Resideo Technologies announced the sale of its Grid Services demand‑response business to EnergyHub on December 2, 2025. The divestiture transfers the unit’s customer base, technology, and contracts to EnergyHub, a leading grid‑edge flexibility platform that serves more than 120 utilities and over 55 million customers.
The transaction allows Resideo to concentrate on its higher‑margin Products & Solutions segment, which includes HVAC controls, home safety, and security systems sold to contractors and integrators. By shedding the Grid Services unit, Resideo can allocate resources to product innovation and digital platforms that drive its core revenue growth.
For EnergyHub, acquiring Resideo’s Grid Services business expands its distributed energy resource management system (DERMS) with access to Resideo’s thermostats and other home‑connected devices, strengthening its footprint in the residential market and accelerating its integration with utilities’ demand‑response programs.
Financially, Resideo expects the sale to have no material impact on its 2025 outlook. The company will use the proceeds for general corporate purposes in line with its capital allocation priorities, and the transaction’s value was not disclosed in public filings.
Resideo’s Q3 2025 earnings were record‑setting, with net income of $156 million and adjusted EBITDA of $229 million on revenue of $1.86 billion, a 2% year‑over‑year increase. Management highlighted “solid execution” and emphasized that the divestiture is part of a broader strategy to spin off ADI Global Distribution and focus on its core business.
The sale signals Resideo’s commitment to a streamlined, high‑margin portfolio and positions the company to capitalize on growth in residential controls while EnergyHub expands its grid‑edge capabilities. Both firms view the transaction as a strategic fit that enhances their competitive positioning without disrupting short‑term financial performance.
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