Resideo Pivots to Pure-Play Strategy Ahead of ADI Spin-Off

Resideo Technologies, which holds an installed base of over 150 million locations, is positioning itself as a streamlined building technologies entity. The strategic shift follows a period of consistent financial performance, marked by 12 consecutive quarters of gross margin expansion. Under the new plan, leadership intends to deepen its reliance on a professional installer network that handles more than 15 million installations annually.

Looking toward 2030, the company has set aggressive financial targets, including a compound annual growth rate of 4% to 5%. Management expects to expand gross margins by 400 basis points, aiming for a range of 43% to 45% by the end of the decade. These goals are supported by plans for international expansion and an increased focus on product innovation within the residential sector.

The separation of ADI Global Distribution is slated for completion on August 3, 2026, with the new entity expected to begin trading as ADIG on the New York Stock Exchange the following day. This move is designed to simplify the company’s operational structure, allowing management to evaluate every future investment through the single lens of its core residential sensing business.