27, 2025 June 27, 2025

Allocated corporate expenses

$ 10.1 $ 20.3

Directly attributable expenses:

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Certain of Ralliant’s revenue transactions are related to contracts entered into in the ordinary course of business with Fortive and its affiliates.

Ralliant’s sales to and purchases from Fortive were not material during the three months ended April 3, 2026 and March 28, 2025.

Ralliant’s sales to and purchases from Fortive were immaterial during the three and six months ended July 3, 2026 and June 27, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements