Resideo (REZI) FY Conference May 07, 2025 10:30 AM ET Speaker0 Okay. Thank you, everybody. Welcome to the Oppenheimer Industrial Conference. I am Ian Zaffino. I am the equity research analyst that covers Resideo. I've been covering them since they spun out of Honeywell. With me today is Tom Saran, the company's president of products and solutions, and also Mike Cartlett, is the company's CFO. Guys, thank you very much for being here today. We really appreciate it. Speaker1 Thanks, Ian. Thanks for having us. ...

This quarterly report represents an earnings surprise of 110%. A quarter ago, it was expected that this residential comfort and security systems maker would post earnings of $0.59 per share when it actually produced earnings of $0.59, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Resideo Technologies, which belongs to the Zacks Security and Safety Services industry, posted revenues of $1.77 billion for the quarter ended March 2025, surpas ...

Resideo (REZI) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Christopher T. Lee - Global Head of Investor RelationsJay Geldmacher - President & CEOThomas Surran - President of Products & SolutionsRob Aarnes - President, ADI Global DistributionMichael Carlet - Executive VP & Chief Financial OfficerIan Zaffino - Managing Director Conference Call Participants Erik Woodring - AnalystNone - Analyst Operator Good afternoon. My name is Eric, and I will be your conference operator today. Thank ...

Financial Data and Key Metrics Changes - Total net revenue for Q1 2025 was approximately $1,800,000,000, representing a 19% year-over-year growth [5] - Total gross margin increased to 28.9%, up 200 basis points year-over-year [6] - Adjusted EBITDA grew 23% year-over-year to $168,000,000 [6] - Adjusted earnings per share rose 34% year-over-year to $0.63 [6] Business Segment Data and Key Metrics Changes - Products and Solutions segment achieved 6% organic revenue growth year-over-year, with total revenue growth of 5% [14] - ADI segment reported 29% year-over-year growth in reported net revenue, with 4% organic net revenue growth despite two fewer selling days [22] - ADI's organic average daily sales grew 7% year-over-year [22] Market Data and Key Metrics Changes - Demand for new Honeywell Home Focus Pro thermostats and First Alert Vista H series security products remains strong [6] - Customer demand in Q1 was healthy across both business segments, with minimal signs of customer hesitancy or order cancellations [11] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through price increases and strategic inventory purchases [10][11] - Continued emphasis on new product introductions, with several scheduled for launch later in 2025 [20] - The integration of SnapOne is progressing well, with nearly 100 new products launched in the quarter [25][26] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook on the macroeconomic environment but believes in the strength of execution to navigate uncertainties [32] - The company is reaffirming its 2025 full-year outlook, planning phased price increases to offset tariff costs [34][36] - Management expressed optimism about ongoing gross margin improvements driven by structural efficiencies and new product launches [70][71] Other Important Information - Approximately 90% of goods sold in the U.S. are produced in Mexico, with 98% being USMCA compliant and exempt from tariffs [9][18] - The company absorbed an immaterial amount of tariff-related expenses prior to USMCA tariff preference treatment [18] Q&A Session Summary Question: Pricing strategy in ADI and potential demand impact - Management indicated that they have taken a phased approach to pass through price increases from suppliers and do not expect material demand changes [40][42] Question: Customer buying behavior and demand in April - Management noted minimal buying ahead and strong demand continued into April, with no significant changes in customer behavior [56][58] Question: Overall spending cycle in residential and commercial markets - Management described the current housing market as somewhat depressed but noted healthy remodeling activity and recovery in new home sales [61][64] Question: Gross margin leverage when the macro environment improves - Management expressed optimism about structural improvements in gross margins, expecting ongoing growth without setting specific targets [70][71]

Q1 2025 Financial Performance - Net revenue reached $1.77 billion, a 19% year-over-year increase[12, 14] - Adjusted EBITDA was $168 million, up 23% year-over-year[12, 14] - Adjusted EPS increased to $0.63, a 34% year-over-year rise[12, 14] - Cash used by operating activities was $65 million, primarily due to increased accounts receivable and early payments to suppliers[13] Segment Performance - Products & Solutions (P&S) revenue grew by 5% year-over-year to $649 million[14, 16] - P&S Adjusted EBITDA increased by 13% year-over-year to $158 million[14, 16] - ADI Global Distribution revenue increased by 29% year-over-year to $1.121 billion[14, 16] - ADI Adjusted EBITDA increased by 24% year-over-year to $72 million[14, 16] Financial Outlook for 2025 - The company projects total net revenue between $7.285 billion and $7.485 billion for 2025[27] - Adjusted EBITDA is expected to be in the range of $725 million to $805 million for 2025[27]

Exhibit 99 Resideo Announces First Quarter 2025 Financial Results; Reaffirms 2025 Outlook SCOTTSDALE, Ariz., May 6, 2025 – Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced financial results for the first quarter ended March 29, 2025. First Quarter 2025 Financial Highlights Management Remarks "Resideo had a strong first quarter, reporti ...

Net revenue was $1.77 billion, up 19% year-over-year, at the high-end of outlook range; reflects mid-single-digit organic revenue(1) growth at both ADI and Products and Solutions Total company gross margin was 28.9%, up 200 basis points year-over-year; Products and Solutions gross margin was 41.4%, eighth consecutive quarter of year-over-year improvement The integration of Snap One into ADI is progressing well and synergy achievement is ahead of plan Over 98% of product costs incurred by the Products and ...

Company Overview - Resideo Technologies, Inc. (REZI) shares increased by 10.3% to close at $16.20, following a notable trading volume that exceeded typical levels. This comes after a 17.3% decline over the previous four weeks [1][2]. Market Impact - The rally in Resideo's shares was influenced by President Trump's announcement of a 90-day pause on tariffs for several countries, aimed at mitigating market sell-offs and concerns over potential recession due to higher tariffs [2]. Earnings Expectations - Resideo is projected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decrease of 19.2%. Revenue is anticipated to reach $1.74 billion, marking a 16.9% increase from the same quarter last year [3]. Earnings Estimate Trends - The consensus EPS estimate for Resideo has remained unchanged over the past 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions. Monitoring REZI's performance is advised to determine if the recent price increase can lead to further strength [4]. Industry Context - Resideo operates within the Zacks Security and Safety Services industry, where another company, MSA Safety, also experienced a price increase of 8.1% to $143.57, despite a 12.9% decline over the past month. MSA Safety's EPS estimate has remained stable at $1.59, showing a year-over-year change of -1.2% [4][5].

Investors in Resideo Technologies, Inc. (REZI) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $12.50 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

New First Alert Smart Smoke & CO Alarm compatible with Google Home ecosystem and designed for seamless integration with Nest Protect Smart Smoke & CO AlarmSCOTTSDALE, Ariz., March 28, 2025  /PRNewswire/ -- First Alert, America's most trusted fire-safety brand* owned by Resideo (NYSE: REZI), and Google Home, a technology leader in the smart home, today announced a new life-safety collaboration. The new First Alert® Smart Smoke & Carbon Monoxide (CO) Alarm is compatible with the Nest Protect Smart Smoke & CO ...