Resideo Technologies (REZI) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Company overview and strategic direction

• Operates two segments: Products & Solutions (P&S) focused on residential control and sensing, and ADI, a distribution business for security and AV products.

• Announced a tax-free spin-off to separate P&S and ADI into standalone companies, targeted between mid-Q3 and mid-Q4.

• Leadership continuity planned post-separation, with CFO roles aligned to each segment and ongoing recruitment for P&S CFO.

• Each segment will host its own investor day in mid-July to outline standalone strategies.

P&S segment: Market environment and strategy

• Residential market remains subdued, with growth mainly in repair rather than remodel; future tailwinds expected as rates improve.

• Over 50% of exposure is to the repair and remodel market, with additional opportunities in maintenance and multi-family units.

• Competitive advantages include strong brands (Honeywell Home, First Alert, BRK), scale, and a focus on professional channels.

• Margin expansion driven by operational efficiencies, supply chain optimization, and some pricing power from new product introductions.

• Manufacturing is nearshored to Mexico for North America, with ongoing investments in automation and flexibility to adapt to regulatory changes.

P&S segment: Innovation and connected products

• Recurring revenue already generated via security monitoring services (AlarmNet); future focus on expanding connected product ecosystem.

• Plans to enable interoperability within its ecosystem and with third-party products, supported by a software layer.