Resideo Technologies Q2 Earnings Call Highlights

Resideo Technologies Q2 Earnings Call Highlights

Resideo exceeded its Q2 outlook , with revenue up 2% year over year to nearly $2 billion, adjusted EBITDA up 19% to $249 million, and adjusted EPS up 26% to $0.83. Results included $27 million in favorable tariff refunds. The company completed the ADI Global Distribution spin-off on Aug. 3 and repaid $900 million of debt, with plans to repay an additional approximately $200 million in the third quarter. ADI will be reported as discontinued operations beginning in Q3. Resideo initiated standalone 2026 guidance for revenue of $2.9 billion to $2.95 billion and adjusted EBITDA of $605 million to $625 million, while warning that rising input costs and weaker OEM security demand will pressure results, particularly in the second half.

Resideo Technologies NYSE: REZI reported second-quarter 2026 results that exceeded the high end of its outlook ranges, while completing the Aug. 3 spin-off of its ADI Global Distribution business and outlining a standalone outlook for the remainder of the year. Chief Executive Officer Tom Surran, speaking on his first earnings call as CEO, said consolidated revenue rose 2% year over year to just under $2 billion, a quarterly record. Adjusted EBITDA increased 19% to a record $249 million, while adjusted earnings per share grew 26% to $0.83. The quarter's adjusted EBITDA included $27 million of favorable tariff refunds, primarily received by ADI.

Surran also thanked former CEO Jay Geldmacher for his six years of service and cited his role in leading Resideo through acquisitions, a recent spin, and changing market conditions. The company separately announced Shane Harrison as its next chief financial officer. Harrison is scheduled to join Sept. 1.

Resideo completed the ADI Global Distribution spin-off on Aug. 3. Beginning with third-quarter financial statements, ADI will be classified as discontinued operations for the current and prior periods. Resideo's second-quarter discussion included consolidated results because both the Products & Solutions and ADI segments operated under Resideo during the quarter.

Chris Lee, Resideo's global head of strategic finance, said reported cash provided by operating activities was $148 million in the second quarter, compared with $200 million a year earlier. The decline was driven primarily by about $45 million in non-recurring business separation activities and settlements, including the termination of the Honeywell Tax Matters Agreement, along with a $20 million increase in cash interest paid. Those effects were partly offset by higher net income and lower cash taxes.

The company began reducing leverage after the spin-off, repaying $900 million of principal under its Term Loan B credit facility on Aug. 3. Resideo expects to make an additional repayment of approximately $200 million in the third quarter after completion of the post-closing cash adjustment under the separation agreement with ADI. ADI is scheduled to host its own earnings call and provide more detail on its results and outlook. Surran said ADI will remain an important partner to Resideo.

Resideo's Products & Solutions segment reported 4% year-over-year revenue growth, including an approximately 35-basis-point favorable currency impact. Surran said growth occurred across substantially all sales channels and product families, primarily driven by customer demand and volume. Retail-channel growth was supported by higher-value products, including combination smoke and carbon monoxide detectors and new thermostats. In HVAC distribution, revenue return...