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STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Components of Stock-Based Compensation Expense
The following summarizes the components of the Company’s stock-based compensation expense for the years ended December 31:
 202520242023
Stock Awards:
Pretax compensation expense$33.4 $17.3 $16.4 
Income tax benefit(6.0)(3.0)(3.0)
Stock Award expense, net of income taxes27.4 14.3 13.4 
Stock options:
Pretax compensation expense22.8 7.2 8.6 
Income tax benefit(3.8)(1.3)(1.5)
Stock option expense, net of income taxes19.0 5.9 7.1 
Total stock-based compensation:
Pretax compensation expense56.2 24.5 25.0 
Income tax benefit(9.8)(4.3)(4.5)
Total stock-based compensation expense, net of income taxes$46.4 $20.2 $20.5 
Schedule of Unrecognized Stock-Based Compensation Expense
The following summarizes the unrecognized stock-based compensation expense for the Stock Awards and stock options as of December 31, 2025. This stock-based compensation expense is expected to be recognized over a weighted-average period of approximately two years, representing the remaining service period related to the awards. Future stock-based compensation amounts will be adjusted for any changes in estimated forfeitures.
Stock Awards$9.1 
Stock options34.5 
Total unrecognized compensation cost$43.6 
Schedule of Stock Award Activity
The following summarizes information related to Stock Award activity under the Ralliant Stock Plan for the years ended December 31, 2025 and 2024:
Number of
Stock Awards
Weighted 
Average
Grant-Date
Fair Value
Unvested as of December 31, 2024— $— 
Awards converted from Fortive Stock Plan
1.2 $49.96 
Granted0.3 $43.80 
Vested(0.1)$46.64 
Unvested as of December 31, 20251.4 $48.77 
Schedule of Assumptions Used in the Black-Scholes Model to Value Options Granted
The following summarizes the assumptions used in the Black-Scholes model to value stock options granted after the Separation under the Ralliant Stock Plan during the year ended December 31, 2025:
Risk-free interest rate
3.9% – 4.0%
Volatility (a)
39.9% – 40.3%
Dividend yield (b)
0.4%
Expected years until exercise
5.9 – 6.8
(a) Expected volatility is the measure of the amount by which the stock price has fluctuated or is expected to fluctuate. As the Company does not have sufficient historical data, peer volatility was used instead, which was calculated using an average of the expected term-matching lookback volatilities of peer companies as of the grant date.
(b) The expected dividend yield is calculated using a $0.05 estimated quarterly dividend and the average stock price of Ralliant over its trading history as of the grant date, annualized and continuously compounded.
Schedule of Stock Option Activity
The following summarizes stock option activity under the Ralliant Stock Plan (in millions, except price per share and numbers of years):
OptionsWeighted
Average
Exercise
Price
Weighted 
Average
Remaining
Contractual Term (years)
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2024
— $— 
Awards converted from Fortive Stock Plan
2.6 $44.78 
Granted0.2 $46.91 
Exercised(0.1)$33.06 
Outstanding as of December 31, 2025
2.7 $44.94 5.9$18.5 
Vested and expected to vest as of December 31, 2025 (a)
2.7 $44.90 5.8$18.3 
Exercisable as of December 31, 2025
1.7 $42.74 4.5$14.3 
(a) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.
Schedule of Aggregate Intrinsic Value and Cash Receipts Related To Stock Options Exercised
The following summarizes aggregate intrinsic value and cash receipts related to stock options that were exercised under the Ralliant Stock Plan for the year ended December 31, 2025:
Aggregate intrinsic value of stock options exercised$1.1 
Cash receipts from stock options exercised$2.1