What Resideo Technologies, Inc. told the SEC could break it.

Resideo's Products & Solutions manufacturing is concentrated in Mexico — six company facilities plus third-party partners, with ~6,400 employees there — and a significant portion of finished products are made at Mexican (Maquiladora) sites, several in water-stressed areas, so border, regulatory, water or natural-disaster disruption in Mexico would hit supply.

“With respect to our Products and Solutions segment, we operate six manufacturing facilities in Mexico and rely on third-party manufacturing partners with manufacturing capabilities in Mexico. A significant portion of our finished products are manufactured in Mexican sites, several of which operate in water stressed environments.”

The intended spin-off of ADI Global Distribution — which contributed 64% of revenue and 35% of operating income in 2025 — could adversely affect Resideo's earnings and cash flows and lead to a downgrade of its credit ratings, materially reshaping the remaining company.

“ADI Global Distribution business contributed 64% of our revenue and 35% of our operating income during the twelve months ended December 31, 2025. If the ADI Spin-Off is completed, it may adversely affect our earnings and cash flows, which in turn may result in our failure to maintain our current credit ratings from independent rating agencies”

Resideo manufactures in Mexico and sources exclusive-branded ADI products from Asia, so it is exposed to a presidential 10%+ balance-of-payments tariff surcharge on imports (effective Feb 24, 2026 for 150 days); its Mexico-made and Mexico-sourced goods are currently USMCA-exempt, but products outside USMCA/commodity exceptions face the surcharge.

“by a presidential proclamation a new tariff surcharge of not less than 10% was directed under the balance of payments statute ( 19 USC 2132 ) on all imports with certain exceptions for certain commodities (e.g., electronics, critical minerals) and United States-Mexico-Canada Agreement (“USMCA”) qualified products. The tariffs under this statute are intended to take effect on February 24, 2026, and will remain in effect for 150 days (the maximum under the statute).”