Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q4 2024 Earnings Presentation
35 slides from Resideo Technologies's earnings presentation, Feb 20, 2025
Slide 1: FY'24 and Q4'24 Results Presentation
February 20, 2025 FY’24 and Q4’24 Results Presentation
Slide 2: Disclaimer
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 o
Slide 3: Agenda
Overview of Resideo Financial Results Agenda Quarterly Financial Trends Balance Sheet, Cash Flow, and Outlook 3
Slide 4: Overview of Resideo
Overview of Resideo resideo
Slide 5: A leader in technology-driven sensing and controls products
A leader in technology-driven sensing and controls products Products and Solutions ADI Global Distribution A leading global developer and Leading global wholesale distributor manufacturer of air, energy, security, of security, fire, AV and other low- and water products and solutions $6.8B1 voltage p
Slide 6: Differentiated Professional and Channel Relationships
Differentiated Professional and Channel Relationships Multiple Channels to the Pro Products sold through Utility Grid Services Residential new Broad OEM Retail strategy Distributors and and Insurance product construction Builder partnership for DIY / DIFM Security Dealers rebate programs programs ne
Slide 7: Trusted, Established Brands
Trusted, Established Brands 7
Slide 8: Resideo Investment Opportunity
Resideo Investment Opportunity Differentiated Professional Structural Margin Growth in and Channel Relationships Expansion Home Content Trusted partner with broad offering Supporting Pro’s growth & profitability Well recognized brands Longstanding reliability Service and support Omnichannel efficien
Slide 9: Financial Results
Financial Results resideo
Slide 10: Resideo – 2024 Highlights
Resideo – 2024 Highlights NET REVENUE ADJUSTED EBITDA ADJUSTED EPS CASH PROVIDED BY OPERATIONS $6.8B in 2024 $693M in 2024 $2.29 in 2024 $444M in 2024 +8% YoY +17% YoY +5% YoY +1% YoY • All four financial metrics above the high-end of • Cash provided by operations increased year-over- outlook range.
Slide 11: Resideo – 2024 Financial Summary
Resideo – 2024 Financial Summary ($ in millions, except per share) 2024 2023 YoY Change Net Revenue $6,761 $6,242 +8% P&S Revenue $2,564 $2,672 -4% ADI Revenue $4,197 $3,570 +18% Gross Margin 28.1% 27.2% +90 bps P&S Gross Margin 41.0% 38.6% +240 bps ADI Gross Margin 20.3% 18.7% +160 bps Income from
Slide 12: Resideo – Q4'24 Highlights
Resideo –Q4’24 Highlights Products & Solutions ADI Global Distribution • Net revenue and Adjusted EBITDA • Organic net revenue down 1% YoY, with all • Organic net revenue up 9% YoY, driven by exceeded expectations channels performing well, except Security broad-based growth across product categories
Slide 13: Resideo - Q4'24 Financial Summary
Resideo - Q4’24 Financial Summary ($ in millions, except per share) Q4’24 Q4’23 YoY Change Net Revenue $1,858 $1,537 +21% P&S Revenue $669 $683 -2% ADI Revenue $1,189 $854 +39% Gross Margin 28.5% 27.5% +100 bps P&S Gross Margin 40.8% 39.5% +130 bps ADI Gross Margin 21.6% 18.0% +360 bps Income from O
Slide 14: Quarterly Financial Trends
Quarterly Financial Trends ——a ~ oresideo
Slide 15: Resideo - Key Q4'24 Financial Trends
Resideo - Key Q4’24 Financial Trends Net Revenue Adjusted EPS $ in M’s +21% Y/Y -8% Y/Y $0.70 $1,900 $1,800 $0.60 $1,700 $0.50 $1,600 $0.40 $1,500 $0.30 $1,400 $0.20 $1,300 $1,200 $0.10 $1,100 $0.00 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 NOTE:
Slide 16: Resideo - Key Q4'24 Financial Trends
Resideo - Key Q4’24 Financial Trends Adjusted EBITDA Cash Provided by Operations +26% Y/Y $ in M’s -23% Y/Y $ in M’s 300 200 250 200 150 150 100 100 50 0 50 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 -50 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 NOTE: Amounts shown above include contribut
Slide 17: Products and Solutions – Key Q4'24 Financial Trends
Products and Solutions – Key Q4’24 Financial Trends P&S Revenue P&S Gross Margin P&S Adjusted EBITDA -2% Y/Y +130 bps Y/Y +1% Y/Y $ in M’s $ in M’s $160 $700 45% $150 $660 41% $140 $620 37% $130 $580 33% $120 $540 29% $110 $500 25% $100 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'23 Q2'23 Q3'
Slide 18: ADI Global Distribution – Key Q4'24 Financial Trends
ADI Global Distribution – Key Q4’24 Financial Trends ADI Revenue ADI Gross Margin ADI Adjusted EBITDA +39% Y/Y +360 bps Y/Y +57% Y/Y $ in M’s $ in M’s $100 $1,200 22% $1,100 20% $80 $1,000 $900 18% $60 $800 16% $700 $600 $40 14% $500 $400 12% $20 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'23
Slide 19: Balance Sheet, Cash Flow, and Outlook
Balance Sheet, Cash Flow, and Outlook
Slide 20: Condensed Summary Balance Sheet
Condensed Summary Balance Sheet $ in millions December 31, 2024 December 31, 2023 Cash and cash equivalents $692 $636 Gross debt $2,015 $1,419 Accounts receivable, net $1,023 $973 Inventories, net $1,237 $941 Accounts payable $1,073 $905 NOTE: Amounts shown above include contributions from Snap One,
Slide 21: Durable Free Cash Flow Generation
Durable Free Cash Flow Generation Free Cash Flow(1) $ in millions December 31, 2024 $M $400 Cash and cash equivalents $692 $300 Gross debt $2,015 $200 December 31, 2024 $100 Cash provided by operating $444 activities (LTM) $0 2022 2023 2024 Capital expenditures (LTM) $80 (1) Free cash flow is define
Slide 22: Outlook and Key Modeling Assumptions
Outlook and Key Modeling Assumptions $ in Millions, except per share 2025 Key 2025 Modeling Assumptions Total net revenue $7,285 - $7,485 Stock-based compensation $60 - $65 Adjusted EBITDA(1) $725 - $805 Depreciation & amortization $200 - $205 Adjusted EPS(1) $2.23 - $2.47 Capital expenditures $140
Slide 23: Appendix
Appendix
Slide 24: Summary Financial Results – 2024
Summary Financial Results – 2024 YTD 2024 (1) YTD 2023 (1) Products and ADI Global Total Products and ADI Global Total (in millions) Solutions Distribution Corporate Company Solutions Distribution Corporate Company Net revenue $ 2,564 $ 4,197 $ — $ 6,761 $ 2,672 $ 3,570 $ — $ 6,242 Cost of goods sol
Slide 25: Summary Financial Results – Q4'24
Summary Financial Results – Q4’24 Q4 2024 (1) Q4 2023 (1) Products and ADI Global Total Products and ADI Global Total (in millions) Solutions Distribution Corporate Company Solutions Distribution Corporate Company Net revenue $ 669 $ 1,189 $ — $ 1,858 $ 683 $ 854 $ — $ 1,537 Cost of goods sold 396 9
Slide 26: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended Twelve Months Ended (in millions, except per share data) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net revenue $ 1,858 $ 1,537 $ 6,761 $ 6,242 Cost of goods sold 1,328 1,114 4,860 4,546 Gross profit 530 423 1,901
Slide 27: Consolidated Balance Sheets
Consolidated Balance Sheets (in millions, except par value) December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 692 $ 636 Accounts receivable, net 1,023 973 Inventories, net 1,237 941 Other current assets 220 193 Total current assets 3,172 2,743 Property, plant and
Slide 28: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Three Months Ended Twelve Months Ended (in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Cash Flows From Operating Activities: Net income $ 23 $ 82 $ 116 $ 210 Adjustments to reconcile net income to net cash in operating activ
Slide 29: Consolidated Statements of Cash Flows (cont'd)
Consolidated Statements of Cash Flows (cont’d) Three Months Ended Twelve Months Ended (in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Cash Flows From Investing Activities: Acquisitions, net of cash acquired (3) — (1,337) (16) Capital expenditures (22) (31) (80)
Slide 30: Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures and Reconciliations Three Months Ended Twelve Months Ended (in millions, except per share data) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP Net income $ 23 $ 82 $ 116 $ 210 Less: preferred stock dividends 9 — 19 — Less: undistributed incom
Slide 31: Non-GAAP Financial Measures and Reconciliations (cont'd)
Non-GAAP Financial Measures and Reconciliations (cont’d) Three Months Ended Twelve Months Ended (in millions, except per share data) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP Net income per diluted common share $ 0.08 $ 0.56 $ 0.61 $ 1.42 Intangible asset amortizat
Slide 32: Non-GAAP Financial Measures and Reconciliations (cont'd)
Non-GAAP Financial Measures and Reconciliations (cont’d) Three Months Ended Twelve Months Ended (in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net revenue $ 1,858 $ 1,537 $ 6,761 $ 6,242 GAAP Net income $ 23 $ 82 $ 116 $ 210 GAAP Net income as a % of net revenu
Slide 33: Non-GAAP Reconciliations: Products and Solutions Segment
Non-GAAP Financial Measures and Reconciliations (cont’d) PRODUCTS AND SOLUTIONS SEGMENT Three Months Ended Twelve Months Ended (in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net revenue $ 669 $ 683 $ 2,564 $ 2,672 GAAP Income from operations $ 133 $ 132 $ 503 $
Slide 34: Non-GAAP Reconciliations: ADI Global Distribution Segment
Non-GAAP Financial Measures and Reconciliations (cont’d) ADI GLOBAL DISTRIBUTION SEGMENT Three Months Ended Twelve Months Ended (in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net revenue $ 1,189 $ 854 $ 4,197 $ 3,570 GAAP Income from operations $ 48 $ 51 $ 195
Slide 35: www.resideo.com
www.resideo.com