Companies /Industrials

Resideo Technologies Inc

NYSE: REZI Industrial Distribution
$19.98
â–² $0.11 (+0.55%) today
Markets closed · 4:56pm ET

Q3 2025 Earnings

Reported Nov 5, 2025, 4:08pm ET · SEC source
$0.89
Beat +28.99%
EPS · est. $0.69
$1.9B
Miss −0.75%
Revenue · est. $1.9B
+5.3%
Beating market
REZI vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−20%−10%0+10%Nov 5Nov 6report 4:08pm ETearnings−0.8%−19.7%
−20%−10%0+10%Nov 5Nov 6earnings−0.8%−19.7%
REZI −19.7%S&P 500 −0.8%
−20%−10%0+10%Nov 5Nov 6report 4:08pm ETearnings−1.5%−19.7%
−20%−10%0+10%Nov 5Nov 6earnings−1.5%−19.7%
REZI −19.7%NASDAQ −1.5%
−10%0+10%+20%Nov 4Nov 13report 4:08pm ETearnings−0.9%−10.9%
−10%0+10%+20%Nov 4Nov 13earnings−0.9%−10.9%
REZI −10.9%S&P 500 −0.9%
−10%0+10%+20%Nov 4Nov 13report 4:08pm ETearnings−2.4%−10.9%
−10%0+10%+20%Nov 4Nov 13earnings−2.4%−10.9%
REZI −10.9%NASDAQ −2.4%
−23.75%
Day of report
−0.70%
Next session
−0.42%
One week
+7.22%
30 days

S&P 500 over the same 30 days: +1.90%.

Did REZI Beat Earnings? Q3 2025 Results

Resideo Technologies posted a record-setting third quarter in 2025, delivering adjusted EPS of $0.89 against a consensus estimate of $0.69, a beat of 28.99%, even as revenue of $1.86 billion came in just 0.75% below expectations and grew 2.0% year over year. The standout profitability reflected a record Q3 gross margin of 29.8% and net income of $156.00 million, with both the ADI Global Distribution and Products & Solutions segments contributing equally to top-line growth. The quarter's defining event, however, was a $1.59 billion one-time payment to Honeywell in August to terminate a longstanding indemnification agreement, a move that weighed heavily on reported cash flows but eliminates a significant long-term financial obligation. Despite the operational strength, shares fell sharply after the company's forward guidance underwhelmed investors; Resideo guided Q4 revenue to $1.85 billion to $1.89 billion and full-year 2025 revenue to $7.43 billion to $7.47 billion, with adjusted EPS of $2.57 to $2.67, as a planned corporate separation into two independent public companies remains on track for the second half of 2026.

Key Takeaways
  • Record high Q3 gross margin of 29.8%, up 110 basis points year-over-year
  • P&S achieved ten consecutive quarters of year-over-year margin expansion
  • ADI achieved six consecutive quarters of year-over-year margin expansion
  • Price realization and customer demand for new products drove P&S revenue growth
  • Cross-selling of Snap One Exclusive Brands across broader ADI customer base improved margins
  • E-commerce revenue at ADI grew 3% year-over-year
  • Efficient utilization of manufacturing facilities drove P&S gross margin expansion
  • ADI Exclusive Brands revenue grew 3% year-over-year

“Resideo delivered another strong quarter driven by solid execution, demonstrating the healthy operating fundamentals of our business. In the third quarter, we achieved record-high gross margins, earnings per share, and Adjusted EBITDA, all of which were enabled by continued organic net revenue growth and margin expansion by both the ADI and P&S business segments.”

Resideo Technologies CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Resideo expects net revenue of $1,853–$1,893 million, Non-GAAP Adjusted EBITDA of $211–$225 million, and Non-GAAP Adjusted EPS of $0.42–$0.52. For full year 2025, the company expects net revenue of $7,430–$7,470 million, Non-GAAP Adjusted EBITDA of $818–$832 million, Non-GAAP Adjusted EPS of $2.57–$2.67, and Non-GAAP Adjusted Cash Provided by Operations of $410–$450 million (excluding the one-time $1,590 million Honeywell Indemnification Agreement termination payment). The anticipated separation of P&S and ADI into two independent publicly traded companies is expected to be completed in the second half of 2026.

REZI YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$600.0M$1.2B$1.8B$1.8B$1.9BRevenue$524.0M$556.0MGross Profit$126.0M$154.0MOperating Income$20.0M$156.0MNet Income
$0$600.0M$1.2B$1.8BRevenueGross ProfitOperating IncomeNet Income

REZI Revenue by Segment

ADI Global Distribution$1.2B+2.0%
Products & Solutions$661.0M+2.0%

Figures from SEC filings and company reports. Not investment advice.