Resideo operates in the smart home market, projected to surge from $53 billion in 2018 to over $250 billion by 2029. The biggest driver is smart appliances, with strong growth also in control & connectivity and security, while comfort, lighting, and energy management add depth to the ecosystem. Resideo also focus in the global HVAC and energy‑efficiency market, which is forecast to grow from about $200 billion in 2018 to over $300 billion by 2029. It supplies thermostats, zoning systems, and air and water solutions that align with rising regulatory demands for decarbonization and healthier indoor environments. Alongside this, it remains a key player in electronic security systems, with intrusion, fire, and video products that are core to the connected home. Its reach also extends into plumbing, hydronics, and energy infrastructure, where water controls, leak detection, boilers, and heat pumps meet the growing push for sustainable and reliable building solutions. Through ADI Global Distribution, Resideo also stands as a major player in the low‑voltage distribution market, covering physical security, residential and professional A/V, and data communications hardware for both commercial and residential applications. Resideo operates through two segments. Products & Solutions (P&S) designs and manufactures comfort, air, water, energy, safety, and security products under brands like Honeywell Home, First Alert, and Braukmann. It powers connected ecosystems with over 12.8 million connected customers, delivering cloud‑based control and insights. ADI Global Distribution, with more than 200 locations in 17 countries, distributes over 500,000 products from 1,000+ suppliers to 100,000+ professional customers. The June 2024 Snap One acquisition expanded ADI’s smart living portfolio, adding platforms such as Control4 and OvrC. In 2024, ADI generated about 62% of revenue, with P&S at 38%. Within P&S, the company addresses a $25 billion market growing mid‑to high‑single digits through 2025. The air segment ($9B, +5% CAGR) spans thermostats, IAQ, humidifiers, hydronics, and zoning, benefiting from efficiency regulations and health trends. Security ($11B, +8% CAGR) covers intrusion and video surveillance, both professional and DIY, and is the fastest‑growing vertical. Water ($2B, +4% CAGR) includes potable controls, backflow, and leak detection, addressing rising concerns over scarcity and damage prevention. Energy ($3B, +2% CAGR) covers furnaces, boilers, heaters, and heat pumps—steady but slower‑growth essentials. On the distribution side, ADI Global Distribution touches an even larger $85 billion opportunity, growing in the low‑to mid‑single digits. Its core strength is in physical security supplying life‑safety devices, access control, and monitoring systems professionally installed in both residential and commercial settings. Growth opportunities include residential A/V, where smart home automation, control, and networking devices are increasingly integrated into everyday living spaces; professional A/V, where commercial installations of visual and audio systems continue to expand; and data communications, an enormous $60+ billion market covering cabling, accessories, and networking hardware essential to both residential and commercial infrastructure. Resideo closed 2024 with net revenue of $6.76 billion, up 8% from 2023, supported by a solid mix across Products & Solutions (P&S, 38% of sales) and ADI Global Distribution (62%). Gross profit climbed to $1.90 billion, with consolidated gross margin steady at 28%. Operating income was $520 million, translating to an operating margin of about 7.7%. By segment, ADI continued to anchor scale, while P&S leaned on connected ecosystems (12.8 million connected users) and new products in air and security. Adjusted EBITDA came in near $740 million, reflecting higher SG&A and amortization tied to Snap One and integration costs. Regional exposure remained diversified, with roughly three‑quarters of revenue generated in North America, supplemented by Europe and selective international markets. Net income fell by 56% to $91 million (EPS $0.61, versus $1.42 in 2023), pressured by higher interest expense ($81 million) and tax ($105 million). Cash from operations was stable at $444 million, with FCF of $364 million after CapEx of $80 million. Momentum accelerated in Q2 2025, with net revenue up 22% YoY to $1.94 billion, driven by ADI (+33% to $1.28 billion) and steady growth in P&S (+6% to $666 million). Gross margin widened to 29.3%, powered by efficiency and stronger mix. Segment detail shows P&S gross margin at 42.9%, supported by plant utilization and new Honeywell Home and First Alert launches, while ADI gross margin expanded to 22.2%, aided by Snap One integration, e‑commerce (+19%), and Exclusive Brands (+32%). Adjusted EBITDA rose 20% to $210 million, with segment EBITDA at $167 million for P&S (+7%) and $107 million for ADI (+39%), reflecting both margin expansion and scale leverage. The quarter showed a net loss of $825 million, entirely from the $882 million one‑time Honeywell settlement charge. Cash from operations reached $200 million, more than double Q2 2024. Geographically, growth was led by North America, with strong contributions from commercial customers and retail channels. Management raised FY25 guidance to $7.45–$7.55 billion in revenue, $845–$885 million in adjusted EBITDA (11–12% margin), and $2.75–$2.87 EPS, while guiding Q3 to revenue of $1.85–$1.90 billion, adjusted EBITDA of $220–$240 million, and EPS of $0.70–$0.76. Resideo’s key risk remains competition, especially from big tech platforms expanding in the connected home and the ongoing shift toward DIY and e‑commerce, both of which threaten its professional‑installer base. Operationally, supply chain, tariffs, and FX still pose challenges, though reliance on USMCA manufacturing and supplier diversification helps soften the impact. The bigger execution tests in 2025 are closing the Honeywell indemnity termination on schedule and completing the P&S–ADI separation without disruption or value loss. Resideo is now bigger, more profitable, and with stronger cash flow. The first half of 2025 reinforced that trend, with double‑digit revenue growth, margin gains, and solid operating cash. While the Honeywell charge obscures GAAP earnings, it clears a major overhang and positions the company for cleaner capital allocation and a clearer equity story post‑separation. Execution on integration, separation, and tariff mitigation – alongside product innovation and ADI’s digital growth – could make 2026 stronger than the past three years.

Resideo Technologies, Inc. : Common to every home

Resideo Technologies, Inc., a 2018 spin‑off from Honeywell, is a leading provider of smart‑home, HVAC, and low‑voltage distribution solutions. The company operates through Products & Solutions (P&S) and ADI Global Distribution, generating $6.76 billion in 2024 revenue and $1.94 billion in Q2 2025, with 12.8 million connected customers. A $882 million one‑time Honeywell settlement caused a Q2 net loss, but the company’s adjusted EBITDA rose to $210 million. Resideo raised FY25 guidance to $7.45–$7.55 billion in revenue and $845–$885 million in adjusted EBITDA, while expanding its smart‑living portfolio via the Snap One acquisition (Control4, OvrC). The firm faces competition from big‑tech platforms and DIY e‑commerce, but its diversified North American and European presence, strong cash flow, and ongoing separation from Honeywell position it for growth in 2026.