#USA #Scottsdale #financial results #Q3 2025 #Resideo Technologies

Resideo Technologies Reports Strong Q3 2025 Financial Performance

On November 5, 2025, Resideo Technologies, Inc. (NYSE: REZI) reported impressive financial results for the third quarter ending September 27, 2025, demonstrating the company’s robust operational health and strategic product launches. The company achieved net revenues of $1.86 billion, marking a 2% increase from $1.83 billion in the same quarter of the previous year.

One of the notable highlights of this quarter was the record-high net income, reaching $156 million, a significant leap of 680% compared to the previous year's income of $20 million. This surge in profitability can be attributed to effective cost management and strong demand for their innovative products, particularly in the heating, ventilation, air conditioning, and safety markets. The adjusted EBITDA also reflected positive growth, climbing 21% year-over-year to achieve $229 million.

Financial Highlights

• - Net Revenue: $1.86 billion.
• - Year-over-Year Growth: Up 2% from $1.83 billion in Q3 2024.
• - Net Income: Reached $156 million, up from $20 million a year ago.
• - Adjusted EBITDA: Increased to $229 million, up 21% from $190 million in Q3 2024.
• - Gross Margin: Achieved a record 29.8%, representing a 110 basis point improvement year-over-year.

Segment Performance

The company's two main business segments, ADI Global Distribution (ADI) and Products & Solutions (PS), both reported net revenue growth of 2%. The PS segment alone generated $661 million in revenue, supported by increasing customer demand for new offerings, including premium smart thermostats such as ElitePRO and X8S.

On the other hand, ADI's revenues were reported at $1.2 billion, benefiting from a 3% growth in average daily sales. This growth is noteworthy despite fewer selling days this quarter, which were impacted by planned store closures to implement a new ERP system. Notably, ADI achieved a gross margin of 22.6%, signaling solid operational efficiency and effective cost management strategies.

Product Innovations

Jay Geldmacher, Resideo’s President and CEO, emphasized the significance of new product launches during this quarter, stating, "We are excited about the momentum we are generating in the market, with the launch of several new products this quarter. Our ElitePRO premium smart thermostats are selling extremely well, and we believe our focused execution in 2025 will carry this positive momentum forward."

Product revenue growth was led by customer demand for safety devices such as the First Alert SC5 connected smoke and carbon monoxide detectors. The OEM channel also reported increased revenues due to a strong price realization strategy.

Cash Flow and Future Outlook

Despite the impressive growth, Resideo faced challenges in cash flow, reporting $1.57 billion used in operating activities this quarter. After accounting for a significant one-time payment of $1.59 billion to terminate an indemnification agreement with Honeywell, the adjusted cash provided by operations was a modest $19 million. Resideo ended the quarter with $345 million in cash and cash equivalents amid total gross debt of $3.24 billion.

Looking forward, Resideo provided its outlook for the fourth quarter of 2025, projecting net revenues between $1.85 billion and $1.89 billion and an adjusted EBITDA of $211 million to $225 million. The company anticipates continued positive performance driven by strategic product introductions and operational efficiencies.

In summary, Resideo's Q3 2025 results reflect strong financial health and a commitment to innovation, positioning the company well as it prepares for its anticipated separation into two independent publicly traded entities, expected to be completed in the second half of 2026.