Resideo Technologies (REZI) J.P. Morgan Industrials Conference 2025 summary

Company overview and evolution

• Operates two main segments: ADI (commercial distribution) and P&S (residential product development and manufacturing), with global reach and strong e-commerce presence.

• Acquired Snap One, expanding into residential AV and broadening product and customer base.

• Focused on professional integrators, with a robust relationship-driven value proposition.

• Post-Honeywell spin, prioritized fixing fundamentals and expanding gross margins.

Market environment and macro factors

• Residential segment is highly sensitive to housing resale and remodel activity, with resale being the most significant macro driver.

• Commercial segment growth tied to new and renovation projects; both segments face ongoing macro uncertainty.

• Inflation and interest rates are monitored, with cautious optimism for stabilization.

Tariff exposure and mitigation

• About 50% of P&S manufacturing is in Mexico; a 25% tariff could impact COGS by hundreds of millions annually.

• Short-term mitigation includes inventory positioning and price adjustments; long-term manufacturing footprint changes depend on tariff clarity.

• ADI has reduced China exposure, with most third-party products able to pass on price increases.