stockrowWhat it does
Ralliant designs, manufactures and services precision instruments and engineered products for customers who need to measure, test, monitor or protect equipment. Its customers include engineers, manufacturers, utilities, defense and space organizations, universities and research institutions. Ralliant was incorporated in 2024, is headquartered in Raleigh, North Carolina, and is led by President and Chief Executive Officer Tami Newcombe.
The company operates through two segments. Test and Measurement sells instruments, systems, software and services used to test electronic devices and electrical systems. Its products include oscilloscopes, which help engineers observe electrical signals, and semiconductor test systems. Customers use them in activities ranging from designing electronics to testing power equipment.
Sensors and Safety Systems makes equipment that monitors power-grid assets, sensors that measure conditions such as pressure and flow, and safety and ignition products used in defense and space applications. Its products can monitor electrical transformers, control industrial processes or help initiate rocket propulsion.
Ralliant’s solutions are used in more than 90 countries by over 90,000 customers. Its brands include TEKTRONIX and KEITHLEY INSTRUMENTS in Test and Measurement, and QUALITROL and GEMS SENSORS in Sensors and Safety Systems. It separated from Fortive in June 2025.
How it makes money
Ralliant earns revenue by selling instruments, systems, sensors and safety products, along with software and services. It sells directly to customers and through representatives and distributors. Its product lines serve different stages of customer work, from research and design to manufacturing and monitoring equipment in use.
In FY2025, Sensors and Safety Systems generated $1.3 billion of revenue and Test and Measurement generated $801.5 million; total revenue was $620 million in Q3 2026.
Test and Measurement supplies oscilloscopes, probes, semiconductor test systems, power supplies and measurement software. Its customers include chip designers and manufacturers, networking equipment makers, electronics companies and research laboratories. In Q3 2026, the company introduced a regenerative test system that simulates electrical loads for higher-voltage data centers and returns energy to the grid. It also added a module for higher-voltage semiconductor characterization and optical device validation.
Sensors and Safety Systems sells monitoring and diagnostic equipment for electrical assets, sensors for industrial and other environments, and ignition and energetic products for defense and space. Applications include monitoring power-grid equipment, measuring liquid levels and supporting satellite deployment. Its customers include utilities, equipment manufacturers, defense suppliers and government agencies.
The company offers services and software alongside physical products, but does not provide a recurring-revenue breakdown here. Sales can vary with customer purchasing and product launches: historically, overall sales have been lowest in the first quarter and highest in the fourth quarter. In 2025, favorable pricing partly offset lower sales volumes. Ralliant also uses pricing and productivity measures to address input costs.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Sensors and Safety Systems | $1.3 billion | 61.3% | 4.12% |
| Test and Measurement | $801.5 million | 38.7% | −14.5% |
Customers and how it sells
Ralliant serves customers in semiconductors, electronics, communications, utilities, defense and space, and industrial manufacturing. Buyers include semiconductor design companies and foundries, power utilities, defense suppliers, aerospace companies, food and beverage processors, healthcare providers and research institutions. Both segments also sell products and services to government entities, although most 2025 revenue came from other customers.
The company predominantly sells directly. It also uses representatives and distribution partners, with indirect channels accounting for a larger percentage of sales outside the United States. In countries with low sales volumes, Ralliant generally relies on those third parties.
In FY2025, the United States accounted for 51.3% of revenue, China for 14.5% and all other markets for 34.3%. Europe and Asia are principal markets outside the United States. The company’s products and services are available worldwide, and its operating companies have regional manufacturing and product development teams.
In Q3 2026, North America represented 54% of total revenue and China represented 16%. Ralliant’s defense and space business received undefinitized contract actions supporting Lockheed Martin’s THAAD and PAC-3 programs and began receiving orders against those contracts during the quarter.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $1.1 billion | 51.3% | −2.65% |
| All other | $709.3 million | 34.3% | −4.51% |
| China | $299.2 million | 14.5% | −7.28% |
Suppliers and costs
Ralliant buys electronic components, steel, plastics, aluminum, copper and other materials from independent suppliers around the world. No single supplier is considered material based on annual spending. Some components with particular specifications or qualification requirements, however, depend on one supplier or a limited number of suppliers. Ralliant uses measures such as safety stock, alternative materials and qualification of multiple sources to address possible interruptions.
Oil and gas prices affect freight and utility costs, while tariffs affect the cost of imported materials and components. The company has said the supply environment is challenging, with elevated inflation and limited availability of certain inputs. It has selectively added inventory to protect supply.
Manufacturing and employee costs affect results alongside materials and logistics. In 2025, operating margin was affected by lower volumes, employee costs and standalone public-company costs. Ralliant is expanding facilities in Fairport, New York, and Solon, Ohio, to support utilities and defense demand. It is also using its business system to improve sourcing, production and logistics and has an enterprise productivity program covering labor, materials and facility-related costs.
- Revenue$2.1B
- Cost of revenue−$1.0B
- Research and development−$165.0M
- Selling, general and administrative−$616.6M
- Other operating costs−$1.4B
- Operating income−$1.2B
Competitive position
Ralliant competes in fragmented markets against global and regional companies. In Test and Measurement, its main competitors include Keysight Technologies, Rohde & Schwarz, Ametek and Teledyne Technologies. In Sensors and Safety Systems, they include Esco Technologies, Ensign-Bickford Aerospace & Defense, Endress+Hauser, ifm Efector and Brooks Instrument.
Competition varies by product and service line. Customers consider price, quality, performance, delivery speed, applications expertise, distribution access, service, technology, product breadth and brand recognition. Some competitors are larger or have substantial resources; others are more specialized in particular markets. Ralliant also faces competition from companies with lower-cost manufacturing locations and from competitors that consolidate or expand their scale.
Ralliant has approximately 2,200 active patents and more than 1,300 engineers. Its engineers work with customers on applications, and its brands and distribution partners provide routes to market. The company also uses the Ralliant Business System to improve product development, sales, supply chains and manufacturing.
Our reading: Application expertise and customer relationships can make Ralliant useful in specialized work, but competitors also have technical and financial resources. Our reading: Its patent portfolio provides a broad base of protection, though no single intellectual-property asset is material to the whole business. Our reading: Brands, distribution and operating processes support its reach and execution, but the evidence does not establish that they prevent customers from choosing alternatives.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Keysight Technologies | Test and Measurement | High |
| Rohde & Schwarz | Test and Measurement | High |
| Ametek | Test and Measurement | High |
| Teledyne Technologies | Test and Measurement | High |
| Esco Technologies | Sensors and Safety Systems | High |
| Ensign-Bickford Aerospace & Defense | Sensors and Safety Systems | High |
| Endress+Hauser | Sensors and Safety Systems | High |
| ifm Efector | Sensors and Safety Systems | High |
Growth opportunities
Ralliant expects electrification and digitization to support demand across its markets. It points to more complex power electronics and semiconductor designs as drivers of testing needs, and to power demand, renewable energy and grid complexity as drivers of monitoring equipment. Defense modernization and industrial automation are also markets for its safety systems and sensors.
In Q3 2026, revenue grew 17%, while Sensors and Safety Systems grew 15% and Test and Measurement grew 21% organically. Orders exceeded revenue, and the defense and space backlog surpassed $1.5 billion. Ralliant is expanding capacity for utilities and defense, including at Fairport and Solon, and is working with customers on new defense design wins.
Product development is another part of the strategy. Q3 launches included a regenerative test system for higher-voltage data centers and a new module for the MP5000 automated test platform. Ralliant is also expanding its position in testing high-speed optical modules as optical interconnect adoption grows.
The company raised its full-year 2026 revenue expectation to $2.34 billion-$2.36 billion. Its enterprise productivity program targets $50 million-$60 million of annualized run rate savings by 2028 through measures including vendor consolidation and changes to support functions. Organic reinvestment is its first capital-allocation priority, followed by returns to shareholders and focused acquisitions.
- $2.2BFY2023
- $2.2BFY2024
- $2.1BFY2025
- $2.3BFY2026 guidance
Structural risks
- Demand and technology cycles: Economic weakness can reduce demand, lengthen sales cycles and increase cancellations. Ralliant must also anticipate customer needs, develop differentiated products and persuade customers to adopt new technologies.
- Asset impairments: Ralliant recorded a $1.44 billion non-cash goodwill impairment charge in Test and Measurement in 2025, primarily driven by revised expectations for EA Elektro-Automatik. Future asset values may also be at risk if expected results are not realized.
- Supply and trade: Some specified components have limited sources. Tariffs, trade restrictions and supply interruptions can raise costs, delay shipments or restrict sales. Ralliant has identified elevated inflation and limited availability of certain inputs.
- Competition: Larger or specialized competitors, lower-cost manufacturing locations and competitor consolidation can increase pressure on prices and market positions. Ralliant must continue to innovate and avoid commoditization.
- Separation and financing: Ralliant has a limited history as an independent public company and has incurred transition costs. Its earlier financial information does not reflect the debt and associated interest expense incurred as part of the separation. Additional financing may not be available on favorable terms or at all.
Bottom line
Our reading
Ralliant combines electronic testing with sensors and safety products sold into several industrial and technology markets. Its application expertise, brands and customer relationships support that model, while competition and specialized supply needs remain important constraints. [item1] Recent growth and defense backlog show demand in its served markets, but the earlier Test and Measurement impairment illustrates how changes in expectations can affect the business. [item7, call_prepared]