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Resideo Technologies: Resideo Technologies Delivers Strong FY 2025 Results, Sets Stage for 2026 Growth

Resideo Technologies reported total net revenue of $1.895 billion for the fourth quarter, up 2% year-over-year, including a 1% favorable impact from currency. Net revenue exceeded the high end of the outlook range. Gross margin in the quarter was 29.6%, up 110 basis points year-over-year, driven by continued operating efficiencies of Products & Solutions (P&S) and favorable price and mix at ADI. Adjusted earnings per share was $0.50, at the high end of the outlook range. For the full year 2025, Resideo reported record highs in net revenue, adjusted EBITDA, and adjusted EPS, with P&S growing organic net revenue by 4% year-over-year and ADI growing organic net revenue by 3% year-over-year.

REZI

USD 40.86

14.39%

A-Score: 4.8/10

Publication date: February 24, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Business Separation Progress: Anticipated separation in H2 2026, with ongoing planning and expected Form 10 filing soon.
  • Products & Solutions Growth: Organic net revenue up 4% YoY in 2025, gross margin expanded 110 bps to 29.6%.
  • ADI Operational Stabilization: ERP system fully implemented; e-commerce revenue grew 3% YoY despite 50 bps revenue decline in Q4.
  • Total Financial Performance: Net revenue $1.895B (up 2% YoY), adjusted EPS $0.50 (high end of outlook), exceeding revenue guidance.
  • 2026 Outlook: ADI growth projected higher than P&S, with margin expansion and $75M synergy acceleration from Snap One acquisition.

Segment Performance

P&S delivered strong results, with net revenue growing 6% year-over-year in the fourth quarter, driven by both volume and price across many product families and sales channels. ADI reported a decline of 50 basis points in net revenue year-over-year, but achieved operational stabilization with the new ERP system. E-commerce net revenue and average daily sales grew 3% year-over-year, continuing the trend of Resideo's digital experience becoming a bigger part of ADI's total revenue.

2026 Outlook

Resideo anticipates both business segments to achieve year-over-year net revenue growth in 2026, with ADI expected to grow at a higher rate than P&S. The company forecasts slightly higher revenue in the second half versus the first half, in line with last year's seasonality. Resideo aims to drive greater operating leverage in 2026 versus 2025, while still investing in both businesses to drive future growth. Analysts estimate next year's revenue growth at 3.9%.

Valuation

With a P/E Ratio of -11.63 and an EV/EBITDA of -68.44, Resideo's valuation multiples indicate a potentially undervalued stock. The company's ROE (%) is -18.1, and ROIC (%) is 9.09. Actual EPS came out at $0.877, significantly beating estimates at $0.47. The stock's current valuation metrics suggest that the market may be underestimating Resideo's growth prospects.

Spin-Off and Growth Initiatives

Resideo's spin-off of ADI is progressing according to plan, with the company expecting to file a public Form 10 in the near future. ADI's product launches are expected to drive growth, with the company confident in its product roadmap. The acquisition of Snap One is also expected to drive growth, with Resideo having accelerated synergies and achieved $75 million in synergies 18 months sooner than expected.

Resideo Technologies's A-Score