Ralliant Corp

Recently separated precision T&M franchise with strong cash generation but a large GAAP loss year driven by separation/impairment charges.

Strengths

• Healthy FCF margin 17.3% and OCF margin 19.2% with 50% gross margin signal a quality underlying business
• Well-known brands with leading positions across attractive end markets; $319M cash (60th pct)

Risks

• Net and operating margins deeply negative (-59%/-57%) and ROE -75% — distortive separation/impairment charges plus thin standalone history
• Weak liquidity (current ratio 0.84) and tariff/standalone execution risk

Notable findings

• Net lossNet loss (net margin -59.1%)
• Weak liquidityCurrent ratio 0.84 (<1)
• Customer concentration~49% of revenue from one customer/distributor — Ralliant is a multinational business with global operations, where sales derived from customers outside the United States were 48
• Strong balance sheetStrong balance sheet — $319M cash & investments