Connected home shines for Resideo, amid 'transitory’ impact to HVAC

SCOTTSDALE, Ariz. — Resideo’s connected home segment performed well in the third quarter as demand for smart thermostats and security-related products outpaced relatively soft HVAC performance. 

With a record high net income and record high adjusted EBITDA for the quarter, CEO Jay Geldmacher pointed to high demand for Resideo’s products, including smoke detectors and other smart home devices. He cited the new ElitePRO Honeywell Home premium smart thermostats as a potential driver of future growth.  

For the security business, Resideo credits growth primarily to volume increases with customers, including ADT, which the company recently signed to a new, multi-year commercial agreement. 

These gains helped to offset declining demand for residential HVAC. 

“Revenue in the HVAC channel was down by a low double-digit percentage year over year due to the softer residential HVAC market, which impacted sales volume,” said Tom Saran, president of Resideo’s Products and Solutions Business.  

The downturn in HVAC was largely attributed to regulatory changes affecting refrigerants used in HVAC equipment. 

“While our thermostats do not use any type of refrigerant, we still experienced a ripple effect from the market disruption related to the regulatory change,” Saran said. “We believe these conditions in the HVAC market are transitory.” 

Additionally, despite regulatory headwinds, Geldmacher reassured investors that Resideo’s tariff mitigation strategies remain effective. 

“In addition, we have not seen material tariff-related impacts to customer demand at either ADI or P&S this quarter,” he said. “We also have not seen any meaningful impacts to our business from the recent U.S. government shutdown.” 

The full quarterly financial highlights can be found here.