Resideo(US:REZI)2025-05-06 22:02Financial Data and Key Metrics Changes - Total net revenue for the first quarter 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 [5][28] - Adjusted EBITDA grew 23% year-over-year to $168,000,000 [6][28] - Adjusted earnings per share rose 34% year-over-year to $0.63 [6][28] 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% [6][13] - ADI segment reported 29% year-over-year growth in reported net revenue, with 4% organic net revenue growth despite two fewer selling days [21][27] - Gross margin for Products and Solutions was 41.4%, up 190 basis points year-over-year [17] - ADI gross margin was 21.6%, up 360 basis points year-over-year [25] Market Data and Key Metrics Changes - Customer demand remained healthy across both business segments, with minimal signs of hesitancy or order cancellations [11][12] - Organic e-commerce net revenue for ADI grew 15% year-over-year, achieving a new record in daily sales average [23] 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 launches planned for 2025 [19][20] - The integration of SnapOne is progressing well, with nearly 100 new products launched in the quarter [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook on the macroeconomic environment but believes in the strength of their execution to navigate uncertainties [30][33] - The company reaffirms its 2025 full-year outlook, planning phased price increases to offset tariff costs [33] Other Important Information - The company absorbed an immaterial amount of tariff-related expenses prior to the implementation of USMCA tariff preference treatment [17] - The company is actively monitoring customer behavior and market conditions to adapt its strategies accordingly [11][12] Q&A Session Summary Question: Pricing in ADI and demand sensitivity - Management indicated that they are passing through price increases from suppliers and do not expect material demand changes due to these increases [38][43] Question: Customer buying behavior in April - Management noted minimal buying ahead and strong demand in March and April, with no significant changes in customer behavior [50][56] Question: Overall spending cycle in residential and commercial markets - Management described the current housing market as somewhat depressed but noted healthy remodeling activity and increasing content per new home [59][62]