Resideo Provides Update on Planned Spin-Off of ADI Global Distribution
Rhea-AI Summary
Resideo (NYSE: REZI) updated progress on the planned spin-off of ADI Global Distribution, filing an amended Form 10 with Q1 2026 ADI financials. The company scheduled Investor Days at the NYSE on July 13–14, 2026 and reaffirmed its Q2 and full-year 2026 outlook.
For Q2 2026, Resideo guides net revenue of $1.916–$1.940 billion and non-GAAP adjusted EBITDA of $216–$230 million. Full-year 2026 net revenue is projected at $7.8–$7.9 billion, with adjusted EPS of $3.00–$3.20. Segment outlooks show both P&S and ADI expected at or above midpoint ranges.
Positive
- Reaffirmed Q2 2026 net revenue outlook of $1.916–$1.940 billion
- Reaffirmed full-year 2026 net revenue outlook of $7.8–$7.9 billion
- Full-year 2026 non-GAAP adjusted EBITDA guided to $935–$985 million
- Full-year 2026 non-GAAP adjusted EPS guided to $3.00–$3.20
- Q2 2026 P&S segment expected at or above midpoint for revenue and EBITDA
- Q2 2026 ADI segment expected at or above midpoint for revenue and EBITDA with low single-digit average daily sales growth year-over-year
- Company expects ADI net revenue and adjusted EBITDA to be up year over year in second half 2026
Negative
- Q2 2026 ADI reported net revenue expected to decline low single digits year-over-year, partly due to one fewer selling day
- Q2 2026 corporate non-GAAP adjusted EBITDA guided to a loss of $(28)–$(32) million
News Market Reaction – REZI
In the Jun 5 session, REZI gained 3.24%, reflecting a moderate positive market reaction. Argus tracked a peak move of +5.2% during that session. Our momentum scanner triggered 35 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | Investor conferences | Neutral | -5.8% | Announcement of participation in several upcoming investor conferences. |
| May 12 | Q1 2026 earnings | Positive | -17.9% | Revenue and Adjusted EPS above outlook with reaffirmed 2026 guidance. |
| May 11 | Spin-off Form 10 | Positive | -5.7% | Filed Form 10 and detailed timing for ADI Global spin-off. |
| Apr 21 | Earnings date notice | Neutral | +1.3% | Set date and webcast details for Q1 2026 results release. |
| Feb 24 | FY 2025 results | Positive | +14.4% | Record 2025 revenue and Adjusted EBITDA with 2026 outlook initiation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history shows multiple instances where seemingly positive updates (earnings beats, spin-off progress) were followed by negative price reactions, suggesting a tendency for the stock to sell off on good news.
Over the past six months, Resideo has focused on stronger fundamentals and the planned ADI spin-off. Q4 2025 results showed record $7.47B revenue and $833M Adjusted EBITDA, followed by Q1 2026 revenue of $1.91B and reaffirmed 2026 guidance. The company filed a Form 10 for ADI and outlined leadership and financing for the tax-free separation. Despite generally constructive updates, several of these announcements saw negative next-day price reactions.
Key Terms
form 10 registration statement regulatory
u.s. securities and exchange commission regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Files Amended Form 10 Registration Statement
Announces Scheduling Details for Resideo and ADI Investor Days
Reaffirms Previously Announced Second Quarter and Full Year 2026 Outlook; Releases Segmented P&S and ADI Second Quarter 2026 Financial Outlook
Resideo and ADI Investor Days
In anticipation of the business separation occurring within the previously announced range of mid-Q3'26 to mid-Q4'26, Resideo and ADI will be hosting Investor Days in
Resideo will host a live video webcast of its Investor Day on July 13, 2026, starting at 12:00 p.m. EDT. Registration information for the Resideo Investor Day can be found here.
ADI will host a live video webcast of its Investor Day on July 14, 2026, starting at 12:00 p.m. EDT. Registration information for the ADI Investor Day can be found here.
Both events will take place at the New York Stock Exchange and will include management presentations, product showcases and Q&A sessions with executive management. During the events, members of the leadership teams will provide details on Resideo's and ADI's standalone businesses, longer-term financial outlooks and respective value creation strategies.
Live webcasts of the events, along with related presentation materials, will be available on Resideo's Investor Relations website. Replays of the webcasts will be available following the presentations.
Resideo Reaffirms Second Quarter and Full Year 2026 Financial Outlook and Releases Second Quarter 2026 Segmented P&S and ADI Financial Outlook
Resideo reaffirms its previously released second quarter and full year 2026 financial outlook as provided on May 12, 2026. The full year 2026 financial outlook reflects the expectation that ADI net revenue and Adjusted EBITDA will be up year over year in the second half of 2026.
($ in millions, except per share data) | Q2 2026 | Full Year 2026 |
Net revenue | ||
Non-GAAP Adjusted EBITDA1 | ||
Non-GAAP Adjusted Earnings Per Share1 |
Ahead of the announced investor days, the Company is providing the following segmented outlooks for the second quarter of 20262:
($ in millions) | P&S | ADI | Corporate | Total |
Net Revenue | N/A | |||
Non-GAAP Adjusted EBITDA1 | ( |
Commentary Regarding Second Quarter Segmented Outlooks
Based on quarter-to-date performance, for the second quarter of 2026, Resideo anticipates:
- P&S being at or above the midpoint of the outlook ranges for net revenue and Adjusted EBITDA due primarily to continued demand for products across various channels; and
- ADI being at or above the midpoint of the outlook ranges for net revenue and Adjusted EBITDA, with estimated low single-digit average daily sales growth year-over-year and low single-digit decline year-over-year in reported net revenue, partially as a result of one fewer selling day in the second quarter of 2026 as compared to the second quarter of 2025.
About Resideo
Resideo is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.
Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, those regarding the anticipated separation of Resideo Technologies' Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, the expected timing for the Investor Days for Resideo and ADI, our reaffirmation of previously released second quarter and full year 2026 financial outlook for Resideo, our segmented 2026 second quarter outlooks for each of our business segments, and other future events or developments. Forward-looking statements are typically identified by such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements are the possibility that the conditions to the separation may not be obtained or satisfied within the expected timeframe or at all; that the separation may not be completed on the anticipated terms or timing or may not occur at all; that the separation may not achieve the intended strategic, operational, or financial benefits for Resideo, its businesses, or its shareholders; that Resideo may experience operational or other disruptions as a result of the separation, including those relating to information technology systems, business processes, internal controls, customer and vendor relationships, and workforce alignment. Each separated company's ability to succeed as an independent enterprise will depend on numerous factors, including the execution of their respective strategies and plans, access to capital markets, the competitive landscape, and general business and economic conditions. Other risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the second quarter and full year 2026 for Resideo as a whole and for the 2026 second quarter for each of our business segments, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, (3) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (4) risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, and (5) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic reports, as well as risks described under the heading "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in the Form 10 filed by ADI Global Distribution Inc. with the SEC.
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 Resideo and/or our business segments to differ materially from such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward-looking statements.
Basis of Presentation
This press release contains forecasted financial information that does not reflect the anticipated separation of Resideo Technologies' Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies or how each company expects to operate on a standalone basis. As a result, the Adjusted EBITDA forecasts included in this press release should not be viewed as our expectation for what Resideo (as the owner of the Products & Solutions business) or ADI Global Distribution will report or achieve on a standalone basis, including what ADI Global Distribution may report in its Registration Statement on Form 10 or other future filings. As previously disclosed, the estimated pro forma standalone costs for each of the Products & Solutions and ADI Global Distribution businesses, respectively, for the year ended December 31, 2025 were
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 Regulation G 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 U.S. GAAP. Readers should also consider the limitations associated with these non-GAAP financial measures, including the potential lack of comparability of these measures from one company to another.
A reconciliation of the forecasted ranges for Adjusted EBITDA and Adjusted Earnings Per Share for the second quarter of 2026 and for the full year 2026 are not included in this press release due to the number of variables in the projected range and because we are currently unable to quantify accurately without unreasonable efforts certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that could be confusing or misleading to investors. However, for Resideo as a whole, the second quarter of 2026 and full year 2026, respectively, we anticipate the following expenses in our GAAP to non-GAAP reconciliation: depreciation and amortization of
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2 Please refer to the information set forth under the heading "Basis of Presentation" below. |
Contacts:
Investors:
Christopher T. Lee
Global Head of Strategic Finance
investorrelations@resideo.com
Media:
Garrett Terry
Corporate Communications Manager
garrett.terry@resideo.com
or
Dan Moore, Tali Epstein
Collected Strategies
Resideo-CS@collectedstrategies.com
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SOURCE Resideo Technologies, Inc.