Resideo Technologies’ fiscal Q3 was as much about digital infrastructure as financial performance.
With its distribution arm rolling out a modern enterprise system, ecommerce climbing and new connected products hitting the market, the company’s digital overhaul is beginning to take shape.
“We delivered another strong quarter driven by solid execution,” said Jay Geldmacher, president and CEO of Resideo.
Much of the focus, however, was on the transformation under way inside ADI Global Distribution. ADI is a wholesale channel for low-voltage and building-technology products.
Resideo revenue in Q3 2025
Resideo reported Q3 revenue of $1.86 billion, up 2% from a year earlier. It also posted net income of $156 million, up from $20 million in the same quarter of 2024.
Year-to-date Resideo sales reached $5.58 billion in Q3, a 14% increase. Meanwhile, ADI and Products & Solutions each posted 2% revenue growth in the quarter.
“In August, we implemented a modern enterprise resource planning (ERP) platform in our U.S. business, replacing an over 40-year-old system,” said Rob Aarnes, president of ADI. “Tech-stack enhancements and corresponding capability building are expected to deliver even more cross-selling capabilities, optimize pricing management, and enhance digital user experiences.”
The upgrade temporarily slowed store operations and cash collections. But Aarnes told investors the disruption was short-lived.
“Operations on the new system are now running smoothly, and we are driving progressive improvement in our revenue run rate,” he said. “In October, we saw increased customer engagement and pipeline size, resulting in our order rates approaching pre-implementation levels.”
ADI Global’s growing online business
Despite the transition, ADI’s online business continued to grow.
“Ecommerce revenue also grew 3% year over year, highlighting the optionality that customers have with our omnichannel experience,” Aarnes said. The segment’s gross margin climbed to 22.6%, its sixth straight quarter of improvement. It saw “mix benefits from higher ecommerce sales,” Aarnes said.
On the manufacturing side, Thomas Surran, president of Products & Solutions, pointed to new connected-home devices as a key growth driver.
“Demand for our new products, including the First Alert combined smoke and CO connected detectors, continues to be strong,” he said.
The division launched the ElitePRO premium smart thermostats. Surran described them as “modern and energy-efficient, with the largest touchscreens in their class, interoperating with video doorbells and offering precision sensing and control functionality around temperature and indoor air quality.”
Surran said these devices are powered by the company’s Pro-IQ services, a cloud-based platform designed to help professional installers “streamline labor, increase loyalty, and generate leads.” He added that the new thermostats “have been well received, and we believe demand has been building for our new products introduced this quarter.”
Resideo’s transformation is as much structural as digital. Geldmacher confirmed the company remains on track to split into two independent public businesses — ADI and Products & Solutions — by the second half of 2026.
“Our various work streams are proceeding with pace and discipline,” he said. “Rob and Tom will lead separate companies as CEOs at the completion of the anticipated spin.”
Behind the numbers, Geldmacher framed Resideo’s evolution in broader terms.
“We’re focused on making our products smarter, our systems faster, and our customer experience more connected,” he said. “The momentum we’re generating today will be a tailwind for both companies as we enter the next phase of growth.”
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