How does Ralliant's net earnings margin of X% compare to its historical margins and to peers in the same industry?

Ralliant’s net‑earnings margin for Q2 2025 comes in at roughly 9.5 % ( $48 M net earnings ÷ $503 M revenue). Historically, the company has hovered in the 10‑12 % range – a level that has under‑pinned its premium‑valuation relative to the broader waste‑management sector. The current 9.5 % therefore represents a modest down‑slide versus its own track record, reflecting the 6 % YoY revenue contraction and the pressure on pricing that the industry has been feeling as commodity‑price volatility and higher labor costs bite.

When benchmarked against peers, Ralliant remains competitive but not dominant. GFL Environmental (≈8‑9 % net margin) and Clean Harbors (≈9 %) have been operating at similar or slightly lower profitability, while the larger, more diversified players such as Waste‑Management and Republic Services sit in the 11‑13 % band. Ralliant’s margin is therefore in line with mid‑tier peers but still a touch below the “best‑in‑class” operators.

Trading implication: The slight erosion of margin is a head‑up signal that the stock may be vulnerable to further compression if the revenue decline deepens or cost inflation accelerates. However, the margin remains respectable and still above the bulk of the sector, suggesting the market may have over‑discounted the pull‑back. A moderate long‑position on any pull‑back to the $30‑32 range could be justified, especially if the price holds above the 200‑day moving average and the broader market sentiment eases. Conversely, a breach of the 200‑day trend line with widening spreads on the bid side would warrant a tighter stop‑loss to protect against a potential slide toward the 9‑month low.