Resideo Technologies (REZI) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $1.98 billion, up 2% year-over-year, with adjusted EBITDA rising 19% to $249 million and adjusted EPS up 26% to $0.83, exceeding guidance.

• Net income reached $97 million, reversing a net loss of $825 million in Q2 2025, reflecting the absence of large one-time expenses.

• Completed the ADI Global Distribution spin-off on August 3, 2026; ADIG now trades independently on NYSE.

• Announced Shane Harrison as incoming CFO, effective September 1, 2026.

Financial highlights

• Gross margin reached a record 30.0%, up 70 bps year-over-year, aided by $27 million in tariff refunds.

• Cash from operating activities was $148 million, down from $200 million last year, mainly due to separation payments and higher interest.

• Free cash flow conversion exceeded 85% for the last three years.

• Total assets at July 4, 2026 were $8.78 billion; total liabilities $5.78 billion; equity $3.01 billion.

Outlook and guidance

• Standalone full-year 2026 revenue guidance: $2.9–$2.95 billion; adjusted EBITDA: $605–$625 million.

• Q3 2026 standalone revenue guidance: $705–$730 million; adjusted EBITDA: $145–$155 million.

• Targeting 4–5% adjusted revenue CAGR through 2030 and 23–25% adjusted EBITDA margin.

• Expect continued revenue growth across all channels except OEM Security, which will see a $40–$50 million revenue decline in H2 2026 due to lower volumes from a large customer.

• Gross margin expected to face slight headwinds in H2 2026 from higher input costs, partially offset by price increases.