As of June 27, 2025, Ralliant had no stock-based compensation plans; however, certain of its employee were eligible to participate in Fortive’s 2016 Stock Incentive Plan (the “Fortive Stock Plan”) which provides for the grant of stock appreciation rights, restricted stock units (“RSUs”) and performance stock units (“PSUs”) (collectively, “Stock Awards”), stock options, or any other stock-based award. All grants of stock options and Stock Awards were made under the Fortive Stock Plan. For a full description of Fortive’s stock-based compensation programs in which certain Ralliant employees participate, reference is made to Note 13 to the Combined Financial Statements in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025.

The following summarizes the components of the Company’s stock-based compensation expense under the Fortive Stock Plan:


	Three Months Ended				Six Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Stock Awards:
Pretax compensation expense	$	6.6	$	3.4	$	11.4	$	8.2
Income tax benefit	(1.4)		(0.8)		(2.0)		(1.4)
Stock Award expense, net of income taxes	5.2		2.6		9.4		6.8
Stock options:
Pretax compensation expense	1.5		1.8		3.2		3.5
Income tax benefit	(0.3)		(0.4)		(0.5)		(0.6)
Stock option expense, net of income taxes	1.2		1.4		2.7		2.9
Total stock-based compensation:
Pretax compensation expense	8.1		5.2		14.6		11.7
Income tax benefit	(1.7)		(1.2)		(2.5)		(2.0)
Total stock-based compensation expense, net of income taxes	$	6.4	$	4.0	$	12.1	$	9.7

The following summarizes the unrecognized stock-based compensation expense for the Stock Awards and stock options as of June 27, 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.

In connection with the Separation, the Company established the Ralliant Corporation 2025 Stock Incentive Plan (the “Ralliant Stock Plan”). The outstanding equity awards of Fortive held by Ralliant employees were converted into or replaced with awards of Ralliant common stock under the Ralliant Stock Plan based on the three-day volume-weighted average price as of July 2, 2025, to maintain the economic value before and after the Separation date using the ratio of the Ralliant common stock fair market value relative to the Fortive common stock fair market value prior to the Separation. The incremental stock-based compensation expense to be recorded as a result of this equity award conversion will be approximately $22 million. For each equity award holder, the intent was to maintain the economic value of the equity awards before and after the Separation. The terms of the equity awards, such as the award period, exercisability and vesting schedule, as applicable, generally continue unchanged. Other than converted or replacement equity awards of Ralliant issued in replacement of Fortive’s RSUs and stock options, the terms of the converted or replacement equity awards of Ralliant (e.g., vesting date and expiration date) continued unchanged. As of June 28, 2025, 12 million shares of common stock were reserved for issuance under the Ralliant Stock Incentive Plan.