Resideo Technologies, Inc. (REZI)

Resideo completed the spin-off of its ADI Global Distribution business on 3 August 2026, leaving a company built on its Products and Solutions segment 1. Holders of record on 20 July 2026 received one ADI share for every two Resideo shares 1.

For the quarter ended 4 July 2026, which still counts ADI, revenue was $1,981 million, up 2 percent, and net income was $97 million 1. A year earlier the quarter had a net loss of $825 million, after $882 million of expense for the Honeywell indemnification agreement 1.

From the third quarter, ADI moves to discontinued operations and Resideo reports Products and Solutions alone 1. The company set a standalone 2026 outlook of $2,900 million to $2,950 million in revenue 1.

Shane Harrison becomes chief financial officer on 1 September 2026, and the chief executive, Thomas Surran, stops acting as principal financial officer 2. Whether the smaller company reaches its stated goals is the open question 1.

Resideo became its own company in 2018, when Honeywell distributed its shares to Honeywell stockholders 3. Its stock began trading on the New York Stock Exchange on 29 October 2018 3.

The spin-off left it paying Honeywell under an indemnification agreement, which covered cash payments tied to Honeywell's environmental liabilities 3. That agreement ran until August 2025 3.

Revenue fell 2.0 percent to $6,242 million in 2023, driven mainly by lower volume of $414 million 9. Higher selling prices of $143 million partly offset the drop 9.

On 14 June 2024 it bought Snap One, a provider of smart-living products and software to professional integrators, for $1.4 billion 3. It sold 500,000 preferred shares to CD&R for $500 million to help pay 3.

Revenue rose 8.3 percent to $6,761 million in 2024, with $553 million coming from Snap One 8. In 2025 it rose 10.5 percent to $7,472 million, with $446 million from Snap One 3.

On 30 July 2025 Resideo agreed to end the Honeywell indemnification agreement, and in August it paid Honeywell $1,590 million 3. About $1,225 million came from new term loans due in 2032 3.

The payment pushed indemnification expense to $972 million and turned 2025 into a net loss of $527 million 3. On the same day it announced plans to separate ADI 3.

It also sold its Resideo Grid Services business in the fourth quarter of 2025 for $77 million 3. The sale brought a pre-tax gain of $52 million 3.

Products and Solutions

Products and Solutions makes temperature and humidity controls, water and air products, smoke and carbon monoxide detectors, security products and video cameras 3. Its brands include Braukmann, BRK, First Alert, Honeywell Home and Resideo 3.

Segment revenue was $2,688 million in 2025, up 4.8 percent, mostly from $129 million of price and mix 3. In the quarter ended 4 July 2026 it was $695 million, up 4 percent, at a 43.6% gross margin 1.

The company says its focus is about 100 thousand professional installers, and that it has over 14 million connected customers 3. It also sells components to makers of water heaters, heat pumps and boilers 3.

ADI Global Distribution, now separate

ADI is a specialty distributor of security and audio-visual products to licensed installers, and it was the larger segment, with $4,784 million of 2025 revenue 3. Since 3 August 2026 it is an independent company that trades as ADIG, and Resideo keeps no ownership interest in it 4.

Plants and people

The annual report lists 15 manufacturing sites for Products and Solutions, and six of its plants are in Mexico 3. The company reported about 14,800 employees at the end of 2025, with about 6,400 in Mexico, before ADI left 3.

Thomas Surran became President and Chief Executive Officer on 3 August 2026, succeeding Jay Geldmacher, who retired into an advisory role 5. Joshua Foster is general counsel, and Shane Harrison joins as finance chief on 1 September 52.

Rivals and current problems

The annual report names cable, telecom and technology companies and smaller entrants with control features as rivals in the connected home 3. It also lists tariffs, since most of its U.S. products are made in Mexico 3.

In the first quarter of 2026 a litigation settlement and an arbitration award totaled $24 million 4. Because most debt stays with Resideo, the company says its standalone leverage ratio is expected to be higher than before 4.

Total outstanding debt was $3.62 billion at 4 July 2026, before a $900 million Term Loan B repayment funded by a dividend from ADIG 1.

The umbrella, in words

The annual report's subsidiary list includes Ademco entities, AlarmNet, BRK Brands and Control4 units, plus ADI companies that left with the spin-off 10. Resideo owns the Snap One business it bought in 2024 3.

It uses the Honeywell Home name under a 40-year trademark license from Honeywell, and pays a royalty of 1.5 % of net revenue of the licensed products 3. Most of its sites are leased rather than owned 3.

The proxy statement lists CD&R Channel Holdings II at 19.70% of common stock counting its convertible preferred shares, BlackRock at 13.02% and Vanguard at 9.67% 7. After the spin-off 350,000 preferred shares remain outstanding 5.

For the third quarter of 2026 the company expects revenue of $705 million to $730 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted) of $145 million to $155 million 1. For the full year it expects $2,900 million to $2,950 million of revenue and $605 million to $625 million of adjusted EBITDA 1.

Resideo expects to repay about $200 million more of its Term Loan B by the end of the third fiscal quarter, after a cash adjustment with ADIG 1.

At its investor day on 13 July 2026 the company targeted revenue growth of 4% to 5% a year from 2025 through 2030 6. It also targeted gross margin of 43%-45% and adjusted EBITDA margin of 23%-25% by the end of 2030 6.

The company says it plans to widen its range of products, add content per home and expand abroad 6. It describes a market it can serve of more than $40 billion 6.