Why This Matters to Distributors: ADI’s separation would create one of the largest publicly traded wholesale distributors serving security, low-voltage, audiovisual and smart building markets, potentially accelerating investment, acquisition activity, and competition across those channels.
Resideo Technologies has moved closer to separating its ADI Global Distribution business into an independent public company, filing updated registration documents with federal regulators, and providing added details on the size and performance of the distribution operation ahead of the planned spin-off.
The Scottsdale, Arizona-based company said June 4 that it filed an amended Form 10 registration statement with the U.S. Securities and Exchange Commission that includes ADI’s financial results through April 4. The filing is a required step in the process of separating ADI from Resideo’s Products and Solutions business. Resideo continues to target completion of the transaction between the middle of the third quarter and the middle of the fourth quarter.
The move comes a year after Resideo announced plans to split its manufacturing and distribution operations into two standalone companies, arguing that each business would benefit from having its own management team, capital priorities, and growth strategy.
For distributors, the significance of the deal extends beyond corporate restructuring.
ADI is one of the largest specialty distributors serving professional contractors, systems integrators, and installers. The company distributes security, fire and life-safety, access control, surveillance, networking, audiovisual, smart home and building automation products through a global network of branches, distribution centers, and ecommerce platforms. Its customers include security integrators, commercial building contractors, low-voltage specialists, and residential technology installers.
The latest filing shows the scale of the business that will emerge as a standalone distributor.
Resideo expects ADI to generate between $1.24 billion and $1.26 billion in second-quarter revenue, representing two-thirds of the parent company’s total quarterly sales. The company said ADI’s performance is tracking at or above the midpoint of its forecast, supported by low-single-digit average daily sales growth compared with the same period a year ago. Reported revenue is expected to be slightly lower because the second quarter includes one fewer selling day than the comparable period in 2025.
On an annualized basis, ADI is operating at a revenue run rate approaching $5 billion, placing it among the largest publicly traded specialty distribution companies serving technology, security, and smart building markets.
Resideo also said it expects ADI’s revenue and operating performance to improve during the second half of 2026 compared with the second half of 2025.
The separation will leave Resideo focused on manufacturing and product development. That business includes residential and commercial controls, sensors, safety products, and connected technologies sold under brands such as First Alert, Honeywell Home, BRK and Control4. Resideo said its products are installed in more than 150 million residential and commercial buildings worldwide.
Once separated, ADI will have greater flexibility to pursue strategies tailored specifically to wholesale distribution. Industry observers will be watching closely to see whether the company expands through acquisitions, invests more aggressively in ecommerce and digital capabilities, or broadens its presence in adjacent technology and infrastructure markets.
The transaction also reflects a broader trend across distribution and industrial markets, where companies have increasingly separated manufacturing and distribution businesses to sharpen strategic focus and give investors a clearer view of each operation’s performance. Similar moves have occurred across logistics, industrial supply, and transportation sectors in recent years.
As part of the next phase of the separation process, Resideo and ADI will host separate investor days at the New York Stock Exchange on July 13 and July 14. Company executives are expected to outline each business’s long-term strategy, operating priorities, and growth plans as independent companies.
Resideo has not yet disclosed the future leadership team, stock ticker, or exact separation date for ADI. Those details are expected to emerge as regulatory review of the transaction progresses.
If completed as planned, the spin-off will create a standalone distribution company with a global footprint, billions of dollars in annual sales and a leading position in security, low-voltage infrastructure, and smart building technology markets.
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