Ralliant CorpRAL
Ralliant Corp Segments Disclosure
NOTE 17. SEGMENT INFORMATION
Ralliant reports its results in two reportable segments that are also its two operating segments, consisting of Test and Measurement and Sensors and Safety Systems. Ralliant’s operating segments were determined based primarily on how the chief operating decision maker (“CODM”) views and evaluates the Company’s operations. Other factors including products and services, end markets served, and business cycle were also considered in determining the formation of operating segments. The Company's CODM is the chief executive officer.
The CODM uses operating profit at the segment level as the measure of profitability to assess performance and allocate resources, including merger and acquisition targets. The CODM also compares the actual results to expectations in assessing the performance of the segments. Operating profit represents total revenue less cost of sales and operating expenses. Operating expenses generally include Selling, general, and administrative expenses and Research and development expenses, which are the significant expense categories regularly provided to the CODM. Depreciation expense is recorded within both Cost of sales and Selling, general, and administrative expenses. Amortization expense is recorded within Selling, general, and administrative expenses. Goodwill impairment, when incurred, is also separately disclosed by segment. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated in the consolidated and combined totals. Unallocated costs and other costs are not considered part of the Company’s evaluation of reportable segment operating performance.
The Test and Measurement segment provides precision test and measurement instruments, systems, software, and services. Through its portfolio of industry leading solutions, including oscilloscopes, probes, source measuring units, semiconductor test systems, high-power bi-directional power supplies, and measurement analysis software packages, the Test and Measurement segment empowers scientists, engineers, and technicians to create and realize technological advances with greater efficiency, speed, and accuracy.
The Sensors and Safety Systems segment provides leading power grid monitoring solutions, safety systems for mission critical defense and space applications, and sensing solutions for critical environments where uptime, precision, and reliability are essential. This includes advanced monitoring, protection, and diagnostic solutions for high-voltage electrical assets in power generation, transmission, and distribution. Sensors and Safety Systems’ energetic materials, ignition safety systems, and precision pyrotechnic devices are used in mission-critical applications such as satellite deployment, rocket propulsion initiation, aerial vehicle safety systems, and military defense systems. The Sensors and Safety Systems segment also provides premium sensing products encompassing liquid level, flow, and pressure sensors, motion sensors and components, and hygienic sensors.
Segment results for the year ended December 31, 2025 were:
| Total | Test and Measurement | Sensors and Safety Systems | Unallocated Corporate Costs and Other (a) | ||||||||||||||||||||
| Sales | $ | 2,068.8 | $ | 801.5 | $ | 1,267.3 | $ | — | |||||||||||||||
| Cost of sales | (1,028.5) | (357.7) | (670.8) | — | |||||||||||||||||||
| Operating expenses | (781.6) | (467.5) | (255.4) | (58.7) | |||||||||||||||||||
Goodwill impairment | (1,441.7) | (1,441.7) | — | — | |||||||||||||||||||
Operating (loss) profit | (1,183.0) | (1,465.4) | 341.1 | (58.7) | |||||||||||||||||||
Non-operating (expense) income, net | |||||||||||||||||||||||
| Interest (expense) income, net | (32.3) | (0.3) | 0.6 | (32.6) | |||||||||||||||||||
| Other non-operating expenses, net | (1.1) | (0.3) | (0.2) | (0.6) | |||||||||||||||||||
(Loss) earnings before income taxes | $ | (1,216.4) | $ | (1,466.0) | $ | 341.5 | $ | (91.9) | |||||||||||||||
| Depreciation and amortization expenses | $ | (115.5) | $ | (101.6) | $ | (13.8) | $ | (0.1) | |||||||||||||||
| Capital expenditures | $ | (39.2) | $ | (18.9) | $ | (15.8) | $ | (4.5) | |||||||||||||||
(a) Amounts primarily related to standalone public company costs and the stock-based compensation modification. | |||||||||||||||||||||||
Segment results for the year ended December 31, 2024 were:
| Total | Test and Measurement | Sensors and Safety Systems | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 2,154.7 | $ | 937.5 | $ | 1,217.2 | $ | — | |||||||||||||||
| Cost of sales | (1,042.6) | (383.3) | (659.3) | — | |||||||||||||||||||
| Operating expenses | (715.6) | (494.5) | (221.1) | — | |||||||||||||||||||
Gain from sale of property (a) | 63.1 | 63.1 | — | — | |||||||||||||||||||
Operating profit | 459.6 | 122.8 | 336.8 | — | |||||||||||||||||||
| Non-operating expense, net | |||||||||||||||||||||||
| Loss from divestiture | (25.6) | — | (25.6) | — | |||||||||||||||||||
Other non-operating expenses, net | (1.4) | (0.7) | (0.7) | — | |||||||||||||||||||
| Earnings before income taxes | $ | 432.6 | $ | 122.1 | $ | 310.5 | $ | — | |||||||||||||||
| Depreciation and amortization expenses | $ | (113.0) | $ | (98.4) | $ | (14.6) | $ | — | |||||||||||||||
| Capital expenditures | $ | (34.3) | $ | (21.1) | $ | (13.2) | $ | — | |||||||||||||||
Segment results for the year ended December 31, 2023 were:
| Total | Test and Measurement | Sensors and Safety Systems | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 2,155.7 | $ | 941.3 | $ | 1,214.4 | $ | — | |||||||||||||||
| Cost of sales | (1,036.0) | (366.3) | (669.7) | — | |||||||||||||||||||
| Operating expenses | (607.9) | (383.9) | (224.0) | — | |||||||||||||||||||
Operating profit | 511.8 | 191.1 | 320.7 | — | |||||||||||||||||||
| Non-operating expense, net | |||||||||||||||||||||||
| Other non-operating expenses, net | (2.0) | (0.9) | (1.1) | — | |||||||||||||||||||
Earnings before income taxes | $ | 509.8 | $ | 190.2 | $ | 319.6 | $ | — | |||||||||||||||
| Depreciation and amortization expenses | $ | (30.7) | $ | (15.1) | $ | (15.6) | $ | — | |||||||||||||||
| Capital expenditures | $ | (29.2) | $ | (16.3) | $ | (12.9) | $ | — | |||||||||||||||
Segment Assets
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Test and measurement | $ | 2,149.3 | $ | 3,447.7 | |||||||
| Sensors and safety systems | 1,306.4 | 1,256.7 | |||||||||
| Total segment assets | 3,455.7 | 4,704.4 | |||||||||
Other (a) | 365.9 | 15.0 | |||||||||
| Total assets | $ | 3,821.6 | $ | 4,719.4 | |||||||
(a) Other represents corporate assets which consist primarily of cash and net deferred income tax assets. | |||||||||||
Operations in Geographic Areas
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property, plant and equipment, net: | |||||||||||
| United States | $ | 154.7 | $ | 153.0 | |||||||
All other | 59.5 | 47.2 | |||||||||
Total | $ | 214.2 | $ | 200.2 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.