Resideo Technologies posted record revenue in the second quarter of 2025 but fell into the red due to a one-time charge tied to a settlement with Honeywell, the company announced Tuesday.
Total revenue rose to an all-time quarterly high of $1.94 billion, up 22% from $1.59 billion in the same period last year. Organic revenue, which excludes acquisitions and currency impacts, grew 8%. Both companies’ core segments, ADI Global Distribution and Products & Solutions, reported solid organic growth, expanding by 10% and 5%, respectively.
But those strong sales were overshadowed by an $825 million net loss, compared to $30 million in net income a year earlier. The loss stemmed from an $882 million expense tied to Resideo’s move to terminate an indemnification agreement with Honeywell. The company will make a $1.59 billion cash payment to Honeywell in the third quarter as part of the settlement.
“We delivered exceptional results that exceeded the high end of our outlook across key metrics,” said president and CEO Jay Geldmacher on the company’s earnings call. “Despite a challenging macro environment, demand remained healthy, and we continued to execute on growth opportunities in both businesses.”
Revenue at ADI Global Distribution jumped 33% to $1.28 billion, driven by continued demand from commercial customers and contributions from the Snap One acquisition, which closed in 2024. On an organic basis, ADI grew 10%. Ecommerce revenue climbed 19%, while sales of exclusive brands rose 32%.
Gross margin for the segment expanded by 280 basis points to 22.2%, helped by higher-margin digital sales and exclusive brands. Adjusted EBITDA grew 39% to $107 million, up from $77 million a year earlier.
“The integration of Snap One is ahead of schedule and has been accretive to earnings in our first full year,” said Rob Aarnes, president of ADI. “We’re seeing strong project wins and significant growth in categories like commercial security, fire, and pro A/V.”
The Products & Solutions segment reported $666 million in revenue, up 6% from a year ago. Growth came from new product launches in retail and electrical distribution channels, including strong demand for the Honeywell Home FocusPRO thermostats and First Alert SC5 connected detectors.
Gross margin for the segment reached 42.9%, its ninth straight quarter of year-over-year improvement. Operating income rose to $142 million, up from $130 million, while adjusted EBITDA climbed to $167 million from $156 million.
“We continue to benefit from operational efficiency in our manufacturing and a robust pipeline of innovative products,” said COO Thomas Surran. “Retail sales hit a record high this quarter, and our BRK-branded safety products gained share in electrical distribution.”
For the first half of 2025, Resideo reported $3.78 billion in revenue, a 17% increase over the same period in 2024. However, the company posted a net loss of $757 million through the first six months, compared to $83 million in net income a year earlier, due to the Honeywell-related charge.
Adjusted EBITDA for the first half totaled $405 million, a 19% gain from $340 million in 2024.
On the back of strong Q2 results, Resideo raised its 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 between $405 million and $435 million, excluding the Honeywell payment.
For the third quarter, Resideo is forecasting revenue between $1.85 billion and $1.90 billion, adjusted EBITDA between $220 million and $240 million.
Geldmacher noted that while tariff risks remain a concern, Resideo has taken initiative-taking steps to mitigate the impact. “Even as we raised prices to offset tariff costs, customer demand has remained strong,” he said.
The company also confirmed it plans to spin off ADI Global Distribution as a standalone business. Geldmacher said the move, along with the Honeywell agreement, will simplify Resideo’s structure and sharpen its focus.
“These are transformative actions,” he said. “They will unlock long-term value and give investors greater clarity on the unique strengths of each business.”
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