Fortive’s Ralliant Spin-Off: What to Know (FTV, RAL)

Fortive Corporation, a global industrial technology company, has been carving out its Precision Technologies business and preparing it to stand alone. That standalone company is Ralliant Corporation - a new entity with deep roots in innovation, test and measurement systems, and precision components.

Set to become publicly traded on June 30, 2025, Ralliant will focus exclusively on precision technologies. Meanwhile, Fortive will continue to concentrate on its Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) businesses. This deliberate split follows Fortive’s long-term vision to optimize shareholder value by simplifying its business model and allowing each company to pursue growth independently.

The Spin-Off Timeline and Key Dates

The spin-off is being executed as a pro rata dividend to shareholders, with important milestones to keep in mind:

• Record Date: June 16, 2025

• Distribution Date: June 28, 2025

• “When-Issued” Trading: June 25, 2025 (Ticker: RAL WI)

• Regular Trading Begins: June 30, 2025 (Ticker: RAL)

Shareholders of Fortive common stock will receive 1 share of Ralliant for every 3 shares of Fortive they own. No special action is required, and fractional shares will be converted into cash and paid out separately.

Strategic Rationale: Why Fortive is Spinning Off Ralliant

At the heart of this decision is Fortive's desire to streamline its operations and increase focus. The spin-off allows both Fortive and Ralliant to allocate resources more effectively, pursue independent strategies, and offer clearer value propositions to investors.

Fortive will emerge as a more software-driven enterprise with recurring revenue now representing approximately 50% of its income. Meanwhile, Ralliant will be purpose-built for innovation in mission-critical hardware, supported by strong free cash flow and margin expansion potential.

In a world where capital markets reward specialization, this spin is a textbook case of a “focus unlock”, providing clarity, operational discipline, and enhanced valuation prospects for both entities.

A Closer Look at Ralliant

Ralliant may be new in name, but its legacy spans decades through its brands under Fortive’s Precision Technologies umbrella. The company operates in sectors where performance cannot be compromised, think semiconductor fabrication, aerospace systems, power grid resiliency, and defense technologies.

Ralliant’s Core Capabilities:

• Test and Measurement Equipment: Empowering engineers in AI data centers, energy storage, and robotics.

• Sensors and Safety Systems: Used in electric vehicles, medical devices, and smart grid infrastructure.

• Aerospace and Defense Components: Trusted by governments and OEMs for reliability in extreme environments.

Market Opportunity

The sectors Ralliant serves are poised for robust long-term growth. Consider this:

• The global semiconductor market is projected to exceed $1 trillion by 2030.

• The defense electronics and aerospace subsystems market is accelerating due to geopolitical pressures and modernization.

• The clean energy transition is creating unprecedented demand for precision sensors and energy-efficient systems.

Ralliant is well-positioned to capitalize on these trends, using its technology base and operational discipline as springboards for expansion.

Leadership and Governance

Ralliant will be led by Tami Newcombe, the current President and CEO of Fortive’s Precision Technologies and Advanced Healthcare Solutions divisions. She brings extensive experience in technology operations and customer-driven innovation.

She’ll be joined by:

• Ganesh Moorthy, expected to serve as Independent Chair of the Board. His credentials include serving as CEO of Microchip Technology and executive roles at Intel.

• Alan G. Spoon and Kate D. Mitchell, both seasoned board members from Fortive, are expected to bring a blend of operational and capital markets experience.

This team is purpose-built for aggressive, yet disciplined, growth. Their collective expertise in scaling technology companies, managing global operations, and deploying capital effectively should reassure stakeholders about the company’s direction.

Shareholder Value Creation

This spin-off is not just about strategy, it’s about unlocking tangible shareholder value. Consider the financial dynamics in play:

• $1.15 billion cash distribution from Ralliant to Fortive

• $550 million special repurchase program authorized by Fortive using proceeds from the Ralliant dividend

• Continued general share repurchase program with 20 million shares authorized for buyback

For Fortive investors, that means immediate capital return and ongoing alignment with shareholder interests.

For Ralliant investors, this marks the beginning of a clean, focused company ready to grow organically and through acquisitions in precision hardware sectors.

Fortive Post-Spin: Still a Heavy Hitter

Don’t sleep on Fortive after the spin. While it sheds the Precision Technologies segment, it’s doubling down on high-growth, high-margin opportunities in industrial and healthcare software.

• Intelligent Operating Solutions (IOS): Serving supply chain, compliance, and field service management.

• Advanced Healthcare Solutions (AHS): Addressing clinical workflow and diagnostic automation.

With recurring revenue streams, strong margins, and proven leadership under incoming CEO Olumide Soroye, Fortive is expected to remain a strong player in digital transformation markets.

Upcoming Events and What to Expect

Both companies are hosting an Investor Day at the NYSE on June 10, 2025, where stakeholders can expect to hear strategy, margin targets, innovation roadmaps, and capital deployment plans.

Webcasts and presentation materials will be available on the official websites:

• fortive.com

• ralliant.com

Final Thoughts

The spin-off of Ralliant Corporation from Fortive is a strategic evolution that’s been carefully orchestrated to benefit customers, employees, and shareholders alike. It’s about building two focused, agile companies each with the freedom to pursue growth on their own terms.

As we near the June 28 distribution date, investors should keep a close eye on how these two new stories begin to unfold. Whether your focus is recurring revenue, industrial innovation, or precision technology, there’s a compelling case to be made on both sides of the spin.

Frequently Asked Questions

What do I need to do to receive Ralliant shares?

Nothing. If you own Fortive shares as of June 16, 2025, you’ll automatically receive Ralliant shares on June 28.

What is the share distribution ratio?

You will receive one share of Ralliant for every three shares of Fortive you own.

Will I get cash for fractional shares?

Yes. If the share ratio results in a fraction, you'll receive cash in lieu of a partial share.

Is this spin-off taxable?

The spin-off is intended to be tax-free for U.S. federal income tax purposes, except for cash in lieu of fractional shares. Consult your tax advisor for personal implications.

What are the ticker symbols?

• Fortive will continue as FTV

• Ralliant will trade as RAL (regular way) and RAL WI (when-issued)

Will both companies be public after the spin?

Yes. Both Fortive and Ralliant will be publicly traded on the NYSE.

Where can I find more information?

Visit the official investor relations pages at fortive.com and ralliant.com for updates, filings, and presentations.

Fortive FTV Spin Off

Fortive FTV Spin Off

Financial Disclaimer:

This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult with their own financial advisors before making any investment decisions. The information provided is based on publicly available materials and believed to be accurate at the time of writing but is subject to change.