#United States #Scottsdale #Honeywell Home #Resideo Technologies #ADI Global Distribution

Resideo Technologies Reports Record Financials for Q2 2025

On August 5, 2025, Resideo Technologies, Inc. (NYSE: REZI) unveiled impressive financial results for the second quarter ending June 28, 2025. The company, recognized as a major player in technology-driven sensing and controls products, reported a record net revenue of $1.943 billion, reflecting a remarkable 22% increase from $1.589 billion in the same period of 2024. This performance surpassed the high-end of the company’s initial outlook range and included an 8% organic growth rate. The company's ADI segment achieved a 10% growth, while its Product Solutions saw a 5% rise organically.

Q2 2025 Financial Highlights

• - Gross Margin Growth: The overall gross margin for the company stood at 29.3%, marking an increase of 120 basis points from the previous year. Within the Product Solutions segment, gross margins reached an impressive 42.9%, marking the ninth consecutive quarter of year-over-year improvement.
• - Adjusted EBITDA: The adjusted EBITDA reached a record high of $210 million, showcasing a year-over-year increase of 20% and again outpacing the guidance estimate.
• - Net Loss: Despite the rising revenues, the company faced a net loss of $825 million primarily due to a one-time expense of $882 million related to the termination of the Indemnification Agreement with Honeywell. This was a significant contrast to the net income of $30 million reported in the previous year's second quarter.

Management Insights

Jay Geldmacher, Resideo’s President and CEO, highlighted the exceptional results across all key financial metrics, asserting satisfaction with organic revenue growth in both segments and gross margin expansion. He expressed confidence in the company’s ability to seize profitable growth opportunities moving forward. With ongoing transformations like the ADI business spinoff, Resideo anticipates robust performance from both entities, reinforcing the belief in their future success.

Products and Solutions Segment Performance

• - Net Revenue: Achieved $666 million, marking a 6% increase compared to the previous year, which can be attributed to heightened customer demand and new product launches. Notably, sales from Home Safety products and energy-efficient solutions have remarkably contributed to this growth, alongside strong retail channel performance.
• - Operational Profit: Operating profit for this segment was $142 million, up from $130 million the previous year, indicating a positive trend in profitability.

ADI Global Distribution Highlights

• - Net Revenue: This segment exceeded expectations with a net revenue of $1.277 billion, reflecting a 33% increase year-over-year. Excluding the Snap One acquisition impact, organic growth figures remained promising at 10%. The e-commerce and exclusive brand sales significantly drove this increase.
• - Gross Margin: The ADI segment experienced a gross margin of 22.2%, improving by 280 basis points from the previous year, primarily due to the favorable inclusion of Snap One and strategic price adjustments.

Future Outlook

Looking ahead to Q3 2025, Resideo has revised its expectations, anticipating net revenues between $1.850 billion and $1.900 billion, along with adjusted EBITDA between $220 million and $240 million. For the entire fiscal year 2025, the company has raised its net revenue outlook to a range of $7.450 billion to $7.550 billion.

Robust cash flow generation was also noted, with operating activities providing $200 million in Q2 2025, enhancing Resideo’s liquidity with cash and equivalents totaling $753 million and gross debt amounting to $2.01 billion as of June 28, 2025.

Resideo Technologies continues to be a pivotal name in the smart technology domain for residential and commercial end markets, with an ongoing commitment to innovation and consumer safety in its diversified product offerings. Further details can be found at Resideo's official site.