Ralliant Corp 10-Q

ITEM 1. FINANCIAL STATEMENTS RALLIANT CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS ($ and shares in millions, except per share amounts) July 3, 2026 December 31, 2025 (Unaudited) ASSETS Current assets: Cash and equivalents $ 270.9 $ 318.8 Accounts receivable less allowance for credit losses of $ 8.5 and $ 7.8 , respectively 291.8 285.3 Inventories: Finished goods 64.8 63.5 Work in process 149.4 119.5 Raw materials 122.8 118.6 Inventories, net 337.0 301.6 Prepaid expenses and other current assets 72.3 70.4 Total current assets 972.0 976.1 Property, plant and equipment, net of accumulated depreciation of $ 471.0 and $ 468.7 , respectively 213.5 214.2 Other assets 168.5 163.7 Goodwill 1,614.8 1,672.4 Other intangible assets, net 736.9 795.2 Total assets $ 3,705.7 $ 3,821.6 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ — $ 530.4 Trade accounts payable 277.1 263.7 Accrued expenses and other current liabilities 360.8 365.6 Total current liabilities 637.9 1,159.7 Long-term debt 1,148.5 618.4 Other long-term liabilities 385.4 409.2 Total liabilities 2,171.8 2,187.3 Commitments and contingencies (Note 8) Equity: Common stock: $ 0.01 par value, 1,300.0 shares authorized; 113.4 and 112.9 issued; and 110.6 and 112.9 outstanding, respectively 1.1 1.1 Preferred stock: $ 0.01 par value, 10.0 shares authorized; no shares issued and outstanding — — Additional paid-in capital 3,253.8 3,223.4 Treasury stock, at cost ( 151.5 ) — Accumulated deficit ( 1,255.0 ) ( 1,345.3 ) Accumulated other comprehensive loss ( 314.5 ) ( 244.9 ) Total equity 1,533.9 1,634.3 Total liabilities and equity $ 3,705.7 $ 3,821.6 See the accompanying Notes to Consolidated and Combined Condensed Financial Statements. 1 RALLIANT CORPORATION AND SUBSIDIARIES CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (Unaudited) 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 Cost of sales ( 274.9 ) ( 255.0 ) ( 537.1 ) ( 493.4 ) Gross profit 292.9 248.3 565.2 491.7 Operating expenses: Selling, general and administrative ( 166.0 ) ( 147.4 ) ( 326.5 ) ( 275.7 ) Research and development ( 44.7 ) ( 42.0 ) ( 88.4 ) ( 83.3 ) Operating profit 82.2 58.9 150.3 132.7 Non-operating expense, net: Interest expense, net ( 13.8 ) — ( 28.4 ) — Other non-operating income (expense), net 0.1 — ( 0.4 ) ( 0.5 ) Earnings before income taxes 68.5 58.9 121.5 132.2 Income tax expense ( 11.3 ) ( 11.3 ) ( 20.1 ) ( 20.7 ) Net earnings $ 57.2 $ 47.6 $ 101.4 $ 111.5 Net earnings per share: Basic $ 0.51 $ 0.42 $ 0.91 $ 0.99 Diluted $ 0.51 $ 0.42 $ 0.90 $ 0.99 Average common stock and common equivalent shares outstanding: Basic 111.4 112.7 111.9 112.7 Diluted 112.6 112.7 112.9 112.7 See the accompanying Notes to Consolidated and Combined Condensed Financial Statements. 2 RALLIANT CORPORATION AND SUBSIDIARIES CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME ($ in millions) (Unaudited) 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 Other comprehensive (loss) income, net of income taxes: Foreign currency translation adjustments ( 4.0 ) 167.3 ( 69.9 ) 253.1 Pension and post-retirement plan benefit adjustments 0.1 0.4 0.3 0.6 Total other comprehensive (loss) income, net of income taxes ( 3.9 ) 167.7 ( 69.6 ) 253.7 Comprehensive income $ 53.3 $ 215.3 $ 31.8 $ 365.2 See the accompanying Notes to Consolidated and Combined Condensed Financial Statements. 3 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 Accumulated Deficit Accumulated Other Comprehensive Loss Net Former Parent Investment Total Equity Shares Outstanding Amount Balance, December 31, 2025 112.9 $ 1.1 $ 3,223.4 $ — $ ( 1,345.3 ) $ ( 244.9 ) $ — $ 1,634.3 Net earnings — — — — 44.2 — — 44.2 Other comprehensive income — — — — ( 65.7 ) — ( 65.7 ) Dividends to common stockholders ($ 0.05 per common stock) — — — — ( 5.6 ) — — ( 5.6 ) Stock-based compensation 0.2 — 13.5 — — — — 13.5 Common stock repurchases ( 1.2 ) — ( 50.5 ) — — — ( 50.5 ) Shares withheld for taxes — — ( 4.7 ) — — — — ( 4.7 ) Balance, April 3, 2026 111.9 1.1 3,232.2 ( 50.5 ) ( 1,306.7 ) ( 310.6 ) — 1,565.5 Net earnings — — — — 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 4 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 Retained Earnings Accumulated Other Comprehensive Loss Net Former Parent Investment Total Former Parent’s Equity Shares Outstanding Amount Balance, December 31, 2024 — $ — $ — $ — $ — $ ( 491.3 ) $ 4,254.1 $ 3,762.8 Net earnings — — — — — — 63.9 63.9 Net transfers to Former Parent — — — — — — ( 72.6 ) ( 72.6 ) Other comprehensive loss — — — — — 86.0 — 86.0 Stock-based compensation — — — — — — 6.5 6.5 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. 5 RALLIANT CORPORATION AND SUBSIDIARIES CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF CASH FLOWS ($ in millions) (Unaudited) Six Months Ended July 3, 2026 June 27, 2025 Cash flows from operating activities: Net earnings $ 101.4 $ 111.5 Adjustments to reconcile net earnings to net cash provided by operating activities: Amortization 44.5 42.2 Depreciation 15.2 13.3 Stock-based compensation 22.9 14.6 Gain on settlement of investments ( 0.6 ) — Change in accounts receivable, net ( 8.1 ) 13.8 Change in inventories ( 36.3 ) ( 10.1 ) Change in trade accounts payable 13.2 ( 20.9 ) Change in prepaid expenses and other assets ( 4.0 ) ( 28.6 ) Change in accrued expenses and other liabilities ( 23.6 ) 21.6 Net cash provided by operating activities 124.6 157.4 Cash flows from investing activities: Purchases of property, plant and equipment ( 15.1 ) ( 17.2 ) Proceeds from settlement of investments 0.6 — Proceeds from sale of property — 1.5 Net cash used in investing activities ( 14.5 ) ( 15.7 ) Cash flows from financing activities: Net proceeds from borrowings 59.2 1,146.8 Repayment of borrowings ( 60.0 ) — Repurchase of common shares ( 151.5 ) — Dividends paid ( 11.1 ) — Other financing activities 6.9 — Consideration paid to Former Parent in connection with separation — ( 1,150.0 ) Net transfers from Former Parent — 47.3 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 Net change in cash and equivalents ( 47.9 ) 198.6 Beginning balance of cash and equivalents 318.8 — Ending balance of cash and equivalents $ 270.9 $ 198.6 See the accompanying Notes to Consolidated and Combined Condensed Financial Statements. 6 RALLIANT CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED AND COMBINED CONDENSED FINANCIAL STATEMENTS ($ and shares in millions, except per share amounts, unless otherwise noted) (Unaudited) NOTE 1. BUSINESS OVERVIEW Ralliant Corporation (“Ralliant,” the “Company,” or “it”) is a global technology company with businesses that design, develop, manufacture, and service precision instruments and highly engineered products. The Company empowers engineers with precision technologies essential for breakthrough innovation in an electrified and digital world, enabling its customers to bring advanced technologies to market faster and more efficiently. Its strategic segments – Sensors and Safety Systems and Test and Measurement – include well-known brands with prominent positions across a range of attractive end markets. Separation from Fortive Corporation Ralliant completed its separation from Fortive Corporation (“Fortive” or the “Former Parent”) on June 28, 2025 (the “Separation”), the first day of the Company’s third fiscal quarter. The Separation was completed on such date in the form of a pro rata distribution to Fortive shareholders of record as of the close of business on June 16, 2025 (the “Record Date”) of all of the issued and outstanding shares of Ralliant common stock held by Fortive. Each Fortive shareholder as of the Record Date received one share of Ralliant common stock for every three shares of Fortive common stock held on the Record Date. Ralliant’s common stock began “regular way” trading on the New York Stock Exchange under the ticker symbol “RAL” on June 30, 2025. For further discussion of the Separation refer to Note 1 of the Notes to the Consolidated and Combined Financial Statements included in the Company’s 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026 (the “Form 10-K”). Basis of Presentation Ralliant has historically operated as part of Fortive and not as a separate, publicly traded company. For the periods prior to the Separation, the accompanying unaudited combined condensed financial statements have been derived from Fortive’s historical accounting records of its Precision Technologies segment and are presented on a carve-out basis. All revenues and costs as well as assets and liabilities directly associated with the business activity of Ralliant are included as a component of the financial statements. The financial statements also include allocations of certain general, administrative, sales and marketing expenses and cost of sales from Fortive’s corporate office and from other Fortive businesses to Ralliant and allocations of related assets, liabilities, and Net Former Parent investment, as applicable. The allocations have been determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had Ralliant been an entity that operated independently of Fortive. Related-party allocations are discussed further in Note 11. 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. Accordingly: • 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. 7 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 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 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 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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations; however, the Company believes the disclosures are adequate to make the information presented not misleading. The unaudited consolidated and combined condensed financial statements included herein should be read in conjunction with the audited consolidated and combined financial statements and the notes thereto included within the Form 10-K. In the Company’s opinion, the accompanying financial statements contain all adjustments, which consist of normal and recurring accruals necessary to fairly present its financial position, results of operations, comprehensive income, equity, and cash flows for such period. During the first quarter of 2026, the Company reclassified sales by geography to better align sales to the end customer. Prior year information has been recast to conform to current year presentation. 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 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. Allowances for Credit Losses All trade accounts and unbilled receivables are recorded in the Consolidated Condensed Balance Sheets and were adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from unbilled and trade accounts receivable portfolios over the life of the underlying assets. 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 and six months ended July 3, 2026 and June 27, 2025, the activity was immaterial. 8 New Accounting Pronouncements Issued and Adopted 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. An entity may elect the practical expedient when measuring credit losses, to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. This standard is effective for the fiscal year ending December 31, 2026 and interim periods beginning with the first quarter of 2026, with early adoption permitted, and should be applied prospectively. On January 1, 2026, the Company adopted the practical expedient described in ASU 2025-05 using a prospective approach and updated the allowance for credit losses recorded on the Consolidated Condensed Balance Sheet as of April 3, 2026 to align with the new standard. The adoption did not have a material impact on the consolidated financial statements. Issued But Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses , which amends the disclosure requirements related to certain costs and expenses on an interim and annual basis. This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028. This standard should be applied either on a prospective basis or retrospective basis. The adoption of the standard is not expected to impact the Company’s consolidated and combined financial statements; however, the Company is currently evaluating the impact of the new disclosure requirements on the notes to the consolidated and combined financial statements. Upon adoption, the Company will update the applicable annual and interim disclosures to align with the new standard. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) — Targeted Improvements to the Accounting for Internal-Use Software , which replaces the previous stage-based model for capitalizing internal-use software development costs, with requirements where capitalization begins when management authorizes and commits to funding a project and it is probable the project will be completed and used as intended. This standard is effective for the fiscal year ending December 31, 2028 and interim periods beginning with the first quarter of 2028, with early adoption permitted. The entity can elect to apply the new guidance through a prospective, modified transition, or retrospective approach. The Company is currently evaluating the effects of this standard on its consolidated and combined financial statements. NOTE 2. GOODWILL The following is a rollforward of the Company’s carrying value of goodwill by segment: Sensors and Safety Systems Test and Measurement Total Balance, December 31, 2025 $ 771.1 $ 901.3 $ 1,672.4 Foreign currency translation ( 1.7 ) ( 55.9 ) ( 57.6 ) Balance, July 3, 2026 $ 769.4 $ 845.4 $ 1,614.8 NOTE 3. FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value for assets and liabilities required to be carried at fair value, and provide for certain disclosures related to the valuation methods used within the valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. 9 • Level 3 inputs are unobservable inputs based on the Company’s assumptions. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Financial assets and liabilities that are measured at fair value on a recurring basis were as follows: Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total July 3, 2026 Deferred compensation liabilities $ — $ 11.0 $ — $ 11.0 December 31, 2025 Deferred compensation liabilities $ — $ 9.3 $ — $ 9.3 Certain management employees participate in the Company’s nonqualified deferred compensation program that permits such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plan are unfunded, unsecured obligations. These amounts are recorded as a component of the Company’s compensation and other post-retirement benefits accruals within Other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within Ralliant’s defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of Ralliant common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts and are recorded within Selling, general and administrative expenses in the Consolidated and Combined Condensed Statements of Earnings and impact cash flows from operating activities. Non-recurring Fair Value Measurements Certain non-financial assets, primarily property, plant, and equipment, goodwill, and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. 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 and six months ended July 3, 2026 and June 27, 2025, and recorded no impairments. Fair Value of Financial Instruments 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. The fair value of cash and equivalents, trade accounts receivable, net, and trade accounts payable, approximates their carrying amount due to the short-term maturities of these instruments. 10 NOTE 4. FINANCING The components of the Company’s long-term debt were as follows: Effective Interest Rate July 3, 2026 December 31, 2025 USD Term Loan due March 2029 4.98 % $ 550.0 $ 530.8 USD Term Loan due June 2028 4.86 % 600.0 619.2 Long-term debt, principal amounts 1,150.0 1,150.0 Less: aggregate unamortized debt discounts, premiums, and issuance costs 1.5 1.2 Long-term debt, carrying value $ 1,148.5 $ 1,148.8 Less: current portion of long-term debt, carrying value — 530.4 Long-term debt, net of current maturities $ 1,148.5 $ 618.4 Amendment to Credit Agreement On March 30, 2026, Ralliant entered into Amendment No. 2 (the “Second Amendment”) to the Credit Agreement dated as of May 15, 2025 (the “Credit Agreement”). The Second Amendment, among other things, (i) refinanced the $ 530.8 million then outstanding under the term loan due December 2026 with a $ 550.0 million term loan due March 2029 that includes an applicable borrowing rate thereunder that is 12.5 basis points higher than that of the previous rate; (ii) reduced the amount outstanding under the then outstanding term loan due June 2028 from $ 619.2 million to $ 600.0 million, and decreased the applicable borrowing rate thereunder by 12.5 basis points; and (iii) removed the 85 % cap on netting cash and cash equivalents outside of the United States for purposes of calculating the Company’s consolidated net leverage ratio. Ralliant incurred immaterial debt issuance costs associated with the Second Amendment. All other material terms of the Credit Agreement, as previously amended by Amendment No. 1 thereto, remain unchanged. Refer to Note 9 in the Company’s Notes to the Consolidated and Combined Financial Statements included in the Form 10-K for additional details. The term loans under the Credit Agreement contain customary covenants. None of these covenants are considered restrictive to Ralliant’s operations. As of July 3, 2026, Ralliant was in compliance with all of the covenants under the Credit Agreement, as amended. 11 NOTE 5. ACCUMULATED OTHER COMPREHENSIVE INCOME Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. The changes in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component are summarized below: Foreign currency translation adjustments Pension & post-retirement plan benefit adjustments (a) Total 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 ) Income tax impact 0.7 — 0.7 Other comprehensive loss before reclassifications, net of income tax expense ( 4.0 ) — ( 4.0 ) Amounts reclassified from AOCI into income: Increase — 0.1 0.1 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, 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) 0.5 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). 12 Foreign currency translation adjustments Pension & post-retirement plan benefit adjustments (a) Total 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: Increase 278.1 — 278.1 Income tax impact ( 25.0 ) — ( 25.0 ) Other comprehensive income before reclassifications, net of income tax expense 253.1 — 253.1 Amounts reclassified from AOCI into income: Increase — 0.7 (b) 0.7 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, 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). NOTE 6. SALES Ralliant derives revenue primarily from the sale of products, with additional revenue from the sale of services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. Product sales include revenue from the sale of products and equipment. Service sales include revenues from extended warranties, maintenance contracts or services, and services related to previously sold products. Contract Liabilities — The Company’s contract liabilities consist of deferred revenue generally related to customer deposits received in advance of performance under the contract, extended warranty sales, and product maintenance agreements, where the Company generally receives up-front payment and recognizes revenue over the service or support term. The Company classifies deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is recorded within Other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. 13 The Company’s contract liabilities consisted of the following: July 3, 2026 December 31, 2025 Deferred revenue - current $ 163.1 $ 154.6 Deferred revenue - noncurrent 38.4 38.7 Total contract liabilities $ 201.5 $ 193.3 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. The Company has excluded performance obligations with an original expected duration of one year or less from the amounts below. The aggregate remaining performance obligations by segment were: July 3, 2026 Test and Measurement $ 54.4 Sensors and Safety Systems 3.6 Total remaining performance obligations $ 58.0 The majority of remaining performance obligations are related to service and support contracts, which the Company expects to fulfill approximately 60 % within the next two years , approximately 75 % within the next three years , and substantially all within four years . Disaggregation of Revenue 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 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 Test and Measurement Geographic: United States $ 289.2 $ 203.8 $ 85.4 China 93.8 37.3 56.5 All other 184.8 105.4 79.4 Total $ 567.8 $ 346.5 $ 221.3 End markets: Industrial manufacturing $ 116.6 $ 116.6 $ — Defense and space 96.5 96.5 — Utilities 81.4 81.4 — Other 52.0 52.0 — Diversified electronics 118.9 — 118.9 Communications 61.9 — 61.9 Semiconductors 40.5 — 40.5 Total $ 567.8 $ 346.5 $ 221.3 14 Disaggregation of revenue for the three months ended June 27, 2025 was: Total Sensors and Safety Systems Test and Measurement Geographic: United States $ 253.4 $ 184.8 $ 68.6 China 85.2 32.9 52.3 All other 164.7 93.1 71.6 Total $ 503.3 $ 310.8 $ 192.5 End markets: Industrial manufacturing $ 104.1 $ 104.1 $ — Defense and space 84.4 84.4 — Utilities 78.2 78.2 — Other 44.1 44.1 — Diversified electronics 96.9 — 96.9 Communications 57.0 — 57.0 Semiconductors 38.6 — 38.6 Total $ 503.3 $ 310.8 $ 192.5 Disaggregation of revenue for the six months ended July 3, 2026 was: Total Sensors and Safety Systems Test and Measurement Geographic: 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 End markets: 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 15 Disaggregation of revenue for the six months ended June 27, 2025 was: Total Sensors and Safety Systems Test and Measurement Geographic: 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 End markets: 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 NOTE 7. INCOME TAXES 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. NOTE 8. COMMITMENTS AND CONTINGENCIES Legal Proceedings Ralliant is, from time to time, subject to a variety of litigation and other proceedings incidental to Ralliant’s business, including lawsuits involving claims for damages arising out of the use of its products and services, claims relating to intellectual property matters, employment matters, commercial disputes, and personal injury as well as regulatory investigations or enforcement. Ralliant may also become subject to lawsuits as a result of past or future acquisitions or as a result of liabilities retained from, or representations, warranties, or indemnities provided in connection with divested businesses. Some of these lawsuits may include claims for punitive and consequential as well as compensatory damages. Based upon Ralliant’s experience, current information, and applicable law, Ralliant does not believe that any currently pending legal proceedings or claims will have a material adverse effect on Ralliant’s financial position, results of operations, or cash flows. 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. Leases Operating lease costs for each period are presented as follows: 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 16 Supplemental balance sheet and cash flow information related to operating leases for each period is presented as follows: July 3, 2026 December 31, 2025 Right-of-use (“ROU”) assets (a) $ 71.4 $ 68.4 Operating lease liabilities (b) $ 75.5 $ 74.2 (a) ROU assets are recorded in the Consolidated Condensed Balance Sheets within Other assets. (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 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 ROU assets obtained in exchange for operating lease obligations $ 10.4 $ 0.5 NOTE 9. NET EARNINGS PER SHARE Net Earnings per Common Share Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. 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 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 Six Months Ended July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025 Numerator Net earnings $ 57.2 $ 47.6 $ 101.4 $ 111.5 Denominator Weighted average common shares outstanding used in basic earnings per share 111.4 112.7 111.9 112.7 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive Stock Awards 1.2 — 1.0 — Weighted average common shares outstanding used in diluted earnings per share 112.6 112.7 112.9 112.7 Net earnings per common share - Basic $ 0.51 $ 0.42 $ 0.91 $ 0.99 Net earnings per common share - Diluted $ 0.51 $ 0.42 $ 0.90 $ 0.99 17 Share Repurchase Authorization 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 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. NOTE 10. SEGMENT INFORMATION Ralliant reports its results in two reportable segments that are also its two operating segments, consisting of Sensors and Safety Systems and Test and Measurement. Ralliant’s operating segments were determined based primarily on how the chief operating decision maker (“CODM”) views and evaluates the Company’s operations. Other factors including products and services, end markets served, and business cycle were also considered in determining the formation of operating segments. The Company's CODM is the chief executive officer. The CODM uses operating profit at the segment level as the measure of profitability to assess performance and allocate resources, including merger and acquisition targets. The CODM also compares the actual results to expectations in assessing the performance of the segments. Operating profit represents total revenue, less cost of sales, and operating expenses. Operating expenses generally include Selling, general, and administrative expenses and Research and development expenses, which are the significant expense categories regularly provided to the CODM. Depreciation expense is recorded within both Cost of sales and Selling, general, and administrative expenses. Amortization expense is recorded within Selling, general, and administrative expenses. Goodwill impairment, when incurred, is also separately disclosed by segment. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated in the consolidated and combined totals. Unallocated costs and other costs are not considered part of the Company’s evaluation of reportable segment operating performance. The Sensors and Safety Systems segment 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. This includes advanced monitoring, protection, and diagnostic solutions for high-voltage electrical assets in power generation, transmission, and distribution. Sensors and Safety Systems’ energetic materials, ignition safety systems, and precision pyrotechnic devices are used in mission-critical applications such as satellite deployment, rocket propulsion initiation, aerial vehicle safety systems, and military defense systems. The Sensors and Safety Systems segment also provides premium sensing products encompassing liquid level, flow, and pressure sensors, motion sensors and components, and hygienic sensors. 18 The Test and Measurement segment provides precision test and measurement instruments, systems, and services. 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 July 3, 2026 were: Total Sensors and Safety Systems Test and Measurement Unallocated Corporate Costs and Other (a) Sales $ 567.8 $ 346.5 $ 221.3 $ — Cost of sales ( 274.9 ) ( 178.3 ) ( 96.6 ) — Operating expenses ( 210.7 ) ( 69.7 ) ( 119.3 ) ( 21.7 ) Operating profit (loss) 82.2 98.5 5.4 ( 21.7 ) Non-operating expense, net: Interest (expense) income, net ( 13.8 ) ( 0.1 ) 0.5 ( 14.2 ) 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 ) Depreciation and amortization expenses $ ( 30.1 ) $ ( 3.4 ) $ ( 26.5 ) $ ( 0.2 ) Capital expenditures $ ( 6.4 ) $ ( 2.9 ) $ ( 3.5 ) $ — (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 $ — Cost of sales ( 255.0 ) ( 165.8 ) ( 89.2 ) — Operating expenses ( 189.4 ) ( 65.5 ) ( 117.6 ) ( 6.3 ) Operating profit (loss) 58.9 79.5 ( 14.3 ) ( 6.3 ) Non-operating expense, net: 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. 19 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: July 3, 2026 December 31, 2025 Sensors and Safety Systems $ 1,333.0 $ 1,306.4 Test and Measurement 2,054.0 2,149.3 Total segment assets 3,387.0 3,455.7 Other (a) 318.7 365.9 Total assets $ 3,705.7 $ 3,821.6 (a) Other represents corporate assets which consist primarily of cash and income tax assets. 20 NOTE 11. RELATED-PARTY TRANSACTIONS In connection with the Separation, on June 27, 2025, Fortive and Ralliant entered into a Separation and Distribution Agreement as well as various other related agreements (collectively the “Agreements”) that govern the Separation and the relationships between Fortive and Ralliant going forward, including an employee matters agreement, a tax matters agreement, a transition services agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement, and a Fort Solutions license agreement. The Agreements provide for the allocation of assets, employees, liabilities, and obligations (including investments, property, employee benefits, and tax-related assets and liabilities) between Fortive and Ralliant attributable to periods prior to, at, and after the Separation and govern certain relationships between Fortive and Ralliant after the Separation. Such Agreements are described further in the Form 10-K. Tax Matters Agreement In connection with the Separation, the Company entered into the Tax Matters Agreement with Fortive, that governs the parties’ respective rights, responsibilities and obligations with respect to taxes, including responsibility for tax liabilities, entitlement to tax refunds and other tax benefits, allocation of tax attributes, preparation and filing of tax returns, control of audits and other tax proceedings and other matters relating to taxes. 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. 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 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 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 Six Months Ended June 27, 2025 June 27, 2025 Allocated corporate expenses $ 10.1 $ 20.3 Directly attributable expenses: Insurance programs expenses 1.8 3.6 Medical insurance programs expenses 14.9 30.5 Deferred compensation program expenses 0.6 1.3 Total related party expenses $ 27.4 $ 55.7 Revenue and Other Transactions Entered into in the Ordinary Course of Business 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 immaterial during the three and six months ended July 3, 2026 and June 27, 2025. 21