⁽¹⁾

This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Cash Provided by Operations, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of U.S. GAAP results to adjusted results in the accompanying tables.

⁽²⁾

The historical results of the ADI segment are included in our unaudited consolidated financial statements for all periods presented as the ADI Spin-Off occurred subsequent to the end of the reported period. In future filings, we will no longer consolidate ADI and the historical results of ADI will be reflected as discontinued operations in Resideo's consolidated financial statements.

Revenue

$705 - $730 

$2,900 - $2,950 

Non-GAAP Adjusted EBITDA ⁽¹⁾     

$145 - $155 

$605 - $625

Contacts:

Investors:

Media:

Christopher T. Lee

Kevin Hunt

Global Head of Strategic Finance                        

Director, Corporate Communications

investorrelations@resideo.com 

kevin.hunt@resideo.com 

Table 1: CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except par value)

July 4, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$                 549

$                 661

Restricted cash

400

—

Accounts receivable, net

1,214

1,073

Inventories, net

1,392

1,354

Other current assets

270

270

Total current assets

3,825

3,358

Property, plant and equipment, net

445

447

Goodwill

3,088

3,100

Intangible assets, net

1,049

1,091

Other assets

374

437

Total assets

$              8,781

$               8,433

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$              1,116

$               1,131

Accrued liabilities

605

624

Total current liabilities

1,721

1,755

Long-term debt

3,560

3,167

Other long-term liabilities

494

594

Total liabilities

5,775

5,516

Stockholders' equity:

Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued
and outstanding, and $500 liquidation preference at July 4, 2026 and
December 31, 2025

482

482

Common stock, $0.001 par value: 700 shares authorized, 160 and 152
shares issued and outstanding at July 4, 2026, respectively, and 158 and 150     
shares issued and outstanding at December 31, 2025, respectively

—

—

Additional paid-in capital

2,424

2,391

Retained earnings

463

345

Accumulated other comprehensive loss

(186)

(157)

Treasury stock at cost

(177)

(144)

Total stockholders' equity

3,006

2,917

Total liabilities and stockholders' equity

$              8,781

$              8,433

Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Six Months Ended

(in millions, except per share data)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Revenue

$         1,981

$         1,943

$         3,893

$         3,713

Cost of goods sold

1,386

1,374

2,747

2,633

Gross profit

595

569

1,146

1,080

Operating expenses:

Research and development expenses

48

41

96

76

Selling, general and administrative expenses

332

319

672

625

Intangible asset amortization

31

30

62

60

Restructuring expenses

22

2

28

6

Business separation costs

31

—

55

—

Total operating expenses

464

392

913

767

Income from operations

131

177

$           233

$           313

Indemnification Agreement expense ⁽¹⁾

—

882

—

972

Other (income) expense, net ⁽²⁾

(81)

9

(81)

15

Interest expense, net

46

24

93

49

Net income (loss) before taxes

166

(738)

221

(723)

Provision for income taxes

69

87

86

96

Net income (loss)

97

(825)

135

(819)

Less: preferred stock dividends

8

8

17

17

Less: undistributed income allocated to preferred      

stockholders

10

—

13

—

Net income (loss) available to common
     stockholders

$              79

$           (833)

$            105

$           (836)

Earnings (loss) per common share:

Basic

$           0.52

$          (5.59)

$           0.70

$          (5.65)

Diluted

$           0.51

$          (5.59)

$           0.68

$          (5.65)

Weighted average common shares outstanding:

Basic

151

149

151

148

Diluted

154

149

155

148

⁽¹⁾

Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, we paid our regularly scheduled payments of $70 million during 2025. The following table summarizes information concerning the Indemnification Agreement.

⁽²⁾

Primarily represents the $77 million gain recognized pursuant to the termination of the Tax Matters Agreement.

Three Months Ended

Six Months Ended

(in millions)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Accrual for Indemnification Agreement liabilities
deemed probable and reasonably estimable

$             —

$            882

$             —

$            972

Cash payments made to Honeywell

—

(35)

—

(70)

Indemnification Agreement non-GAAP adjustment     

$             —

$            847

$             —

$            902

Table 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

Six Months Ended

(in millions)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Cash Flows From Operating Activities:

Net income (loss)

$             97

$          (825)

$           135

$          (819)

Adjustments to reconcile net income (loss) to net
cash in operating activities:

Depreciation and amortization

50

49

101

96

Restructuring expenses

22

2

28

6

Stock-based compensation expense

14

15

28

30

Deferred income taxes

43

—

43

4

Other, net

—

2

—

4

Changes in assets and liabilities:

Accounts receivable, net

(107)

(72)

(149)

(85)

Inventories, net

(39)

(13)

(45)

4

Other current assets

(8)

(35)

(2)

(26)

Accounts payable

98

109

(8)

8

Accrued liabilities

64

185

(50)

73

Non-current obligations payable under the Tax
Matters Agreement

(88)

—

(88)

—

Non-current obligations payable under the
Indemnification Agreement

—

847

—

902

Other, net

2

(64)

10

(62)

Net cash provided by operating activities

148

200

3

135

Cash Flows From Investing Activities:

Capital expenditures

(29)

(20)

(65)

(51)

Other investing activities

10

—

10

—

Net cash used in investing activities

(19)

(20)

(55)

(51)

Cash Flows From Financing Activities:

Proceeds from issuance of long-term debt

400

—

400

—

Repayments of long-term debt

(4)

(2)

(9)

(2)

Acquisition of treasury stock to cover stock
award tax withholding

(1)

(1)

(33)

(16)

Preferred stock dividend payments

(8)

(8)

(17)

(17)

Other financing activities, net

(3)

—

1

2

Net cash provided by (used in) financing
activities

384

(11)

342

(33)

Effect of foreign exchange rate changes on cash,
cash equivalents and restricted cash

(4)

7

(3)

10

Net increase in cash, cash equivalents and restricted     
cash

509

176

287

61

Cash, cash equivalents and restricted cash at
beginning of period

440

578

662

693

Cash, cash equivalents and restricted cash at end of
period

$           949

$           754

949

754

Table 4: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)

Q2 2026

Full Year 2026

(in millions)

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Revenue

$    695

$  1,286

$     —

$  1,981

$  1,401

$  2,492

$     —

$  3,893

Cost of goods sold

392

994

—

1,386

803

1,944

—

2,747

Gross profit

303

292

—

595

598

548

—

1,146

Research and development
     expenses

37

11

—

48

73

23

—

96

Selling, general and
     administrative expenses

110

187

35

332

229

373

70

672

Intangible asset amortization

6

25

—

31

12

49

1

62

Restructuring expenses

12

5

5

22

18

5

5

28

Business separation costs

—

—

31

31

—

—

55

55

Income (loss) from operations     

$    138

$     64

$    (71)

$    131

$    266

$     98

$   (131)

$    233

Q2 2025

Full Year 2025

(in millions)

Products
and
Solutions

ADI Global Distribution

Corporate

Total Company

Products
and
Solutions

ADI Global Distribution

Corporate

Total Company

Revenue

$    666

$  1,277

$     —

$  1,943

$  1,315

$  2,398

$     —

$  3,713

Cost of goods sold

380

994

—

1,374

760

1,873

—

2,633

Gross profit

286

283

—

569

555

525

—

1,080

Research and development
     expenses

32

9

—

41

59

17

—

76

Selling, general and
     administrative expenses

104

179

36

319

205

352

68

625

Intangible asset amortization

6

23

1

30

12

46

2

60

Restructuring expenses

2

1

(1)

2

1

5

—

6

Income (loss) from operations

$    142

$     71

$    (36)

$    177

$    278

$    105

$    (70)

$    313

Q2 2026 % change compared with prior
period

Full Year 2026 % change compared
with prior period

Products
and
Solutions

ADI Global Distribution

Corporate

Total Company

Products
and
Solutions

ADI Global Distribution

Corporate

Total Company

Revenue

4 %

1 %

N/A

2 %

7 %

4 %

N/A

5 %

Cost of goods sold

3 %

— %

N/A

1 %

6 %

4 %

N/A

4 %

Gross profit

6 %

3 %

N/A

5 %

8 %

4 %

N/A

6 %

Research and development
      expenses

16 %

22 %

N/A

17 %

24 %

35 %

N/A

26 %

Selling, general and
     administrative expenses

6 %

4 %

(3) %

4 %

12 %

6 %

3 %

8 %

Intangible asset amortization

— %

9 %

(100) %

3 %

— %

7 %

(50) %

3 %

Income (loss) from operations

(3) %

(10) %

97 %

(26) %

(4) %

(7) %

87 %

(26) %

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE

(UNAUDITED)

Three Months Ended

Six Months Ended

(in millions, except per share data)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

GAAP Net income (loss)

$             97

$          (825)

$            135

$          (819)

Less: preferred stock dividends

8

8

17

17

Less: undistributed income allocated to preferred
stockholders

10

—

13

—

GAAP Net income (loss) available to common
stockholders

79

(833)

105

(836)

Indemnification Agreement expense ⁽¹⁾

—

847

—

902

One-time tax impact of Indemnification Agreement

—

42

—

42

Tax Matters Agreement settlement ⁽²⁾

(33)

—

(33)

—

Intangible asset amortization

31

30

62

60

Business separation costs

31

—

55

—

Restructuring expense

22

2

28

6

Stock-based compensation expense

14

15

28

30

Litigation settlement

1

—

19

—

Undistributed income allocated to preferred
stockholders

10

—

13

—

Other ⁽³⁾

(5)

11

(5)

18

Tax effect of applicable non-GAAP adjustments ⁽⁴⁾

(22)

(15)

(43)

(29)

Non-GAAP Adjusted net income

$            128

$             99

$            229

$            193

Three Months Ended

Six Months Ended

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

GAAP Net income (loss) available to common
shareholders per diluted common share

$           0.51

$          (5.59)

$           0.68

$          (5.65)

Indemnification Agreement expense ⁽¹⁾

—

5.61

—

5.97

One-time tax impact of Indemnification Agreement     

—

0.28

—

0.28

Tax Matters Agreement activity ⁽²⁾

(0.21)

—

(0.21)

—

Intangible asset amortization

0.20

0.20

0.40

0.40

Business separation costs

0.20

—

0.35

—

Restructuring expense

0.14

0.01

0.18

0.04

Stock-based compensation expense

0.09

0.10

0.18

0.20

Litigation settlement

0.01

—

0.12

—

Undistributed income allocated to preferred
stockholders

0.06

—

0.08

—

Impact of incremental dilutive shares

—

0.07

—

0.11

Other ⁽³⁾

(0.03)

0.08

(0.03)

0.12

Tax effect of applicable non-GAAP adjustments ⁽⁴⁾

(0.14)

(0.10)

(0.27)

(0.19)

Non-GAAP Adjusted diluted earnings per share

$           0.83

$           0.66

$           1.48

$           1.28

(1)

Refer to the Unaudited Consolidated Statements of Operations herein.

(2)

We recognized a gain of $77 million in Other income and derecognized $44 million of deferred tax assets that were no longer realizable to Income tax expense in connection with the termination of the Tax Matters Agreement.

(3)

For 2026 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transactions loss (income), gain on sale of assets, and miscellaneous other non-recurring, non-operating income and losses. For 2025 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), gain on sale of business, acquisition-related integration costs, and miscellaneous other non-recurring, non-operating income and losses.

(4)

We calculate the tax effect of relevant non-GAAP adjustments by applying a flat statutory tax rate of 25% for all non-deductible and taxable adjustments.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

GAAP NET INCOME AND ADJUSTED EBITDA

(UNAUDITED)

Three Months Ended

Six Months Ended

(in millions)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Revenue

$      1,981

$      1,943

$      3,893

$      3,713

GAAP Net income (loss)

$           97

$        (825)

$         135

$        (819)

GAAP Net income (loss) as a % of revenue

4.9 %

(42.5) %

3.5 %

(22.1) %

Provision for income taxes ⁽¹⁾

69

87

86

96

GAAP Net income (loss) before taxes

166

(738)

221

(723)

Indemnification Agreement expense ⁽²⁾

—

847

—

902

Termination of Tax Matters Agreement ⁽¹⁾

(77)

—

(77)

—

Depreciation and amortization

50

49

101

96

Interest expense, net

46

24

93

49

Business separation costs

31

—

55

—

Stock-based compensation expense

14

15

28

30

Restructuring expenses

22

2

28

6

Litigation settlement

1

—

19

—

Other ⁽³⁾

(4)

11

(4)

18

Non-GAAP Adjusted EBITDA

$        249

$        210

$        464

$        378

Non-GAAP Adjusted EBITDA as a % of revenue     

12.6 %

10.8 %

11.9 %

10.2 %

(1)

We recognized a gain of $77 million in Other income and derecognized $44 million of deferred tax assets that were no longer realizable to Income tax expense in connection with the termination of the Tax Matters Agreement.

(2)

Refer to the Unaudited Consolidated Statements of Operations herein.

(3)

For 2026 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transactions loss (income), gain on sale of assets, and miscellaneous other non-recurring, non-operating income and losses. For 2025 periods, Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), gain on sale of business, acquisition-related integration costs, and miscellaneous other non-recurring, non-operating income and losses.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(UNAUDITED)

PRODUCTS AND SOLUTIONS SEGMENT

Three Months Ended

Six Months Ended

(in millions)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Revenue

$         695

$         666

$       1,401

$       1,315

GAAP Income from operations

$         138

$         142

$          266

$          278

GAAP Income from operations as a % of
revenue

19.9 %

21.3 %

19.0 %

21.1 %

Litigation settlement

—

—

18

—

Restructuring expense

12

2

18

1

Stock-based compensation expense

5

4

10

9

Other

1

—

—

—

Non-GAAP Adjusted Income from Operations     

$         156

$         148

$         312

$          288

Depreciation and amortization

21

19

42

37

Non-GAAP Adjusted EBITDA

$         177

$         167

$         354

$          325

Non-GAAP Adjusted EBITDA as a % of
revenue

25.5 %

25.1 %

25.3 %

24.7 %

ADI GLOBAL DISTRIBUTION SEGMENT

Three Months Ended

Six Months Ended

(in millions)

July 4, 2026

June 28, 2025

July 4, 2026

June 28, 2025

Revenue

$       1,286

$       1,277

$       2,492

$       2,398

GAAP Income from operations

$            64

$            71

$            98

$          105

GAAP Income from operations as a % of
revenue

5.0 %

5.6 %

3.9 %

4.4 %

Stock-based compensation expense

4

5

8

9

Restructuring expense

5

1

5

5

Litigation settlement

(1)

—

(1)

—

Other

2

2

1

4

Non-GAAP Adjusted Income from Operations     

$           74

$           79

$         111

$         123

Depreciation and amortization

29

28

58

56

Non-GAAP Adjusted EBITDA

$         103

$         107

$         169

$         179

Non-GAAP Adjusted EBITDA as a % of
revenue

8.0 %

8.4 %

6.8 %

7.5 %

BRIDGE FROM P&S SEGMENT RESULTS TO RESIDEO

(UNAUDITED)

Q1 2026⁽³⁾

Q2 2026⁽³⁾

1H 2026⁽³⁾

(In millions)

P&S Reported Segment Revenue

$               706

$               695

$            1,401

   Sales to ADI

46

43

89

  Standalone Adjusted Revenue

752

738

1,490

  Standalone Adjusted COGS ⁽¹⁾

457

435

892

Standalone Gross Profit

295

303

598

Research and development expenses

37

37

74

Selling, general and administrative expenses

120

109

229

   Incremental SG&A (ex: Depr & SBC)

19

20

39

   Incremental Depreciation

1

1

2

   Incremental SBC

3

3

6

  Standalone SG&A ⁽²⁾

143

133

276

Intangible asset amortization

6

6

12

   Incremental Intangible Asset Amortization

1

1

2

Restructuring expenses

6

12

18

  Standalone Adjusted Income from operations     

102

114

216

  Reported Segment AEBITDA

177

$               177

$              354

   Incremental SG&A (ex: Depr & SBC)

19

20

39

  Standalone AEBITDA

$               158

$               157

$              315

Standalone Adjustments in Blue have been calculated as if the ADI Spin-Off had been completed on January 1, 2026.

(1)

Standalone Adjusted COGS reflects a gross up adjustment for intercompany sales to ADI.

(2)

Q1 2026 does not include approximately $7 million of executive, pension, and other nonrecurring costs associated with the Spin-Off of the ADI Global Distribution business.

(3)

Does not include continuing operations basis of accounting. The ADI Spin-Off was completed on August 3, 2026. For the second quarter, Resideo has not yet completed the procedures to account for the ADI segment as discontinued operations. Beginning in the third quarter, Resideo will account for the ADI segment as discontinued operations for such quarter and prior periods.