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Mar 29
Resideo Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 29, 2025
Key Takeaways
Resideo reported strong first-quarter 2025 financial results, with net revenue increasing 19% year-over-year to $1.77 billion, at the high end of their outlook range. Both the ADI and Products and Solutions segments showed organic revenue growth and gross margin expansion, contributing to a 23% increase in Adjusted EBITDA to $168 million. Despite a decrease in GAAP net income due to a significant increase in the Honeywell Reimbursement Agreement expense, Adjusted EPS exceeded the high end of the outlook range.
Net revenue grew 19% year-over-year to $1.77 billion, reaching the high end of the outlook.
Adjusted EBITDA increased 23% year-over-year to $168 million, also at the high end of the outlook.
Adjusted EPS of $0.63 exceeded the high end of the outlook range.
Both Products and Solutions and ADI Global Distribution segments achieved organic revenue growth and gross margin expansion.
Resideo
Resideo
Resideo Revenue by Segment
Revenue by Segment
Products and Solutions Revenue
CapyFin.comADI Global Distribution Revenue
CapyFin.com Forward Guidance
Resideo reaffirmed its full year 2025 outlook and provided guidance for the second quarter of 2025.
Positive Outlook
- Reaffirming 2025 outlook.
- Expects profitable growth opportunities in both business segments.
- ADI integration of Snap One progressing well and synergy achievement ahead of plan.
- Products and Solutions segment expects continued gross margin expansion and new product launches.
- Believe they can essentially mitigate the cost impact of any tariffs.
Challenges Ahead
- Operating in a current, volatile macro-economic environment.
- Increased accounts receivable contributing to cash used in operations.
- Cash outflows for accounts payable, including early payments for supplier discounts.
- GAAP income before taxes decreased significantly year-over-year.
- Net cash used by operating activities in Q1 2025 compared to cash provided in Q1 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income