Resideo’s Q2 performance highlights product momentum, strategic realignment

SCOTTSDALE, Ariz. — Resideo scored some record highs in the second quarter of 2025, including net revenue of $1,943 million, a 22% increase, driven by strong product demand and positive market forces. 

“Gross margin expansion and increased EBITDA generation were underpinned by growing operating income dollars at (ADI Global Distribution) and Products & Solutions, both sequentially and year over year,” said CEO Jay Geldmacher during a recent webcast. “Demand for our new products, including the Honeywell Home Focus Pro thermostats and First Alert combined smoke and carbon monoxide connected detectors continues to be strong. We are excited about our pipeline of new products that both business segments are introducing in 2025.”   

Resideo posted a net loss of $825 million associated with its payment to terminate its indemnification agreement with Honeywell. The company also announced recently that it intends to split into two independent public companies: Resideo (currently Resideo Products & Solutions) and ADI. 

Geldmacher noted that the integration of Snap One continues to progress ahead of schedule. In the Q&A portion of the webcast, however, an analyst asked for clarity, given Snap One's flat growth vs. ADI’s 10% growth.  

“If I look at that 10% growth, you can attribute 2% to the tariffs (and) the price increases that we have implemented throughout the second quarter,” said Rob Aarnes, president of ADI Global Distribution. “As you know, when we get the price increases, we pass those right through.” 

Aarnes was “pleasantly surprised” by demand for ADI’s products in the second quarter, given market volatility. 

"We weren’t quite sure what was going to happen in demand in the second quarter,” he said. “I mean, we did see momentum in March. And then through April, May and June, we just continued to see that momentum, specifically in commercial security, fire video, professional AV and datacom. When I look at what we saw in the second quarter – the pipeline build – I mean, we’re at record levels there.” 

While Aarnes acknowledged that Snap One is “holding flat compared to the rest of the business,” he said its continued integration with ADI will result in “terrific benefits.” 

"As you know, it’s a kind of a tough macro environment out there on the residential side,” he said. “But I will tell you this: We are seeing, terrific benefits from the integration, as we scale Snap’s exclusive brand products to the rest of our ADI customer base.”