Resideo (REZI) Q2 2025 Earnings Call August 05, 2025 05:00 PM ET Speaker0Good afternoon. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Resideo twenty twenty five Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.Thank you. I would like to hand the conference over to your host today, Chris Li, Global Head of Strategic F ...

This presentation and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or p ...

Record high second quarter net revenue of $1.94 billion, up 22% year-over-year and above the high-end of outlook range; up 8% on an organic basis with ADI up 10% and P&S up 5% on an organic basis(1) Total company second quarter gross margin was 29.3%, up 120 basis points year-over-year; Products and Solutions second quarter gross margin was 42.9%, ninth consecutive quarter of year-over-year improvement Second quarter net loss of $825 million, compared to net income of $30 million in the second quarter of 2 ...

Company Overview - Resideo Technologies (REZI) shares increased by 16.2% to $28.52 in the last trading session, with a higher-than-average trading volume, compared to a 6% gain over the past four weeks [1][2] Strategic Developments - Resideo announced plans to spin off its ADI Global Distribution business into a standalone public company by the second half of 2026, which is expected to enhance its financial flexibility [2] - The company signed a definitive agreement to eliminate future indemnity payments to Honeywell International Inc. through a one-time cash settlement of $1.59 billion, boosting investor confidence [2] Financial Performance Expectations - Resideo is projected to report quarterly earnings of $0.54 per share, reflecting a year-over-year decline of 12.9%, while revenues are expected to reach $1.83 billion, an increase of 14.9% from the previous year [3] - The consensus EPS estimate for Resideo has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Resideo Technologies operates within the Zacks Security and Safety Services industry, where Cadre Holdings, Inc. (CDRE) experienced a 1.5% decline in the last trading session and has a Zacks Rank of 4 (Sell) [4][5]

Resideo (REZI) Update / Briefing July 30, 2025 08:30 AM ET Speaker0Good morning. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the call where Resideo announces two value creating events. After the speakers' remarks, there will be a question and answer session. Thank you.I'd like to turn the conference over to your host today, Chris Li, Global Head of Strategic Finance. You may begin your conference.Speaker1Good morning, everyone, and thank y ...

Exhibit 10.1 EXECUTION VERSION TERMINATION AGREEMENT This Termination Agreement (this "Agreement"), dated as of July 30, 2025, is made by and among (i) Honeywell International Inc., a corporation organized under the Laws of the State of Delaware ("Honeywell"), (ii) Resideo Technologies, Inc., a corporation organized under the Laws of the State of Delaware ("Resideo Parent"), (iii) Resideo Intermediate Holding Inc., a corporation organized under the Laws of the State of Delaware ("RIH") and an indirect wholl ...

Separation Designed To Unlock Value and Enhance Operational Performance and Strategic Flexibility with Focused Business Models; Both Companies To Offer Distinct and Compelling Investment ProfilesTax-Free Spin-Off Expected To Be Completed in Second Half of 2026Expects Second Quarter 2025 Financial Results Will Be Above the High-End of its Second Quarter 2025 Outlook Company To Host Conference Call Today at 8:30 a.m. ETSCOTTSDALE, Ariz., July 30, 2025 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a ...

Company Overview - Resideo Technologies, Inc. is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets [4] - The company specializes in home heating, ventilation, and air conditioning controls, smoke and carbon monoxide detection, home safety and fire suppression products, and security markets [4] - Resideo's solutions and services are utilized in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually [4] Upcoming Financial Results - Resideo will release its second quarter 2025 financial results after the close of the New York Stock Exchange on August 5, 2025 [1] - A conference call and simultaneous webcast to discuss the results will take place on the same day at 5:00 p.m. ET [1] Accessing Information - Interested investors can listen to the webcast of the conference call via the Investor Relations section of Resideo's website, where related materials will be posted prior to the call [2] - A replay of the webcast will be available following the presentation [2] - The conference call can also be accessed by dialing 888-660-6357 (U.S., toll-free) or 1-929-201-6127 (international) using the conference title "Resideo Second Quarter 2025 Earnings Call" or the conference ID: 7301399 [3]

Core Viewpoint - Resideo Technologies, Inc. (NYSE: REZI) is anticipated to experience revenue growth in FY2025, driven by price increases, new product launches, and the acquisition of Snap One [1] Group 1: Revenue Growth Drivers - Revenue growth is expected to be supported by price increases [1] - Introduction of new products is a key factor for revenue enhancement [1] - The Snap One acquisition is projected to contribute positively to revenue growth [1] Group 2: Macroeconomic Conditions - Current macroeconomic conditions are described as uncertain, yet the company is expected to navigate through these challenges [1] Group 3: Investment Focus - The company primarily focuses on GARP (Growth at Reasonable Price) opportunities within the industrial, consumer, and technology sectors [1]

Resideo (REZI) FY Conference Summary Company Overview - Resideo was spun off from Honeywell in 2018, combining the ADI distribution business focused on commercial security and various residential home management lines of business [4][5] - The company has focused on integrating its operations and optimizing its manufacturing and distribution strategies since the spin-off [4][5] Financial Performance - Resideo reported strong performance in Q1 2025, with positive growth in both its business segments despite a volatile macroeconomic environment [6][7] - The company experienced weather-related impacts affecting store closures but noted strong customer demand for new products [6][7] Tariff and Macro Environment - Resideo's exposure to tariffs is minimal, with over 90% of products sold in the U.S. exempt from tariffs due to USMCA [10][11] - The company has a small amount of exposure from imports from China, but overall, the impact on costs is expected to be minor [11][14] - The macro environment is described as neutral to anemic, particularly affecting the residential market, but Resideo is gaining market share and maintaining good customer demand [17][18] Product and Solutions Segments - The majority of Resideo's products are in the residential market, primarily in North America, with key categories including air (thermostats), safety and security (First Alert brand), water controls, and energy products [22][25] - Organic growth in the Products and Solutions segment accelerated to 6% in the quarter, driven by customer demand and some pricing adjustments [29][30] New Product Development - Resideo is focusing on new product innovation to regain market share and introduce new products across various categories [36][37] - The company plans to launch multiple new products in the coming years, including a high-end thermostat to compete with Ecobee and Google Nest [37][38] ADI Segment Overview - ADI primarily serves North America with a strong e-commerce presence and has expanded into various verticals beyond commercial security [39][40] - Recent organic growth in ADI is attributed to a strong project pipeline and share gains, particularly in the commercial security sector [41][44] SnapOne Acquisition - The integration of SnapOne into ADI is progressing well, with a unified organization and strong synergy realization ahead of schedule [46][49][53] - The strategic rationale for the acquisition was to combine strengths in commercial and residential markets and enhance e-commerce capabilities [46][47] Capital Allocation and Financial Outlook - Resideo aims to maintain appropriate investments in the business while targeting a leverage ratio of 2x [76][77] - The company expects to generate significant cash flow, with a guidance of at least $375 million for the year [77] - Confidence in the 2025 revenue and profit outlook is based on consistent customer demand and project flow across both segments [64][66] Key Challenges and Opportunities - The Honeywell liability is seen as a potential concern for investors, but management believes it is becoming less material as the company grows [86][88] - The focus on growth and operational excellence is expected to drive performance and create synergistic opportunities between the Products and Solutions and ADI segments [90][91]