Resideo Technologies (REZI) Investor Day 2026 summary

Strategic vision and business transformation

• Transitioning to a pure-play building technologies company focused on residential sensing and controls, following the planned spin-off of ADI Global Distribution, to sharpen focus and unlock value for investors.

• Four strategic pillars guide growth: accelerate differentiated solutions, focus on the professional, expand geographically, and leverage 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 for future growth, leveraging existing capabilities and customer relationships.

• Emphasis on integrated solutions and platforms (e.g., FORTIQ, RedLINK+) to enable whole-home contextual awareness and intelligence.

Financial guidance and performance targets

• Post-spin, standalone revenue for 2025 is $2.9 billion, with a gross margin of 39.5% and adjusted EBITDA margin of 20.3%.

• Targeting 4%-5% compounded annual revenue growth through 2030, with gross margin expansion of approximately 400 basis points to 43%-45%, and adjusted EBITDA margin of 23%-25% by 2030.

• Achieved 12 consecutive quarters of gross margin expansion, with a cumulative +360bps improvement since FY23 and free cash flow conversion above 85% for the last three years.

• Strong cash flow generation, with a goal to raise cash 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.

• Capital allocation priorities: near-term deleveraging, organic reinvestment, selective M&A in adjacencies, and future shareholder returns.

Product innovation and operational excellence

• Accelerated new product introductions, with development cycles reduced from two years to one, and tripled NPI revenue since 2023 to over $900 million.

• Investment in platforms (FORTIQ, RedLINK+) enables faster innovation, global product platforms, and integrated solutions across comfort, protection, and safety.

• Enhanced manufacturing efficiency through vertical integration, regional manufacturing, and automation, including deployment of over 300 cobots and plans for 300 more.

• Achieved a 65% improvement in cost of poor quality over three years, with continuous improvement in yield, quality, and inventory management.

• Sustainability initiatives include solar panel installations and water savings, supporting operational resilience and environmental goals.