ADI Global sets revenue and earnings targets ahead of Resideo spin-off

ADI Global Distribution Inc. held its inaugural investor day at the New York Stock Exchange on July 14, outlining financial targets and growth strategy ahead of its planned spin-off from Resideo Technologies, Inc. (NYSE: REZI).

The company, which distributes security, fire/life safety, and residential audio-visual products across North America, set a medium-term revenue compound annual growth rate (CAGR) target of 4% to 6%, aiming for approximately $6 billion in revenue by 2030. ADI also targets an adjusted EBITDA CAGR of more than 10% by 2030, with adjusted EBITDA margin improving to more than 8%. Cumulative cash flow from operations is targeted at more than $1 billion by 2030, alongside gross profit margin expansion of 40 to 50 basis points over the same period.

ADI said it has identified more than $80 million in run-rate operating savings targeted to be achieved by the end of 2027. The company also cited a digital revenue CAGR target of high-single-digit to low-double-digit growth in the near term.

Rob Aarnes, incoming President and Chief Executive Officer, said in a statement: "As a pure-play specialty distribution company, our category-leading positions, trusted customer relationships, differentiated omnichannel platform and strong growth profile will serve as the backbone for further market penetration and robust financial performance."

The spin-off from Resideo is expected to be completed on August 3, 2026, with ADI common stock expected to begin regular-way trading on the NYSE under the ticker symbol "ADIG" on August 4, 2026, subject to satisfaction or waiver of applicable conditions. The transaction is expected to be tax-free to Resideo shareholders for U.S. federal income tax purposes, except for cash received in lieu of fractional shares.

ADI describes itself as a global specialty distributor offering more than 500,000 products from over 1,000 suppliers, serving commercial and residential markets through an omnichannel platform. The company cited a total addressable market of approximately $65 billion in North America.

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