Resideo Technologies (NYSE:REZI) Issues Earnings Results

Resideo Technologies (NYSE:REZI) issued its quarterly earnings results on Tuesday. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.18, FiscalAI reports. Resideo Technologies had a return on equity of 17.79% and a net margin of 5.37%. The company had revenue of $727.00 million for the quarter, compared to analysts’ expectations of $712.64 million.

Here are the key takeaways from Resideo Technologies’ conference call:

• Core-channel growth was broad-based: Revenue excluding OEM security rose 6% year over year, with growth in retail, OEM combustion, electrical distribution, and HVAC. Management said both volume and pricing contributed despite a challenging housing market.
• Profitability improved in Q3: Gross margin was 40.4%, and standalone adjusted EBITDA increased 5% to $154 million. Price increases and operational efficiencies helped offset inflation, including a $13 million year-over-year input-cost headwind.
• Resideo raised its full-year 2026 outlook after Q3 results came in near the high end of expectations: revenue is now forecast at $2.927–$2.947 billion and adjusted EBITDA at $614–$624 million. The company also repaid $1.1 billion of gross debt following the ADI spinoff.
• Near-term growth faces several headwinds: For Q4, the company expects revenue of $710–$730 million, with core-channel growth of flat to low single digits and OEM security revenue down about $30 million year over year. Fewer selling days, foreign-exchange pressure, SKU rationalization, ongoing inflation, and an expected lack of tariff refunds weigh on the outlook.
• Management is emphasizing branded products, innovation, and efficiency as a standalone company, including new product launches, Pro-IQ services, SKU rationalization, and plans to exit three underused manufacturing facilities. Executives said these initiatives are intended to support growth and margin expansion, though Pro-IQ monetization is not yet material.

Resideo Technologies Trading Down 3.3%

Shares of Resideo Technologies stock traded down $0.67 during trading hours on Tuesday, hitting $19.38. The company’s stock had a trading volume of 1,608,721 shares, compared to its average volume of 1,649,384. Resideo Technologies has a 12 month low of $15.90 and a 12 month high of $42.95. The company has a debt-to-equity ratio of 1.41, a current ratio of 2.22 and a quick ratio of 1.41. The company has a market capitalization of $2.94 billion, a PE ratio of 8.58 and a beta of 1.58. The stock has a 50 day moving average of $18.41 and a 200 day moving average of $29.43.

Insiders Place Their Bets

In other Resideo Technologies news, CEO Thomas A. Surran acquired 15,000 shares of the stock in a transaction dated Friday, August 14th. The shares were bought at an average cost of $20.46 per share, for a total transaction of $306,900.00. Following the completion of the acquisition, the chief executive officer directly owned 338,573 shares of the company’s stock, valued at approximately $6,927,203.58. This trade represents a 4.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Joshua Foster acquired 15,317 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was acquired at an average cost of $20.58 per share, for a total transaction of $315,223.86. Following the transaction, the senior vice president owned 183,509 shares of the company’s stock, valued at $3,776,615.22. This represents a 9.11% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have purchased 41,245 shares of company stock worth $848,115. Company insiders own 1.60% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently weighed in on REZI. Citizens Jmp initiated coverage on shares of Resideo Technologies in a report on Monday, October 19th. They issued a “market outperform” rating and a $22.00 price objective on the stock. Weiss Ratings raised Resideo Technologies from a “sell (d+)” rating to a “hold (c)” rating in a research note on Friday, August 14th. Oppenheimer restated an “outperform” rating on shares of Resideo Technologies in a research report on Thursday, August 13th. Evercore began coverage on Resideo Technologies in a research note on Monday, September 28th. They set an “outperform” rating and a $30.00 price objective for the company. Finally, Citigroup initiated coverage on shares of Resideo Technologies in a research report on Monday, October 19th. They issued a “market outperform” rating on the stock. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $31.75.

About Resideo Technologies

Resideo Technologies is a provider of products and services for home comfort, safety, security and energy management. Its offerings include thermostats and other heating and cooling controls, indoor air quality products, water leak detection devices, fire and carbon monoxide alarms, and security systems. Products are sold under brands that include Honeywell Home and First Alert. The company also operates ADI Global Distribution, a distributor of security, audio-visual, communications and smart-home products.