ADI Global Distribution reported results for the quarter ended July 4, 2026, following its spin-off from Resideo on August 3, 2026. Net revenue rose 1% to a record $1,286 million and net income was $6 million, compared with a net loss of $283 million a year earlier, but income from operations fell 56% to $25 million and adjusted EBITDA fell 9% to $86 million. The company also issued its first standalone 2026 outlook, calling for full-year net revenue of $4,950 million to $5,000 million and adjusted standalone EBITDA (estimate) of $275 million to $295 million.
Net revenue of $1,286 million, up 1% year-over-year, with average daily sales growth of 2%
Net income of $6 million versus a net loss of $283 million in the prior-year quarter, which included a $331 million Indemnification Agreement expense
Income from operations of $25 million, down 56% from $57 million; adjusted EBITDA of $86 million, down 9% from $95 million
Full-year 2026 outlook: net revenue of $4,950 million to $5,000 million; adjusted standalone EBITDA (estimate) of $275 million to $295 million
ADI Global Distribution completed its separation from Resideo on August 3, 2026, when Resideo shareholders received ADI common stock and ADI began trading on the NYSE under the symbol ADIG. To fund a $900 million cash dividend paid to Resideo, ADI's subsidiary issued $400 million of 7.125% senior notes due 2034 and ADI borrowed a $600 million term loan under a credit agreement that also includes a $500 million revolving facility. The filing shows ADI is now an independent company with a new debt load, a new eight-member board, and a large preferred-equity stake held by the CD&R Group.
Resideo shareholders received one ADI common share for every two Resideo shares held as of the July 20, 2026 record date; fractional shares were sold and the cash proceeds distributed.
ADI issued $400 million of 7.125% senior notes due 2034 and funded a $600 million term loan, with the notes proceeds released from escrow on August 3, 2026.
ADI paid a one-time $900 million cash dividend to Resideo as partial consideration for assets and liabilities transferred to ADI.
The CD&R Group will hold shares and ADI preferred stock representing about 19.69% of total voting power on an as-converted basis, with two directors designable.
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