Resideo Technologies (REZI) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 net revenue of $7.5 billion, up 11% year-over-year, with Adjusted EBITDA of $833 million, up 20%, and Adjusted EPS of $2.68, up 17%.

• Reported a full year net loss of $527 million due to a one-time $1.59 billion payment to terminate the Honeywell Indemnification Agreement, unlocking $35 million in quarterly EBITDA and increasing financial flexibility.

• The company is separating into two independent public entities, Products & Solutions (P&S) and ADI Global Distribution, with the split anticipated in the second half of 2026.

• Products and Solutions saw strong demand and margin expansion; ADI achieved operational stabilization and is positioned for future growth.

• Announced leadership for the two new companies post-separation and received multiple industry awards in 2025 and 2026.

Financial highlights

• Full-year 2025 net revenue was $7.5 billion, up 11% year-over-year; Adjusted EBITDA reached $833 million, up 20%; Adjusted EPS was $2.68, up 17%.

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

• Adjusted cash provided by operations for FY25 was $453 million, after adding back the one-time Honeywell payment.

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

• 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–$7.9 billion; Adjusted EBITDA $935–$985 million; Adjusted EPS $3.00–$3.20.

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

• Both segments expected to grow revenue in 2026, with ADI forecasted to outpace P&S.

• Modest gross margin expansion anticipated, with greater expansion in P&S.

• Guidance projects continued revenue and earnings growth, with business separation on track for the second half of 2026.