Resideo(US:REZI)2025-11-05 21:08Financial Performance - Third quarter net revenue was $1.86 billion, up 2% year-over-year, with both ADI and Products & Solutions segments growing net revenue by 2%[6] - Record high gross margin of 29.8%, an increase of 110 basis points year-over-year, with margin expansion achieved for ten consecutive quarters in P&S and six consecutive quarters in ADI[6] - Record high net income of $156 million, up 680% year-over-year, compared to $20 million in the third quarter of 2024[6] - Adjusted EBITDA reached a record high of $229 million, up 21% year-over-year from $190 million in the third quarter of 2024[6] - Fully diluted earnings per share was $0.85, with Adjusted EPS of $0.89, exceeding the high-end of the outlook range and setting a new record high[6] - P&S segment delivered net revenue of $661 million, up 2% year-over-year, driven by price realization and customer demand for new products[8] - ADI segment reported net revenue of $1,203 million, up $20 million compared to the third quarter of 2024, with average daily sales growth of 3% year-over-year[11] - Net income for Q3 2025 was $156 million, significantly higher than $20 million in Q3 2024[24] - Non-GAAP adjusted net income for the three months ended September 27, 2025, was $137 million, compared to $88 million for the same period in 2024, reflecting a 55% increase[28] Cash Flow and Expenses - Cash used by operating activities was $1,571 million, with Adjusted cash provided by operations at $19 million after accounting for a $1.59 billion payment to Honeywell[13] - The company experienced a net cash used in operating activities of $(1,571) million for the three months ended September 27, 2025, compared to a cash provided of $147 million in the same period of 2024[26] - The company reported a net cash used in operating activities of $(1,571) million for the three months ended September 27, 2025[36] - Research and development expenses increased by $10 million year-over-year, reflecting planned investments for future growth[9] - Research and development expenses increased by 91% year-over-year to $44 million in Q3 2025, compared to $23 million in Q3 2024[24] - Selling, general and administrative expenses were $324 million in Q3 2025, a slight increase of 2% from $317 million in Q3 2024[24] Assets and Liabilities - Total assets as of September 27, 2025, were $8,188 million, slightly down from $8,199 million at the end of 2024[25] - Long-term debt increased to $3,169 million as of September 27, 2025, compared to $1,983 million at the end of 2024[25] - Cash and cash equivalents decreased to $345 million from $692 million at the end of 2024[25] Future Outlook - The company anticipates fourth quarter 2025 net revenue between $1,853 million and $1,893 million, and full year 2025 net revenue between $7,430 million and $7,470 million[16] Segment Performance - Net revenue for the three months ended September 27, 2025, was $661 million, a 2.5% increase from $645 million in the same period of 2024[32] - Net revenue for the ADI Global Distribution segment for the three months ended September 27, 2025, was $1,203 million, a 1.7% increase from $1,183 million in the same period of 2024[34] - Non-GAAP adjusted EBITDA for the ADI Global Distribution segment for the three months ended September 27, 2025, was $92 million, or 7.6% of net revenue, compared to 7.8% in the prior year[34] Capital Expenditures - The company reported capital expenditures of $(28) million for the three months ended September 27, 2025, compared to $(22) million in the same period of 2024[26] Other Financial Metrics - GAAP income from operations for the three months ended September 27, 2025, was $140 million, representing 21.2% of net revenue, compared to 19.8% in the prior year[32] - Non-GAAP adjusted EBITDA for the three months ended September 27, 2025, was $165 million, or 25.0% of net revenue, up from 24.3% in the same period of 2024[32]