Resideo Technologies Inc
SWB:3RT
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R
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Resideo Technologies Inc
SWB:3RT
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US |
Resideo Technologies Inc
Resideo Technologies makes products and services for homes, especially around comfort, safety, and control. Its main products include thermostats, temperature and humidity controls, smoke and carbon monoxide alarms, water leak detectors, and other connected home devices. It also sells parts and equipment used by professional contractors to install and service heating, cooling, ventilation, and security systems. The company sells mainly to professional installers, distributors, and wholesalers, with some products also reaching homeowners through retail channels. It makes money by selling hardware, replacement parts, and related services through these trade channels. A key part of its business is that many products are tied to installed home systems, which can create repeat demand for replacement devices, maintenance, and upgrades over time. Resideo sits in the middle of the home systems value chain: it is not a homebuilder or a utility, but a supplier of the controls and safety devices that keep homes running day to day. That makes its business different from many consumer brands because it depends heavily on professionals who choose, install, and maintain the equipment, not just on end consumers shopping for a single purchase.
Resideo Technologies makes products and services for homes, especially around comfort, safety, and control. Its main products include thermostats, temperature and humidity controls, smoke and carbon monoxide alarms, water leak detectors, and other connected home devices. It also sells parts and equipment used by professional contractors to install and service heating, cooling, ventilation, and security systems.
The company sells mainly to professional installers, distributors, and wholesalers, with some products also reaching homeowners through retail channels. It makes money by selling hardware, replacement parts, and related services through these trade channels. A key part of its business is that many products are tied to installed home systems, which can create repeat demand for replacement devices, maintenance, and upgrades over time.
Resideo sits in the middle of the home systems value chain: it is not a homebuilder or a utility, but a supplier of the controls and safety devices that keep homes running day to day. That makes its business different from many consumer brands because it depends heavily on professionals who choose, install, and maintain the equipment, not just on end consumers shopping for a single purchase.
Beat: Resideo said first-quarter results exceeded the high end of its outlook across all major metrics, with revenue up 8% to over $1.9 billion and adjusted EBITDA up 28% to $215 million.
Pricing: Management said it largely absorbed higher freight-related inflation in Q1 and plans to raise prices in the second quarter to offset rising costs, including fuel and freight.
Segment strength: Products & Solutions delivered its 12th straight quarter of gross margin expansion, while ADI grew 8% despite softness in residential audio video.
Outlook: The company reaffirmed its full-year 2026 guidance, but said the year is now more weighted to the second half, mainly because of ADI order timing.
Separation: Resideo said it filed ADI’s Form 10, expects the spinoff between mid-third quarter and mid-fourth quarter, and plans Investor Day events in New York in mid-July.
Cost actions: ADI described real estate, staffing, and operating expense optimization as significant business transformation actions that should help EBITDA margin later this year.
