Resideo Technologies Inc
Q2 2026 Earnings
GAAP EPS of $0.51 includes a $77 million gain from termination of the Tax Matters Agreement (with $44 million deferred tax asset derecognition), $31 million in business separation costs, $22 million in restructuring expenses, and $1 million litigation settlement
Market Reaction
Did REZI Beat Earnings? Q2 2026 Results
Resideo Technologies delivered a strong second quarter, posting adjusted EPS of $0.83 against the $0.68 consensus estimate, a beat of 22.96%, while revenue of $1.98 billion edged 2.38% ahead of expectations and grew 2.0% year-over-year, capping what the company called its best consolidated quarter across key financial metrics. The headline driver was a sharp expansion in profitability, with adjusted EBITDA climbing 19% to $249.00 million and consolidated gross margin widening 70 basis points to 30.0%, partly aided by $27.00 million in tariff refunds. GAAP net income swung to $97.00 million from a net loss of $825.00 million a year ago, when an $882.00 million Honeywell indemnification charge weighed heavily on results. The quarter also marked Resideo's transition into a pure-play building technologies company following the August 3 completion of the ADI Global Distribution spin-off, a strategic shift investors had closely watched. Looking ahead, management initiated standalone full-year 2026 guidance of $2.90 billion to $2.95 billion in revenue and $605.00 million to $625.00 million in adjusted EBITDA.
- P&S revenue grew across substantially all sales channels and product families driven by volume increases and customer demand
- 13th consecutive quarter of year-over-year P&S gross margin expansion reaching 43.6%
- ADI average daily sales grew 2% YoY driven by security, professional audio-visual, and data communications categories
- Consolidated gross margin benefited from $27 million in tariff refunds ($20 million at ADI)
- Favorable manufacturing and supply chain variances at P&S
- Price actions announced last quarter partially offset inflationary input costs
“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.”
Resideo Technologies CEO, on the earnings call
Forward Guidance & Outlook
Resideo initiated standalone 2026 guidance (as if the ADI spin-off had been completed on January 1, 2026). Q3 2026: Revenue of $705–$730 million; Adjusted EBITDA of $145–$155 million. Full Year 2026: Revenue of $2,900–$2,950 million; Adjusted EBITDA of $605–$625 million. For Q3 2026 and full year 2026 respectively on a standalone basis, the company anticipates depreciation and amortization of $23 million and $91 million, interest expense net of $32 million and $129 million, and stock-based compensation of $8 million and $32 million. Resideo also expects to make an additional approximately $200 million Term Loan B repayment by end of Q3 2026 following post-closing cash adjustments from the ADI separation.
REZI YoY Financials
REZI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.