Resideo Technologies, a spin-off from Honeywell established in 2018, reported strong financial and operational performance in Q2 2025, with net revenue up 22% year-over-year to $1.94 billion, driven by growth in its ADI Global Distribution segment (+33% to $1.28 billion) and steady performance in Products & Solutions (+6% to $666 million). The company achieved a widened gross margin of 29.3%, with segment margins improving—P&S at 42.9% and ADI at 22.2%. Adjusted EBITDA rose 20% to $210 million, reflecting margin expansion and scale leverage. Despite a net loss of $825 million due to a one-time $882 million Honeywell indemnity settlement charge, Resideo maintains a solid cash flow of $200 million and has raised full-year 2025 revenue guidance to $7.45–$7.55 billion, with adjusted EBITDA guidance of $845–$885 million and EPS of $2.75–$2.87. The company is focused on completing the separation of its Products & Solutions and ADI Global Distribution segments, closing the Honeywell indemnity obligations, and advancing product innovation and digital growth in smart home, energy efficiency, and security markets. Key growth areas include connected ecosystems with 12.8 million users, expanding low-voltage distribution, and smart home automation through acquisitions like Snap One. Resideo operates in North America, Europe, and select international markets, with three-quarters of revenue generated in North America.

Resideo Technologies Inc (NYSE:REZI) reached a new 52-week high of $29.74, reflecting a 48.89% increase in stock price over the past year and a market cap of $4.09 billion. The company reported strong second-quarter 2025 financial results, exceeding earnings and revenue expectations with an earnings per share of $0.66 (vs. projected $0.54) and revenue of $1.94 billion (vs. expected $1.83 billion). This marks the strongest organic revenue growth in 15 quarters and nine consecutive quarters of gross margin expansion in its Products & Solutions segment. Morgan Stanley upgraded the stock from Equal Weight to Overweight, raising its price target from $24.00 to $35.00, indicating a 27% upside. Analysts and platforms like InvestingPro suggest the stock is trading near its fair value and may represent a potential undervalued opportunity in the current market.

Resideo Technologies (REZI) saw a significant stock surge of 14.02% to $31.33 on Tuesday following the completion of a $1.59 billion buyout to terminate its long-standing indemnification agreement with Honeywell International. The deal, finalized on July 30, removes a major structural overhang that previously constrained corporate actions and negatively impacted earnings expectations. Morgan Stanley analyst Erik W. Woodring upgraded Resideo from Equal-weight to Overweight, raising the price target from $24 to $35. The move is expected to boost non-GAAP earnings per share (EPS) to $3.02 for calendar year 2026, representing a 23% increase over consensus estimates. The termination of the indemnification, which required $140 million in annual cash payments through 2043, is seen as transformational, adding approximately 40 cents to annual EPS even after financing costs. The company also plans to separate from ADI Global in the second half of 2026, which is expected to strengthen its sum-of-the-parts valuation.

Resideo Technologies Inc. announced strategic changes at the Oppenheimer 28th Annual Technology, Internet & Communications Conference on August 11, 2025, including the separation of its ADI distribution business and Products and Solutions (P&S) segment to enhance shareholder value and enable independent growth. The company reported strong Q2 performance, with both ADI and P&S demonstrating robust execution, including P&S achieving nine consecutive quarters of gross margin expansion. Adjusted EBITDA guidance for the year was increased by $100 million, primarily due to ceasing payments to Honeywell and Q2 outperformance. The integration of SnapOne has exceeded its $75 million synergy target, and ADI launched 400 new products under exclusive brands. ADI is transitioning to a new ERP system in the Americas to improve operational capabilities, while P&S is focusing on new product innovation and revitalizing its air product line by consolidating 117 platforms into one. Both entities are expected to achieve financial independence with Resideo targeting a near-investment-grade credit rating and a leverage level of around two times.

A recent market research study by HTF MI Research evaluates the global connected home security system market, projecting it to grow at a CAGR of 8.25% from 2024 to 2030. The market is currently valued at USD 45.07 billion and is expected to reach USD 72.3 billion by 2029. The report segments the market by type, security model, distribution channel, and geography, highlighting key drivers such as rising home automation, smart city initiatives, and cloud-based technologies. Major players include ADT (United States), Allegion (Ireland), ASSA ABLOY (Sweden), Control4 Corporation (United States), Godrej (India), Hikvision (China), Honeywell International (United States), Johnson Controls (Ireland), Legrand (France), Resideo Technology (United States), Scout Security (United States), and STANLEY Convergent Security Solutions (India). The study identifies trends like remote alarming, AI integration, and pocket drone usage, and outlines opportunities in emerging markets and smart city projects.