ADIG

EX-99.1

2 adi-742026erexhibit991.htm

EX-99.1

ADI - 7.4.2026 ER Exhibit 99.1

Exhibit 99.1

ADI Announces Second Quarter 2026 Financial Results

•Completed spin-off from Resideo; commenced trading on the NYSE on August 4, 2026

•Record net revenue of $1,286 million; Commercial security growth returns to mid-single digits

•Average daily sales growth of 2% year-over-year

•Gross margin of 22.7%; up 50 basis points year-over-year

•Net 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

•Initiates ADI's standalone 2026 outlook

MELVILLE, New York, August 13, 2026 – ADI 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.

ADI 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’s

accounting records and is presented on a carve-out accounting basis.

ADI 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.

Gross 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.

Management Remarks

“Our 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,” said Rob Aarnes, ADI's President and CEO.

“As 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.”

Balance Sheet and Capital Allocation

Upon 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.

Outlook

The Company is initiating its 2026 standalone outlook for the second half and full year, as follows.

($ in millions)

First Half 2026 (1)

Second Half 2026 (1)

Full Year 2026

Net revenue

$2,492

$2,458 - 2,508

$4,950 - $5,000

Non-GAAP Adjusted Standalone EBITDA

(Estimate)

$136

$139 - $159

$275 - $295

(1) First half 2026 represents results for the six months ended July 4, 2026, as presented below. Second half 2026 represents

outlook for the six months ended December 31, 2026.

Conference Call and Webcast Details

ADI will hold a conference call with investors on August 13, 2026, at 8:30 a.m. ET. The webcast can be accessed at https://

investor.adiglobal.com, where the webcast link and related materials will be posted before the call. A replay of the webcast

will be available following the presentation.

About ADI

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential

markets through an omnichannel go-to-market platform. Within North America, ADI is a market-leading distributor in the

professionally installed security, fire/life safety and residential audio-visual product categories. We offer over 500,000

products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our

customers with a large net