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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired, less assumed liabilities. Ralliant assesses the goodwill of each of its reporting units for impairment at least annually as of the first day of the fourth quarter and as “triggering” events occur that indicate that it is more likely than not that an impairment exists. Ralliant performs both qualitative and quantitative impairment tests for reporting units, as determined to be appropriate. Ralliant first assesses its indefinite-lived and finite-lived intangible assets for impairment, prior to completing the impairment assessment for its reporting units. Annual Impairment Testing - Goodwill and Other Indefinite-Lived Intangible Assets In the fourth quarter of 2025, the Company performed a qualitative analysis for all reporting units and other indefinite-lived intangible assets. Under ASC 350, the Company has an option to perform a qualitative assessment of its reporting units and other indefinite-lived intangible assets to determine whether further impairment testing is necessary. In this qualitative assessment, the Company considers the following items for each of the reporting units and other indefinite-lived intangible assets: macroeconomic conditions, industry and market conditions, overall financial performance, and other entity specific events. If it is determined it is not more likely than not that the fair value exceeds the carrying value, no further testing is required. If it is determined that it is more likely than not that the fair value does not exceed the carrying value, further testing is required and, the Company will continue with the quantitative impairment test. Based on the results of the qualitative assessment, the Company concluded it was more likely than not that the Test and Measurement reporting unit and Tektronix indefinite-lived trade name carrying values exceeded the fair values and a quantitative assessment was performed. The carrying values of the remaining reporting units goodwill and other indefinite-lived intangible assets at the annual impairment testing date of September 27, 2025, were $770.5 million and $17.5 million, respectively. The Company concluded it was more likely than not that the fair values exceeded the carrying values of these assets. In performing the quantitative impairment testing for the Tektronix indefinite-lived trade name, the Company estimated the fair value based on an income approach using the relief-from-royalty method. Key assumptions developed by management and used in the quantitative analysis of the Tektronix indefinite-lived trade name included: •Financial projections and future cash flows associated with the trade name, including revenue growth rates, throughout the forecast period reflect the approved operating budget and strategic plan, as well as current industry trends and growth expectations; •Terminal growth rates based on the expected long-term growth rate of the business; •Royalty rates based on market data as well as historical royalty rates; and •Market-based discount rates. In performing the quantitative impairment testing for the Test and Measurement reporting unit, the Company estimated the fair value of the reporting unit using both income-based and market-based valuation methods. Based on the estimated fair values developed from the income- and market-based methods, the Company determined the estimated fair value for the reporting unit as compared to the carrying value. The income-based approach was based on the reporting unit’s forecasted future cash flows that were discounted to present value using the reporting unit’s weighted average cost of capital (“WACC”). For the market-based approach, management used the guideline public company method. The guideline public company method analyzed market multiples of EBITDA for a group of comparable public companies. Key assumptions developed by management and used in the quantitative analysis of the Test and Measurement reporting unit included: •Financial projections and future cash flows, including a base year that considered recent actual results lower than previous internal forecasts and lower than original projections included in the EA acquisition model, revenue growth rates and profitability margin improvement throughout the forecast period that reflects the long-term strategy for the business as well as revised industry outlook and expectations, specifically within the EV market; •Terminal growth rates based on the expected long-term growth rate of the business; and •Market-based discount rates. The factors and assumptions used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, an additional impairment charge against Net (loss) earnings could occur in the future. As a result of the quantitative assessment for the Tektronix indefinite-lived trade name, the Company concluded the fair value exceeds the carrying value and no impairment was recorded for the year ended December 31, 2025. No impairment charge for other indefinite-lived intangible assets was recorded for the years ended December 31, 2024 and 2023. As a result of the quantitative assessment for the Test and Measurement reporting unit, the Company concluded the fair value did not exceed the carrying value and recorded an impairment charge, primarily driven by revised expectations for the EA Elektro-Automatik business, reflecting slower-than-anticipated progression and recent reduction in industry forecasts of future EV adoption, to the Test and Measurement reporting unit goodwill of $1.44 billion in the Consolidated and Combined Statement of Earnings for the year ended December 31, 2025. The remaining carrying value of the Test and Measurement reporting unit goodwill after the impairment charge was $901.3 million. No goodwill impairment charge was recorded for the years ended December 31, 2024 and 2023. Ralliant assessed “triggering” events subsequent to the 2025 annual impairment test and, as a result, did not identify any further impacts to goodwill or other indefinite-lived intangible assets. Impairment Testing - Finite-Lived Intangible Assets Ralliant reviews identified intangible assets with finite lives for impairment whenever events or changes in circumstances present indicators that the related carrying amounts may not be recoverable. If indicators are present, the Company performs a recoverability test using a comparison of the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount for an asset, the Company estimates the fair value of the intangible asset and recognizes an impairment loss if the carrying amount exceeds its fair value. The Company evaluated events or circumstances that may indicate the carrying value of its definite-lived intangible assets may not be fully recoverable during the year ended December 31, 2025, and recorded no impairments. Goodwill The following is a rollforward of the Company’s carrying value of goodwill by segment:
| Test and Measurement |  | Sensors and Safety Systems |  | Total
Balance, December 31, 2023 | $ | 1,086.7 |  |  | $ | 769.8 |  |  | $ | 1,856.5 |
Attributable to current year acquisitions | 1,175.0 |  |  | — |  |  | 1,175.0 |
Foreign currency translation | (87.7) |  |  | (3.8) |  |  | (91.5) |
Balance, December 31, 2024 | $ | 2,174.0 |  |  | $ | 766.0 |  |  | $ | 2,940.0 |
Goodwill impairment | (1,441.7) |  |  | — |  |  | (1,441.7) |
Foreign currency translation | 169.0 |  |  | 5.1 |  |  | 174.1 |
Balance, December 31, 2025 | $ | 901.3 |  |  | $ | 771.1 |  |  | $ | 1,672.4 |
Other Intangible Assets Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible assets as of December 31:
| 2025 |  | 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Finite-lived intangibles: |  |  |  |  |  |  |
Patents and technology | $ | 378.7 |  |  | $ | (277.9) |  |  | $ | 351.5 |  |  | $ | (242.7) |
Customer relationships and other intangibles | 877.2 |  |  | (466.9) |  |  | 820.1 |  |  | (403.0) |
Trademarks and trade names | 57.6 |  |  | (11.6) |  |  | 51.1 |  |  | (5.3) |
Total finite-lived intangibles | 1,313.5 |  |  | (756.4) |  |  | 1,222.7 |  |  | (651.0) |
Indefinite-lived intangibles: |  |  |  |  |  |  |
Trademarks and trade names | 238.1 |  |  | — |  |  | 237.9 |  |  | — |
Other intangibles assets, net | $ | 1,551.6 |  |  | $ | (756.4) |  |  | $ | 1,460.6 |  |  | $ | (651.0) |
As a result of the EA acquisition in January 2024, Ralliant acquired finite-lived intangible assets consisting of customer relationships, developed technology, and trade names, with a weighted-average life of approximately nine years. Refer to Note 3 to the consolidated and combined financial statements included in this Annual Report for additional information on the intangible assets acquired. Total intangible asset amortization expense in 2025, 2024, and 2023 was $86.9 million, $84.0 million, and $3.6 million, respectively. Based on the intangible assets recorded as of December 31, 2025, amortization expense is estimated to be $89.6 million during 2026, $89.5 million during 2027, $89.1 million during 2028, $57.8 million during 2029, and $57.8 million during 2030.

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