Resideo Technologies (REZI) Q3 2026 Earnings Report

The call was broadly positive, with strong core-channel growth, new-product traction, operating leverage, debt reduction and an upwardly revised full-year outlook. The main challenges were the sharp decline in noncore OEM security, a soft housing and security-installation environment, inflationary input-cost pressure, foreign exchange headwinds and an expected fourth-quarter reduction in gross profit dollars.

For the fourth quarter of 2026, Resideo expects, after excluding OEM security, revenue between flat and low single-digit growth year-over-year, with 4 less sales days, expected foreign currency exchange pressure and SKU rationalization; OEM security revenue is expected to be approximately $25 million, an approximate $30 million year-over-year reduction, and the company expects no tariff refunds or very little tariff refunds, a low single-digit million dollar cost headwind, year-over-year gross margin growth, a modest gross profit dollar reduction, net revenue of $710 million to $730 million, stand-alone adjusted EBITDA of $145 million to $155 million, stand-alone adjusted earnings per share of $0.42 to $0.48 and cash from operations of at least $54 million. For full year 2026, Resideo expects net revenue of $2.927 billion to $2.947 billion, stand-alone adjusted EBITDA of $614 million to $624 million, which represents 21% of revenue, stand-alone adjusted earnings per share of $1.92 to $1.98 and cash from operations of at least $165 million; its model calls for mid-single-digit growth annually through 2030, around point of gross margin improvement every year throughout the 2030, another probably 50 points of that into R&D, and EBITDA growth of mid-single digit up into the mid- to high single digit and then high single-digit.