Resideo Technologies Inc
NYSE:REZI
Resideo Technologies Inc
Resideo Technologies Inc. emerged as a spin-off from Honeywell International in 2018, positioning itself at the forefront of the smart home revolution. With a legacy that reaches back to its Honeywell roots, Resideo capitalizes on decades of experience in creating essential home products. The company specializes in home comfort and security systems, providing a wide range of products like thermostats, security cameras, and water leak detectors. These solutions are designed not only to enhance the comfort and security of residential environments but also to seamlessly integrate with modern smart home ecosystems. By leveraging its extensive distribution network and a respected portfolio of brands, Resideo caters to homeowners seeking reliable and intelligent home management solutions.
Resideo generates revenue primarily through sales of its products and services. It operates in two main segments: Products and Solutions, which encompasses its vast range of smart home devices, and ADI Global Distribution, a leading wholesale distributor of security and low-voltage products. The ADI Global Distribution segment serves as a critical pillar for Resideo, facilitating sales to a wide spectrum of professional installers and contractors, thereby ensuring that Resideo’s products reach an extensive market. Through a combination of product sales, installation fees, and ongoing service agreements, Resideo captures a diverse income stream that supports its growth and innovation in the rapidly evolving connected home industry.
Resideo Technologies Inc. emerged as a spin-off from Honeywell International in 2018, positioning itself at the forefront of the smart home revolution. With a legacy that reaches back to its Honeywell roots, Resideo capitalizes on decades of experience in creating essential home products. The company specializes in home comfort and security systems, providing a wide range of products like thermostats, security cameras, and water leak detectors. These solutions are designed not only to enhance the comfort and security of residential environments but also to seamlessly integrate with modern smart home ecosystems. By leveraging its extensive distribution network and a respected portfolio of brands, Resideo caters to homeowners seeking reliable and intelligent home management solutions.
Resideo generates revenue primarily through sales of its products and services. It operates in two main segments: Products and Solutions, which encompasses its vast range of smart home devices, and ADI Global Distribution, a leading wholesale distributor of security and low-voltage products. The ADI Global Distribution segment serves as a critical pillar for Resideo, facilitating sales to a wide spectrum of professional installers and contractors, thereby ensuring that Resideo’s products reach an extensive market. Through a combination of product sales, installation fees, and ongoing service agreements, Resideo captures a diverse income stream that supports its growth and innovation in the rapidly evolving connected home industry.
Record Year: Resideo achieved record net revenue of approximately $7.5 billion, adjusted EBITDA of $833 million, and adjusted EPS of $2.68 for 2025, all above the high end of guidance.
Q4 Performance: Fourth quarter net revenue was $1.895 billion, up 2% year-over-year and ahead of outlook; adjusted EBITDA grew 21% year-over-year.
Margin Expansion: Both business segments saw gross margin improvement in Q4, with Products & Solutions achieving its 11th consecutive quarter of expansion.
Separation Update: The planned business separation is on track for the second half of 2026, with more details expected in the coming months.
2026 Outlook: For 2026, net revenue is expected between $7.8–$7.9 billion and adjusted EBITDA between $935–$985 million, with both segments anticipated to grow revenue.
Operational Stabilization: The major ERP upgrade for ADI is fully complete, removing a significant headwind; inventory normalization in the HVAC channel is mostly behind.
Product Pipeline: Strong momentum on new product introductions continues, with further launches expected to support growth in 2026 and beyond.
Snap-On Integration: Snap-On acquisition has generated $75 million in synergies, achieved 18 months ahead of schedule, with further benefits expected.
