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- \nCompleted spin-off from Resideo; commenced trading on the NYSE on August 4, 2026.<\/p>\n<\/li>\n
- \nRecord net revenue of $1,286 million; Commercial security growth returns to mid-single digits<\/p>\n<\/li>\n
- \nAverage daily sales growth of 2% year-over-year<\/p>\n<\/li>\n
- \nGross margin of 22.7%; up 50 basis points year-over-year<\/p>\n<\/li>\n
- \nNet income of $6 million, compared to net loss of $283 million in the second quarter of 2025; Adjusted EBITDA of $86 million, or 6.7% of net revenue, compared to $95 million or 7.4% of net revenue in the second quarter of 2025<\/p>\n<\/li>\n
- \nInitiates ADI’s standalone 2026 outlook<\/p>\n<\/li>\n<\/ul>\n
MELVILLE, N.Y.–(BUSINESS WIRE<\/a>)–
\nADI Global Distribution Inc. (“ADI”) (NYSE: ADIG), a leading global specialty distributor of low-voltage products, today announced financial results for its second quarter 2026 ended July 4, 2026.<\/p>\n\nADI operated as part of Resideo Technologies, Inc. (“Resideo”) for the entire second quarter of 2026 and prior to the spin-off on August 3, 2026, and the historical financial information presented in this release was derived from Resideo\u2019s accounting records and is presented on a carve-out accounting basis.<\/p>\n
\nADI second quarter 2026 net revenue was a record $1,286 million, up 1% year-over-year, and reflects average daily sales growth of 2% year-over-year and one fewer sales day in the current quarter. Net revenue growth was driven by the security, professional audio-visual, and data communications categories, partially offset by the residential audio-visual category due primarily to a continued soft U.S. residential housing market.<\/p>\n
\nGross margin was 22.7% in second quarter 2026, compared to 22.2% in second quarter 2025 and was favorably impacted by the receipt of tariff refunds of approximately $20 million, partially offset by unfavorable price and mix shift and higher fuel costs for freight. Research and development expenses increased $2 million due primarily to investments supporting new product launches that are intended to drive future growth. Selling, general and administrative expenses were up $16 million to $206 million driven primarily by higher employee and facility costs. Income from operations of $25 million in second quarter 2026 decreased 56% from $57 million in second quarter 2025. Adjusted EBITDA decreased 9% to $86 million in second quarter 2026 compared to $95 million in second quarter 2025.<\/p>\n
Management Remarks<\/span><\/b><\/p>\n
\n\u201cOur second quarter results, which included record quarterly revenue, reflect the strength of our business and our team’s continued execution in a dynamic operating environment,\u201d said Rob Aarnes, ADI’s President and CEO.<\/p>\n
\n\u201cAs we begin our next chapter as an independent public company, we are operating from a position of strength and focused on converting our recent investments into greater operating efficiency, expanding profitability and increased cash generation. With leading market positions, a differentiated omnichannel model and multiple avenues for above-market growth, we believe ADI is well positioned for the opportunities ahead.\u201d<\/p>\n
Balance Sheet and Capital Allocation<\/span><\/b><\/p>\n
\nUpon completion of the Spin-Off, ADI’s liquidity consists of approximately $150 million of cash and a $500 million undrawn revolving credit facility. ADI expects to generate consistent cash flow, benefiting from its capital-efficient business model. The company intends to use its cash flow to reduce leverage over time while maintaining the financial flexibility to invest in organic growth and pursue value-accretive tuck-in acquisitions.<\/p>\n
Outlook<\/span><\/b><\/p>\n
\nThe Company is initiating its 2026 standalone outlook for the second half and full year, as follows.<\/p>\n
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