Gross margins have experienced structural erosion, falling from a peak of 51.4% in 2024Q4 to 46.8% in 2026Q1, suggesting ongoing difficulties in maintaining pricing power.
| Sales/Revenue | 2.12B | 2.07B | 2.15B | 2.16B |
| Revenue Growth % | - | -3.99% | -0.05% | - |
| Cost of Goods Sold | 1.14B | 1.12B | 1.04B | 1.04B |
| COGS % of Revenue | - | 53.92% | 48.39% | 48.06% |
| Gross Profit | 980.3M | 953.4M | 1.11B | 1.12B |
| Gross Margin % | 46.21% | 46.08% | 51.61% | 51.94% |
| Gross Profit Growth % | - | -14.27% | -0.68% | - |
| Operating Expenses | 727.9M | 694.7M | 653.7M | 607.9M |
| OpEx % of Revenue | - | 33.58% | 30.34% | 28.2% |
| Selling, General & Admin | 560M | 529.7M | 553.3M | 446.4M |
| SG&A % of Revenue | - | 25.6% | 25.68% | 20.71% |
| Research & Development | 167.4M | 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 | 252.4M | 258.7M | 458.4M | 511.8M |
| Operating Margin % | 11.9% | 12.5% | 21.27% | 23.74% |
| Operating Income Growth % | - | -43.56% | -10.43% | - |
| EBITDA | 370.7M | 374.2M | 571.4M | 542.5M |
| EBITDA Margin % | 17.47% | 18.09% | 26.52% | 25.17% |
| EBITDA Growth % | - | -34.51% | 5.33% | - |
| D&A (Non-Cash Add-back) | 118.3M | 115.5M | 113M | 30.7M |
| EBIT | 252.4M | 258.7M | 395.3M | 511.8M |
| Net Interest Income | -47M | -32.3M | -66.3M | 0 |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 47M | 32.3M | 66.3M | 0 |
| Other Income/Expense | -1.49B | -1.48B | -93.3M | -2M |
| Pretax Income | -1.24B | -1.22B | 365.1M | 509.8M |
| Pretax Margin % | -58.3% | -58.8% | 16.94% | 23.65% |
| Income Tax | 5.4M | 6.1M | 62.1M | 93M |
| Effective Tax Rate % | -0.44% | -0.5% | 17.01% | 18.24% |
| Net Income | -1.24B | -1.22B | 303M | 416.8M |
| Net Margin % | -58.55% | -59.09% | 14.06% | 19.33% |
| Net Income Growth % | - | -503.47% | -27.3% | - |
| Net Income (Continuing) | -1.24B | -1.22B | 303M | 416.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -10.97 | -10.78 | 2.68 | 3.70 |
| EPS Growth % | - | -502.24% | -27.53% | - |
| EPS (Basic) | - | -10.84 | 2.68 | 3.70 |
| Diluted Shares Outstanding | 113.2M | 113.4M | 112.99M | 112.7M |
| Basic Shares Outstanding | 112.4M | 112.8M | 112.99M | 112.7M |
| Dividend Payout Ratio | - | - | - | - |
Margin compression and volatility
According to the latest quarterly filings, Ralliant Corp. reported revenue of $534.6 million in 2026Q1, representing an 11% year-over-year increase, yet the top-line trajectory remains inconsistent when compared to the sequential fluctuations observed throughout the previous fiscal year, suggesting a lack of sustained organic demand momentum.
The revenue volatility suggests that Ralliant may be struggling to maintain a predictable project pipeline within the aerospace and defense sector. Investors should monitor whether this 11% growth is a durable recovery or merely a reflection of lumpy contract recognition that could reverse in subsequent quarters.
As reported in financial statements, Ralliant's gross margin has compressed from a peak of 51.4% in 2024Q4 to 46.8% in 2026Q1, indicating that the company is facing significant headwinds in maintaining pricing power or managing input costs relative to its historical performance benchmarks.
The consistent decline in gross margins suggests that competitive pressures or rising manufacturing costs are outpacing the company's ability to pass price increases to customers. This trend warrants further investigation into whether the firm's product mix is shifting toward lower-margin service offerings or if operational inefficiencies are mounting.
Based on Ralliant's reported figures, operating income reached $68.1 million in 2026Q1, reflecting an operating margin of 12.7%, which is significantly lower than the 26.1% margin achieved in 2024Q1, highlighting a clear deterioration in the company's ability to scale profitability alongside its revenue base.
The inability to maintain operating margins as revenue fluctuates suggests that SG&A expenses are not being managed with sufficient discipline. This lack of operating leverage implies that the company's cost structure is becoming increasingly rigid, which may limit earnings upside during periods of revenue expansion.
Data from recent income statements reveals that net income swung from a $1.4 billion loss in 2025Q4 to a $44.2 million profit in 2026Q1, indicating that non-operating items or significant one-time charges are heavily distorting the quality of reported earnings for shareholders.
The extreme variance in net income suggests that investors should focus on operating income rather than bottom-line figures to gauge true performance. The presence of large, non-recurring items complicates the assessment of sustainable profitability and may mask underlying operational challenges within the core business segments.
While revenue growth appears to have stabilized at 11% in 2026Q1, the underlying trend of declining gross margins and inconsistent operating income suggests that the current profitability profile may be unsustainable if the company cannot effectively control its rising SG&A and R&D expenditure levels.
Short-term observers might point to the revenue recovery as a positive sign, but the structural margin decay suggests a more concerning long-term outlook. The company appears to be trading margin health for top-line growth, a strategy that may prove difficult to maintain in a competitive aerospace environment.
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.