Resideo Technologies (REZI) Q1 2026 earnings summary

Executive summary

• Net revenue reached $1.91 billion in Q1 2026, up 8% year-over-year and above the high end of the outlook, driven by strong growth in both Products & Solutions and ADI segments.

• Adjusted EBITDA rose 28% year-over-year to $215 million, exceeding guidance, while adjusted EPS increased 3% to $0.65.

• Net income was $38 million, up from $6 million in the prior year; diluted EPS was $0.17 versus a loss of $0.02 last year.

• Announced and progressed with the strategic separation of Products & Solutions and ADI Global Distribution into two independent public companies, with the ADI spin-off expected between mid-Q3 and the second half of 2026.

• Income from operations declined 25% to $102 million due to higher operating expenses, including one-time legal settlements and business separation costs.

Financial highlights

• Q1 2026 net revenue: $1.91 billion (+8% YoY); P&S revenue: $706 million (+9% YoY); ADI revenue: $1.206 billion (+8% YoY).

• Gross margin: 28.8%, down 10 bps year-over-year; P&S gross margin: 41.8% (+40 bps YoY); ADI gross margin: 21.2% (down 40 bps YoY).

• Adjusted EBITDA: $215 million (+28% YoY); P&S adjusted EBITDA: $177 million (+12% YoY); ADI adjusted EBITDA: $66 million (down 8% YoY).

• Net income: $38 million, up from $6 million YoY; adjusted net income: $101 million, up from $94 million.

• Cash and cash equivalents: $438 million; total debt: $3.23 billion at quarter end; operating cash flow: $(145) million, increased use due to separation activities and higher interest.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: net revenue $7.8–$7.9 billion, adjusted EBITDA $935–$985 million, adjusted EPS $3.00–$3.20.

• Q2 2026 guidance: net revenue $1.916–$1.94 billion, adjusted EBITDA $216–$230 million, adjusted EPS $0.71–$0.75.

• Capital expenditures for 2026 expected at $155–$165 million.

• Second half of 2026 expected to be stronger due to easier comps and cost actions.

• No material impact anticipated from recent U.S. tariffs due to exemptions and sourcing strategies.