Resideo is pulling back from OEM security and directing more operating investment toward its branded security portfolio, as the company prepares a series of products built around its next-generation FORTIQ software platform.
OEM security revenue reached $33 million during the quarter, a decline of $17 million from the same period a year earlier. Management said the lower volume was in line with expectations previously communicated by the company. Michael Surran, Resideo’s president and CEO, described OEM security as noncore and said the business carries a strategic disadvantage because products made for outside customers can compete with Resideo’s own offerings.
Branded security takes priority
Surran said Resideo intends to compete more directly in the security market rather than continue supplying equipment that other companies sell under their own names. He also pointed to the margin difference between the two activities, with OEM work generating lower margins than branded products.
“First, when we act as an outside design manufacturer for OEM security customers, the products we design and make for them are used to compete against ourselves in the general market,” Surran said.
The company plans to announce a series of security products integrated with FORTIQ during the fourth quarter. Resideo has not identified the products, detailed their capabilities or provided specific commercial availability dates. The announcement therefore represents a product-development plan rather than confirmation that the new equipment is shipping or available through dealers.
FORTIQ becomes the common platform
Resideo has described FORTIQ as a shared architecture for its security, air and safety products. The platform is intended to connect data across those categories and support faster development of new offerings. The company also said it continues to allocate approximately 5% of total revenue to research and development, supporting product introductions and development efforts.
Resideo expects to engage professional installers and other industry partners at its CONNECT 2026 User Conference, scheduled for November 19-22. Surran said registration demand had pushed the event beyond capacity. The conference is also expected to provide a venue for discussing products that have received feedback from professional participants, although Resideo has not disclosed which products will be covered or what revenue they might generate.
OEM security revenue
| Measure | Reported result |
|---|---|
| OEM security revenue | $33 million |
| Year-over-year change | Down $17 million |
| Research and development allocation | Approximately 5% of total revenue |
Resideo’s stated strategy links product development with revenue growth, margin improvement and operating efficiency. The company’s rationale is that differentiated branded products can support both greater control over the security offering and stronger economics than manufacturing for competing brands. For professional-channel customers, the immediate information is limited to the direction of the portfolio: further product details and commercial timing are expected to accompany future FORTIQ announcements.
- OEM security revenue was $33 million during the quarter, down $17 million year over year.
- Resideo plans additional security products based on FORTIQ during the fourth quarter.
- Specific products, capabilities and availability dates have not been announced.
