Resideo Announces Record Second Quarter 2026 Financial Results; Initiates Standalone 2026 Outlook
Rhea-AI Summary
Resideo (NYSE: REZI) reported record second quarter 2026 revenue of $1.981 billion, up 2% year-over-year and above the high end of its outlook, with record gross margin of 30.0%. Net income was $97 million versus a prior-year net loss of $825 million. Adjusted EBITDA rose 19% to $249 million, and adjusted EPS increased 26% to $0.83, both above guidance.
Products & Solutions revenue grew 4% with gross margin of 43.6%, while ADI Global Distribution revenue grew 1%. On August 3, 2026, Resideo completed the spin-off of ADI, receiving a $900 million dividend used to repay Term Loan B debt. Total debt was $3.62 billion at quarter-end, and the company initiated standalone 2026 revenue guidance of $2.9–$2.95 billion and adjusted EBITDA of $605–$625 million.
Positive
- Revenue $1.981B, up 2% YoY, record and above outlook
- Adjusted EBITDA $249M, up 19% YoY, above outlook high end
- Adjusted EPS $0.83, up 26% YoY, above outlook range
- ADI spin-off included $900M dividend used to repay Term Loan B
- Standalone 2026 outlook: revenue $2.9–$2.95B, EBITDA $605–$625M
Negative
- Operating cash flow $148M, down from $200M in Q2 2025
- Business separation costs $31M in Q2, $55M year-to-date
- Products & Solutions operating income $138M, down 3% YoY
- ADI operating income $64M, down 10% YoY; EBITDA down 4%
- Total debt $3.62B at July 4, 2026 despite repayments
News Explained
The completed separation gave one ADIG share per two Resideo shares and moved $400 million of ADIG notes off Resideo’s obligations.
The ADI separation was completed on
Beginning in the third quarter, ADI will be reported as discontinued operations rather than consolidated, while Resideo’s Products & Solutions segment will be presented as continuing operations with ADI treated as an external customer.
The
Resideo’s preferred stock was reduced by
Resideo expects an approximately
Market Reaction – REZI
Following this news, REZI has declined 4.37%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 54 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $24.59. Trading volume is elevated at 2.3x the average, suggesting increased selling activity.
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- Revenue of
$1.98 billion 2% year-over-year; a new record and above the high-end of outlook range; Products & Solutions ("P&S") up4% and ADI Global Distribution segment ("ADI") up1% - Gross margin of
30.0% , a new record; 13 consecutive quarters of year-over-year gross margin expansion achieved at P&S - Net income of
$97 million $825 million $249 million 19% year-over-year; a new record and above the high-end of outlook range - GAAP diluted EPS of
$0.51 $0.83 26% year-over-year and above the high-end of the outlook range - Successfully completed the business separation of ADI on August 3, 2026 (2)
ADI Global Distribution Spin-Off
On August 3, 2026 (the "Distribution Date"), Resideo completed the separation (the "ADI Spin-Off" or the "Separation") of its former ADI Global Distribution segment by distributing to Resideo common shareholders on a pro rata basis all of the issued and outstanding common stock of ADI Global Distribution Inc. ("ADIG"). To effect the Separation, Resideo distributed to its common stockholders one share of ADIG common stock for every two shares of Resideo's common stock outstanding and held as of July 20, 2026, the record date for the distribution.
Resideo's consolidated results for the three and six months ended July 4, 2026 include the historical results of ADI as a consolidated business segment of Resideo since the ADI Spin-Off occurred subsequent to the second fiscal quarter. Beginning with the third quarter of 2026, Resideo will no longer consolidate ADI and the historical results of ADI will be reflected as discontinued operations in our financial statements. Also beginning with the third quarter, the results of the P&S segment, with revenue adjusted to reflect ADI as an external customer and to reflect allocated corporate costs, will be presented as "continuing operations" in Resideo's financial statements and results of operations.
ADIG has announced that it will present its second quarter and year-to-date results derived from Resideo's accounting records and presented on a carve-out basis on August 13, 2026.
Management Remarks
"Resideo's second quarter consolidated results were strong, reporting record high revenue and financial results that were above the high-end of the outlook range for all our key financial metrics. The Products and Solutions segment had another standout quarter with year-over-year revenue growth and the thirteenth consecutive quarter of year-over-year gross margin expansion," said Tom Surran, Resideo's President and CEO.
"With the business separation now complete, Resideo is entirely focused on leveraging our competitive strengths to increase the value we deliver to customers as a standalone building technologies company. With our track record of execution and our focused strategic plan coupled with a stronger gross and operating margin profile, we are poised to deliver profitable growth and drive greater shareholder value."
(1) | This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Cash Provided by Operations, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of | |||||||
(2) | The historical results of the ADI segment are included in our unaudited consolidated financial statements for all periods presented as the ADI Spin-Off occurred subsequent to the end of the reported period. In future filings, we will no longer consolidate ADI and the historical results of ADI will be reflected as discontinued operations in Resideo's consolidated financial statements. | |||||||
Consolidated Second Quarter 2026 Financial Highlights
- Revenue of
$1,981 million 2% compared to$1,943 million - Gross margin of
30.0% , up 70 basis points year-over-year, a new record impacted by the receipt of$27 million $20 million - Net income of
$97 million $825 million - Adjusted EBITDA (1) of
$249 million 19% compared to$210 million - Diluted EPS of
$0.51 $0.83 $5.59 $0.66 - Cash provided by operating activities was
$148 million $200 million
Products and Solutions Segment Second Quarter 2026 Highlights
- Revenue of
$695 million 4% compared to$666 million - Gross margin of
43.6% , up 70 basis points compared to the second quarter of 2025, a new record - Income from operations of
$138 million $142 million - Segment Adjusted EBITDA (1) of
$177 million 25.5% of revenue, up6% compared to$167 million 25.1% of revenue, in the second quarter of 2025; above the high-end of the segment outlook range
P&S revenue of
Gross margin of
Research and development expenses increased
Income from operations of
ADI Global Distribution Segment Second Quarter 2026 Highlights
- Revenue of
$1,286 million 1% compared to the second quarter of 2025; a new record and above the high-end of the segment outlook range - Gross margin of
22.7% , up 50 basis points compared to the second quarter of 2025 - Income from operations of
$64 million $71 million - Segment Adjusted EBITDA (1) of
$103 million 8.0% of revenue, down4% compared to$107 million 8.4% of revenue in the second quarter of 2025; above the high-end of the segment outlook range
ADI second quarter 2026 revenue of
Gross margin was
Research and development expenses increased
Income from operations of
Cash Flow and Liquidity
Net cash provided by operating activities was
In connection with the ADI Spin-Off, the
Standalone Resideo Outlook
Resideo is initiating a standalone 2026 outlook for the third quarter and the full year. This standalone outlook is presented as if we had operated as a standalone company for the first half of 2026 coupled with our standalone outlook for the remainder of the year.
($ in millions) | Q3 2026 | 2026 |
Revenue | ||
Non-GAAP Adjusted EBITDA (1) |
Conference Call and Webcast Details
Resideo will hold a conference call with investors on August 12, 2026, at 5:00 p.m. ET. The webcast can be accessed at https://investor.resideo.com, where the webcast link and related materials will be posted before the call. A replay of the webcast will be available following the presentation.
About Resideo
Resideo is a global building technologies company that is a leading developer and manufacturer of critical control and sensing solutions for residential markets. The company serves professional installers and integrators across diverse product categories, such as heating, ventilation, and air conditioning controls, combustion, life safety, security, and water. Its comfort and protection solutions can be found in more than 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. More information about Resideo and its trusted brands, including BRK, First Alert, and Honeywell Home, is available at resideo.com.
Contacts: | ||
Investors: | Media: | |
Christopher T. Lee | Kevin Hunt | |
Global Head of Strategic Finance | Director, Corporate Communications | |
Forward-Looking Statements
This release and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the third quarter 2026 and full year 2026, (2) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (3) risks and uncertainties relating to tariffs that have been or may be imposed by
Use of Non-GAAP Measures
This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with regulations issued thereunder. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with
We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with
Table 1: CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
(in millions, except par value) | July 4, 2026 | December 31, 2025 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 549 | $ 661 | |
Restricted cash | 400 | — | |
Accounts receivable, net | 1,214 | 1,073 | |
Inventories, net | 1,392 | 1,354 | |
Other current assets | 270 | 270 | |
Total current assets | 3,825 | 3,358 | |
Property, plant and equipment, net | 445 | 447 | |
Goodwill | 3,088 | 3,100 | |
Intangible assets, net | 1,049 | 1,091 | |
Other assets | 374 | 437 | |
Total assets | $ 8,781 | $ 8,433 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,116 | $ 1,131 | |
Accrued liabilities | 605 | 624 | |
Total current liabilities | 1,721 | 1,755 | |
Long-term debt | 3,560 | 3,167 | |
Other long-term liabilities | 494 | 594 | |
Total liabilities | 5,775 | 5,516 | |
Stockholders' equity: | |||
Preferred stock, | 482 | 482 | |
Common stock, | — | — | |
Additional paid-in capital | 2,424 | 2,391 | |
Retained earnings | 463 | 345 | |
Accumulated other comprehensive loss | (186) | (157) | |
Treasury stock at cost | (177) | (144) | |
Total stockholders' equity | 3,006 | 2,917 | |
Total liabilities and stockholders' equity | $ 8,781 | $ 8,433 | |
Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions, except per share data) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Revenue | $ 1,981 | $ 1,943 | $ 3,893 | $ 3,713 | |||
Cost of goods sold | 1,386 | 1,374 | 2,747 | 2,633 | |||
Gross profit | 595 | 569 | 1,146 | 1,080 | |||
Operating expenses: | |||||||
Research and development expenses | 48 | 41 | 96 | 76 | |||
Selling, general and administrative expenses | 332 | 319 | 672 | 625 | |||
Intangible asset amortization | 31 | 30 | 62 | 60 | |||
Restructuring expenses | 22 | 2 | 28 | 6 | |||
Business separation costs | 31 | — | 55 | — | |||
Total operating expenses | 464 | 392 | 913 | 767 | |||
Income from operations | 131 | 177 | $ 233 | $ 313 | |||
Indemnification Agreement expense (1) | — | 882 | — | 972 | |||
Other (income) expense, net (2) | (81) | 9 | (81) | 15 | |||
Interest expense, net | 46 | 24 | 93 | 49 | |||
Net income (loss) before taxes | 166 | (738) | 221 | (723) | |||
Provision for income taxes | 69 | 87 | 86 | 96 | |||
Net income (loss) | 97 | (825) | 135 | (819) | |||
Less: preferred stock dividends | 8 | 8 | 17 | 17 | |||
Less: undistributed income allocated to preferred stockholders | 10 | — | 13 | — | |||
Net income (loss) available to common | $ 79 | $ (833) | $ 105 | $ (836) | |||
Earnings (loss) per common share: | |||||||
Basic | $ 0.52 | $ (5.59) | $ 0.70 | $ (5.65) | |||
Diluted | $ 0.51 | $ (5.59) | $ 0.68 | $ (5.65) | |||
Weighted average common shares outstanding: | |||||||
Basic | 151 | 149 | 151 | 148 | |||
Diluted | 154 | 149 | 155 | 148 | |||
(1) | Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, we paid our regularly scheduled payments of |
(2) | Primarily represents the |
Three Months Ended | Six Months Ended | ||||||
(in millions) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Accrual for Indemnification Agreement liabilities | $ — | $ 882 | $ — | $ 972 | |||
Cash payments made to Honeywell | — | (35) | — | (70) | |||
Indemnification Agreement non-GAAP adjustment | $ — | $ 847 | $ — | $ 902 | |||
Table 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Cash Flows From Operating Activities: | |||||||
Net income (loss) | $ 97 | $ (825) | $ 135 | $ (819) | |||
Adjustments to reconcile net income (loss) to net | |||||||
Depreciation and amortization | 50 | 49 | 101 | 96 | |||
Restructuring expenses | 22 | 2 | 28 | 6 | |||
Stock-based compensation expense | 14 | 15 | 28 | 30 | |||
Deferred income taxes | 43 | — | 43 | 4 | |||
Other, net | — | 2 | — | 4 | |||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | (107) | (72) | (149) | (85) | |||
Inventories, net | (39) | (13) | (45) | 4 | |||
Other current assets | (8) | (35) | (2) | (26) | |||
Accounts payable | 98 | 109 | (8) | 8 | |||
Accrued liabilities | 64 | 185 | (50) | 73 | |||
Non-current obligations payable under the Tax | (88) | — | (88) | — | |||
Non-current obligations payable under the | — | 847 | — | 902 | |||
Other, net | 2 | (64) | 10 | (62) | |||
Net cash provided by operating activities | 148 | 200 | 3 | 135 | |||
Cash Flows From Investing Activities: | |||||||
Capital expenditures | (29) | (20) | (65) | (51) | |||
Other investing activities | 10 | — | 10 | — | |||
Net cash used in investing activities | (19) | (20) | (55) | (51) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 400 | — | 400 | — | |||
Repayments of long-term debt | (4) | (2) | (9) | (2) | |||
Acquisition of treasury stock to cover stock | (1) | (1) | (33) | (16) | |||
Preferred stock dividend payments | (8) | (8) | (17) | (17) | |||
Other financing activities, net | (3) | — | 1 | 2 | |||
Net cash provided by (used in) financing | 384 | (11) | 342 | (33) | |||
Effect of foreign exchange rate changes on cash, | (4) | 7 | (3) | 10 | |||
Net increase in cash, cash equivalents and restricted | 509 | 176 | 287 | 61 | |||
Cash, cash equivalents and restricted cash at | 440 | 578 | 662 | 693 | |||
Cash, cash equivalents and restricted cash at end of | $ 949 | $ 754 | 949 | 754 | |||
Table 4: SUMMARY OF FINANCIAL RESULTS (UNAUDITED) | |||||||||||||||
Q2 2026 | Full Year 2026 | ||||||||||||||
(in millions) | Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | |||||||
Revenue | $ 695 | $ 1,286 | $ — | $ 1,981 | $ 1,401 | $ 2,492 | $ — | $ 3,893 | |||||||
Cost of goods sold | 392 | 994 | — | 1,386 | 803 | 1,944 | — | 2,747 | |||||||
Gross profit | 303 | 292 | — | 595 | 598 | 548 | — | 1,146 | |||||||
Research and development | 37 | 11 | — | 48 | 73 | 23 | — | 96 | |||||||
Selling, general and | 110 | 187 | 35 | 332 | 229 | 373 | 70 | 672 | |||||||
Intangible asset amortization | 6 | 25 | — | 31 | 12 | 49 | 1 | 62 | |||||||
Restructuring expenses | 12 | 5 | 5 | 22 | 18 | 5 | 5 | 28 | |||||||
Business separation costs | — | — | 31 | 31 | — | — | 55 | 55 | |||||||
Income (loss) from operations | $ 138 | $ 64 | $ (71) | $ 131 | $ 266 | $ 98 | $ (131) | $ 233 | |||||||
Q2 2025 | Full Year 2025 | ||||||||||||||
(in millions) | Products | ADI Global Distribution | Corporate | Total Company | Products | ADI Global Distribution | Corporate | Total Company | |||||||
Revenue | $ 666 | $ 1,277 | $ — | $ 1,943 | $ 1,315 | $ 2,398 | $ — | $ 3,713 | |||||||
Cost of goods sold | 380 | 994 | — | 1,374 | 760 | 1,873 | — | 2,633 | |||||||
Gross profit | 286 | 283 | — | 569 | 555 | 525 | — | 1,080 | |||||||
Research and development | 32 | 9 | — | 41 | 59 | 17 | — | 76 | |||||||
Selling, general and | 104 | 179 | 36 | 319 | 205 | 352 | 68 | 625 | |||||||
Intangible asset amortization | 6 | 23 | 1 | 30 | 12 | 46 | 2 | 60 | |||||||
Restructuring expenses | 2 | 1 | (1) | 2 | 1 | 5 | — | 6 | |||||||
Income (loss) from operations | $ 142 | $ 71 | $ (36) | $ 177 | $ 278 | $ 105 | $ (70) | $ 313 | |||||||
Q2 2026 % change compared with prior | Full Year 2026 % change compared | ||||||||||||||
Products | ADI Global Distribution | Corporate | Total Company | Products | ADI Global Distribution | Corporate | Total Company | ||||||||
Revenue | 4 % | 1 % | N/A | 2 % | 7 % | 4 % | N/A | 5 % | |||||||
Cost of goods sold | 3 % | — % | N/A | 1 % | 6 % | 4 % | N/A | 4 % | |||||||
Gross profit | 6 % | 3 % | N/A | 5 % | 8 % | 4 % | N/A | 6 % | |||||||
Research and development | 16 % | 22 % | N/A | 17 % | 24 % | 35 % | N/A | 26 % | |||||||
Selling, general and | 6 % | 4 % | (3) % | 4 % | 12 % | 6 % | 3 % | 8 % | |||||||
Intangible asset amortization | — % | 9 % | (100) % | 3 % | — % | 7 % | (50) % | 3 % | |||||||
Income (loss) from operations | (3) % | (10) % | 97 % | (26) % | (4) % | (7) % | 87 % | (26) % | |||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions, except per share data) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
GAAP Net income (loss) | $ 97 | $ (825) | $ 135 | $ (819) | |||
Less: preferred stock dividends | 8 | 8 | 17 | 17 | |||
Less: undistributed income allocated to preferred | 10 | — | 13 | — | |||
GAAP Net income (loss) available to common | 79 | (833) | 105 | (836) | |||
Indemnification Agreement expense (1) | — | 847 | — | 902 | |||
One-time tax impact of Indemnification Agreement | — | 42 | — | 42 | |||
Tax Matters Agreement settlement (2) | (33) | — | (33) | — | |||
Intangible asset amortization | 31 | 30 | 62 | 60 | |||
Business separation costs | 31 | — | 55 | — | |||
Restructuring expense | 22 | 2 | 28 | 6 | |||
Stock-based compensation expense | 14 | 15 | 28 | 30 | |||
Litigation settlement | 1 | — | 19 | — | |||
Undistributed income allocated to preferred | 10 | — | 13 | — | |||
Other (3) | (5) | 11 | (5) | 18 | |||
Tax effect of applicable non-GAAP adjustments (4) | (22) | (15) | (43) | (29) | |||
Non-GAAP Adjusted net income | $ 128 | $ 99 | $ 229 | $ 193 | |||
Three Months Ended | Six Months Ended | ||||||
July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | ||||
GAAP Net income (loss) available to common | $ 0.51 | $ (5.59) | $ 0.68 | $ (5.65) | |||
Indemnification Agreement expense (1) | — | 5.61 | — | 5.97 | |||
One-time tax impact of Indemnification Agreement | — | 0.28 | — | 0.28 | |||
Tax Matters Agreement activity (2) | (0.21) | — | (0.21) | — | |||
Intangible asset amortization | 0.20 | 0.20 | 0.40 | 0.40 | |||
Business separation costs | 0.20 | — | 0.35 | — | |||
Restructuring expense | 0.14 | 0.01 | 0.18 | 0.04 | |||
Stock-based compensation expense | 0.09 | 0.10 | 0.18 | 0.20 | |||
Litigation settlement | 0.01 | — | 0.12 | — | |||
Undistributed income allocated to preferred | 0.06 | — | 0.08 | — | |||
Impact of incremental dilutive shares | — | 0.07 | — | 0.11 | |||
Other (3) | (0.03) | 0.08 | (0.03) | 0.12 | |||
Tax effect of applicable non-GAAP adjustments (4) | (0.14) | (0.10) | (0.27) | (0.19) | |||
Non-GAAP Adjusted diluted earnings per share | $ 0.83 | $ 0.66 | $ 1.48 | $ 1.28 | |||
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | We recognized a gain of |
(3) | For 2026 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transactions loss (income), gain on sale of assets, and miscellaneous other non-recurring, non-operating income and losses. For 2025 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), gain on sale of business, acquisition-related integration costs, and miscellaneous other non-recurring, non-operating income and losses. |
(4) | We calculate the tax effect of relevant non-GAAP adjustments by applying a flat statutory tax rate of |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS GAAP NET INCOME AND ADJUSTED EBITDA (UNAUDITED) | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Revenue | $ 1,981 | $ 1,943 | $ 3,893 | $ 3,713 | |||
GAAP Net income (loss) | $ 97 | $ (825) | $ 135 | $ (819) | |||
GAAP Net income (loss) as a % of revenue | 4.9 % | (42.5) % | 3.5 % | (22.1) % | |||
Provision for income taxes (1) | 69 | 87 | 86 | 96 | |||
GAAP Net income (loss) before taxes | 166 | (738) | 221 | (723) | |||
Indemnification Agreement expense (2) | — | 847 | — | 902 | |||
Termination of Tax Matters Agreement (1) | (77) | — | (77) | — | |||
Depreciation and amortization | 50 | 49 | 101 | 96 | |||
Interest expense, net | 46 | 24 | 93 | 49 | |||
Business separation costs | 31 | — | 55 | — | |||
Stock-based compensation expense | 14 | 15 | 28 | 30 | |||
Restructuring expenses | 22 | 2 | 28 | 6 | |||
Litigation settlement | 1 | — | 19 | — | |||
Other (3) | (4) | 11 | (4) | 18 | |||
Non-GAAP Adjusted EBITDA | $ 249 | $ 210 | $ 464 | $ 378 | |||
Non-GAAP Adjusted EBITDA as a % of revenue | 12.6 % | 10.8 % | 11.9 % | 10.2 % | |||
(1) | We recognized a gain of |
(2) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(3) | For 2026 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transactions loss (income), gain on sale of assets, and miscellaneous other non-recurring, non-operating income and losses. For 2025 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), gain on sale of business, acquisition-related integration costs, and miscellaneous other non-recurring, non-operating income and losses. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) PRODUCTS AND SOLUTIONS SEGMENT | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Revenue | $ 695 | $ 666 | $ 1,401 | $ 1,315 | |||
GAAP Income from operations | $ 138 | $ 142 | $ 266 | $ 278 | |||
GAAP Income from operations as a % of | 19.9 % | 21.3 % | 19.0 % | 21.1 % | |||
Litigation settlement | — | — | 18 | — | |||
Restructuring expense | 12 | 2 | 18 | 1 | |||
Stock-based compensation expense | 5 | 4 | 10 | 9 | |||
Other | 1 | — | — | — | |||
Non-GAAP Adjusted Income from Operations | $ 156 | $ 148 | $ 312 | $ 288 | |||
Depreciation and amortization | 21 | 19 | 42 | 37 | |||
Non-GAAP Adjusted EBITDA | $ 177 | $ 167 | $ 354 | $ 325 | |||
Non-GAAP Adjusted EBITDA as a % of | 25.5 % | 25.1 % | 25.3 % | 24.7 % | |||
.
ADI GLOBAL DISTRIBUTION SEGMENT | |||||||
Three Months Ended | Six Months Ended | ||||||
(in millions) | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 | |||
Revenue | $ 1,286 | $ 1,277 | $ 2,492 | $ 2,398 | |||
GAAP Income from operations | $ 64 | $ 71 | $ 98 | $ 105 | |||
GAAP Income from operations as a % of | 5.0 % | 5.6 % | 3.9 % | 4.4 % | |||
Stock-based compensation expense | 4 | 5 | 8 | 9 | |||
Restructuring expense | 5 | 1 | 5 | 5 | |||
Litigation settlement | (1) | — | (1) | — | |||
Other | 2 | 2 | 1 | 4 | |||
Non-GAAP Adjusted Income from Operations | $ 74 | $ 79 | $ 111 | $ 123 | |||
Depreciation and amortization | 29 | 28 | 58 | 56 | |||
Non-GAAP Adjusted EBITDA | $ 103 | $ 107 | $ 169 | $ 179 | |||
Non-GAAP Adjusted EBITDA as a % of | 8.0 % | 8.4 % | 6.8 % | 7.5 % | |||
BRIDGE FROM P&S SEGMENT RESULTS TO RESIDEO (UNAUDITED) | ||||||
Q1 2026(3) | Q2 2026(3) | 1H 2026(3) | ||||
(In millions) | ||||||
P&S Reported Segment Revenue | $ 706 | $ 695 | $ 1,401 | |||
Sales to ADI | 46 | 43 | 89 | |||
Standalone Adjusted Revenue | 752 | 738 | 1,490 | |||
Standalone Adjusted COGS (1) | 457 | 435 | 892 | |||
Standalone Gross Profit | 295 | 303 | 598 | |||
Research and development expenses | 37 | 37 | 74 | |||
Selling, general and administrative expenses | 120 | 109 | 229 | |||
Incremental SG&A (ex: Depr & SBC) | 19 | 20 | 39 | |||
Incremental Depreciation | 1 | 1 | 2 | |||
Incremental SBC | 3 | 3 | 6 | |||
Standalone SG&A (2) | 143 | 133 | 276 | |||
Intangible asset amortization | 6 | 6 | 12 | |||
Incremental Intangible Asset Amortization | 1 | 1 | 2 | |||
Restructuring expenses | 6 | 12 | 18 | |||
Standalone Adjusted Income from operations | 102 | 114 | 216 | |||
Reported Segment AEBITDA | 177 | $ 177 | $ 354 | |||
Incremental SG&A (ex: Depr & SBC) | 19 | 20 | 39 | |||
Standalone AEBITDA | $ 158 | $ 157 | $ 315 | |||
Standalone Adjustments in Blue have been calculated as if the ADI Spin-Off had been completed on January 1, 2026. | |||||||
(1) | Standalone Adjusted COGS reflects a gross up adjustment for intercompany sales to ADI. | ||||||
(2) | Q1 2026 does not include approximately | ||||||
(3) | Does not include continuing operations basis of accounting. The ADI Spin-Off was completed on August 3, 2026. For the second quarter, Resideo has not yet completed the procedures to account for the ADI segment as discontinued operations. Beginning in the third quarter, Resideo will account for the ADI segment as discontinued operations for such quarter and prior periods. | ||||||
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SOURCE Resideo Technologies, Inc.