Overview

* Resideo Q2 2025 revenue rises 22% yr/yr, beating analyst expectations

* Net loss of $825 mln due to one-time Honeywell agreement expense

* Record high Adjusted EBITDA of $210 mln, up 20% yr/yr

Outlook

* Resideo expects Q3 2025 revenue between $1.85 bln and $1.9 bln

* Company forecasts full-year 2025 revenue of $7.45 bln to $7.55 bln

* Resideo projects Q3 2025 adjusted EBITDA between $220 mln and $240 mln

* Company anticipates full-year 2025 adjusted EPS of $2.75 to $2.87

Result Drivers

* ADI GROWTH - ADI Global Distribution's revenue increased 33% year-over-year, driven by Snap One acquisition and strong commercial customer demand

* PRODUCT DEMAND - Products and Solutions segment saw a 6% revenue increase due to customer demand for new products and price realization

* MARGIN EXPANSION - Gross margin improved in both segments, with ADI's margin up 280 basis points and Products and Solutions' margin up 160 basis points

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.94 $1.82

Revenue bln bln (2

Analysts

)

Q2 Net -$825

Income mln

Q2 Gross 29.3%

Margin

Q2 $142 mln

Income

From

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the communications & networking peer group is "buy"

* Wall Street's median 12-month price target for Resideo Technologies Inc ( REZI ) is $29.50, about 12.7% above its August 4 closing price of $25.76

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)