ADI used its Investor Day to outline standalone growth and margin targets, including a path to about $6 billion in revenue by 2030, as its separation from Resideo remains scheduled for early August.
ADI Global Distribution outlined its standalone strategy and medium-term financial targets at its Investor Day as it prepares for its planned spin-off from Resideo Technologies on Aug. 3, 2026. The company said it is targeting 4% to 6% revenue compound annual growth through 2030, aiming for about $6 billion in revenue by that year, along with 40 to 50 basis points of gross profit margin expansion, adjusted EBITDA growth of more than 10% compounded annually, adjusted EBITDA margin of more than 8% by 2030, and cumulative cash flow from operations of more than $1 billion by 2030. ADI said it sees itself as a category leader across security, residential AV and fire/life safety in an approximately $65 billion total addressable industry in North America. Management said the growth plan relies on its omnichannel platform, expansion of exclusive brands, moves into ProAV and DataComm, value-added services, operating efficiency measures and tuck-in acquisitions. The company said digital should remain a core revenue driver, with high-single-digit to low-double-digit digital revenue CAGR in the near term, and that it has identified more than $80 million in run-rate operating savings targeted by the end of 2027. Rob Aarnes, incoming President and Chief Executive Officer of ADI, said the company’s category positions, customer relationships, omnichannel model and growth profile support further market penetration and financial performance as a standalone business. ADI said the spin-off remains expected to close on Aug. 3, with ADI shares expected to begin regular-way trading on the New York Stock Exchange under ticker ADIG on Aug. 4, subject to the relevant conditions. The separation 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.