Resideo Technologies reported fourth‑quarter 2025 results with net revenue of $1.895 billion and adjusted EBITDA of $166 million. Adjusted earnings per share were $0.50, which beats the consensus estimate of $0.47 but falls short of the high‑end estimate of $0.52. Revenue was slightly above the consensus estimate of $1.87 billion, though it was marginally below the high‑end outlook of $1.93 billion.
Products & Solutions revenue grew 6% year‑over‑year to $712 million, driven by strong demand in residential comfort and security systems. In contrast, ADI Global Distribution revenue declined 1% to $1.183 billion, reflecting softness in the video surveillance segment. The mix shift toward higher‑margin products helped lift gross margin to 29.8% from 28.5% a year earlier.
Operating income increased to $140 million from $133 million, reflecting the combined effect of margin expansion and the modest revenue decline in ADI. Gross margin expansion was largely due to pricing power and a favorable product mix, while operating income growth was supported by disciplined cost management across the organization.
Management reiterated its 2026 outlook, projecting full‑year revenue of $7.80 billion to $7.90 billion and adjusted EBITDA of $935 million to $985 million. The guidance exceeds analyst consensus and signals confidence in sustaining margin expansion and benefiting from the upcoming ADI spin‑off. A one‑time $1.59 billion payment to Honeywell to terminate an indemnification agreement was a non‑recurring charge that impacted 2025 cash flow.
Jay Geldmacher, Resideo’s president and CEO, said, “In the fourth quarter, Resideo delivered strong results that either exceeded or were at the high end of our outlook range. In 2025, Resideo exceeded the high‑end of our outlook range for all of our key financial metrics and achieved record highs in net revenue, Adjusted EBITDA and Adjusted EPS.” He added, “The Products and Solutions and ADI teams delivered outstanding results in 2025 by demonstrating resilience and operational excellence throughout a very dynamic year. These are part of our core values that will drive future standalone success for each company post business separation.” He also noted that the separation would allow the company to “focus on the core product portfolio and pursue double‑digit operating margins over the next 3‑5 years.”
Investors responded favorably to the robust 2026 guidance, with positive sentiment prevailing despite the mixed EPS print. The market reaction was driven primarily by the strong forward outlook and the anticipated value unlock from the ADI spin‑off. Headwinds such as the ERP implementation and HVAC inventory destocking were acknowledged, but management expects these issues to be resolved in the near term.
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