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what it is
Resideo sells the thermostats, alarms, sensors, and installer supply-chain gear that keep houses running and monitored.
how it gets paid
Last year Resideo Tech made about $7.47B in revenue. security panels and alarms was the main engine at $1.9B, or about 25% of sales.
why it's growing
Revenue grew about 11% in FY2025. Gross margin improved to 29.6%, up 110 basis points compared to the same period last year, driven by operational efficiencies in the products and solutions.
what just happened
Latest quarterly EPS came in at $0.50 versus the $0.47 estimate, but the bigger story was gross margin holding near 29%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
13.2x trailing p/e — the market's not buying it — or you found a deal
11.0% return on capital — nothing to write home about
xvary composite: 46/100 — below average
What they do
Resideo sells the thermostats, alarms, sensors, and installer supply-chain gear that keep houses running and monitored.
Resideo wins by being where installers already buy. Its ADI distribution arm sells the boring parts you need now, not next week, and that habit matters when annual revenue is already about $7.47 billion. Switching costs (changing suppliers) → retraining crews and changing workflows → your contractor loses time, and time is money.
How they make money
$7.47B
annual revenue (FY2025) · their business grew about +11% vs. prior year
security panels and alarms
$1.9B
sensors, wire and cable
$1.5B
temperature and humidity controls
$1.6B
water and air solutions
$1.3B
remote patient monitoring software
$0.3B
ADI distribution and other
$0.9B
The products that matter
security and low-voltage distribution
ADI Global Distribution
named as a core segment in company commentary
this is the scale story. the page ties ADI to the broader ~$7.47B revenue base and to favorable price and mix in the latest quarter. when distribution works, margins usually look smarter than the underlying products business.
distribution edge
home comfort and security products
Products and Solutions
Q4 revenue +6%
this segment grew 6% in the fourth quarter, supported by demand across multiple product families and channels. that is the cleaner growth datapoint on the page.
latest growth
margin driver across the portfolio
price, mix and operating efficiency
29.6% gross margin
gross margin improved 110 basis points from a year ago to 29.6%. that is not a product line, but it is the operating lever that mattered most in the latest report.
the key lever
Key numbers
13.2x
trailing p/e
You are paying 13.2 times trailing earnings for a business expected to grow EPS from $2.68 in 2025 to $3.50 by 2027. Cheap is the story.
$3.3B
long debt
Debt is the quiet part. It equals 38% of capital, which limits buybacks, acquisitions, and your margin for error.
15.0%
operating margin
Operating margin (profit after running the business) → what the company keeps before interest and taxes → this says Resideo is efficient, not magical.
$10B
2029 sales
The long view points to $10 billion of revenue by 2029 versus about $7.47 billion now. That is growth, just not hypergrowth.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $3.3B (38% of capital)
- net profit margin 6.8% — keeps 7 cents of every dollar in revenue
- return on equity 15% — $0.15 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in REZI 3 years ago → it's now worth $19,990.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Latest quarterly EPS came in at $0.50 versus the $0.47 estimate, but the bigger story was gross margin holding near 29%.
Quarterly net revenue reached $1.895 billion, up 2% vs. prior year, while gross margin improved to 29.6% from the prior year period. That mix of slow sales growth and better execution is the entire REZI case.
$1.895B
revenue
$0.50
eps
29.6%
gross margin
the number that mattered
Gross margin at 29.6% mattered most because a low-growth business lives or dies by execution, and that was up 110 basis points vs. prior year.
-
at the end of last year, net revenue clocked in at $1.895 billion, reflecting a 2% vs. prior year increase.
-
gross margin improved to 29.6%, up 110 basis points compared to the same period last year, driven by operational efficiencies in the products and solutions segment and favorable price and mix at adi global distribution.
-
adjusted ebitda for the quarter was $226 million, a significant 21% increase, and adjusted earnings per share came in at $0.50.
-
top-line results were mixed across the segments.
-
the products and solutions saw healthy growth in the fourth quarter, with net revenue increasing 6%, supported by strong demand across multiple product families and sales channels.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is a 2026 guidance miss after the rally. the stock already priced in better execution. if the numbers stop improving, the multiple will remember why it was cheap.
med
2026 guidance comes in light
The rally was built on stronger 2026 expectations. If revenue misses the $8B estimate or EPS falls short of $3.00, the market will probably re-rate the stock as a plain distributor again.
This directly pressures the case for an 11.8x forward multiple and makes the recent run from $14 to $43 look more like a trade than a thesis.
med
margin gains reverse
Gross margin improved 110 basis points to 29.6% in the latest quarter. If that move was temporary, then a lot of the recent optimism was just cost timing and mix luck.
On a business earning a 6.7% net margin, you do not need much slippage for earnings to feel it.
med
ADI distribution softens
Management called out favorable price and mix at ADI Global Distribution. That means ADI is helping the story right now. If distributor demand cools or mix worsens, the tone changes fast.
This is harder to handicap because the segment detail here is thin. That uncertainty is itself part of the risk.
med
leverage limits flexibility
Resideo carries $3.3B of long-term debt, equal to 38% of capital. That is manageable, not invisible.
If demand slows while debt stays fixed, you get less room to absorb mistakes and less room to fund growth on your terms.
The combined risk picture is simple: this is about a $7.47B revenue business with only a ~6.7% net margin and a stock that already moved hard on future expectations. There is not much room for a soft landing if guidance disappoints.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next guide
The next quarterly report matters less for the headline and more for whether management keeps you on track for roughly $8B in 2026 revenue and $3.00 in EPS.
margin
gross margin above 29%
29.6% was the most important number in the last release. If that starts heading back down, the quality of the beat changes with it.
segment trend
Products and Solutions growth
The segment grew 6% in the fourth quarter. You want to see whether that holds, because it is the clearest clean-growth datapoint on the page.
risk
ADI commentary and mix
Management credited favorable price and mix at ADI. If that language disappears, you should assume the margin tailwind is fading.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think near-term upside is less obvious after the run.
risk profile
average
stability score 3 — you are not buying a bunker stock, but you are not buying a collapse case either.
chart momentum
top 20%
technical score 2 — the chart still looks stronger than the fundamentals look predictable.
earnings predictability
20 / 100
earnings predictability is low. translation: if you own this, you should expect uneven quarters.
source: institutional data
Institutional activity
130 buyers vs. 167 sellers in 4q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$13
$48
$35
current price
$31
target midpoint · 12% from current · 3-5yr high: $60 (+70% · 14% ann'l return)
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