Financial Data and Key Metrics Changes - For Q4 2024, net sales were $1.1 billion, a 5% decrease compared to Q4 2023, with organic sales down 1% after adjusting for external impacts [11][46] - Full year 2024 net sales were flat at $4.6 billion, with organic sales down 5% or down 2% excluding China and one-time disruptions [12][46] - Q4 2024 EPS was $0.98, up 3% from Q4 2023, while full year EPS was $4.12, a 5% increase over 2023 [11][13] - Operating margins for Q4 were 16.4%, a 60 basis point improvement year-over-year, and full year operating margins increased by 90 basis points to 16.9% [12][46] Business Line Data and Key Metrics Changes - Water Innovation segment saw Q4 sales down 3%, but organic sales increased 2% when excluding China and hurricane impacts, with operating margins at 23.7% [29][47] - Outdoor segment sales decreased by 2% in Q4, but full year sales increased by 1%, with operating margins at 18.2% for Q4 [35][51] - Security segment sales were down 17% in Q4, or down 10% when adjusting for a software outage, with full year sales down 4% [37][53] Market Data and Key Metrics Changes - The overall market for products is expected to be down 2% to up 1% in 2025, with U.S. R&R (repair and remodel) projected to be down 1% to up 2% [59][60] - The single-family new construction market is anticipated to be flat in 2025, with low single-digit growth in starts and completions [26][59] Company Strategy and Development Direction - The company is focusing on high-growth and profitable opportunities, simplifying its leadership structure, and investing in digital transformation and brand building [5][9][10] - A new $1 billion share repurchase authorization was approved, reflecting confidence in cash generation and long-term shareholder value [14][54] - The company plans to leverage its digital capabilities and partnerships to drive growth, particularly in the connected products space [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform in 2025, citing strong brand positioning and innovation [6][24] - The macro environment remains challenging, but there are medium to long-term tailwinds expected due to strong consumer demand for homes [25][56] - Management anticipates a cautious approach in the first half of 2025, with expectations for gradual improvement in the second half [72][76] Other Important Information - The company is moving its regional offices to a new headquarters in Deerfield, Illinois, to foster innovation and collaboration [8] - Significant investments were made in digital products, with digital sales reaching $214 million in 2024 and expected to contribute 150 basis points to growth in 2025 [16][21] Q&A Session Summary Question: Can you talk about the initiatives and actions taken over the last twelve months and their implications for 2025? - Management highlighted growth in the water segment and strong performance in the outdoor business, with digital assets and marketing strategies set to drive growth in 2025 [67][70] Question: How is the state of the consumer as we enter 2025? - The consumer remains cautious, but there is resilience in the high-end market, with efforts to differentiate brands against counterfeit products expected to drive sales [79][81] Question: Can you elaborate on the Connected Products growth and its contribution to overall sales? - Connected Products are expected to contribute 150 basis points to growth in 2025, with significant sales activation and conversion efforts underway [90]