Resideo Technologies Q2 2025: Unpacking Key Contradictions in Margin Expansion, Tariff Strategies, and M&A Focus

P&S margin expansion drivers and goals, ADI's approach to tariff mitigation, tariff impact and mitigation strategies, Snap One performance and integration, M&A strategy and focus are the key contradictions discussed in Resideo Technologies' latest 2025Q2 earnings call.



Revenue Growth and Segment Performance:
- Resideo Technologies Inc. reported record net revenue of $1.94 billion in Q2 2025, up 22% year-over-year and 8% on an organic basis.
- Growth was driven by strong demand for new products and price realization across both ADI Global Distribution and Products & Solutions business segments.

ADI Global Distribution Performance:
- ADI achieved 33% year-over-year growth in reported net revenue and 10% organic growth in the second quarter.
- This performance was attributed to commercial customer strength, increasing contributions from the digital channel, and successful integration of Snap One.

Products & Solutions Margin Expansion:
- The Products & Solutions segment posted a gross margin of 42.9%, up 160 basis points year-over-year.
- This expansion was primarily driven by efficient utilization of factories and continued strong demand for new products like Honeywell Home FocusPRO thermostats and First Alert detectors.

Tariff Mitigation and Strategic Actions:
- Resideo effectively mitigated the impact of tariffs through price realization, inventory management, and supply chain adjustments.
- These actions helped maintain strong customer relationships despite passing on tariff costs through price increases.