Resideo Technologies (REZI) Investor Day 2026 summary

Strategic direction and business transformation

• Transitioning to a pure-play building technologies company following the planned spin-off of ADI Global Distribution, with all decisions centered on value creation in core residential sensing and control markets.

• Four strategic pillars guide growth: accelerating differentiated solutions, focusing on professional customers, geographic expansion, and leveraging scale for efficiency and innovation.

• Leveraging a strong installed base of over 150 million locations and deep relationships with more than 100,000 professional installers to drive growth and innovation.

• Targeting adjacencies such as ventilation, access control, and hydronics control to extend capabilities and drive incremental growth.

• Investments in R&D, digital supply chain, and automation are driving faster new product introductions, operational efficiency, and margin expansion.

Financial guidance and performance targets

• Post-spin, standalone revenue for FY2025 is $2.9B, with a gross margin of 39.5% and adjusted EBITDA margin of 20.3%.

• Targeting 4%-5% compounded annual revenue growth through 2030, up from a 1.5% rate over the past three years, driven by new products, pricing, and strategic expansion.

• Aiming for gross margin expansion of approximately 400 basis points, reaching 43%-45% by 2030, and adjusted EBITDA margin of 23%-25%.

• Strong cash flow generation, with a goal to raise free cash flow conversion from 89% to above 92% by 2030, and a priority to reduce net leverage from 3.3x to below 2.0x within 24 months.

• Capex-light model supports strong free cash flow, with targeted EBITDA less capex conversion above 92% by 2030.

Innovation, product development, and market positioning

• Accelerated new product introductions, including refreshed thermostat and safety portfolios, and the launch of the FORTIQ platform, reducing NPI cycle times and increasing NPI revenue to $900M.

• Integrated solutions across comfort, protection, and safety, with a focus on professional installers and channel partners as key growth drivers.

• Maintains #1 brand positions in North American residential thermostats and fire safety hardware, with high Net Promoter Scores and strong professional loyalty.

• Product innovation is recognized by industry awards, and the ecosystem leverages proprietary connectivity (Redlink Plus) and AI-driven platforms (FORTIQ) for integrated home management.

• Expansion into international markets, particularly Europe, and targeting new segments such as small and medium businesses.