In the most recent session, shares of Resideo Technologies, Inc. (NYSE: REZI) saw a significant increase, finishing 16.17% higher at $28.52. The profit came as the firm revealed plans to separate its ADI Global Distribution business through a tax-free spin-off to shareholders as part of a major corporate reorganization.
Separation of ADI and Products & Solutions
After the spin-off is complete, ADI will function as a stand-alone public business, while Resideo’s Products & Solutions (P&S) division will continue to use the Resideo brand.
Enhancing strategic focus, agility, and resource allocation that is specific to each organization is the goal of the shift. Under the direction of Rob Aarnes, ADI will remain a top worldwide wholesale distributor of low-voltage goods, such as security and video equipment. P&S will continue to concentrate on home controls and sensing solutions under Tom Surran’s direction.
Market Position and Strategy for Growth
Resideo highlighted its extensive market reach, pointing to over 15 million installs annually and a network of 100,000 qualified installers. Its portfolio covers air, safety, security, water, and energy solutions and includes well-known brands including Honeywell Home, First Alert, Braukmann, and BRK.
The P&S division produced $2.6 billion in net sales and an adjusted EBITDA margin of 24.2% for the 12 months that concluded on March 29, 2025. With more than 500,000 expertly installed systems, ADI caters to both commercial and residential sectors in the areas of access control, audio-visual, security, fire, and smart living.
Its competitive posture is strengthened by exclusive brands such as WattBox, OvrC, Araknis Networks, and Control4. The company expects continued organic growth, supported by selective M&A activity.
Honeywell Agreement to Eliminate Long-Term Obligations
Separately, Resideo reached a definitive agreement with Honeywell International to resolve all future monetary obligations under the Indemnification and Reimbursement Agreement.
Resideo will make a one-time cash payment of $1.59 billion in the third quarter of 2025, alongside its regular third-quarter payment of $35 million completed on July 29, 2025. This settlement will terminate the agreement, removing the requirement for annual payments of up to $140 million through 2043 and releasing associated covenants.
