ADI Global Reports Q3 Revenue Growth Amid Softening Residential Demand and Cost Overhauls

ADI Global Distribution Inc. experienced a mixed third quarter in 2026, highlighted by a 9% year-over-year revenue increase to $1.3 billion and average daily sales climbing 5%. Despite top-line growth driven by third-party categories, standalone adjusted EBITDA dropped 13% down to $66 million due to reduced gross profits across both third-party and Exclusive Brands product lines. The newly independent public company, which recently separated from Resideo, managed to generate $64 million in operating cash flow and closed the period with over $200 million in cash reserves.

Management noted that profitability missed internal targets primarily because of an unexpected, sharp contraction in residential demand that intensified late in the quarter and is projected to stretch into 2027. In response, leadership has kicked off the "One ADI" operational transformation, focusing on migrating Americas operations onto a single platform, streamlining distribution networks, and combining customer databases.

To combat ongoing market headwinds, the company is actively recalibrating its expense framework and rolling out dynamic pricing tools across its omnichannel infrastructure. Additional strategic efforts involve expanding Exclusive Brands further into commercial markets to offset residential softness.

What to watch next: Monitor the execution of the One ADI transformation and whether commercial demand can offset persisting weakness in the residential sector.