Resideo Technologies reported strong third-quarter results marked by record profitability and continued margin expansion across its distribution and manufacturing segments, underscoring operational strength as the company prepares to separate into two independent businesses.
The maker and distributor of smart-home and building technology products said revenue rose 2% to $1.86 billion, while net income surged to $156 million from $20 million a year earlier, a 680% increase.
Year to date, sales rose 14% to $5.58 billion, reflecting balanced growth at both ADI Global Distribution and Products & Solutions, which each posted 2% revenue gains in the quarter.
“We delivered another strong quarter driven by solid execution,” said Jay Geldmacher, president and CEO. “Our teams continued to manage through the ERP transition while expanding margins across both businesses.”
At ADI Global Distribution—the company’s low-voltage and building technology distribution arm—president Rob Aarnes said the business has stabilized after implementing a new enterprise resource planning system in August.
“Operations on the new system are now running smoothly, and we are driving progressive improvement in our revenue run rate,” Aarnes told investors. “In October, we saw increased customer engagement and pipeline size, resulting in our order rates approaching pre-implementation levels.”
Despite the system rollout, ADI maintained margin momentum. Its gross margin improved to 22.6%, the sixth consecutive quarter of expansion, supported by pricing discipline and product mix. Aarnes said ecommerce revenue also grew 3% year over year, reinforcing ADI’s omnichannel strength.
Resideo’s Products & Solutions division posted steady growth on the back of new connected devices under its First Alert and Honeywell Home brands.
“Demand for our new products, including the First Alert combined smoke and CO connected detectors, continues to be strong,” said Tom Surran, president of the segment. He highlighted the recent launch of the ElitePRO smart thermostats, which feature “the largest touchscreens in their class” and integrate with video doorbells and air-quality sensors.
Surran said the new thermostats run on Resideo’s Pro-IQ cloud platform, which helps professional installers “streamline labor, increase loyalty, and generate leads.”
Geldmacher reaffirmed that Resideo remains on track to divide into two publicly traded companies, ADI, and Products & Solutions—by the second half of 2026. “Our various work streams are proceeding with pace and discipline,” he said, noting that Aarnes and Surran will serve as CEOs of the newly independent firms once the spin is complete.
“The momentum we’re generating today will be a tailwind for both companies as we enter the next phase of growth,” Geldmacher said.
Resideo shares were little changed following the report, as investors weighed continued operational progress against the execution risks of its upcoming split. Analysts said the results reinforced the company’s improving profitability and margin discipline heading into 2026.
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