Products and Solutions team drives success for Resideo

SCOTTSDALE, Ariz. — Resideo Technologies exceeded key metrics in the fourth quarter and is in a strong position going into 2025, company officials said during a recent webcast presentation.  

CEO Jay Geldmacher attributed the company’s success to the ADI and Products and Solutions teams and their operational execution generating organic net revenue growth and leading to continued gross margin expansion, healthy adjusted EBITDA growth and record operating cash generation. 

“Let me open by saying how happy I am with how the products and solutions and ADI business segments finished 2024, strongly delivering revenue growth, healthy gross margin expansion and record free cash flow generation in a global macroeconomic environment that is still mixed,” Geldmacher said. “As a result of our teams’ continued excellent execution, Resideo exceeded the high end of the range for all the metrics we provided in our annual financial outlook.” 

Results at a glance for Q4: 

• Net revenue was $2.56 million, down 4% compared to 2023 and up slightly year-over-year, excluding the impact of the Genesis divestiture and foreign currency.  

• Gross margin was 41.0%, up 240 basis points compared to 2023. 

• Income from operations was $503 million, compared to $446 million in 2023. 

• Adjusted EBITDA was $611 million, or 23.8% of revenue, compared to $562 million, or 21.0% of revenue, in 2023. 

Resideo said that it improved its performance with home builders in the new construction market and achieved record sales highs in the retail channel thanks primarily to First Alert and BRK products. During the second half of 2024, Products and Solutions introduced its new programmable and connected thermostat line, the Honeywell Home FocusPRO, targeted at the entry tier of the professional market, and its new VISTA security product. 

During Q&A, Thomas Surran, president, Products & Solutions, told investors that following the revitalization of its current product categories, Resideo will be expanding into new product categories.

“We’ve got a number of products in our thermostat product line, where we’ve revitalized that whole line,” he said. “We’ve got new offerings coming in the security products. We’ve got new offerings in our safety. So, you’re going to see a cadence coming up here in 2025 and thereafter.” 

Geldmacher said that Resideo remains focused on growing organically and expanding the company's margin profile in the coming year.   

Results at a glance for full year 2024, excluding the impact of the Snap One acquisition of $553 million, the Genesis divestiture of $105 million and foreign currency fluctuations of $6 million: 

• Net revenue was $6.76 billion, up 8% compared to $6.24 billion in 2023.  

• Net income was $116 million, compared to $210 million in 2023. 

• Adjusted EBITDA(2) was $693 million, up 17% compared to $590 million in 2023. 

• Fully diluted EPS was $0.61 and $1.42 and Adjusted EPS(2) was $2.29 and $2.19 for 2024 and 2023, respectively.  

• Cash provided from operating activities of $444 million.