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Jun 28
Resideo Q2 2025 Earnings Report
Resideo reported record high second quarter 2025 financial results, exceeding outlook ranges for key financial metrics, driven by strong performance in both Products and Solutions and ADI Global Distribution segments.
Key Takeaways
Resideo Technologies, Inc. achieved record high net revenue of $1.94 billion in Q2 2025, a 22% increase year-over-year, and a record high Adjusted EBITDA of $210 million, up 20%. Despite a net loss of $825 million due to a one-time expense related to the termination of the Indemnification Agreement with Honeywell, the company demonstrated strong organic growth and gross margin expansion across its segments, leading to a raised full-year 2025 outlook.
Record high second quarter net revenue of $1.94 billion, up 22% year-over-year, with organic growth of 8%.
Reported a net loss of $825 million, primarily due to an $882 million one-time expense for terminating the Indemnification Agreement with Honeywell.
Achieved record high Adjusted EBITDA of $210 million, a 20% increase year-over-year, surpassing the high-end of the outlook range.
Both Products and Solutions and ADI Global Distribution segments contributed to organic net revenue growth, gross margin expansion, and robust Adjusted EBITDA growth.
Resideo
Resideo
Resideo Revenue by Segment
Revenue by Segment
Products and Solutions Revenue
CapyFin.comADI Global Distribution Revenue
CapyFin.com Forward Guidance
Resideo has raised its full-year 2025 outlook and initiated third-quarter 2025 outlook, anticipating continued strong performance in net revenue, Adjusted EBITDA, and Adjusted EPS.
Positive Outlook
- Third quarter 2025 net revenue is projected to be between $1.85 billion and $1.90 billion.
- Full year 2025 net revenue is raised to a range of $7.45 billion to $7.55 billion.
- Third quarter 2025 Non-GAAP Adjusted EBITDA is expected to be between $220 million and $240 million.
- Full year 2025 Non-GAAP Adjusted EBITDA is raised to a range of $845 million to $885 million.
- Third quarter 2025 Non-GAAP Adjusted Earnings Per Share is projected to be between $0.70 and $0.76.
Challenges Ahead
- The forward guidance for Non-GAAP Cash Provided by Operations for Q3 2025 and full year 2025 excludes a one-time payment of $1.59 billion to Honeywell upon closing of the Indemnification Agreement termination.
- The company anticipates significant expenses in GAAP to non-GAAP reconciliation, including depreciation and amortization, interest expense, and stock-based compensation.
- Risks include the ability to achieve outlook, recognize expected savings from cost reduction actions, and optimize portfolio.
- Risks related to the recently completed acquisitions, including Snap One, and the ability to achieve targeted synergies and integrate operations.
- Risks associated with the anticipated separation of Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, including potential operational disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income