Resideo Technologies (REZI) Q1 2025 earnings summary

Executive summary

• Net revenue reached $1.77 billion, up 19% year-over-year, at the high end of the outlook range, with both ADI and Products and Solutions segments showing mid-single-digit organic growth.

• Adjusted EBITDA rose 23% year-over-year to $168 million, and adjusted EPS increased 34% to $0.63, both at or above the high end of guidance.

• Net income declined to $6 million from $43 million, primarily due to a $47 million non-cash Honeywell Reimbursement Agreement expense.

• Integration of Snap One into ADI is ahead of plan, contributing to revenue, EBITDA growth, and synergy realization.

• Cash used in operations was $65 million, mainly due to higher accounts receivable and early supplier payments.

Financial highlights

• Net revenue: $1,770 million (+19% YoY); Products and Solutions: $649 million (+5% YoY); ADI: $1,121 million (+29% YoY).

• Gross margin expanded 200 basis points year-over-year to 28.9%; Products and Solutions gross margin up 190 bps to 41.4%; ADI gross margin up 360 bps to 21.6%.

• Adjusted EBITDA: $168 million (+23% YoY); Products and Solutions Adjusted EBITDA: $158 million (+13% YoY); ADI Adjusted EBITDA: $72 million (+24% YoY).

• Adjusted EPS: $0.63 (+34% YoY); GAAP net income: $6 million (down from $43 million YoY) due to a large non-cash Honeywell charge.

• Cash and cash equivalents: $577 million as of quarter-end; gross debt: $2.02 billion.

Outlook and guidance

• Full-year 2025 net revenue guidance: $7,285–$7,485 million; Adjusted EBITDA: $725–$805 million; Adjusted EPS: $2.23–$2.47; cash provided by operations: $345–$405 million.

• Q2 2025 net revenue guidance: $1,805–$1,855 million; Adjusted EBITDA: $175–$195 million; Adjusted EPS: $0.51–$0.61.

• 2025 outlook reaffirmed despite volatile macroeconomic and trade conditions; phased price increases planned to offset tariff impacts.

• Annual $140 million cash payment to Honeywell for Reimbursement Agreement included in guidance.