Revenue grew 12.8% in 2026Q2 to $567.7M with gross margin expanding to 55.5% from 46.8% in 2026Q1, though SG&A spiked to 33.2% of revenue and the 2025Q4 net loss of -$1.4B (EPS -$12.10) clouds earnings quality.
Ralliant Corp (RAL) annual income statement — 3-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 |
|---|
| Sales/Revenue | 2.19B | 2.07B | 2.15B | 2.16B |
| Revenue Growth % | 5.38% | -3.99% | -0.05% | - |
| Cost of Goods Sold | 1.12B | 1.12B | 1.04B | 1.04B |
| COGS % of Revenue | - | 53.92% | 48.39% | 48.06% |
| Gross Profit | 1.07B | 953.4M | 1.11B | 1.12B |
| Gross Margin % | 48.91% | 46.08% | 51.61% | 51.94% |
| Gross Profit Growth % | - | -14.27% | -0.68% | - |
| Operating Expenses | 793.4M | 694.7M | 653.7M | 607.9M |
| OpEx % of Revenue | - | 33.58% | 30.34% | 28.2% |
| Selling, General & Admin | 622.8M | 529.7M | 553.3M | 446.4M |
| SG&A % of Revenue | - | 25.6% | 25.68% | 20.71% |
| Research & Development | 170.1M | 165M | 163.5M | 161.5M |
| R&D % of Revenue | - | 7.98% | 7.59% | 7.49% |
| Other Operating Expenses | 500K | 0 | -63.1M | 0 |
| Operating Income | 275.7M | 258.7M | 458.4M | 511.8M |
| Operating Margin % | 12.61% | 12.5% | 21.27% | 23.74% |
| Operating Income Growth % | - | -43.56% | -10.43% | - |
| EBITDA | 335.7M | 374.2M | 571.4M | 542.5M |
| EBITDA Margin % | 15.36% | 18.09% | 26.52% | 25.17% |
| EBITDA Growth % | -30.9% | -34.51% | 5.33% | - |
| D&A (Non-Cash Add-back) | 60M | 115.5M | 113M | 30.7M |
| EBIT | -1.25B | -1.18B | 395.3M | 509.8M |
| Net Interest Income | -47M | -32.3M | -66.3M | 0 |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 3.9M | 32.3M | 66.3M | 0 |
| Other Income/Expense | -1.5B | -1.48B | -93.3M | -2M |
| Pretax Income | -1.23B | -1.22B | 365.1M | 509.8M |
| Pretax Margin % | -56.13% | -58.8% | 16.94% | 23.65% |
| Income Tax | -17.2M | 6.1M | 62.1M | 93M |
| Effective Tax Rate % | 1.4% | -0.5% | 17.01% | 18.24% |
| Net Income | -1.23B | -1.22B | 303M | 416.8M |
| Net Margin % | -56.39% | -59.09% | 14.06% | 19.33% |
| Net Income Growth % | -576.28% | -503.47% | -27.3% | - |
| Net Income (Continuing) | -1.29B | -1.22B | 303M | 416.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -10.92 | -10.78 | 2.68 | 3.70 |
| EPS Growth % | -597.46% | -502.24% | -27.53% | - |
| EPS (Basic) | - | -10.84 | 2.68 | 3.70 |
| Diluted Shares Outstanding | 112.9M | 113.4M | 112.99M | 112.7M |
| Basic Shares Outstanding | 111.9M | 112.8M | 112.99M | 112.7M |
| Dividend Payout Ratio | - | - | - | - |
Quick answers to the most common questions about buying RAL stock.
For fiscal year 2025, Ralliant Corp (RAL) reported total revenue of $2.07B. This represents a 4.0% decline compared to $2.16B in 2023.
Ralliant Corp (RAL) reported a net loss of $1.22B for the fiscal year ending 2025.
Ralliant Corp (RAL) reported an operating income of $258.7M, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Ralliant Corp (RAL) generated $953.4M in gross profit for the year, representing a gross profit margin of 46.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Revenue Growth Shows Mixed Signals
RAL's revenue growth decelerated from 12.8% in 2026Q2 to 11.0% in 2026Q1, but the 2025Q1 decline of 11.0% suggests cyclicality. According to the latest quarterly data, growth appears uneven.
The most recent quarter (2026Q2) shows a 12.8% year-over-year revenue increase, but the prior quarter (2026Q1) had a lower growth rate of 11.0%, and 2025Q1 saw a contraction of 11.0%. This volatility may indicate demand cyclicality or project-based revenue. Investors should monitor whether the recent acceleration is sustainable or a one-off.
Gross Margin Expansion Driven by Cost Efficiencies
Gross margin jumped to 55.5% in 2026Q2 from 46.8% in 2026Q1, a significant improvement. As reported in the income statement, COGS fell to $252.5M from $284.6M, suggesting cost control or favorable product mix.
The 870 basis point sequential gross margin improvement is notable, but it follows a period of relatively stable margins around 46-51%. This could indicate a favorable product mix shift or one-time cost benefits. The sustainability of this margin level is uncertain, especially if input costs rise or mix normalizes.
Operating Leverage Appears Positive but Inconsistent
Operating income grew 20.7% in 2026Q2 to $82.2M, outpacing revenue growth of 12.8%, indicating positive operating leverage. However, SG&A spiked to $188.3M in 2026Q2, up from $138.2M in 2026Q1, which may temper future leverage.
The operating margin improved to 14.5% in 2026Q2 from 12.7% in 2026Q1, but the sharp increase in SG&A (36% sequentially) warrants attention. If SG&A remains elevated, operating leverage could be limited. The company appears to be investing in sales and marketing, which may support future growth but pressures near-term margins.
Earnings Quality Clouded by One-Time Charges
Net income swung to a loss of $1.4B in 2025Q4, with EPS of -$12.10, likely due to a non-cash impairment or write-off. Excluding that quarter, net margins have ranged from 7.5% to 13.3%, indicating underlying profitability.
The massive loss in 2025Q4 appears to be an anomaly, as other quarters show positive net income. The presence of stock-based compensation (SBC) of $22.9M in 2026Q2, up from zero in 2026Q1, may indicate a change in compensation structure. Investors should adjust for these items to assess true earnings power.
COGS and SG&A Show Divergent Trends
COGS as a percentage of revenue fell to 44.5% in 2026Q2 from 53.2% in 2026Q1, while SG&A rose to 33.2% of revenue from 25.9%. This suggests a shift in cost structure toward operating expenses.
The reduction in COGS is positive for gross margin, but the increase in SG&A may reflect higher selling costs or administrative overhead. R&D spending has been relatively stable around $40-45M per quarter, indicating consistent investment in innovation. The overall cost structure appears to be evolving, with potential implications for future profitability.
2025Q4 Marks a Significant Inflection Point
The $1.4B net loss in 2025Q4, with EPS of -$12.10, represents a major inflection, likely due to a non-cash impairment. This contrasts sharply with the $39.9M profit in 2025Q3, suggesting a one-time event.
The magnitude of the loss suggests a substantial write-down or restructuring charge. Following this quarter, 2026Q1 and Q2 show a recovery in profitability, with net income of $44.2M and $57.2M, respectively. The lasting impact may be a cleaner balance sheet or a reset of expectations, but the cause of the charge is not disclosed in the data.
What Could Invalidate the Base Case
The recent gross margin expansion to 55.5% may be unsustainable if COGS reductions are one-time, and the elevated SG&A could compress operating margins. As reported, revenue growth remains volatile, and the 2025Q4 loss raises questions about earnings quality.
Short-sellers might argue that the 870 bps gross margin jump is not structural, given the historical range of 45-51%, and could revert as input costs normalize. Additionally, the sharp SG&A increase in 2026Q2 may indicate aggressive spending that could outpace revenue growth, squeezing operating margins. The $1.4B loss in 2025Q4, while likely non-recurring, signals potential undisclosed risks or impairments that could recur. Investors should scrutinize the sustainability of margin improvements and the drivers of revenue volatility.