Resideo used the separation of ADI Global Distribution to make a $900 million debt repayment and expects to reduce debt by another approximately $200 million by the end of the third quarter.
The ADI spin-off was completed on August 3. Resideo distributed one ADI Global Distribution share for every two Resideo shares held on the July 20 record date. Beginning in Q3, ADI’s historical results will be classified as discontinued operations, leaving Resideo focused on its building technologies business.
As part of the separation, Resideo received a $900 million dividend from ADI and immediately used the proceeds to repay $900 million of principal under its Term Loan B facility. In addition, $400 million of ADI notes moved onto ADI’s balance sheet and are no longer obligations of Resideo.
Resideo expects to repay another approximately $200 million of Term Loan B debt following completion of a post-closing cash adjustment, with that payment expected by the end of Q3. The company also reduced its outstanding preferred shares as part of the separation.
Standalone 2026 guidance calls for revenue of $2.9 billion to $2.95 billion and adjusted EBITDA of $605 million to $625 million.
KEY QUOTES:
“With the business separation now complete, Resideo is entirely focused on leveraging our competitive strengths to increase the value we deliver to customers as a standalone building technologies company.”
Tom Surran, President and CEO of Resideo
