Resideo Completes ADI Spin-off to Focus on Building Technologies
The company introduced a medium-term framework targeting a revenue compound annual growth rate of 4% to 5% through 2030
Resideo Technologies (REZI), the building technologies provider, completed the spin-off of ADI Global Distribution on August 4, 2026. The move transitioned the company into a pure-play building technologies entity, following a series of announcements regarding the separation in May and July 2026.
To facilitate the separation, Resideo repaid $900 million of outstanding principal under its Term Loan B credit facility. The company expects to make an additional repayment of approximately $200 million by the end of the third fiscal quarter 2026.
In conjunction with the structural shift, Resideo introduced a medium-term financial framework for 2025 through 2030. The company is targeting a revenue compound annual growth rate of 4% to 5% and gross margin expansion of approximately 400 basis points, aiming for a range of 43% to 45% by 2030.
Resideo also targeted an Adjusted EBITDA margin expansion of approximately 400 basis points, with a goal of 23% to 25% by 2030. These targets follow a period of growth in the first quarter of 2026, when total company net revenue rose 8% year-over-year to $1.91 billion.
During that first quarter, the Products & Solutions segment saw revenue increase 9% and the ADI segment rose 8%. Total company Adjusted EBITDA for the period rose 28% year-over-year to $215 million, up from $168 million in the first quarter of 2025.
Profitability trends diverged by segment in the first quarter of 2026. The Products & Solutions segment's gross margin expanded 40 basis points year-over-year to 41.8%, marking 12 consecutive quarters of year-over-year gross margin expansion. Conversely, the ADI segment's gross margin compressed 40 basis points year-over-year to 21.2%.
Resideo also reduced its Series A Cumulative Convertible Participating Preferred Stock by 150,000 shares. This left 350,000 shares of the preferred stock outstanding.