FCF margin recovered to 17.6% in 2026Q2 from 1.8% in 2026Q1, but working capital swings (from -$65.9M to +$65.9M) and $151.5M in buybacks exceeding combined FCF of $109.5M indicate cash flow volatility and aggressive capital deployment.
Ralliant Corp (RAL) cash flow statement — 3-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Cash from Operations | 364.8M | 397.6M | 454.5M | 461.8M |
| Operating CF Margin % | - | 19.22% | 21.09% | 21.42% |
| Operating CF Growth % | -87.04% | -12.52% | -1.58% | - |
| Net Income | -1.23B | -1.22B | 354.6M | 416.8M |
| Depreciation & Amortization | 119.7M | 115.5M | 113M | 30.7M |
| Stock-Based Compensation | 64.5M | 56.2M | 24.5M | 25M |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.38B | 1.44B | -37.5M | 0 |
| Working Capital Changes | 30.9M | 6.7M | -100K | -10.7M |
| Change in Receivables | -6.7M | 15.2M | 8.7M | 9.3M |
| Change in Inventory | -39.2M | -13M | 16.7M | -10.3M |
| Change in Payables | 37.7M | 3.6M | 22.8M | -18.1M |
| Cash from Investing | -36.5M | -37.7M | -1.71B | -22.4M |
| Capital Expenditures | -37.1M | -39.2M | -34.3M | -29.2M |
| CapEx % of Revenue | 1.7% | 1.89% | 1.59% | 1.35% |
| Acquisitions | 0 | 1.5M | -1.73B | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 60.2M | 6.8M |
| Cash from Financing | -255.3M | -54.7M | 1.26B | -431.7M |
| Debt Issued (Net) | 0 | 1.15B | 0 | 0 |
| Equity Issued (Net) | -50.5M | 0 | 0 | 0 |
| Dividends Paid | -16.7M | 0 | 0 | 0 |
| Share Repurchases | -151.5M | 0 | 0 | 0 |
| Other Financing | -188.1M | -1.2B | 1.26B | -431.7M |
| Net Change in Cash | 72.3M | 318.8M | 0 | 0 |
| Free Cash Flow | 327.7M | 358.4M | 420.2M | 432.6M |
| FCF Margin % | 14.99% | 17.32% | 19.5% | 20.07% |
| FCF Growth % | -4.21% | -14.71% | -2.87% | - |
| FCF per Share | 2.90 | 3.16 | 3.72 | 3.84 |
| FCF Conversion (FCF/Net Income) | -0.27x | -0.33x | 1.50x | 1.11x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying RAL stock.
Ralliant Corp (RAL) generated $397.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ralliant Corp (RAL) generated $358.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Ralliant Corp (RAL) spent $39.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Masks Underlying Strength
RAL's operating cash flow to net income ratio swung from 0.41 in 2026Q1 to 1.86 in 2026Q2, per latest quarterly data, indicating significant working capital timing effects.
The OCF/NI ratio of 1.86 in 2026Q2 suggests strong cash conversion, but the prior quarter's 0.41 reveals that earnings are not consistently translating into cash. The $65.9M working capital swing between quarters appears to be the primary driver, implying that reported profits may be subject to timing distortions. Investors should monitor whether this volatility reflects operational seasonality or more persistent accrual issues.
Free Cash Flow Rebound After Impairment Quarter
FCF margin recovered to 17.6% in 2026Q2 from 1.8% in 2026Q1, as reported in financial statements, though the 2025Q4 net loss of $1.4B did not impair cash generation.
The FCF margin of 17.6% in 2026Q2 is a sharp recovery from the prior quarter's 1.8%, driven by a $106.3M operating cash flow. Notably, the $1.4B net loss in 2025Q4 did not translate into negative operating cash flow, as OCF remained positive at $101.6M, suggesting the loss was largely non-cash. This divergence between net income and cash flow underscores the importance of cash-based metrics for RAL.
Light Capital Intensity Supports Cash Generation
CapEx averaged only 1.6% of revenue over the last eight quarters, per reported figures, indicating a low capital intensity that allows most operating cash flow to convert to FCF.
With CapEx/Revenue consistently below 2.6% and as low as 0.8%, RAL's capital requirements appear minimal relative to its revenue base. This suggests that maintenance capex is modest and that growth investments are not heavily asset-intensive. The low capital intensity likely supports the company's ability to generate robust free cash flow, though it may also imply limited organic expansion capacity.
Working Capital Swings Distort Quarterly Cash Flow
Working capital changes swung from -$65.9M in 2026Q1 to +$65.9M in 2026Q2, as per quarterly data, indicating significant timing effects that may obscure underlying cash generation.
The $131.8M swing in working capital between consecutive quarters is substantial relative to quarterly operating cash flow, suggesting that collections, inventory, or payables are subject to large seasonal or project-driven fluctuations. This volatility complicates quarter-over-quarter comparisons and may indicate that RAL's cash conversion cycle is not stable. Investors should focus on trailing twelve-month figures to smooth these effects.
Share Repurchases Absorb Free Cash Flow
RAL deployed $151.5M on buybacks in 2026Q1-Q2, per reported cash flow statements, exceeding its combined FCF of $109.5M, suggesting a reliance on cash reserves or debt.
The $101.0M buyback in 2026Q2 alone exceeded that quarter's FCF of $99.9M, and combined with the prior quarter's $50.5M, total buybacks outpaced cumulative FCF. This aggressive repurchase activity may signal management's confidence in undervaluation, but it also reduces cash reserves and could strain liquidity if cash generation falters. The absence of acquisitions in recent quarters, aside from the $1.7B in 2024Q1, suggests a shift toward shareholder returns.
What Could Invalidate the Base Case
The 2025Q4 $1.4B net loss, per income statement, was non-cash, but if similar impairments recur, reported earnings may mislead investors relying on net income.
The cash flow statement obscures the impact of non-cash charges like the $1.4B impairment, which did not affect operating cash flow but severely distorted net income. Additionally, the aggressive buyback program may not be sustainable if working capital swings persist, as the company could face liquidity constraints. Investors should scrutinize the sustainability of gross margin expansion and the potential for further one-time charges that could mask underlying cash generation.