Resideo Technologies 2025 Q2 Earnings Sharp Net Loss Amid Revenue Surge

Resideo Technologies reported a sharp net loss in Q2 2025 due to a one-time expense from the termination of an indemnification agreement with Honeywell. However, the company raised its full-year 2025 outlook and delivered a record $1.94 billion in revenue, reflecting strong performance across its segments.

Revenue
Resideo Technologies reported a record $1.94 billion in revenue for Q2 2025, a 22.3% increase compared to $1.59 billion in Q2 2024. This growth was driven by both of its core segments: Products and Solutions, which contributed $666 million, and ADI Global Distribution, which generated $1.28 billion in revenue. The performance highlighted the company’s ability to expand organically and adapt to market dynamics.

Earnings/Net Income
The company reported a net loss of $825 million for Q2 2025, compared to a net income of $30 million in Q2 2024. On a per-share basis, earnings fell to a loss of $5.59 from a profit of $0.19, a dramatic 3042.1% decline. This was attributed to a $882 million non-cash expense tied to the termination of the indemnification agreement with Honeywell. While the loss was significant, it was non-recurring, and the company emphasized strong Adjusted EBITDA of $210 million.

Price Action
Shares of Resideo Technologies saw a recent upward trend, with the stock climbing 1.24% in the latest trading day, 6.84% over the past week, and 8.93% month-to-date. This performance suggested strong investor confidence in the company’s strategic direction and potential for future growth.

Post-Earnings Price Action Review
Buying Resideo Technologies shares following its Q2 earnings report and holding for 30 days yielded a 41.76% return, but this underperformed the benchmark, which returned 48.58%. While the strategy's CAGR of 12.80% indicated moderate growth, the low Sharpe ratio of 0.31 and the absence of any drawdown underscored the need for caution in interpreting its effectiveness as an investment approach.

CEO Commentary
Jay Geldmacher, President and CEO of Resideo Technologies, highlighted the company's strong second-quarter performance, emphasizing record-high results across all key financial metrics. He noted that both the ADI and Products and Solutions segments achieved organic revenue growth, gross margin expansion, and robust Adjusted EBITDA growth. Looking ahead, Geldmacher expressed confidence in the company’s ability to deliver profitable growth, including a transformative plan to spin off ADI. He underscored consistent execution and leadership optimism about future opportunities.

Guidance
Resideo raised its 2025 outlook and initiated guidance for Q3 2025. The company forecast Q3 2025 net revenue between $1.85 billion and $1.9 billion, with full-year 2025 net revenue expected to range from $7.45 billion to $7.55 billion. Additionally, it guided for Q3 2025 Adjusted EBITDA of $220–$240 million and full-year Adjusted EBITDA of $845–$885 million. Adjusted EPS for 2025 is projected between $2.75 and $2.87.

Additional News
Resideo Technologies announced the acquisition of Snap One Holdings Corp., a move expected to enhance its distribution capabilities and expand its product offerings. The acquisition, valued at $218 million, will contribute to the ADI Global Distribution segment’s growth. Additionally, the company is preparing for the spin-off of ADI as part of its strategic transformation, a decision aimed at unlocking value for shareholders. Jay Geldmacher emphasized the potential for both businesses to succeed independently, given their strong performance in Q2. The company also reaffirmed its commitment to innovation, with plans to continue launching new energy and water-related products under the Honeywell Home and First Alert brands.