Slides
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Ralliant Morgan Stanley 13th Annual Laguna Conference September 10, 2025
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2 Forward Looking Statements & Non-GAAP Financial Measures Certain statements included in this presentation and the oral remarks made in connection herewith are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: business outlook and priorities; future financial performance and results, including outlook and guidance; revenue growth; cash flows, the Company’s liquidity position or other financial measures; management’s plans and strategies for future operations and growth, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, customer demand, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, shareholder value creation, capital allocation priorities, stock repurchases and dividends; the effects of the separation from Fortive on the Company’s business; growth, declines and other trends in markets the Company sells into, including the expected impact of trade and tariff policies; changes in government contracting requirements and reductions in federal spending; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; tax rates, tax provisions, and the impact of changes to tax laws; general economic and capital markets conditions, including expected impact of inflation or interest rate changes; impact of geopolitical events and other hostilities; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that the Company intends or believes will or may occur in the future. Terminology such as “believe”, “expect”, “anticipate”, “forecast”, “positioned”, “intend”, “plan”, “priorities”, “project”, “estimate”, “grow”, “will”, “should”, “could”, “would”, “may”, “strategy”, “opportunity”, “possible”, “potential”, “outlook”, “assumptions”, “target”, and “guidance” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Forward-looking statements are based on assumptions and assessments made by management of the Company in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under “Cautionary Statement Concerning Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A with the U.S. Securities and Exchange Commission (the “SEC”) on May 28, 2025, and under “Information Relating to Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 11, 2025. Forward-looking statements are not guarantees of future performance and actual results may differ materially from the results, developments and business decisions contemplated by the Company’s forward- looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date of the document or other communication in which they are made (or such earlier date as may be specified in such statement). Ralliant assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. This presentation’s Appendix contains references to financial measures not presented in accordance with generally accepted accounting principles in the United States (“GAAP. Please refer to the Appendix of this presentation for additional information. Non-GAAP Financial Measures
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2025 INVESTOR DAY TAMI NEWCOMBE President and Chief Executive Officer
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4 Ralliant Overview Premier Player in Precision Technologies RALLIANT PORTFOLIO SERVES 90K CUSTOMERS GLOBALLY 1 Sensors & Safety Systems 56% of 2024 revenue1 Defense & Space Other2 Power grid monitoring solutions, defense and space technology, and industrial sensors for demanding environments where uptime, precision, and reliability are non-negotiable Semiconductor Precision instruments, software, and services essential to the future of electronics, communications, and energy storage systems Test & Measurement 44% of 2024 revenue1 1. 2024 as reported financials. Percentages may not foot due to rounding. 2. Other includes Food and Beverage, Healthcare, and HVAC. 3. Diversified Electronics includes Industrial, Consumer, Automotive, Medical, Education, and General Purpose. Industrial Manufacturing Utilities Diversified Electronics3 Communications
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5 Ralliant Business System (RBS) RBS Delivers Sustainable Business Results What it is It’s how we turn our strategy into execution through common language, cadence, proven tools, and a continuous improvement mindset How it helps us win Every employee has the tools and opportunities to make an impact every day STRATEGY EXECUTION Culture & People Business Cadence Innovation & Commercial Lean & Productivity
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6 Ralliant Profile 1. The Company has not reconciled the forward-looking statements regarding non-GAAP measures because we are unable to do so without unreasonable efforts or to reasonably estimate the projected outcome of certain significant items, including currency impacts, impacts of acquisitions and divestitures and similar adjustments; 2. Net debt to LTM Adj. EBITDA as defined by the Company’s credit facility; 3. 2024 as reported financials. Percentages may not foot due to rounding. 4. Other includes Food and Beverage, Healthcare, and HVAC. 5. Diversified Electronics includes Industrial, Consumer, Automotive, Medical, Education, and General Purpose. Diversified Global Technology Company $2B+ Revenue Low to Mid-20s Adj. EBITDA Margin1 95%+ FCF Conversion1 2024 SALES BY END MARKET 3 2024 SALES BY REGIONS 3 N. America 53% W. Europe 15% RoW 17% China 15% Diversified Electronics5 22% Communications 13% Semiconductor 9%Industrial Manufacturing 19% Defense & Space 16% Utilities 13% Other4 9% 3-5% Revenue Growth 1.5X – 2.0X Net Leverage1,2 ~7K T eam Members 21 Global Manufacturing Locations 15 R&D Centers Through-Cycle Financial Targets
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7 Seize Growth: Advancing Growth Vectors 1. Based on external market research and Company estimates (2024). 2. 2025-2030 period, based on external market research and Company estimates. S E R V I C E A B L E A D D R E S S A B L E M A R K E T ( S A M ) 1 ~$16B E X P E C T E D S A M G R O W T H 2 ~3% Industrial Manufacturing ~0-2% Semiconductor ~2-4% Utilities Grid Modernization ~5-7% Defense Technologies Defense & Space ~5-7% Electrification Diversified Electronics ~3-5% Proven Right To Win, Now Amplifying Communications ~2-4% Growth Vectors Expected SAM Growth Rate2
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8 Growth Vector: Grid Modernization Delivering essential and reliable grid solutions for Utilities Well Positioned to Capture Long-Term Demand in Grid Modernization OUR CUSTOMERS KEY APPLICATIONS Generation Monitoring Transformer & Substation Monitoring Distribution Monitoring Utility OEMs Based on external market research and Company estimates. NEW ENERGY SOURCES INCREASING POWER DEMAND AGING GRID INFRASTRUCTURE
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9 Uniquely Positioned to Grow Along Expanding Defense Spending DEFENSE MODERNIZATION GEOPOLITICAL ENVIRONMENT SPACE ADVANCEMENTS AND COMMUNICATIONS Growth Vector: Defense Technologies Delivering mission-critical safety systems and solutions for Defense & Space OUR CUSTOMERS KEY APPLICATIONS Ground Safety Launch Safety Flight Safety Defense Primes DOD Agencies Space Exploration Programs Commercial Aviation Players Based on external market research and Company estimates.
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10 Ongoing Investments in Innovation Growth Vector: Electrification Enabling electronics innovation by technology leaders through Test & Measurement ELECTRONICS EVERYWHERE HIGH -SPEED COMMUNICATIONS ADVANCED SEMICONDUCTOR TECHNOLOGIES KEY APPLICATIONS Semiconductor Communication Diversified Electronics Diversified Electronics Automotive Consumer Electronics Education & Research Industrial & Utilities Medical Aerospace & Defense Data Center & Network OUR CUSTOMERS
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11 Tektronix Innovation Driving Market Readiness Record New Product Introductions REFRESHING INSTALLED BASE EXPANDING SERVED MARKET Performance Oscilloscope Modular Test Platform Isolated Current Probe Advanced Measurement Analytics Battery Tester Battery Impedance Meter
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12 Clear Financial Priorities to Drive Value Creation CONSISTENT EARNINGS GROWTH AND SHAREHOLDER RETURNS R E T U R N S Return capital to shareholders and invest in growth vectors Disciplined Capital Allocation F R E E C A S H F L O W Generate >$1B of cumulative FCF through 2028 Strong and Durable Free Cash Flow P R O F I TA B I L I T Y Through cycle Adj. EBITDA margin: Ralliant1: Low-to-Mid-20s S&SS Segment: High-20s T&M Segment: Mid-Teens to Low-20s Adj. EBITDA Growth Faster than Revenue 3-5% G R O W T H through cycle revenue growth EXPECTED RESULTS Revenue Growth Extension 1. The Company has not reconciled the forward-looking statements regarding non-GAAP measures because we are unable to do so without unreasonable efforts or to reasonably estimate the projected outcome of certain significant items, including currency impacts, impacts of acquisitions and divestitures and similar adjustments
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Q&A
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Appendix
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15 ADJUSTED OPERATING EXPENSE BRIDGE Adjusted Operating Expenses2 ($s in millions) Segment Corporate Total Company Q1 adj. operating expense $147 $1 $148 Standalone public co costs ($45M annualized) $11 $11 Form 10 implied quarterly adj. opex run-rate (as of May 10, 2025) $147 $12 $159 Updated quarterly run-rate operating expenses 2025 merit increase $5 $5 Other employee costs $1 - $2 $2 - $3 $3 – $5 Standalone public co costs ($50-55M annualized) $1 – $2 $1 - $2 Quarterly adj. operating expense run-rate beginning in Q3 $153 – 155 $15 – 17 ~$170 1. Expenses exclude amortization and other non-GAAP adjustments as outlined the adjusted operating expense reconciliation.
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16 NON-GAAP FINANCIAL MEASURES The Company reports financial results in accordance with GAAP. However, this presentation contains references to certain non-GAAP measures, which are not recognized financial measures under GAAP, because management believes they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that they do not believe are indicative of ongoing operating performance. Management believes these measures are helpful in highlighting trends in our operating results, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure and allocation, the tax jurisdictions in which companies operate and capital investments and acquisitions. This presentation contains references “adjusted EBITDA” (including segment adjusted EBITDA), “adjusted EBITDA margin" (including segment adjusted EBITDA margin), "adjusted operating expenses", “organic revenue growth”, “free cash flow", "free cash flow conversion”, "free cash flow margin", and "net leverage" financial measures which are, in each case, not presented in accordance with GAAP. The non-GAAP financial measures are not intended to replace the presentation of the comparable measures under GAAP, should be read in conjunction with the most directly comparable GAAP financial measures, and may not be comparable to similarly titled measures reported by other companies. We define these non-GAAP financial measures as follows: • EBITDA refers to net earnings calculated in accordance with GAAP, excluding, interest, taxes, depreciation, and amortization. ◦ Adjusted EBITDA refers to EBITDA adjusted to exclude amortization of acquisition related intangible assets, acquisition and divestiture related adjustments and costs, loss from divestiture, discrete restructuring charges, and Fortive corporate allocations. ◦ Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of GAAP revenue. ◦ Adjusted EBITDA for the segments refers to operating profit calculated in accordance with GAAP adjusted to exclude amortization of acquisition related intangible assets, acquisition and divestiture related adjustments and costs, discrete restructuring charges, Fortive corporate allocations, depreciation, and other. • Adjusted operating expenses refers to operating expenses calculated in accordance with GAAP, adjusted to exclude amortization of acquisition related intangible assets, acquisition and divestiture related adjustments and costs, discrete restructuring charges, and Fortive corporate allocations. • Free cash flow refers to cash flow from operations calculated according to GAAP but excluding purchases of property, plant and equipment ("capital expenditures"). ◦ Free cash flow conversion refers to free cash flow divided by adjusted net earnings. ◦ Free cash flow margin refers to free cash flow as a percentage of GAAP revenue. • Net leverage refers to net debt divided by last twelve months adjusted EBITDA as defined by the Company's credit agreement. The Company has not reconciled the forward-looking statements regarding non-GAAP measures for "adjusted EBITDA margin" (including segment adjusted EBITDA margin), "adjusted operating expenses," or “free cash flow,” “free cash flow conversion,” or “net leverage” because we are unable to do so without unreasonable efforts or to reasonably estimate the projected outcome of certain significant items calculated in accordance with GAAP.
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17 ADJUSTED OPERATING EXPENSES Three Months Ended June 27, 2025 March 28, 2025 ($ in millions) Ralliant Total Segments Unallocated Corporate Costs and Other (a) Ralliant Total Segments Unallocated Corporate Costs and Other (a) Operating costs: Selling, general and administrative $ (147.4) $ (141.1) $ (6.3) $ (128.3) $ (127.0) $ (1.3) Research and development (42.0) (42.0) — (41.3) (41.3) — Operating costs (GAAP) (189.4) (183.1) (6.3) (169.6) (168.3) (1.3) Amortization of acquisition-related intangible assets 21.9 21.9 — 20.3 20.3 — Acquisition related adjustments and costs 1.4 1.4 — 1.0 1.0 — Discrete restructuring charges 0.4 0.4 — 0.5 0.5 — Fortive corporate allocations 10.1 10.1 — — — — Adjusted operating expenses (Non-GAAP) $ (155.6) $ (149.3) $ (6.3) $ (147.8) $ (146.5) $ (1.3) (a) Amounts primarily related to standalone public company costs