By Kelly Cloonan
Shares of Resideo Technologies gained after the company said it expects results in both of its segments to come in at or above the midpoint of its outlook ranges as it prepares to spin off its ADI global distribution business.
The stock rose 4.2% to $31.50 on Friday. Shares are down 10% year to date.
The company said it expects revenue in its products-and-solutions segment to come in at or above the midpoint of its outlook range for net revenue of $673 million to $681 million as well as for its forecast for adjusted earnings before interest, taxes, depreciation and amortization of $163 million to $175 million. The company cited continued demand for products across various channels.
In its ADI global distribution segment, Resideo also expects results to come at above the midpoint of its outlook ranges, which put revenue at $1.24 billion to $1.26 billion and adjusted Ebitda at $81 million to $87 million.
As previously disclosed, Resideo plans to spin off its ADI business sometime between the middle of the third quarter and partway through the fourth quarter.
To support the proposed separation, the company amended its credit agreement to provide for senior secured financing of up to about $2.83 billion, it disclosed Thursday.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 05, 2026 14:26 ET (18:26 GMT)
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