Resideo Technologies (REZI) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic milestones and corporate actions

• Terminated a major indemnification agreement with Honeywell in July 2025, settling for $1.625 billion, funded by cash and new debt, removing significant financial overhang and restrictive covenants.

• Announced intent to separate the ADI Global Distribution business, aiming for a second half of 2026 completion, with dedicated Investor Days and leadership appointments for both entities.

• Board unanimously chose a spin-off over a sale for ADI, citing optimal value creation and stakeholder benefit.

• CD&R, a significant shareholder, collaborates constructively with management and board, providing industry expertise and capital markets insight.

Industry and market outlook

• Housing market remains below equilibrium, with annual home builds 300,000 units short and total stock 4.7 million below demand, creating future tailwinds.

• HVAC market faced inventory headwinds in 2025 due to refrigerant transition, impacting revenue, but recovery is expected by end of Q1 or Q2 2026.

• Security and safety segments are positioned for growth, with new product launches and improved customer relationships.

Product innovation and growth opportunities

• Significant investments in HVAC controls, safety (First Alert), and security, with new global platforms and products launching in 2026.

• OEM business developing products for 2029–2030, indicating a long-term innovation pipeline.

• Security business shifting from OEM to branded products, with a new platform (Fortik) launching in the back half of 2026.