Ralliant CorpRAL
Ralliant Corp Revenue Disclosure
NOTE 12. SALES
Ralliant derives revenue primarily from the sale of products, with additional revenue from the sale of services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services.
Product sales include revenue from the sale of products and equipment. Service sales include revenues from extended warranties, maintenance contracts or services, and services related to previously sold products.
Contract Liabilities — The Company’s contract liabilities consist of deferred revenue generally related to customer deposits received in advance of performance under the contract, extended warranty sales, and product maintenance agreements, where the Company generally receives up-front payment and recognizes revenue over the service or support term. The Company classifies deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is recorded within Other long-term liabilities in the accompanying Consolidated and Combined Balance Sheets.
The Company’s contract liabilities as of December 31 consisted of the following:
| 2025 | 2024 | ||||||||||
| Deferred revenue - current | $ | 154.6 | $ | 143.1 | |||||||
| Deferred revenue - noncurrent | 38.7 | 35.8 | |||||||||
| Total contract liabilities | $ | 193.3 | $ | 178.9 | |||||||
For the year ended December 31, 2025, the Company recognized $98.5 million of revenue related to its contract liabilities at January 1, 2025. The change in the Company’s contract liabilities from December 31, 2024 to December 31, 2025 was primarily due to revenue recognized as products were delivered to customers.
Remaining Performance Obligations — Ralliant’s remaining performance obligations represent the transaction price of firm, non-cancelable orders, for which work has not yet been performed. The Company has excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate remaining performance obligations attributable to each of the Company’s segments as of December 31, 2025 is as follows:
| Test and Measurement | $ | 55.6 | |||
| Sensors and Safety Systems | 5.5 | ||||
| Total remaining performance obligations | $ | 61.1 | |||
The majority of remaining performance obligations are related to service and support contracts, which the Company expects to fulfill approximately 60% within the next two years, approximately 80% within the next three years, and substantially all within four years.
Disaggregation of Revenue
The Company disaggregates revenue from contracts with customers by geographic locations and end markets for each of its segments as the Company believes it best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. For the years ended December 31, 2025, 2024, and 2023 no other country than those presented, had material sales individually.
Disaggregation of revenue for the year ended December 31, 2025 was:
| Total | Test and Measurement | Sensors and Safety Systems | |||||||||||||||
| Geographic: | |||||||||||||||||
| United States | $ | 1,060.3 | $ | 283.9 | $ | 776.4 | |||||||||||
| China | 299.2 | 177.5 | 121.7 | ||||||||||||||
| All other | 709.3 | 340.1 | 369.2 | ||||||||||||||
| Total | $ | 2,068.8 | $ | 801.5 | $ | 1,267.3 | |||||||||||
| End markets: | |||||||||||||||||
| Diversified electronics | $ | 383.6 | $ | 383.6 | $ | — | |||||||||||
| Communications | 254.3 | 254.3 | — | ||||||||||||||
| Semiconductors | 163.6 | 163.6 | — | ||||||||||||||
| Industrial manufacturing | 427.6 | — | 427.6 | ||||||||||||||
| Defense and space | 355.4 | — | 355.4 | ||||||||||||||
| Utilities | 305.7 | — | 305.7 | ||||||||||||||
| Other | 178.6 | — | 178.6 | ||||||||||||||
| Total | $ | 2,068.8 | $ | 801.5 | $ | 1,267.3 | |||||||||||
Disaggregation of revenue for the year ended December 31, 2024 was:
| Total | Test and Measurement | Sensors and Safety Systems | |||||||||||||||
| Geographic: | |||||||||||||||||
| United States | $ | 1,089.2 | $ | 332.9 | $ | 756.3 | |||||||||||
| China | 322.7 | 214.7 | 108.0 | ||||||||||||||
| All other | 742.8 | 389.9 | 352.9 | ||||||||||||||
| Total | $ | 2,154.7 | $ | 937.5 | $ | 1,217.2 | |||||||||||
| End markets: | |||||||||||||||||
| Diversified electronics | $ | 474.3 | $ | 474.3 | $ | — | |||||||||||
| Communications | 274.9 | 274.9 | — | ||||||||||||||
| Semiconductors | 188.3 | 188.3 | — | ||||||||||||||
| Industrial manufacturing | 410.8 | — | 410.8 | ||||||||||||||
| Defense and space | 340.2 | — | 340.2 | ||||||||||||||
| Utilities | 273.0 | — | 273.0 | ||||||||||||||
| Other | 193.2 | — | 193.2 | ||||||||||||||
| Total | $ | 2,154.7 | $ | 937.5 | $ | 1,217.2 | |||||||||||
Disaggregation of revenue for the year ended December 31, 2023 was:
| Total | Test and Measurement | Sensors and Safety Systems | |||||||||||||||
| Geographic: | |||||||||||||||||
| United States | $ | 1,132.9 | $ | 357.8 | $ | 775.1 | |||||||||||
| China | 359.2 | 247.3 | 111.9 | ||||||||||||||
| All other | 663.6 | 336.2 | 327.4 | ||||||||||||||
| Total | $ | 2,155.7 | $ | 941.3 | $ | 1,214.4 | |||||||||||
| End markets: | |||||||||||||||||
| Diversified electronics | $ | 456.4 | $ | 456.4 | $ | — | |||||||||||
| Communications | 300.6 | 300.6 | — | ||||||||||||||
| Semiconductors | 184.3 | 184.3 | — | ||||||||||||||
| Industrial manufacturing | 480.5 | — | 480.5 | ||||||||||||||
| Defense and space | 285.3 | — | 285.3 | ||||||||||||||
| Utilities | 233.1 | — | 233.1 | ||||||||||||||
| Other | 215.5 | — | 215.5 | ||||||||||||||
| Total | $ | 2,155.7 | $ | 941.3 | $ | 1,214.4 | |||||||||||
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.