REZI · Resideo Technologies, Inc.

Resideo's first quarter 2026 results exceeded the high end of its outlook across all key metrics, driven by strong operational execution in both segments. Net revenue of $1.91 billion grew 8% year-over-year, with Products & Solutions (P&S) up 9% and ADI Global Distribution up 8%. P&S revenue growth was broad-based across channels and product families, benefiting from price realization and new product demand. ADI's revenue included four extra sales days; average daily sales grew 1%. Gross margin for the company was 28.8%, down 10 basis points, as P&S margin expanded 40 bps to 41.8% on structural efficiencies, while ADI margin contracted 40 bps to 21.2% due to higher fuel costs and unfavorable mix. Net income improved to $38 million from $6 million, reflecting higher operating income and the absence of a prior-year indemnification expense. Adjusted EBITDA rose 28% to $215 million, with P&S adjusted EBITDA margin up 80 bps to 25.1%, while ADI adjusted EBITDA margin declined 90 bps to 5.5%. Cash used by operations was $145 million, driven by business separation activities, higher cash interest, and working capital dynamics. The company reaffirmed its full-year 2026 outlook and initiated Q2 2026 guidance: revenue of $1.916-$1.94 billion, adjusted EBITDA of $216-$230 million, and adjusted EPS of $0.71-$0.75. Management highlighted momentum toward the ADI spin-off later this year.