Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q1 2025 Earnings Presentation
37 slides from Resideo Technologies's earnings presentation, May 6, 2025
Slide 1: Q1’25 Results Presentation
May 6, 2025 Q1’25 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
Financial Results Tariffs and Financial Outlook Agenda Quarterly Financial Trends Balance Sheet and Cash Flow Overview of Resideo 3
Slide 4: Financial Results
Financial Results
Slide 5: Resideo – Q1’25 Highlights
Resideo – Q1’25 Highlights NET REVENUE ADJUSTED EBITDA ADJUSTED EPS $1.77B in Q1’25 $168M in Q1’25 $0.63 in Q1’25 +19% YoY +23% YoY +34% YoY • All three financial metrics at or above the high-end of • Cash used by operating activities was $65 million, driven outlook range. primarily by an increase i
Slide 6: Resideo – Q1’25 Financial Summary
Resideo – Q1’25 Financial Summary ($ in millions, except per share) Q1’25 Q1’24 YoY Change Net Revenue $1,770 $1,486 +19% P&S Revenue $649 $620 +5% ADI Revenue $1,121 $866 +29% Gross Margin 28.9% 26.9% +200 bps P&S Gross Margin 41.4% 39.5% +190 bps ADI Gross Margin 21.6% 18.0% +360 bps Income from O
Slide 7: Resideo – Q1’25 Highlights
Resideo – Q1’25 Highlights Products & Solutions ADI Global Distribution • Net revenue and Adjusted EBITDA at • Organic net revenue up 6% YoY, with • Organic net revenue up 4% YoY driven the high-end of expectations; Adjusted substantially all channels performing well primarily by volume demand; orga
Slide 8: Tariffs and Financial Outlook
Tariffs and Financial Outlook
Slide 9: Products & Solutions – Cost profile and tariff mitigation plans
Products & Solutions – Cost profile and tariff mitigation plans Of the approximately $1.1 billion of cost of goods sold related to products sold in the United States: ❑ Mexico represents approximately 90% of COGS, of which ~98% are USMCA compliant; and ❑ China represents approximately 4% Plans to mi
Slide 10: ADI Distribution – Cost profile and tariff mitigation plans
ADI Distribution – Cost profile and tariff mitigation plans Of the approximately $3.0 billion of cost of goods sold related to products sold in the United States (approximate percentages below): ❑ Mexico represents 23% of COGS, of which ~98% are USMCA compliant ❑ China represents 21% ❑ United States
Slide 11: 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 $195 - $200 Adjusted EPS(1) $2.23 - $2.47 Capital expenditures $140
Slide 12: Quarterly Financial Trends
Quarterly Financial Trends
Slide 13: Resideo - Key Q1’25 Financial Trends
Resideo - Key Q1’25 Financial Trends Net Revenue Adjusted EPS $ in M’s +19% Y/Y +34% Y/Y $0.70 $2,000 $1,900 $0.60 $1,800 $0.50 $1,700 $1,600 $0.40 $1,500 $0.30 $1,400 $1,300 $0.20 $1,200 $0.10 $1,100 $1,000 $0.00 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 NOTES: Amounts shown above
Slide 14: Resideo - Key Q1’25 Financial Trends
Resideo - Key Q1’25 Financial Trends Adjusted EBITDA Cash Provided by Operations +23% Y/Y $ in M’s Change of $67M Y/Y $ in M’s 250 200 200 150 150 100 100 50 50 0 0 -50 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 NOTE: Amounts shown above include contributions from Snap One, which wa
Slide 15: Products & Solutions – Key Q1’25 Financial Trends
Products & Solutions – Key Q1’25 Financial Trends P&S Revenue P&S Gross Margin Rate P&S Adjusted EBITDA +5% Y/Y +190 bps Y/Y +13% Y/Y $ in M’s $ in M’s $180 $700 45% 40% $150 $600 35% $500 $120 30% $400 25% $90 $300 20% 15% $60 $200 10% $30 $100 5% $- 0% $- Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24
Slide 16: ADI Global Distribution – Key Q1’25 Financial Trends
ADI Global Distribution – Key Q1’25 Financial Trends ADI Revenue ADI Gross Margin Rate ADI Adjusted EBITDA +29% Y/Y +360 bps Y/Y +24% Y/Y $ in M’s $ in M’s $100 $1,200 24% $1,000 20% $80 $800 16% $60 $600 12% $40 $400 8% $20 $200 4% $- 0% $- Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'2
Slide 17: Balance Sheet, Cash Flow, and Outlook
Balance Sheet, Cash Flow, and Outlook
Slide 18: Condensed Summary Balance Sheet
Condensed Summary Balance Sheet $ in millions March 31, 2025 December 31, 2024 Cash and cash equivalents $577 $692 Gross debt $2,015 $2,015 Accounts receivable, net $1,045 $1,023 Inventories, net $1,228 $1,237 Accounts payable $971 $1,073 NOTE: Amounts shown above include contributions from Snap One
Slide 19: Durable Annual Free Cash Flow Generation
Durable Annual Free Cash Flow Generation Free Cash Flow (1) $ in millions March 31, 2025 $M $400 Cash and cash equivalents $577 $300 Gross debt $2,015 $200 $100 March 31, 2025 Cash provided by operating $0 $377 2023 2024 Q1'24 Q1'25 activities (LTM) ($100) Capital expenditures (LTM) $90 (1) Free cas
Slide 20: Overview of Resideo
Overview of Resideo
Slide 21: A leader in technology-driven sensing and controls products
A leader in technology-driven sensing and controls products Products & 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 pro
Slide 22: 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 23: Trusted, Established Brands
Trusted, Established Brands 23
Slide 24: 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 25: Appendix
Appendix
Slide 26: Summary Financial Results - Q1'25 (Unaudited)
Summary Financial Results - Q1'25 (Unaudited) Q1 2025 Q1 2024 Products and ADI Global Total Products and ADI Global Total (in millions) Solutions Distribution Corporate Company Solutions Distribution Corporate Company Net revenue $ 649 $ 1,121 $ — $ 1,770 $ 620 $ 866 $ — $ 1,486 Cost of goods sold 3
Slide 27: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended (in millions, except per share data) March 29, 2025 March 30, 2024 Net revenue $ 1,770 $ 1,486 Cost of goods sold 1,259 1,086 Gross profit 511 400 Operating expenses: Research and development expenses 35 25 Selling, general and adm
Slide 28: Reimbursement Agreement Detail (Unaudited)
Reimbursement Agreement Detail (Unaudited) Three Months Ended (in millions) March 29, 2025 March 30, 2024 Accrual for Reimbursement Agreement liabilities deemed probable and reasonably estimable $ 90 $ 43 Cash payments made to Honeywell (35) (35) Accrual increase, non-cash component in period $ 55 $
Slide 29: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (in millions, except par value) March 29, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 577 $ 692 Accounts receivable, net 1,045 1,023 Inventories, net 1,228 1,237 Other current assets 211 220 Total current assets 3,061 3,172 Proper
Slide 30: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended (in millions) March 29, 2025 March 30, 2024 Cash Flows From Operating Activities: Net income $ 6 $ 43 Adjustments to reconcile net income to net cash in operating activities: Depreciation and amortization 47 24 Restructuring expens
Slide 31: Consolidated Statements of Cash Flows (Unaudited) (cont'd)
Consolidated Statements of Cash Flows (Unaudited) (cont'd) Three Months Ended (in millions) March 29, 2025 March 30, 2024 Cash Flows From Investing Activities: Capital expenditures (31) (21) Other investing activities, net — (1) Net cash used in investing activities (31) (22) Cash Flows From Financi
Slide 32: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Three Months Ended (in millions, except per share data) March 29, 2025 March 30, 2024 GAAP Net income $ 6 $ 43 Less: preferred stock dividends 9 — GAAP Net (loss) income available to common stockholders (3) 43 Reimbursement Agreement accrua
Slide 33: Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd)
Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd) Three Months Ended (in millions, except per share data) March 29, 2025 March 30, 2024 GAAP Net (loss) income per diluted common share $ (0.02) $ 0.29 Reimbursement Agreement accrual increase, non-cash component (1) 0.37 0.05 Intang
Slide 34: Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd)
Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd) Three Months Ended (in millions) March 29, 2025 March 30, 2024 Net revenue $ 1,770 $ 1,486 GAAP Net income $ 6 $ 43 GAAP Net income as a % of net revenue 0.3 % 2.9 % Provision for income taxes 9 30 GAAP Income before taxes 15 73 Re
Slide 35: Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd)
Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd) PRODUCTS AND SOLUTIONS SEGMENT Three Months Ended (in millions) March 29, 2025 March 30, 2024 Net revenue $ 649 $ 620 GAAP Income from operations $ 136 $ 112 GAAP Income from operations as a % of net revenue 21.0 % 18.1 % Stock-bas
Slide 36: Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd)
Non-GAAP Financial Measures and Reconciliations (Unaudited) (cont'd) ADI GLOBAL DISTRIBUTION SEGMENT Three Months Ended (in millions) March 29, 2025 March 30, 2024 Net revenue $ 1,121 $ 866 GAAP Income from operations $ 34 $ 49 GAAP Income from operations as a % of net revenue 3.0 % 5.7 % Restructur
Slide 37: www.resideo.com
www.resideo.com