olivLaw · US equity research
Resideo Technologies, Inc. REZI
Wholesale-Hardware · SIC 5072 · Vertical: Wholesale — durable goods (SIC 50xx)
Resideo makes sensing and control products for comfort, safety and security in homes and commercial buildings, sold mainly through a professional installer channel. After the ADI Global Distribution separation in August 2026, the company presents itself as a standalone business focused on Products and Solutions, with a standalone 2026 outlook aimed at profitable growth.
At the close of 04 Nov 2026, Resideo Technologies, Inc. (REZI) stock was 20.51 USD (+6.60% on the day), with market capitalisation 3.1 bn USD, P/E 8.4 on diluted EPS of 2.44 USD over the last 12 months, beta 1.56, 52-week range 16.21–28.79 USD. Latest reported quarter (Q2 2026): revenue of 2.0 bn USD (+2.0% YoY), net income of 97.0 m USD, diluted EPS 0.51 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 73.8
- overbought (≥ 70)
- Bollinger (20, 2)
- 15.47 – 19.98
- above the upper band · %B 1.12 · band width 25.4%
- SMA 50 / 200
- 18.44 / 22.66
- mixed trend
- MACD (12, 26, 9)
- 0.31 / -0.08
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +10.5% | −1.1% | +11.6 pp | — |
| 3 months | −21.8% | −0.5% | −21.4 pp | — |
| 6 months | −28.3% | +4.4% | −32.7 pp | — |
| Year to date | −16.1% | +12.3% | −28.4 pp | — |
| 1 year | −28.9% | +13.5% | −42.4 pp | +16.8% |
| 3 years | +85.8% | +76.4% | +9.4 pp | +33.6% |
| 5 years | +11.4% | +63.7% | −52.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 1.9 bn | 1.8 bn | 1.9 bn | 1.9 bn | 1.9 bn | 1.9 bn | 2.0 bn |
| Cost of revenue | 1.3 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.4 bn |
| Gross profit | 524.0 m | 530.0 m | 511.0 m | 569.0 m | 556.0 m | 560.0 m | 551.0 m | 595.0 m |
| Research & development | 23.0 m | 42.0 m | 35.0 m | 41.0 m | 44.0 m | 47.0 m | 48.0 m | 48.0 m |
| SG&A | 317.0 m | 310.0 m | 306.0 m | 319.0 m | 324.0 m | 317.0 m | 340.0 m | 332.0 m |
| Operating income | 126.0 m | 144.0 m | 136.0 m | 177.0 m | 154.0 m | 140.0 m | 102.0 m | 131.0 m |
| Depreciation & amortisation | 46.0 m ≈ | 46.0 m | 47.0 m | 49.0 m ≈ | 49.0 m ≈ | 50.0 m | 51.0 m | 50.0 m ≈ |
| Interest expense | 27.0 m | 26.0 m | 25.0 m | 24.0 m | 37.0 m | 49.0 m | 47.0 m | 46.0 m |
| Pre-tax income | 44.0 m | 45.0 m | 15.0 m | -738.0 m | 110.0 m | 156.0 m | 55.0 m | 166.0 m |
| Income tax | 24.0 m | 22.0 m | 9.0 m | 87.0 m | -46.0 m | 20.0 m | 17.0 m | 69.0 m |
| Net income | 20.0 m | 23.0 m | 6.0 m | -825.0 m | 156.0 m | 136.0 m | 38.0 m | 97.0 m |
| Diluted EPS | 0.07 | 0.15 ≈ | -0.02 | -5.59 | 0.85 | 0.91 ≈ | 0.17 | 0.51 |
| Operating cash flow | 147.0 m ≈ | 203.0 m | -65.0 m | 200.0 m ≈ | -1.6 bn ≈ | 299.0 m | -145.0 m | 148.0 m ≈ |
| Capex | 22.0 m ≈ | 22.0 m | 31.0 m | 20.0 m ≈ | 28.0 m ≈ | 37.0 m | 36.0 m | 29.0 m ≈ |
| Share repurchases | — | 0 | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 29 percentile of its own 24-quarter history (min 4.0, median 10.3, max 59.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.8 bn | 5.0 bn | 5.1 bn | 5.8 bn | 6.4 bn | 6.2 bn | 6.8 bn | 7.5 bn |
| Revenue YoY | +6.8% | +3.3% | +1.7% | +15.3% | +9.0% | −2.0% | +8.3% | +10.5% |
| Net income | 405.0 m | 36.0 m | 37.0 m | 242.0 m | 283.0 m | 210.0 m | 116.0 m | -527.0 m |
| Net income YoY | unavailable | −91.1% | +2.8% | +554.1% | +16.9% | −25.8% | −44.8% | −554.3% |
| Diluted EPS | 3.30 | 0.29 | 0.29 | 1.63 | 1.90 | 1.42 | 0.61 | -3.77 |
| Diluted EPS YoY | unavailable | −91.2% | 0.0% | +462.1% | +16.6% | −25.3% | −57.0% | −718.0% |
| net % | 8.4% | 0.7% | 0.7% | 4.1% | 4.4% | 3.4% | 1.7% | -7.1% |
| Free cash flow | 398.0 m | unavailable | 174.0 m | 252.0 m | 67.0 m | 335.0 m | 364.0 m | -1.3 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 661.0 m USD
- Financial debt
- 3.2 bn USD
- Net debt
- 2.5 bn USD
- Equity
- 2.9 bn USD
- Total assets
- 8.4 bn USD
- Debt / equity
- 1.09x
- Current ratio
- 1.91x
- ROE
- -16.9%
- ROA
- -6.3%
- FCF margin
- -16.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.1 bn | 5.8 bn | 6.4 bn | 6.2 bn | 6.8 bn | 7.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 3.7 bn | 4.3 bn | 4.6 bn | 4.5 bn | 4.9 bn | 5.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 1.3 bn | 1.6 bn | 1.8 bn | 1.7 bn | 1.9 bn | 2.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Research & development | 74.0 m | 86.0 m | 111.0 m | 109.0 m | 111.0 m | 167.0 m | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 889.0 m | 909.0 m | 974.0 m | 960.0 m | 1.1 bn | 1.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | 311.0 m | 559.0 m | 611.0 m | 547.0 m | 520.0 m | 607.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 86.0 m | 88.0 m | 94.0 m | 98.0 m | 144.0 m | 195.0 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 397.0 m ≈ | 647.0 m ≈ | 705.0 m ≈ | 645.0 m ≈ | 664.0 m ≈ | 802.0 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Interest expense | 63.0 m | 48.0 m | 54.0 m | 65.0 m | 81.0 m | 135.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Pre-tax income | 101.0 m | 353.0 m | 418.0 m | 313.0 m | 221.0 m | -457.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | 64.0 m | 111.0 m | 135.0 m | 103.0 m | 105.0 m | 70.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | 37.0 m | 242.0 m | 283.0 m | 210.0 m | 116.0 m | -527.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | 0.29 | 1.63 | 1.90 | 1.42 | 0.61 | -3.77 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 126.0 m | 148.0 m | 149.0 m | 148.0 m | 149.0 m | 149.0 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 517.0 m | 775.0 m | 326.0 m | 636.0 m | 692.0 m | 661.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 863.0 m | 876.0 m | — | — | — | — | SEC (XBRL)· 15 Feb 2022verified |
| Inventories | 672.0 m | 740.0 m | 975.0 m | 941.0 m | 1.2 bn | 1.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 2.2 bn | 2.5 bn | 2.5 bn | 2.7 bn | 3.2 bn | 3.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 318.0 m | 287.0 m | 366.0 m | 390.0 m | 410.0 m | 447.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Goodwill | 2.7 bn | 2.7 bn | 2.7 bn | 2.7 bn | 3.1 bn | 3.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 135.0 m | 120.0 m | 475.0 m | 461.0 m | 1.2 bn | 1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 5.6 bn | 5.9 bn | 6.4 bn | 6.6 bn | 8.2 bn | 8.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 936.0 m | 883.0 m | 894.0 m | 905.0 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 7.0 m | 10.0 m | 12.0 m | 12.0 m | 6.0 m | 18.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 1.2 bn | 1.2 bn | 1.4 bn | 1.4 bn | 2.0 bn | 3.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 1.5 bn | 1.5 bn | 1.5 bn | 1.5 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | — | 3.6 bn | 3.9 bn | 3.9 bn | 4.9 bn | 5.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 2.0 bn † | 2.3 bn † | 2.5 bn † | 2.7 bn † | 3.3 bn † | 2.9 bn † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 244.0 m | 315.0 m | 152.0 m | 440.0 m | 444.0 m | -1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 70.0 m | 63.0 m | 85.0 m | 105.0 m | 80.0 m | 116.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | 174.0 m ≈ | 252.0 m ≈ | 67.0 m ≈ | 335.0 m ≈ | 364.0 m ≈ | -1.3 bn ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -103.0 m | -65.0 m | -764.0 m | -44.0 m | -1.4 bn | -39.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | 253.0 m | 20.0 m | 170.0 m | -64.0 m | 1.0 bn | 1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Share repurchases | — | 0 | 0 | 41.0 m | 1.0 m | 0 | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation63
- Returns0
- Quality34
- Balance sheet33
- Growth46
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.48 – 67.33 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDA24.48 – 54.88 (Mid 40.32)15 companies used · median multiple 12.6x · quartiles 9.3x – 15.6xACH, ARW, AVT, CLMB, DSGR, FERG, GWW, HSIC, JXG, MSM, RS, SCSC, SNX, TEL, WCC
- Peers: P/E48.40 – 67.33 (Mid 56.00)24 companies used · median multiple 22.9x · quartiles 19.8x – 27.6xAIT, ARW, AVT, CLMB, CNXN, DXPE, FERG, GIC, GWW, HDSN, HSIC, JXG, MSM, PLUS, POOL, RELL, RS, SCSC, SITE, SNX, TEL, TLIH, WCC, WSO
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.3% | 32 (vs peers) | 12% |
| Net margin · Quality | 5.6% | 72 (vs peers) | 7% |
| FCF conversion · Quality | -327.6% | 0 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 5.5% | 46 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 4.2x | 12 (vs peers) | 12% |
| Interest coverage · Balance sheet | 2.9x | 22 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 2.2x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 8.4x | 96 (vs peers) | 12% |
| EV/EBITDA · Valuation | 8.5x | 81 (vs peers) | 12% |
| FCF yield · Valuation | -44.9% | 0 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet33/100 · 3/3 factors with a value
- Growth· partial46/100 · 1/2 factors with a value
- Quality34/100 · 3/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation63/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Resideo Technologies, Inc. (REZI). Latest full fiscal year: 2025; data up to 2026-07-04.
Figures computed from the financial statements: revenue 7.5 bn USD in 2025; YoY growth 10.5%; net margin 5.6%; ROE 15.2%; net debt/EBITDA 4.2x.
The estimated value range is 36.44–61.11 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 48.16 USD, the price of 20.51 USD leaves a potential of 134.8% (value / price − 1) and a margin of safety of 57.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 5.6%
- Current ratio: 2.2x
- P/E (TTM): 8.4x
- EV/EBITDA: 8.5x
- The price is below the estimated value range
What contradicts it
- FCF conversion: -327.6%
- Net debt / EBITDA: 4.2x
- Interest coverage: 2.9x
- FCF yield: -44.9%
- Shareholder yield (distributions): 0.0%
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Payout ratio (FCF).
Versus the vertical median
Wholesale — durable goods (SIC 50xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GWWW.W. Grainger, Inc. | 69.7 bn | 32.7 | 54.7% | 11.2% | +4.5% | +57% / +89% |
| TELTe Connectivity PLC | 63.8 bn | 27.5 | 18.5% | 12.6% | +8.9% | −3% / +68% |
| FERGFerguson Enterprises Inc. | 48.1 bn | 25.1 | 32.8% | 6.3% | +3.8% | −1% / +45% |
| RSReliance, Inc. | 22.5 bn | 20.6 | 14.7% | 6.4% | +3.3% | +58% / +61% |
| SNXTd Synnex Corporation | 18.4 bn | 14.0 | 14.9% | 1.8% | +6.9% | +51% / +134% |
| GPCGenuine Parts Co | 17.4 bn | 481.8 | 0.7% | 0.1% | +3.5% | −3% / −5% |
| WCCWESCO International, Inc. | 15.4 bn | 19.8 | 15.4% | 3.0% | +7.8% | +18% / +103% |
| QXOQxo, Inc. | 13.1 bn | — | -2.8% | -4.1% | +11,925.0% | −32% / −57% |
| AITApplied Industrial Technologies, Inc. | 10.9 bn | 26.4 | 22.5% | 8.4% | +8.8% | +15% / +86% |
| ARWArrow Electronics, Inc. | 10.3 bn | 12.9 | 12.2% | 2.3% | +10.5% | +88% / +71% |
| HSICHenry Schein, Inc. | 9.8 bn | 24.2 | 12.9% | 3.1% | +4.0% | +18% / +32% |
| POOLPool Corporation | 7.8 bn | 20.2 | 30.4% | 7.3% | −0.4% | −10% / −37% |
| AVTAvnet, Inc. | 7.0 bn | 21.4 | 6.7% | 1.2% | +24.5% | +80% / +83% |
| MSMMsc Industrial Direct Co., Inc. | 6.5 bn | 29.2 | 15.8% | 5.6% | +6.4% | +30% / +19% |
| SITESiteOne Landscape Supply, Inc. | 5.1 bn | 31.9 | 9.6% | 3.4% | +3.6% | −12% / −16% |
| REZIResideo Technologies, Inc. | 3.1 bn | 8.4 | 15.2% | 5.6% | +10.5% | −29% / +86% |
| DXPEDXP Enterprises, Inc. | 2.5 bn | 27.9 | 18.5% | 4.4% | +11.9% | +69% / +441% |
| PLUSePlus inc. | 2.4 bn | 19.0 | 12.0% | 5.1% | +22.1% | +1% / +43% |
| CNXNPc Connection, Inc. | 2.2 bn | 21.7 | 10.9% | 3.3% | +2.5% | +51% / +47% |
| GICGlobal Industrial Co | 1.8 bn | 19.8 | 27.6% | 6.3% | +4.8% | +66% / +34% |
| DSGRDistribution Solutions Group, Inc. | 1.6 bn | 180.0 | 1.4% | 0.4% | +9.8% | +26% / +38% |
| SCSCScanSource, Inc. | 1.1 bn | 15.7 | 8.7% | 2.4% | +6.1% | +39% / +70% |
| CLMBClimb Global Solutions, Inc. | 803.2 m | 33.8 | 19.5% | 3.1% | +40.1% | +70% / +261% |
| ASPNAspen Aerogels, Inc. | 398.3 m | — | -50.4% | -62.4% | −40.1% | +49% / −54% |
| RELLRichardson Electronics, Ltd. | 211.2 m | 24.7 | 5.2% | 3.6% | +9.4% | +87% / +50% |
1- and 3-year price returns: for REZI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 14.09 Total return -31% · Per year -31% | 24.90 Total return 21% · Per year 21% | 37.49 Total return 83% · Per year 83% |
| 3 years | 13.94 Total return -32% · Per year -12% | 27.70 Total return 35% · Per year 11% | 45.75 Total return 123% · Per year 31% |
| 5 years | 13.79 Total return -33% · Per year -8% | 30.80 Total return 50% · Per year 8% | 55.82 Total return 172% · Per year 22% |
- Exit P/E± 6.92
- Net margin± 4.85
- Annual revenue growth± 3.94
- Annual dilution± 0.41
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Resideo makes sensing and control products for comfort, safety and security in homes and commercial buildings, sold mainly through a professional installer channel. After the ADI Global Distribution separation in August 2026, the company presents itself as a standalone business focused on Products and Solutions, with a standalone 2026 outlook aimed at profitable growth.
SWOT
Strengths
- Established brands and a broad base of professional partners recognized by customers and the market.
- Rising gross margins and a track record of margin expansion in the Products and Solutions segment.
- A large patent portfolio that supports the company's own innovation.
Weaknesses
- High total debt that limits financial flexibility and generates interest costs.
- Dependence on single or limited source suppliers for certain components and finished products.
- Sensitivity to seasonality and construction cycles that can affect the predictability of results.
Opportunities
- Demand for connected solutions and energy efficiency in homes and commercial buildings.
- Expanding the professional channel through new products and partnerships with installers and integrators.
- Focus on one core segment after the separation could simplify strategic execution.
Threats
- Tariffs and trade instability could raise import costs and reduce orders.
- Pricing pressure from technology companies and new market entrants.
- Intellectual property disputes and product liability claims could generate unforeseen costs.
Risks
- Intense and changing competitionhigh
The markets the company serves are changing rapidly, and the entry of nontraditional players could reduce market share and margins.
- Supplier dependencehigh
Supply chain disruptions or problems with single-source suppliers could affect the ability to meet customer commitments.
- Debt and financing costsmedium
The high level of debt and related interest could limit investment and financial flexibility if credit conditions worsen.
- Tariffs and trade policymedium
Changes in tariff regimes and trade agreements could alter material costs and sales volumes.
- Intellectual property and litigationlow
Patent litigation and indemnification claims from customers could generate costs and divert management attention.
Investment thesis
What would need to be true (bull case)
- If the margins recorded in the second quarter of 2026 hold, the company could show that its new standalone profile is more profitable.
- A large installed base and relationships with professionals could support revenue growth over the medium term.
- Simplifying the portfolio after the separation could allow a more efficient allocation of innovation investment.
What would break the thesis
- Weakness in the U.S. residential housing market could slow volume growth, especially if interest rates remain high.
- Import costs and tariffs could erode margins if they cannot be passed on to customers.
- Remaining debt and separation costs could limit the company's capacity to fund growth.
What to watch
- Third-quarter results, the first reported as continuing operations without ADIQ3 2026
- Delivery against the standalone 2026 revenue and Adjusted EBITDA outlook2026
- Debt reduction through the further Term Loan B repayment and interest cost trendsQ3 2026
- Evolution of tariffs and their impact on import costs from Mexiconext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Resideo is a global manufacturer and distributor of sensing and control products covering HVAC controls, smoke and carbon monoxide detection, security and connected home solutions. It serves mainly its professional partners, approximately 100 thousand contractors, installers, dealers and integrators 1, and its solutions are found in over 150 million residential and commercial spaces 1. Brands such as First Alert, Braukmann, BRK and Honeywell Home support its commercial position 1.
In fiscal 2025, net revenue reached 7.47 billion dollars, up 10.5% from the prior year, with a gross profit margin of 29.4% 1. Growth was supported in part by the Snap One acquisition, which added 446 million dollars of revenue 1. The company also reported a net loss of 527 million dollars in 2025, influenced by costs tied to the termination of the Honeywell indemnification agreement 1.
Beginning with the third quarter of 2026, ADI Global Distribution results will be reported as discontinued operations, while Products and Solutions will appear as continuing operations 3. Management said the standalone company intends to leverage its competitive strengths and increase the value it delivers to customers 3.
Segments
Products and Solutions
The Products and Solutions segment includes temperature and humidity control, water and air solutions, smoke and carbon monoxide detection products, residential and small business security products and video 1. In fiscal 2025 it generated 2688 million dollars of revenue, up 4.8% 1. In the second quarter of 2026 revenue was 695 million dollars and gross margin 43.6%, a record 3.
ADI Global Distribution
ADI Global Distribution is a specialty distributor of low-voltage products for security and audio-visual solutions, separated from Resideo on August 3, 2026 13. In fiscal 2025 it generated 4784 million dollars of revenue, up 14% 1. Until the separation the segment was consolidated within Resideo 3.
Market context
The company operates in large markets at the intersection of long-term growth trends such as energy efficiency and smart safety solutions 1. The U.S. residential housing market was described as growing slowly in 2026, and non-residential construction could moderate 1. The revenue outlook for 2026 assumes growth in the mid-single-digit range 1.
Demand depends on repair and remodeling activity, residential and commercial construction, home sales, interest rates and employment levels 2. Tariffs and geopolitical uncertainty can affect costs and customer order levels 1. The company notes that seasonality, intensified by extreme weather, can shift typical sales patterns 1.
Trends
- Demand for connected productstailwind
Demand for connected comfort and safety solutions supported revenue and margin gains in the Products and Solutions segment in the second quarter of 2026 3. With over 14 million connected customers, the company strengthens its relationship with end users 1.
- Tariffs and import costsmixed
Tariffs on products outside USMCA or other exceptions could raise costs, and higher prices could lower customer purchase levels 1. The company received tariff refunds in the second quarter of 2026 that temporarily supported margins 3.
- U.S. residential housingheadwind
Companies have described slow growth in the U.S. residential housing market, and weakness in residential audio-visual affected ADI in 2026 13. If mortgage rates stay elevated, demand for renovation and installation could remain under pressure.
- Investment in new productsmixed
Research and development spending rose in 2025 with new product launches and the Snap One acquisition 13. Continued innovation spending can support long-term growth but adds near-term operating costs.
Competitive position
The company competes with manufacturers, distributors, software and service providers, retailers and online platforms, as well as new entrants with nontraditional business models 1. Technology and telecommunications companies in the connected home space exert pricing pressure and could reduce Resideo's market share if customer preferences shift toward their services 1.
The main competitive factors are innovation, brand reputation, customer relationships, product performance, availability and price 1. In low-voltage distribution, competition comes from suppliers and online sales channels that may develop their own exclusive brands 1.
- Connected home technology companies
Named generically in the 10-K as a source of pricing pressure and shifting customer preferences, without specific names.
- Cable and telecommunications providers
Described as players competing in the connected space with existing customer bases for services.
- Low-voltage product distributors and retailers
Direct competitors of ADI Global Distribution, including online merchants that may expand in wholesale distribution.
- New entrants with disruptive business models
Companies using nontraditional service models or new technologies, cited as potential sources of competitive pressure.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Resideo SVP Joshua Foster Buys 15,317 SharesYahoo Finance — News · 02 Sept 2026 · EN
- Trading Activity: Resideo CEO Thomas Surran Buys 15,000 Shares at $20.46Yahoo Finance — News · 24 Aug 2026 · EN
SEC filings
- Quarterly report12 Aug 2026
- Current report12 Aug 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
- Current report07 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report04 Aug 2026Material agreement · Acquisition or disposition of assets · Item 3.03 · Departure or appointment of officers · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report13 Jul 2026Regulation FD disclosure · Financial statements and exhibits
- Current report01 Jul 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Current report24 Jun 2026Material agreement · Other events · Financial statements and exhibits
- Current report05 Jun 2026Shareholder vote
- Current report04 Jun 2026Material agreement · Creation of a direct financial obligation · Departure or appointment of officers · Financial statements and exhibits
- Quarterly report12 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Resideo Technologies, Inc. · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-04 · SEC / Resideo Technologies, Inc. · 12 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Resideo Technologies, Inc. · 12 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.