[Resideo First Quarter 2025 Financial Results](index=1&type=section&id=Resideo%20First%20Quarter%202025%20Financial%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Resideo reported strong Q1 2025 results, exceeding its outlook with a 19% year-over-year increase in net revenue to $1.77 billion, driven by organic growth in both segments and the Snap One acquisition. Gross margin expanded by 200 basis points to 28.9%, and Adjusted EBITDA grew 23% to $168 million. Adjusted EPS of $0.63 significantly surpassed the high-end of the company's guidance Key Financial Highlights | Financial Metric | Q1 2025 | Q1 2024 | % Change | Note | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $1.77 billion | $1.49 billion | 19% | High-end of outlook range | | Gross Margin | 28.9% | 26.9% | +200 bps | Eighth consecutive quarter of YoY improvement for Products and Solutions | | Net Income | $6 million | $43 million | -86% | Primarily due to a $47 million increase in Honeywell Reimbursement Agreement expense | | Adjusted EBITDA | $168 million | $137 million | 23% | High-end of outlook range | | Diluted EPS | $(0.02) | $0.29 | - | - | | Adjusted EPS | $0.63 | $0.47 | 34% | Exceeded high-end of outlook range | - The integration of Snap One into the ADI segment is progressing well, with synergy achievement reported to be ahead of plan[6](index=6&type=chunk) - The company stated that over **98%** of product costs incurred by the Products and Solutions segment in Mexico are currently exempt from tariffs[6](index=6&type=chunk) [Management Remarks](index=1&type=section&id=Management%20Remarks) CEO Jay Geldmacher highlighted the strong Q1 performance, with results at or above the high end of guidance. He noted excellent operational execution, organic growth in both segments, and continued margin expansion. The company reaffirmed its 2025 outlook, expressing confidence in profitable growth opportunities despite a volatile macro environment and its ability to mitigate potential tariff impacts - Management reported a strong first quarter with results at or above the high-end of the range for all key financial metrics[3](index=3&type=chunk) - Both the ADI and Products and Solutions segments generated organic net revenue growth, continued gross margin expansion, and healthy Adjusted EBITDA growth[3](index=3&type=chunk) - The company reaffirmed its 2025 outlook, citing profitable growth opportunities and the belief that it can essentially mitigate the cost impact of any tariffs[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Both of Resideo's segments demonstrated growth. Products and Solutions saw net revenue increase by 5% to $649 million, with a notable gross margin expansion to 41.4%. ADI Global Distribution's revenue grew 29% to $1,121 million, primarily driven by the Snap One acquisition, and achieved 4% organic growth [Products and Solutions](index=1&type=section&id=Products%20and%20Solutions%20First%20Quarter%202025%20Highlights) The Products and Solutions segment achieved a 5% increase in net revenue to $649 million, with gross margin expanding to 41.4% and Adjusted EBITDA growing 13% to $158 million, driven by volume, mix, and price realization Products and Solutions Segment Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenue | $649 million | $620 million | 5% | | Gross Margin | 41.4% | 39.5% | +190 bps | | Income from Operations | $136 million | $112 million | 21% | | Adjusted EBITDA | $158 million | $140 million | 13% | | Adjusted EBITDA Margin | 24.3% | 22.6% | +170 bps | - Revenue growth was driven by volume demand, mix, and price realization, particularly in the HVAC and Electrical Distribution channels for the new Honeywell Home FocusPRO thermostat and BRK products[7](index=7&type=chunk) - Gross margin expansion was attributed to structural improvements that increased operational efficiency[9](index=9&type=chunk) - The company launched the connected First Alert Smart Smoke and Carbon Monoxide Alarm, designed to be compatible with the Google Home app and replace Google's expiring Nest Protect alarms[8](index=8&type=chunk) [ADI Global Distribution](index=2&type=section&id=ADI%20Global%20Distribution%20First%20Quarter%202025%20Highlights) The ADI Global Distribution segment reported a 29% increase in net revenue to $1,121 million, primarily due to the Snap One acquisition, with organic growth of 4% and a 360 basis point gross margin expansion ADI Global Distribution Segment Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenue | $1,121 million | $866 million | 29% | | Gross Margin | 21.6% | 18.0% | +360 bps | | Income from Operations | $34 million | $49 million | -31% | | Adjusted EBITDA | $72 million | $58 million | 24% | - Revenue growth was primarily driven by the **$227 million** contribution from the Snap One acquisition. Organic revenue growth was **4%**[11](index=11&type=chunk) - Organic growth was strong in the e-commerce channel, which grew **15%** year-over-year. Organic average daily sales grew **7%**[11](index=11&type=chunk) - The **360 basis point** increase in gross margin was driven by the inclusion of higher-margin Snap One and increased e-commerce sales[12](index=12&type=chunk) [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) The company used $65 million in cash from operating activities in Q1 2025, a notable shift from the $2 million provided in Q1 2024. This change was primarily driven by an increase in accounts receivable due to higher sales and cash outflows for accounts payable. As of March 29, 2025, Resideo held $577 million in cash and cash equivalents and had total outstanding gross debt of $2.02 billion - Net cash used by operating activities was **$65 million** in Q1 2025, compared to **$2 million** of cash provided by operating activities in Q1 2024[13](index=13&type=chunk) - The use of cash was primarily driven by an increase in accounts receivable from higher sales and early payments on accounts payable to receive supplier discounts[13](index=13&type=chunk) Liquidity Position | Liquidity Position | As of March 29, 2025 | | :--- | :--- | | Cash and cash equivalents | $577 million | | Total outstanding gross debt | $2.02 billion | [2025 Outlook](index=3&type=section&id=Outlook) Resideo reaffirmed its full-year 2025 outlook and provided guidance for the second quarter of 2025. For Q2, the company expects net revenue between $1,805 million and $1,855 million and Adjusted EPS of $0.51 to $0.61. For the full year, net revenue is projected to be between $7,285 million and $7,485 million, with Adjusted EPS of $2.23 to $2.47 2025 Financial Outlook | ($ in millions, except per share data) | Q2 2025 Outlook | Full Year 2025 Outlook | | :--- | :--- | :--- | | Net revenue | $1,805 - $1,855 | $7,285 - $7,485 | | Non-GAAP Adjusted EBITDA | $175 - $195 | $725 - $805 | | Non-GAAP Adjusted Earnings Per Share | $0.51 - $0.61 | $2.23 - $2.47 | | Cash Provided by Operations | - | $345 - $405 | [Financial Tables and Reconciliations](index=5&type=section&id=Financial%20Tables%20and%20Reconciliations) [Summary of Financial Results (Table 1)](index=5&type=section&id=Table%201:%20SUMMARY%20OF%20FINANCIAL%20RESULTS%20(UNAUDITED)) Table 1 presents a detailed breakdown of financial results by segment (Products and Solutions, ADI Global Distribution) and for the total company for Q1 2025 compared to Q1 2024. It details net revenue, cost of goods sold, gross profit, and income from operations for each segment, highlighting ADI's 29% revenue growth and Products and Solutions' 21% growth in operating income - Provides a side-by-side comparison of Q1 2025 and Q1 2024 performance for each business segment and corporate expenses, showing revenue, costs, and operating income[23](index=23&type=chunk) [Consolidated Statements of Operations (Table 2)](index=6&type=section&id=Table%202:%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) The Consolidated Statement of Operations shows a 19% increase in net revenue to $1.77 billion. However, net income decreased significantly from $43 million in Q1 2024 to $6 million in Q1 2025. This was primarily due to a $47 million year-over-year increase in the non-cash expense related to the Honeywell Reimbursement Agreement, which rose from $43 million to $90 million - Net income fell to **$6 million** from **$43 million** year-over-year, largely due to a significant increase in the Reimbursement Agreement expense to **$90 million**[24](index=24&type=chunk) - Diluted earnings per share (EPS) was **$(0.02)**, a sharp decline from **$0.29** in the prior-year quarter[24](index=24&type=chunk) [Consolidated Balance Sheets (Table 3)](index=7&type=section&id=Table%203:%20CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) The balance sheet as of March 29, 2025, shows total assets of $8.07 billion and total liabilities of $4.73 billion, resulting in total stockholders' equity of $3.35 billion. Key assets include $3.08 billion in goodwill and $1.23 billion in inventories. Long-term debt stood at $1.98 billion Consolidated Balance Sheet Summary | Balance Sheet Item | March 29, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $8,074 million | $8,199 million | | Total Liabilities | $4,727 million | $4,890 million | | Total Stockholders' Equity | $3,347 million | $3,309 million | [Consolidated Statements of Cash Flows (Table 4)](index=8&type=section&id=Table%204:%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) The cash flow statement for Q1 2025 reveals a net cash usage of $65 million from operating activities, a significant decrease from the $2 million provided in Q1 2024. Net cash used in investing activities was $31 million, primarily for capital expenditures, and financing activities used $22 million. This resulted in a net decrease in cash of $115 million for the quarter Consolidated Cash Flow Summary | Cash Flow Item (Three Months Ended) | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(65) million | $2 million | | Net cash used in investing activities | $(31) million | $(22) million | | Net cash used in financing activities | $(22) million | $(8) million | | Net decrease in cash | $(115) million | $(33) million | [Non-GAAP Reconciliations](index=9&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20RECONCILIATIONS) This section provides detailed reconciliations of GAAP measures to non-GAAP measures, including Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA. For Q1 2025, GAAP Net Income of $6 million was adjusted to a non-GAAP Adjusted Net Income of $94 million. Key adjustments included adding back the $55 million non-cash portion of the Reimbursement Agreement accrual, $30 million in intangible asset amortization, and $15 million in stock-based compensation. Consequently, GAAP EPS of $(0.02) was adjusted to $0.63 - Reconciles GAAP Net Income of **$6 million** to Non-GAAP Adjusted Net Income of **$94 million** for Q1 2025. Major adjustments include the non-cash Reimbursement Agreement accrual (**$55 million**), intangible asset amortization (**$30 million**), and stock-based compensation (**$15 million**)[28](index=28&type=chunk) - Reconciles GAAP Net Income of **$6 million** to Non-GAAP Adjusted EBITDA of **$168 million** for Q1 2025[30](index=30&type=chunk) - Provides segment-level reconciliations from GAAP Income from Operations to Non-GAAP Adjusted EBITDA for both Products and Solutions (**$158 million**) and ADI Global Distribution (**$72 million**)[32](index=32&type=chunk)[34](index=34&type=chunk)

Core Insights - Resideo Technologies, Inc. reported strong financial results for Q1 2025, with net revenue of $1.77 billion, reflecting a 19% year-over-year increase, and exceeding the high-end of the outlook range [2][7][8] - The company reaffirmed its 2025 outlook, indicating confidence in continued growth across its business segments despite macroeconomic volatility [3][4] Financial Performance - Net revenue for the first quarter was $1.77 billion, up from $1.49 billion in Q1 2024, marking a 19% increase [8][27] - Gross margin improved to 28.9%, a 200 basis point increase year-over-year, with Products and Solutions achieving a gross margin of 41.4%, marking the eighth consecutive quarter of improvement [7][12] - Adjusted EBITDA reached $168 million, a 23% increase from $137 million in Q1 2024, representing a margin of 9.5% [8][35] Segment Performance - Products and Solutions segment generated net revenue of $649 million, up 5% year-over-year, driven by strong demand in HVAC and Electrical Distribution channels [10][12] - ADI Global Distribution segment reported net revenue of $1,121 million, a 29% increase compared to Q1 2024, with organic growth of 4% when excluding the Snap One acquisition [14][18] Cash Flow and Liquidity - The company reported cash used by operating activities of $65 million in Q1 2025, compared to $2 million of cash provided in the same period last year, primarily due to increased accounts receivable [16][27] - As of March 29, 2025, Resideo had cash and cash equivalents of $577 million and total outstanding gross debt of $2.02 billion [16][30] Outlook - For Q2 2025, Resideo anticipates net revenue between $1.805 billion and $1.855 billion, and for the full year 2025, net revenue is projected to be between $7.285 billion and $7.485 billion [17][19]

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 ...

Group 1 - The article discusses Resideo Technologies (NYSE: REZI) and highlights the less than encouraging indicators surrounding the housing market affecting the company [1] - The author has over 14 years of experience in stock analysis, focusing on both long and short positions, and has been covering the energy sector for 7 years, particularly the oilfield equipment services sector [1] - The author also covers the Industrial Supply industry and occasionally collaborates with other contributors [1]

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 [5] - The company is a leader in home heating, ventilation, and air conditioning controls, smoke and carbon monoxide detection, home safety and fire suppression products, and security products [5] - Resideo's solutions and services are present in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually [5] Upcoming Investor Conferences - Resideo is scheduled to participate in the 46th Annual Raymond James Institutional Investor Conference in Orlando, Florida on March 3, 2025, with a fireside chat featuring CFO Michael Carlet and President Robert Aarnes at 8:40 AM ET [2] - The company will also attend the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California on March 4, 2025, with President Thomas Surran and Global Head of Investor Relations Christopher T. Lee participating in a fireside chat at 1:05 PM PT [3] - Additionally, Resideo will be present at the JP Morgan 2025 Industrials Conference in New York, NY on March 13, 2025, where CFO Michael Carlet will participate in a fireside chat at 11:15 AM ET [3] Webcast Information - The fireside chats will be webcast live and available for replay on the Investor Relations page of the Resideo website, archived for a period of 30 days [4]

February 20, 2025 FY'24 and Q4'24 Results Presentation Disclaimer Forward-Looking Statements 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 statemen ...

Financial Data and Key Metrics Changes - Total net revenue for 2024 was approximately $6.8 billion, representing an 8% year-over-year growth [8] - Adjusted EBITDA grew 17% year-over-year to approximately $700 million [8] - Total cash generated from operations reached a record $444 million, exceeding the outlook of at least $375 million [8][35] Business Segment Data and Key Metrics Changes - Products & Solutions experienced organic net revenue growth that rounded to flat year-over-year, with gross margins expanding by 240 basis points [9][10] - ADI achieved 2% organic net revenue growth year-over-year, driven by strength in digital channels and product categories [12] - ADI reported a 39% year-over-year growth in net revenue for Q4, with organic net revenue growth at 9% [24][32] Market Data and Key Metrics Changes - The global macroeconomic environment remains mixed, with U.S. dollar strength and potential tariff changes adding uncertainty for 2025 [13][36] - U.S. residential homebuilding is returning to normal levels, but the existing home resale market remains soft [37] Company Strategy and Development Direction - The company is focused on new product introductions, with successful launches in 2024 and more planned for 2025 [11][21] - Strategic investments in e-commerce are yielding positive returns, with a 22% year-over-year growth in e-commerce net revenue [26][27] - The integration of Snap One is progressing well, with run rate synergies achieved exceeding expectations [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating revenue growth in both business segments despite a mixed macro environment [39][82] - The company has comprehensive plans to address potential tariff changes, including price adjustments and operational strategies [13][56] Other Important Information - The company expects total net revenue for 2025 to be in the range of $7.285 billion to $7.485 billion [45] - Forecasted gross margin expansion of 100 to 150 basis points for 2025 compared to 2024 [42] Q&A Session Summary Question: Discussion on new product innovation and roadmap for 2025 - Management highlighted revitalization of existing product lines and positive reception of new products launched [50][51] Question: Inquiry about supply chain footprint and contingency plans regarding tariffs - Management provided insights into proactive customer engagement and various operational strategies to mitigate tariff impacts [55][56] Question: Clarification on ADI gross margin improvement and exclusive brand revenue contribution - Management noted that the growth in exclusive brands is expected to positively impact overall gross margin [63] Question: Discussion on Snap One synergies and integration progress - Management attributed the successful realization of synergies to effective integration strategies and collaboration between teams [68][69] Question: Inquiry about competitive landscape and pricing power in ADI - Management acknowledged competitive pricing pressures but emphasized the focus on margin-accretive channels like e-commerce and exclusive brands [76][78] Question: Organic growth assumptions for ADI and growth drivers - Management expressed confidence in continued growth driven by a strong opportunity pipeline and healthy backlog [82]

Core Viewpoint - Resideo Technologies reported quarterly earnings of $0.59 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.48 per share a year ago [1]. Financial Performance - The company achieved revenues of $1.86 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.07%, and up from $1.54 billion year-over-year [2]. - Over the last four quarters, Resideo has surpassed consensus EPS estimates three times and topped revenue estimates four times [2]. Stock Performance - Resideo Technologies shares have declined approximately 5.2% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3]. - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $1.74 billion, and for the current fiscal year, it is $2.46 on revenues of $7.35 billion [7]. - The estimate revisions trend for Resideo Technologies is mixed, which may change following the recent earnings report [6]. Industry Context - The Security and Safety Services industry, to which Resideo belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].