Resmed builds resilience with strategic US expansion

SAN DIEGO – Resmed is making another strategic investment in U.S.-based manufacturing and distribution, this time in Indianapolis. The move aims to position the company’s inventory closer to its provider customers, according to Mick Farrell, CEO and board chairman. 

The new facility, located in “the heart of the Midwest,” is expected to be operational by 2027, Farrell said. 

“I can tell you across our footprint here in the U.S., we've got a really broad manufacturing and distribution capacity," Farrell said during an Oct. 30 conference call discussing first-quarter fiscal year 2026 financial results. “And Shane Azzi (chief supply chain officer) and his supply chain team are not only looking at inbound supply but also manufacturing distribution. Getting to 90% of customers within two business days of delivery is sort of world-class and well above top-tier for med-tech. And so that's where we're looking at going." 

Earlier this year, Resmed opened a $30 million facility in Calabasas, Calif., doubling its U.S. manufacturing and distribution footprint. 

While the Trump administration’s “Made in America” initiative partly influenced Resmed’s investments, Farrell emphasized broader motivations. With up to 60% of its global demand coming from the U.S., the company is focused on maintaining resilience amid geopolitical uncertainties—whether due to a new administration or another pandemic. 

“We've been so good with all these changes in just delivering for our customers,” he said. “We want to have the ability to do that no matter what happens. And so, we're preparing for that. And we're doing things for the long term.” 

The expanded footprint also enables Resmed to manufacture more than just motors domestically. The Calabasas facility already produces silicone mask cushions in the U.S. 

"I think it’s just a good strategy for Resmed to not only have our Made in America motors (and) our Made in America masks that we already have but to have capability for Made in America devices,” Farrell said. “Watch this space.” 

Other highlights from the call 

Software portfolio management to accelerate growth: Following a modest 6% revenue growth in its Residential Care Services (RCS) business, Resmed is shifting investment toward higher-growth, higher-margin segments. This includes reducing exposure to lower-growth areas such as IT, implementation, and other services. One focus is Brightree and making sure it’s “innovating faster and faster,” Farrell said. 

“We're confident that we will execute successfully on our portfolio management work and reaccelerate growth in our RCS platforms, moving from mid-single-digit growth here at the start of fiscal year 2026, accelerating to mid- to high single-digit growth in the back half of fiscal year 2026 and achieving sustainable high single-digit growth with double-digit operating profit growth in 12 months from now,” he said. 

Tuck-in acquisitions expand patient funnel: Farrell also highlighted the impact of tuck-in acquisitions like VirtuOx, which Resmed acquired earlier this year. The independent diagnostic testing facility (IDTF), leveraging Resmed’s NightOwl home sleep apnea test, helped drive 8% growth in U.S. device sales for Q1FY26. 

“That really strong growth we saw in U.S. devices – beating that story of mid-single-digit growth, which we say is the market growth – some of these tuck-in acquisitions have helped with that,” he said.