Resideo sets Aug 3 ADI spin-off date, targets 4-5% revenue growth and 400bp margin expansion through 2030

Resideo held an investor day on July 13, 2026 to discuss the pending separation of its ADI Global Distribution business into a standalone entity. The company furnished a press release and investor presentation in connection with the event. This is a routine disclosure of materials related to a previously announced corporate separation.

Resideo is hosting an Investor Day to present its strategy as a pure-play building technologies company following the planned spin-off of its ADI Global Distribution business. The company is positioning itself to focus exclusively on residential sensing and controls, leveraging relationships with over 100,000 professional installers and an installed base exceeding 150 million locations in a serviceable addressable market exceeding $40 billion.

The company highlighted its track record of 12 consecutive quarters of gross margin expansion and over 85% free cash flow conversion in each of the last three years. This performance is presented as evidence of the business's ability to generate strong cash flow for debt reduction and capital deployment as a standalone entity.

Incoming President and CEO Tom Surran outlined the company's strategic focus as a pure-play building technologies company, emphasizing that all decisions will be evaluated through the lens of creating value in the core residential sensing and controls business. The strategy includes accelerating differentiated innovation, expanding into adjacent categories, increasing content per home, and pursuing international expansion.

Resideo disclosed plans to spin off its ADI Global Distribution business from its Products & Solutions business, creating two standalone publicly traded companies. REZI shareholders will receive 1 share of ADIG common stock for every 2 shares of REZI owned as of the record date. The separation is subject to conditions and expected timeline disclosures, with the Products & Solutions business retaining the REZI ticker and ADI trading under ADIG.

The filing disclosed that the post-separation Products & Solutions business (Resideo) had FY2025 standalone adjusted revenue of $2.9 billion, standalone adjusted EBITDA of $581 million, and a 20.3% standalone adjusted EBITDA margin. Management presented 2030 targets of 4-5% revenue CAGR, 43-45% adjusted gross margin, and 23-25% adjusted EBITDA margin, reflecting the company's standalone financial profile after the separation.

The filing disclosed the expected capital structure for Resideo at the time of the separation: approximately $150 million cash, $2.1 billion gross debt, $2.0 billion net debt, and $650 million total liquidity (including $500 million revolver availability). Management stated net leverage at spin would be approximately 3.3x LTM Q1'26 standalone adjusted EBITDA, with a target to reduce leverage to below 2.0x within approximately 24 months post-spin.

The filing disclosed the composition of Resideo's Board of Directors following the separation, naming ten directors including Andrew Teich as Chairman and Tom Surran (President & CEO) as a director. The presentation emphasized continuity of governance and stewardship through the separation.

The filing outlined Resideo's post-separation capital allocation priority stack: (1) near-term deleveraging to below 2.0x net leverage within approximately 24 months, (2) organic reinvestment focused on product expansion and vitality, (3) selective M&A targeting core and core-adjacent growth opportunities with clear ROIC thresholds, and (4) capital returns to be evaluated once leverage objectives are met. Investment focus areas include ventilation, access control, and security portfolio enhancements.