Resideo ‘manages through uncertainties’

SCOTTSDALE, Ariz. — Resideo Technologies made its strategy clear in addressing the looming challenge of U.S. tariffs during a webcast to discuss financial results for the first quarter. 

“We’ve all seen the shifts in policy to date,” said Resideo CEO Jay Geldmacher. “In this environment, Resideo remains agile, and we are well prepared to react to any new development. Based on what we know today about tariff policy, we have taken actions in the first and second quarters that have two goals: First, to essentially mitigate the cost impact of any tariffs across Products and Solutions and ADI, and second, to be well positioned relative to our competition at the current time.” 

Geldmacher said Products and Solutions is able to shrug off most of the financial burden from U.S. tariffs as 98% of its product costs from its Mexico segment are exempt due to the United States-Mexico-Canada Agreement (USMCA). The rest of the company’s global manufacturing footprint sources demand for resources in-region. The remaining costs from tariffs are being offset in a phased price increase that’s been communicated to Resideo’s customers. 

ADI’s impact from tariffs was described as more nuanced as they are affected by the tariffs to China. Here, the company has taken a more conservative approach where it estimates a maximum potential impact (prior to any mitigation) of 20% to 25% of ADI’s total cost of goods sold. Mitigating actions include another phased price increase, as well as strategic inventory purchases and commercial actions with Resideo suppliers. 

“We believe our strong execution and proactive approach enables Resideo to manage through the uncertainties associated with this highly dynamic environment for the rest of the year,” Geldmacher concluded. 

Financials at a glance: 

• Net revenue was $1.77 billion, up 19% compared to $1.49 billion in first quarter 2024  

• Net income was $6 million, compared to $43 million in first quarter 2024 primarily due to a $47 million increase in the expense associated with the Honeywell Reimbursement Agreement. This expense increase does not impact our quarterly cash payments to Honeywell, which remain capped at a maximum of $35 million per quarter. See Table 2.  

• Adjusted EBITDA(2) was $168 million, up 23% compared to $137 million in first quarter 2024; $168 million at the high-end of outlook range 

• Fully diluted (loss) earnings per share was $(0.02) and $0.29 and Adjusted EPS(2) was $0.63 and $0.47 for first quarter 2025 and first quarter 2024, respectively; $0.63 exceeded the high-end of outlook range 

• Cash used by operating activities was $65 million