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Resideo’s strategy heading into 2026 centers on tying connected devices more closely to its distribution and digital platforms, making it easier for professionals to research, configure and purchase products online.

Resideo Technologies is focusing further on connected devices and ecommerce sales as it reshapes how contractors and integrators buy and manage building technology after its fiscal Q4 — even as the company swings to a full-year 2025 loss tied to a one-time charge.

Scottsdale, Arizona-based Resideo reported Q4 sales of $1.895 billion. That’s up from $1.858 billion a year earlier, a 2% increase. Net income rose sharply to $136 million, compared with $23 million in Q4 2024.

For the full year, Resideo Technologies posted record sales of $7.472 billion. That’s up 11% from $6.761 billion in 2024. The company reported a net loss of $527 million, compared with net income of $116 million the prior year, driven by a one-time expense associated with terminating its indemnification agreement with Honeywell.

“In the fourth quarter, Resideo delivered strong results that either exceeded or were at the high end of our outlook range,” said Jay Geldmacher, president and CEO. “In 2025, Resideo exceeded the high end of our outlook range for all of our key financial metrics and achieved record highs in net revenue.”

How Resideo grew Q4 sales through ADI

Resideo’s clearest digital momentum is showing up at ADI Global Distribution, its distribution arm serving professional installers across security, audiovisual and building automation markets.

ADI’s online sales grew 3% in Q4, reflecting higher customer adoption of its digital platform. That includes increased ordering outside standard business hours. The company said improvements to product pages and search tools have helped lift add-to-cart and conversion rates, reinforcing digital as a daily workflow tool for contractors.

At the same time, ADI completed a major internal systems overhaul. Robert Aarnes, president of ADI Global Distribution, said the company is now fully operational on its new enterprise resource planning (ERP) system, freeing teams to focus on customers.

“Right now, where we are today is exactly where the team wanted to be,” Aarnes said during the earnings call, describing a shift back to field execution after months of system-related disruption.

Geldmacher underscored that progress.

“From an ADI perspective, the ERP system is done. It’s running,” he said. “The implementation is fully behind us.”

ADI reported Q4 sales of $1.183 billion. That’s down 1% from $1.189 billion a year earlier, as weaker video surveillance demand offset gains in other commercial security and professional audiovisual categories. For the full year, ADI sales rose to $4.784 billion. That’s 15% growth from $4.197 billion in 2024.

Resideo’s product lineup

On the products side, Resideo continues to expand its lineup of connected devices that integrate hardware, software and remote monitoring.

Thomas Surran, president of Products & Solutions, said products introduced in 2025 are gaining traction across retail and distribution channels. Two of those were the Honeywell Home Focus Pro Thermostat and the First Alert SC5 connected smoke and carbon monoxide detector. The company also began shipping the Honeywell Home ElitePRO premium smart thermostat late in the year. It said demand exceeded available stock.

Surran cautioned that adoption in building products markets tends to move more gradually than in consumer electronics.

“Adoption is slower than in other markets such as electronics,” he said, noting the industry’s focus on reliability and quality.

Products & Solutions generated $712 million in Resideo Q4 sales, up 6% from $669 million a year earlier. For the full year, segment sales rose 5% to $2.688 billion, up from $2.564 billion in 2024.

Resideo’s strategy heading into 2026 centers on tying connected devices more closely to its distribution and digital platforms, making it easier for professionals to research, configure and purchase products online — and manage systems once installed.

The company is also preparing for a planned separation of its Products & Solutions and ADI businesses in the second half of 2026, a move executives say will allow each company to sharpen its focus.

“Our focus is on making technology easier to buy, easier to install and easier to manage,” Geldmacher said.

He framed digital platforms and connected products as central to Resideo’s next chapter.

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