Resideo signals pricing actions, progresses ADI spinoff

SCOTTSDALE, Ariz. – Resideo plans to implement targeted price increases across its various channels in Q2 2026 to combat ongoing cost pressures, after largely absorbing them in Q1. 

Pricing response to macro pressures 

Those cost pressures are driven largely by rising fuel costs and other macroeconomic challenges, say execs. 

“Every day, the news changes with what the outcomes are going to be between the war, other issues that are out there,” said CFO Michael Carlet during a recent call to discuss the company’s first quarter earnings. “We feel confident that we've got the right pricing actions. We've talked to our customers. (In) our communication with our customers we feel good we can pass through the appropriate pricing to pass along the cost increases that we expect.” 

Demand mixed, but core categories remain resilient 

Ongoing macroeconomic challenges also impacted consumer confidence, particularly in high-end residential markets, but that is somewhat offset by demand in core categories such as safety and security, which continue to be resilient, says CEO Jay Geldmacher. 

“Resideo remains well positioned with the existing products, its upcoming new product introductions and its exceptional distribution footprint to take advantage of the markets we serve,” he said. “We believe our solid execution and proactive mitigation tactics will enable Resideo to manage through the uncertain environment for the rest of the year.” 

ADI spinoff moves closer to completion 

During the quarter, Resideo stepped closer toward its planned spinoff of ADI, including the May 11 public filing of ADI's Form 10. The separation is expected to be completed between the mid-third and mid-fourth quarters. 

ADI’s revenue for the first quarter was up 8% to $1.21 billion, with several “business transformation strategies” to boost growth further, says Robert Aarnes, who will serve as president and CEO of the standalone company. Those strategies include rationalizing the company’s real estate footprint, he said. 

“They are quite significant,” he said. “And in fact, to the point where we are doubling down on trying to bring as much of that into '26 as possible. We're, I would say, first, second inning there in terms of looking at our stores and our D.C. footprint.”