Resideo Technologies’ distribution segment ADI Global Distribution recorded major sales growth upon its 2024 acquisition of Snap One, according to Resideo’s 1Q25 financial results reported on May 6.

Smart home products manufacturer and distributor Resideo posted 1Q25 sales of $1.77 billion, up 19% from $1.49 reported in the same quarter of 2024.

Gross margin was 28.9%, up 200 basis points year-over-year.

New on MDM Premium: ADI Global Distribution: A Success Story of Product Mix and Acquisitive Growth

Net profit of $6 million, a slump compared to 1Q24’s $43 million in net profit primarily due to a $47 million increase in the expense associated with a reimbursement agreement with Honeywell. Adjusted EBITDA was $168 million, up 23% from $137 million in 1Q24.

“The ADI and Products and Solutions teams continued their excellent operational execution, with both segments generating organic net revenue growth, continued gross margin expansion and healthy Adjust EBITDA growth,” Resideo President and CEO Jay Geldmacher said in the company’s earnings release.

ADI Global Distribution 1Q25 Results

At ADI, the unit’s 1Q sales of $1.1 billion increased $255 million, or 29%, year-over-year and up 4% excluding the impact of the acquisition of Snap One.

Gross margin of 21.6% increased 360 bps year-over-year, driven by Snap One and a higher margin eCommerce sales.

“Revenue growth was driven by the contribution from Snap One and increased volume across substantially all product categories,” company officials wrote.

• Organic average daily sales growth was 7%.
• Organic growth in the eCommerce channel was 15% in the first quarter 2025 compared to the prior year period.
• Exclusive Brands sales grew 26% year-over-year on an organic basis.

Adjusted EBITDA was $72 million, or 6.4% of revenue, compared to $58 million, or 6.7% of revenue, in the first quarter of 2024.

“ADI continues to demonstrate leadership in the commercial market, and the integration of Snap One is ahead of our expectations,” Geldmacher said.