Core Points - Resideo Technologies, Inc. has completed a transaction with Honeywell International Inc. to eliminate future monetary obligations under the Indemnification Agreement established during Resideo's spin-off from Honeywell in 2018 [1][2] - The transaction involved a one-time cash payment of $1.59 billion to Honeywell, which terminates the Indemnification Agreement and removes Resideo's obligation for annual payments of up to $140 million through 2043 [2] Company Overview - Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products for residential and commercial markets, specializing in home heating, ventilation, air conditioning controls, smoke and carbon monoxide detection, and security products [4] - The company's solutions are present in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually [4]

Core Viewpoint - Resideo Technologies, Inc. reported exceptional financial results for the second quarter of 2025, achieving record high metrics across key financial indicators, driven by organic revenue growth in both the ADI and Products and Solutions segments [3][7][11]. Financial Highlights - The company achieved record net revenue of $1.94 billion, representing a 22% increase year-over-year and exceeding the high-end of the outlook range; organic growth was 8%, with ADI growing 10% and Products and Solutions growing 5% [7][11]. - Gross margin for the total company was 29.3%, up 120 basis points year-over-year, while Products and Solutions gross margin was 42.9%, marking the ninth consecutive quarter of year-over-year improvement [7][10]. - Adjusted EBITDA reached a record high of $210 million, up 20% year-over-year, and also exceeded the high-end of the outlook range [7][11]. Segment Performance - Products and Solutions segment reported net revenue of $666 million, a 6% increase compared to the second quarter of 2024, with strong sales driven by new product demand and price realization [6][8]. - ADI Global Distribution segment delivered net revenue of $1,277 million, up 33% year-over-year, with organic growth of 10% when excluding the Snap One acquisition [11][16]. Cash Flow and Liquidity - The company generated $200 million in cash from operating activities in the second quarter of 2025, compared to $92 million in the same period of 2024, driven by strong sales and collections [13][24]. - As of June 28, 2025, Resideo had cash and cash equivalents of $753 million and total outstanding gross debt of $2.01 billion [13][24]. Outlook - Resideo raised its full-year 2025 outlook, projecting net revenue between $7.45 billion and $7.55 billion, and Adjusted EBITDA between $845 million and $885 million [14].

Resideo intends to finance the payment to Honeywell through a combination of approximately $400 million of cash-on-hand and new senior secured debt financing that has been committed by J.P. Morgan and Wells Fargo. $1.59 Billion To Be Paid to Honeywell in the Third Quarter of 2025 SCOTTSDALE, Ariz., July 30, 2025 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential an ...

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]

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]

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]