Resideo board sets schedule for ADI spinoff

Resideo Technologies Inc. and ADI Global Distribution remain on track to split, following the Resideo board of directors’ vote to approve key dates in July and August.

Following a record date of July 20 for the spinoff, Resideo expects distribution of the ADI shares to occur on Aug. 3. Then, ADI common stock is set to begin trading on the New York Stock Exchange a day later on Aug. 4.

The timetable would maintain Resideo’s previously stated plans to split with ADI in the second half of 2026.

What Resideo’s ADI spinoff will mean

Following the spinoff, ADI is expected to begin trading under the ticker symbol ADIG, Resideo announced. Meanwhile, Resideo will continue to use its current ticker symbol, REZI.

Once the companies separate, ADI will operate independently, continuing to serve as a distributor of low-voltage products for commercial and residential customers. According to Resideo’s latest press release, ADI handles 500,000 products from more than 1,000 suppliers.

In Resideo’s fiscal first quarter ended April 4, the company recorded $1.21 billion in revenue for ADI. That total was up 8% from a year earlier. ADI accounted for a majority of Resideo’s total revenue of $1.91 billion for the quarter.

Upcoming investor day presentations for Resideo and ADI

Both Resideo and ADI plan to present individually at their respective investor days ahead of the spinoff. Resideo’s day is slated for July 13, while ADI is scheduled for July 14. In both cases, the events are set to take place at the New York Stock Exchange.

At those presentations, members of Resideo and ADI’s leadership teams intend to provide details about their resulting standalone businesses, financial outlooks and other plans, according to Resideo.

Resideo announced its initial plans to spin off ADI in July 2025. The combined entity rebranded as Resideo in 2018 after being known as ADI/Honeywell Home.

“When Honeywell spun this off, there were some reasons that it made sense to do so under common ownership,” said Michael Carlet, chief financial officer and executive vice president at Resideo, speaking at a conference hosted by J.P. Morgan in May. “But really for a number of years, we said, it makes more sense for these businesses to operate on a standalone basis.”

Among the reasons for the split, he cited differences extending from their go-to-market approaches and across business operations.

“They have different business models; one is distribution, one is product manufacturing,” Carlet explained. “They have different capital allocation strategies, capital needs of the business.”

One of the necessary steps leading up to the spinoff involved an agreement by Resideo to make a one-time payment of $1.59 billion to Honeywell. In addition, its teams have worked on preparing their groups to operate independently.

“We feel pretty good about doing it sooner rather than later, but we need to make sure all the IT systems are set up, all the other things that allow both businesses to be successful or complete in them,” Carlet stated.

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