Resideo Technologies, Inc.

Resideo reported second-quarter 2026 revenue of just under $2 billion, up 2% year over year, total adjusted EBITDA of $249 million, up 19% year over year, and adjusted EPS of $0.83, up 26% year over year. Products & Solutions revenue grew 4% year over year, and segment gross margin was 43.6%, up 70 basis points year over year and 100 basis points sequentially. Cash provided by operating activities was $148 million versus $200 million last year. For stand-alone 2026, management guided revenue to $2.9 billion to $2.95 billion and adjusted EBITDA to $605 million to $625 million; third-quarter stand-alone guidance is revenue of $705 million to $730 million and adjusted EBITDA of $145 million to $155 million. Management also expects to repay about $200 million more of Term Loan B in the third quarter after an initial $900 million paydown on August 3.

Tom Surran framed Resideo as a newly focused pure-play building technologies company and emphasized execution, product innovation, and operational optimization. He said new products such as the smoke and CO detector platform, Elite Pro thermostat, dehumidification, water filtration, and future security launches are central to the growth story. His tone was confident, but he also stressed that the residential market remains soft and that the company will need to out-execute the market rather than rely on a broad end-market recovery.

Christopher Lee highlighted operating cash flow of $148 million versus $200 million a year ago, with the decline driven mainly by about $45 million of nonrecurring separation and settlement payments, including the Honeywell Tax Matters Agreement termination, and $20 million of higher cash interest. He also noted the company began deleveraging on August 3 with a $900 million principal paydown on Term Loan B and expects another roughly $200 million repayment in the third quarter. Lee said the stand-alone outlook includes about $80 million of full-year corporate costs and about $175 million of full-year sales to ADI as an external customer.

Analysts focused on why the new stand-alone revenue outlook looks softer than prior comments, how to think about gross margin through the next two quarters, and whether new product launches and pricing can offset higher input costs. Management said the math issue was partly a comparison problem, reiterated that first-half P&S outperformed expectations, and pointed to OEM security as the main second-half headwind. They also said gross margin pressure should be most visible in Q3 because pricing lags input-cost inflation, and emphasized that the OEM security issue is tied to one large customer pursuing vertical integration and was already baked into medium-term targets.