Resideo Technologies (REZI) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 net revenue of $7.47 billion, up 11% year-over-year, with Adjusted EBITDA of $833 million, and Adjusted EPS of $2.68, exceeding outlook ranges despite a dynamic macroeconomic environment.

• The company is separating into two independent public entities, Products & Solutions (P&S) and ADI Global Distribution, each with focused leadership and strategies, targeting completion in the second half of 2026.

• A one-time $1.59 billion payment terminated the Honeywell Indemnification Agreement, resulting in a net loss of $527 million for 2025 but unlocking $35 million in quarterly EBITDA and increasing financial flexibility.

• Operational stabilization was achieved, including ERP implementation at ADI and realization of significant synergies from the Snap One acquisition.

• Multiple industry awards and recognitions were received in 2025 and 2026.

Financial highlights

• 2025 net revenue reached $7.47 billion, up 11% year-over-year; Adjusted EBITDA was $833 million, up 20% year-over-year; Adjusted EPS was $2.68, up 17% year-over-year.

• Q4 2025 net revenue was $1.895 billion, up 2% year-over-year; Adjusted EBITDA was $226 million, up 21% year-over-year; gross margin was 29.6%, up 110 basis points.

• Full year gross margin expanded 130 basis points to 29.4%.

• Adjusted cash provided by operations was $453 million, after excluding the $1.59 billion Honeywell payment.

• Year-end cash and equivalents were $661 million, with total debt of $3.23 billion.

Outlook and guidance

• 2026 net revenue expected between $7.8 billion and $7.9 billion; Adjusted EBITDA forecasted at $935 million–$985 million; Adjusted EPS at $3.00–$3.20.

• Q1 2026 net revenue guidance: $1.866 billion–$1.890 billion; Adjusted EBITDA: $193 million–$207 million; Adjusted EPS: $0.58–$0.62.

• Both segments expected to grow revenue year-over-year in 2026, with ADI outpacing P&S and modest gross margin expansion anticipated, especially in P&S.