Resideo Technologies reported record revenue in its fiscal Q2, driven by rising digital sales, strong demand for commercial security, and continued momentum from its Snap One acquisition.
But a one-time charge tied to a legacy Honeywell agreement pushed the company into the red.
The company’s Q2 revenue rose 22% year over year to $1.94 billion, the highest quarterly total in Resideo’s history. Organic growth, which excludes the impact of acquisitions and currency fluctuations, reached 8%. Both the company’s main businesses, ADI Global Distribution and Products & Solutions, have posted solid gains.
ADI saw the biggest lift, with revenue jumping 33% to $1.28 billion. Growth was fueled by commercial demand, ecommerce sales — which rose 19% — and a 32% increase in exclusive brand sales. The Snap One integration, completed in 2024, contributed significantly.
“The Snap One acquisition is ahead of schedule and has already been accretive,” said ADI President Rob Aarnes. “We’re seeing strong digital momentum across categories like commercial security, fire, and pro A/V.”
Resideo revenue growth in Q2
“Organic ecommerce net revenue grew 19% year over year, achieving another quarter of strong revenue contribution and a new record in run rate daily sales average,” Resideo said. “Ecommerce continues to be structurally accretive to total ADI gross margin. With the inclusion of Snap One, total ADI ecommerce net revenue grew 8% year over year.”
Gross margin at ADI expanded 280 basis points to 22.2%, helped by higher-margin digital channels and private-label products. Segment adjusted EBITDA rose 39% to $107 million.
The Products & Solutions segment grew revenue 6% to $666 million, supported by new product launches in retail and electrical distribution. Key drivers included strong demand for Honeywell Home FocusPRO thermostats and First Alert SC5 connected detectors. Gross margin improved to 42.9%, marking nine consecutive quarters of year-over-year growth.
Despite the robust performance, Resideo posted a net loss of $825 million in Q2, compared to $30 million in net income a year ago. The loss was driven by an $882 million charge related to terminating an indemnification agreement with Honeywell. As part of the settlement, Resideo will make a $1.59 billion cash payment to Honeywell in the third quarter.
CEO Jay Geldmacher said the move, along with plans to spin off ADI as a standalone business, will simplify Resideo’s structure and sharpen its focus.
“These are transformative actions,” he said on the earnings call. “They allow us to streamline operations, strengthen our balance sheet, and unlock long-term digital value in both segments.”
First half of 2025 and Resideo’s outlook
For the first half of 2025, Resideo reported $3.78 billion in revenue, up 17% from the same period last year. The company posted a net loss of $757 million due to the Honeywell charge, compared to net income of $83 million a year earlier. First-half adjusted EBITDA rose 19% to $405 million.
Based on its strong Q2, Resideo raised full-year guidance. The company now expects:
- Revenue between $7.45 billion and $7.55 billion
- Adjusted EBITDA between $845 million and $885 million
- Operating cash flow of $405 million to $435 million, excluding the Honeywell payment.
For the third quarter, Resideo projects revenue between $1.85 billion and $1.90 billion and adjusted EBITDA of $220 million to $240 million.
While global tariffs remain a potential headwind, Geldmacher said Resideo is taking steps to mitigate risk.
“Even with pricing actions to offset tariffs, customer demand has remained strong,” he said.
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