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RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLANS
NOTE 10. RETIREMENT BENEFIT PLANS
Certain of Ralliant’s employees participate in noncontributory defined benefit pension plans. In general, the Company’s policy is to fund these plans based on considerations relating to legal requirements, underlying asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates, and other factors. Ralliant’s U.S. pension plans are frozen and there are no associated ongoing benefit accruals. As such, the U.S. pension plans are immaterial as of each period presented. The following describes the Company’s significant non-U.S. pension plans as of December 31, 2025 and 2024.
The following sets forth the funded status of Ralliant’s non-U.S. plans and amounts recorded in AOCI as of the most recent actuarial valuations using measurement dates of December 31:
20252024
Change in pension benefit obligation:
Benefit obligation at beginning of year$119.4 $132.8 
Service cost1.5 0.3 
Interest cost5.1 4.8 
Employee contributions0.2 0.2 
Benefits paid
(8.6)(7.2)
Actuarial gain
(4.7)(4.5)
Settlements
(0.3)(1.8)
Foreign exchange rate impact12.5 (5.2)
Plan acquisitions and other(0.8)— 
Benefit obligation at end of year124.3 119.4 
Change in plan assets:
Fair value of plan assets at beginning of year73.0 83.9 
Actual return on plan assets2.1 (4.5)
Employer contributions4.9 4.1 
Employee contributions0.2 0.2 
Settlements
(0.3)(1.8)
Benefits paid
(8.5)(7.2)
Foreign exchange rate impact5.9 (1.7)
Plan acquisitions and other(1.8)— 
Fair value of plan assets at end of year75.5 73.0 
Funded status$(48.8)$(46.4)
Amounts recorded in the Consolidated and Combined Balance Sheets as of December 31:
20252024
Other assets$8.3 $9.2 
Accrued expenses and other current liabilities(3.9)(3.3)
Other long-term liabilities(53.2)(52.3)
Net amount$(48.8)$(46.4)
Amounts recorded in AOCI as of December 31:
20252024
Prior service credit
$(1.2)$(1.2)
Net gain
(18.3)(20.3)
Total pre-tax amount$(19.5)$(21.5)
Weighted average assumptions used to determine benefit obligations at date of measurement
20252024
Discount rate4.54 %4.22 %
Rate of compensation increase2.93 %2.93 %
Components of net periodic pension cost
The following sets forth the components of net periodic pension cost for Ralliant’s non-U.S. plans for the years ended December 31:
202520242023
Service cost$1.5 $0.3 $0.3 
Interest cost5.1 4.8 5.2 
Expected return on plan assets(3.5)(4.0)(3.9)
Amortization of net loss0.6 0.3 0.3 
Amortization of prior service cost0.1 0.1 0.2 
Net settlement loss recognized
— 0.2 — 
Net periodic pension cost$3.8 $1.7 $2.1 
Weighted average assumptions used to determine net periodic pension cost at date of measurement
202520242023
Discount rate4.22 %3.88 %4.33 %
Expected return on plan assets4.92 %5.02 %5.07 %
Rate of compensation increase2.93 %2.95 %3.10 %
The discount rates reflect the market rates on December 31 for high-quality fixed-income investments with maturities corresponding to the Company’s benefit obligations and are subject to change each year. Rates appropriate for each plan are determined based on investment grade instruments with maturities approximately equal to the average expected benefit payout under the plan.
The expected rates of return reflect the asset allocation of the plans and ranged from 2.8% to 5.4% in 2025, 2.5% to 5.4% in 2024, and 1.5% to 5.5% in 2023. The expected rates of return on asset assumptions for the non-U.S. plans were determined on a plan-by-plan basis based on the composition of the fair value of plan assets and historical rates of return.
Plan Assets
Plan assets are invested in various mutual funds, insurance contracts, and other private investments as determined by the administrator of each plan based on an analysis of the liability profile of each plan, the required investment return, and the returns expected from the various asset classes over the long-term. Certain mutual funds and other private investments are valued using the net asset value (“NAV”) method as a practical expedient. The investments valued using the NAV method are allocated across a broad array of funds and diversify the portfolio. The value of the plan assets directly affects the funded status of the Company’s pension plans recorded in the financial statements.
The fair values of Ralliant’s pension plan assets as of December 31, 2025 by asset category were as follows: 
Quoted Prices in Active Market
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)		Total
Cash and equivalents$7.1 $— $— $7.1 
Mutual funds— 52.8 — 52.8 
Insurance contracts— 5.6 — 5.6 
Total$7.1 $58.4 $— $65.5 
Investments measured at NAV(a):
Mutual funds and other private investments
10.0 
Total assets at fair value$75.5 
(a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets.
The fair values of Ralliant’s pension plan assets as of December 31, 2024 by asset category were as follows:
Quoted Prices in Active Market
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)		Total
Cash and equivalents$43.2 $— $— $43.2 
Mutual funds— 15.9 — 15.9 
Insurance contracts— 5 — 5 
Total$43.2 $20.9 $— $64.1 
Investments measured at NAV(a):
Mutual funds and other private investments
8.9 
Total assets at fair value$73.0 
(a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total fair value of plan assets.
Certain mutual funds are valued at the quoted closing price reported on the active market on which the individual securities are traded. Common stock, corporate bonds, and mutual funds that are not traded on an active market are valued at quoted prices reported by investment brokers and dealers based on the underlying terms of the security and comparison to similar securities traded on an active market.
Certain mutual funds and other private investments are valued using NAV based on the information provided by the asset fund managers, which reflects the plan’s share of the fair value of the net assets of the investment.
Expected Contributions
During 2025, the Company contributed $4.9 million to its non-U.S. defined benefit pension plans. During 2026, the Company’s cash contribution requirements for its non-U.S. defined benefit pension plans are expected to be approximately $5.7 million.
The following sets forth benefit payments to participants, which reflect expected future service, as appropriate, expected to be paid by the plans in the periods indicated:
2026$9.0 
20278.8 
20289.8 
20298.8 
20308.9 
2031-2035
43.1 
Defined Contribution Plans
Contributions to the 401(k) programs are determined based on a percentage of compensation. The Company recognized compensation expense, based on the Company’s 401(k) match percentage for its participating U.S. employees in the 401(k) programs, totaled $22.1 million, $22.1 million, and $21.8 million in 2025, 2024, and 2023, respectively.