Smart home and facility electrical products supplier Resideo reported its 2025 fourth quarter and full year financial results on Feb. 24, which showed modest year-over-year quarterly sales gains while gross margin, net profit and EBITDA all posted healthy gains.
4Q25
Scottsdale, AZ-based Resideo — which is set to spin off its ADI Global Distribution unit by the end of 2026 — reported 4Q total sales of $1.9 billion, up 2% year-over-year — same as in 3Q — carried by 6% growth in its Products and Solutions (P&S) segment while ADI was down 1%.
The company’s 4Q gross margin of 29.6% improved 110 basis points year-over-year (29.8% in 3Q), with ADI achieving its seventh straight quarter of YoY gross margin expansion (+110 bps to 22.7%) and 11th straight at P&S (+20 bps to 31.0%). 4Q net profit of $136 million dwarfed the $23 million of a year earlier and trailed the $156 million in 3Q. Adjusted EBITDA of $226 million jumped 21% YoY ($229M in 3Q).Â
ADI’s 4Q adjusted EBITDA fell 3% YoY to $88 million on 7.4% margin, while P&S’ adjusted EBITDA improved 6% YoY to $166 million on 23.3% margin. Resideo’s overall adjusted EBITDA of $226 million jumped 21%.
Full Year
For the full year, Resideo’s 2025 sales totaled $7.47 billion — up 11% annually. ADI revenue of $4.78 billion jumped 14% and P&S revenue of $2.69 billion improved 5%. 2025 gross margin of $29.4% increased 130 bps, with ADI’s 22.3% up 200 bps and P&S’ 42.1% up 110 bps.
ADI’s 2025 operating profit of $607 million increased 17%. The company took a net loss of $527 million that was largely driven by a one-time $1.59 billion payment made to Honeywell earlier in 2025 to terminate the indemnification agreement tied to Honeywell’s spin-off of Resideo in 2018. The company’s adjusted EBITDA of $833 million was a company record and up 21% annually.
Find all the details about Resideo’s planned ADI spinoff here.
2026 Guidance
In providing its 1Q and full year 2026 outlook, Resideo expects 1Q revenue of $1.87 billion to $1.89 billion and full year revenue of $7.8 billion to $7.9 billion.
