Resideo Technologies : Q1 2026 Resideo Earnings Conference Call Presentation

Published: 2026-05-12 16:27:13 ET REZI

Published on 05/12/2026 at 04:27 pm EDT

Q1'26 Earnings Presentation

May 12, 2026

Resideo at a Glance

Key Financial Data

Strategic Rationale for Separation / Investment Thesis

Products & Solutions (P&S)

Our two businesses are

A leading building products manufacturer focused on residential controls and sensing solutions

indispensable partners to professionals who help homeowners and businesses stay connected and in control of their comfort, security, resource efficiency, and smart living.

Headquartered in Scottsdale, AZ

$2.75B

TTM Net Revenue

$675M

TTM Segment Adjusted EBITDA

$7.6B

The leading global distributor in North America of security, fire and AV products

TTM Net Revenue

$880M

TTM Net Revenue

TTM Segment Adjusted EBITDA

ADI Global Distribution

TTM Adjusted EBITDA

NOTES: TTM represents the twelve months ended April 4, 2026. Segment Adjusted EBITDA set forth above is for each segment and does not include corporate costs. See the Q1'26 Financial Data Workbook at www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted EBITDA, Adjusted Cash Provided by Operations) and reconciliations to the most directly comparable GAAP measures.

Investment Highlights

A leading player in a $40B+ serviceable addressable segment positioned to grow across attractive product categories -that are critical to maximizing comfort, enabling safety, and delivering cost savings for over 150M residential and commercial spaces

Uniquely positioned with portfolio of integrated sensors and controls for the whole home, with millions of connected customers

World-class trusted brands including Honeywell Home and First Alert - carrying forward a 100+ year legacy of innovation

Deep channel partnerships with network of 100K+ pro installers and dealers, OEMs and distributors built over decades - driving over 15M installs per year

Macroeconomic and housing / remodeling related tailwinds

are anticipated to contribute to long-term growth

Financial Highlights

Q1'26 Net Revenue Growth Y/Y

$706M

Q1'26 Net Revenue

41.8%

Q1'26

Gross Margin

(~400 bps of expansion over 12 consecutive quarters)

$177M

Q1'26

Segment Adj. EBITDA

NOTES: Q1'26 represents the fiscal quarter ended April 4, 2026. Segment Adjusted EBITDA set forth above does not include corporate costs.. See the Q1'26 Financial Data Workbook at www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted

P&S: A Leading Manufacturer of Building Products Focused on Residential Controls and Sensing Solutions

Investment Highlights

Leading Security and Residential AV distributor in a

$30B+ serviceable addressable segment

Robust platform for proprietary and third-party security, audio-visual and low-voltage offerings, distributing more than 500,000+ products

Optimally positioned with an expansive network of 1,000+ manufacturers, enabling rapid product launches and a strong lineup aligned with market trends and customer needs

Strategically advantaged to benefit from continued digitalization of B2B distribution through omnichannel experience for integrators with 200+ locations worldwide

Deep relationships with pro network with 100K+ pros served annually via digital and physical storefronts

Financial Highlights

Q1'26 Net Revenue Growth Y/Y

$1.2B

Q1'26

Net Revenue

21.2%

Q1'26

Gross Margin

$66M

Q1'26

Segment Adj. EBITDA

ADI: Leading Global Wholesale Distributor of Low-Voltage Products, Including Security and Audio-Visual Solutions

Resideo - Q1'26 Financial Summary

($ in millions, except per share)

Q1'26

Q1'25

YoY Change

Net Revenue

$1,912

$1,770

+8%

P&S Revenue

$706

$649

+9%

ADI Revenue

$1,206

$1,121

+8%

Gross Margin

28.8%

28.9%

-10 bps

P&S Gross Margin

41.8%

41.4%

+40 bps

ADI Gross Margin

21.2%

21.6%

-40 bps

Income from Operations

$102

$136

-25%

Net Income

$38

Income / (Loss) Per Share - Diluted

$0.17

($0.02)

Adjusted Earnings Per Share - Diluted

$0.65

$0.63

+3%

Adjusted EBITDA

$215

$168

+28%

P&S Adjusted EBITDA

$177

$158

+12%

ADI Adjusted EBITDA

$66

$72

-8%

NOTE: Segment Adjusted EBITDA does not include corporate costs. See the Q1'26 Financial Data Workbook at www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted EBITDA, Adjusted Cash Provided by Operations) and reconciliations to the most directly comparable GAAP measures. NR stands for not relevant.

Net Revenue Adjusted EPS

$ in M's

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100

$1,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

+8% Y/Y

+3% Y/Y

$0.90

$0.80

$0.70

$0.60

$0.50

$0.40

$0.30

$0.20

$0.10

$0.00

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

NOTE: See the Q1'26 Financial Data Workbook at https://www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted EBITDA, Adjusted Cash Provided by Operations) and reconciliations to the most directly comparable GAAP measures.

$ in M's

240

200

160

120

Adjusted EBITDA Adjusted Cash Provided by Operations

+28% Y/Y

Change of ($80)M Y/Y

$ in M's

300

250

200

150

100

80 0

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

-50

-100

-150

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

NOTES: See the Q1'26 Financial Data Workbook at www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted EBITDA, Adjusted Cash Provided by Operations) and reconciliations to the most directly comparable GAAP measures. Reported cash used by operations in Q3'25 was $1,571 million. Adjusted cash provided by operations adds back the one-time $1,590 million payment to Honeywell in August 2025 to terminate the Indemnification Agreement. Q3'25 adjusted cash provided by operations equals $19 million.

+9% Y/Y

+40 bps Y/Y

P&S Revenue

P&S Gross Margin Rate

P&S Adjusted EBITDA

$ in M's

$700

$600

$500

$400

$300

$200

$100

45%

40%

35%

30%

25%

20%

15%

10%

$ in M's

+12% Y/Y

$180

$150

$120

$90

$60

$30

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

ADI Revenue

ADI Gross Margin Rate

ADI Adjusted EBITDA

+8% Y/Y

-40 bps Y/Y

-8% Y/Y

$ in M's $ in M's

$120

$1,400

$1,200

$1,000

$800

$600

$400

$200

24%

20%

16%

12%

$100

$80

$60

$40

$20

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Condensed Summary Balance Sheet

$ in millions

April 4, 2026

December 31, 2025

Cash and cash equivalents

$438

$661

Accounts receivable, net

$1,114

$1,073

Inventories, net

$1,357

$1,354

Gross debt

$3,226

$3,231

Obligations payable under the Indemnification Agreement(1)

NOTE (1): The obligations payable under the Indemnification Agreement is $0 because we completed the termination of the Indemnification Agreement in August 2025.

$ in millions

April 4, 2026

Cash and cash equivalents

$438

Gross debt

$3,226

April 4, 2026

Adjusted cash provided by operations (LTM)

$373

Capital expenditures (LTM)

$121

Free Cash Flow

2024

2025

Q1'25

Q1'26

$400

$300

$200

$100

$0 ($100)

($200)

NOTES:

Free cash flow is a non-GAAP metric defined as cash provided by operating activities less capital expenditures as reported in our SEC filings. Reported cash provided by (used in) operations was $444M in 2024, ($1,137)M in FY25, ($65) in Q1'25 and ($145)M in Q1'26. Capital expenditures were $80M in 2024, $116M in FY25, $31M in Q1'25 and $36M in Q1'26.

FY25 reported cash used in operations was adjusted to add back the one-time August 2025 payment of $1,590M to Honeywell to terminate the Indemnification Agreement. See the Q1'26 Financial Data Workbook at https://www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted Cash Provided by Operations and Adjusted Free Cash Flow) and reconciliations to the most directly comparable GAAP measures.

$ in Millions, except per share

Re-Affirmed 2026 Outlook

Total net revenue

$7,800 - $7,900

Adjusted EBITDA

$935 - $985

Adjusted EPS

$3.00 - $3.20

Key 2026 Modeling Assumptions

Stock-based compensation

$55 - $60

Depreciation & amortization

$210 - $215

Capital expenditures

$155 - $165

Net interest expense

$180 - $185

Income tax expense

$90 - $100

Average diluted shares

155M

Initiated Q2'26 Outlook

Total net revenue

$1,916 - $1,940

Adjusted EBITDA

$216 - $230

Adjusted EPS

$0.71 - $0.75

NOTES: Non-GAAP financial measures. See the Q1'26 Financial Data Workbook at www.investor.resideo.com for the Non-GAAP financial measures (e.g., Adjusted EPS, Adjusted EBITDA, Adjusted Cash Provided by Operations) and reconciliations to the most directly comparable GAAP measures.

Strategic Rationale for Separation / Investment Thesis

Key

Solutions

Safety

Energy

Security

Water

Air

A Leading Manufacturer of Building Products Focused on Residential Controls and Sensing Solutions

$2.75B

TTM Net Revenue

$675M

TTM AEBITDA

Home

Data Communications

Networking

Access Control

Security & Low Voltage Products

Video Surveillance

Fire

Residential and Pro AV

Wire & Cable

Leading Global Wholesale Distributor of Low-Voltage Products, Including Security and Audio-Visual Solutions

Intrusion

$4.87B

TTM Net Revenue

$353M

TTM AEBITDA

Brands

Key

Brands 19

Creating Two Leading, Focused Companies

Sharper Focus

Operational focus and dedicated management teams to win in their respective marketplaces

Enhanced Flexibility

Increased operating and financial flexibility to pursue growth opportunities

Tailored Capital

Allocation Strategies

Positioned to capitalize on distinct investment opportunities for each independent company

Aligned with Investor Demand

Designed to attract a shareholder base that is focused on each business' distinct value proposition and simpler financial model

Separation creates two pure-play companies, each better positioned to deliver long-term growth and value creation for shareholders

Compelling Strategic Rationale to Separate

Disclaimer

Resideo Technologies Inc. published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 20:22 UTC.