One week after announcing its plan to spin off its ADI Global Distribution unit, smart home and facility electrical products supplier Resideo reported robust April-June financial results that featured strong organic growth alongside continued acquisition tailwinds.

Scottsdale, AZ-based Resideo posted 2025 second quarter total sales of $1.94 billion — a company 2Q record — which jumped 22% year-over-year. The company’s $1.4 billion acquisition of Snap One in June of 2024 continued to largely influence that gain, the Resideo also reported an organic sales gain of 8%.

Resideo’s 2Q gross margin of 29.3% improved 120 basis points year-over-year.

The company took a 2Q net loss of $825 million, nearly entirely attributable to a one-time expense that will complete Resideo’s payment obligations owed to Honeywell as part of its 2018 divestment from the manufacturing conglomerate. That transaction is part of a $1.59 billion cash payment Resideo is making to Honeywell.

Resideo’s 2Q adjusted EBITDA of $210 million jumped 20% year-over-year.

“Resideo had an exceptional second quarter, reporting record high results that were above the high-end of the range for all our key financial metrics,” company President and CEO Jay Geldmacher said in an earnings report. “With consistent execution and our confidence that the Company will achieve the profitable growth opportunities ahead, we are raising our 2025 outlook. As we embark on the transformative action to spin off ADI, we believe the performance of both businesses is a strong proof point to the future success of each independent company.”

Find all the details about Resideo’s planned ADI spinoff here.

ADI Global Distribution

At its ADI unit, 2Q sales of $1.28 billion soared 33% year-over-year — largely driven by the Snap One deal — but organic sales were also up 10%. Organic daily sales growth were likewise up 10%, while organic eCommerce growth was 19% — far ahead of the 6% seen a year earlier. Meanwhile, exclusive brands sales jumped 32% year-over-year.

2Q gross margin of 22.2% jumped 280 bps year-over-year; operating profit of $71 million topped the $62 million of a year earlier; and adjusted EBITDA of $107 million on 8.4% margin topped the $77 million and 8.0% of a year earlier.

It was ADI’s ninth consecutive quarter of year-over-year gross margin expansion, which Resideo primarily attributed to efficient utilization of manufacturing facilities.

Products and Solutions (P&S)

At its P&S unit — which will comprise Resideo after it divests ADI by the second half of 2026 — 2Q sales of $666 million were up 6% year-over-year, with organic sales up 5%.

2Q gross margin of 42.9% improved 160 bps year-over-year; operating profit of $142 million topped the $130 million of a year earlier and adjusted EBITDA of $167 million on 25.1% margin topped the $156 million and 24.8% margin of a year earlier.

Raised Guidance

After the strong 2Q, Resideo shared its 3Q outlook and upwardly revised its full-year outlook as follows: