Why This Matters to Distributors: Resideo’s results highlight where distributor demand remains strongest heading into the second half of 2026, particularly in security, networking, data communications and ecommerce channels, while ongoing weakness in residential markets and rising freight costs continue to pressure distributors tied closely to housing and consumer electronics demand.
Resideo Technologies reported first-quarter net income of $38 million as sales increased across both its manufacturing business and its distribution arm, ADI Global Distribution.
The Scottsdale, Arizona-based company reported revenue of $1.91 billion for the quarter ending April 4, up 8% from $1.77 billion a year earlier. Net income increased from $6 million in the prior-year quarter.
Resideo Technologies manufactures and develops products including HVAC controls, thermostats, smoke and carbon monoxide detectors, security systems and sensing technologies used in residential and commercial buildings. Its ADI Global Distribution business distributes low-voltage products including security, audiovisual, networking, and smart building technologies to contractors and integrators.
President and CEO Jay Geldmacher said the company exceeded expectations during the quarter despite ongoing economic uncertainty.
“Our first quarter results reflect the continued strong operational execution of both businesses in a dynamic macro-economic environment,” Geldmacher said.
ADI Global Distribution reported first-quarter revenue of $1.21 billion, up 8% from a year earlier. The company said growth was driven by demand in security, professional audiovisual, and data communications products.
ADI’s ecommerce revenue rose 12% year over year as more customers adopted digital purchasing tools, while sales of Exclusive Brands products increased 7%.
The company said residential audiovisual demand remained weak because of continued softness in the U.S. housing market. Higher freight costs and changes in product mix also weighed on profitability in the ADI business. Operating income in the unit was unchanged at $34 million.
Resideo’s Products and Solutions segment reported revenue of $706 million, up 9% from a year earlier. The company said growth was driven by price increases, new product launches, and stronger demand through retail and electrical distribution channels.
Resideo is continuing plans to separate ADI Global Distribution and the Products and Solutions business into two standalone publicly traded companies later this year. Geldmacher said the company achieved several separation milestones during the quarter.
The company reported using $145 million in cash for operations during the quarter, driven by separation-related costs, higher interest payments and working capital needs. Resideo ended the quarter with $438 million in cash and $3.23 billion in debt.
Resideo reaffirmed its full-year outlook and said it expected second-quarter revenue between $1.92 billion and $1.94 billion.
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