Resideo Technologies ( (REZI) ) has released its Q3 earnings. Here is a breakdown of the information Resideo Technologies presented to its investors.
Resideo Technologies is a global manufacturer and distributor, specializing in technology-driven products and solutions for home comfort, security, and energy efficiency. In its latest earnings report for the third quarter of 2024, Resideo Technologies reported a significant net revenue growth of 18% year-over-year, driven by mid-single-digit organic revenue growth in both its ADI Global Distribution and Products and Solutions segments. However, net income available to common stockholders decreased to $11 million from $21 million in the same quarter of the previous year.
The company’s financial highlights include a net revenue of $1.83 billion, an adjusted EBITDA of $190 million, and a gross margin of 42.2% for its Products and Solutions segment. The ADI Global Distribution segment saw a notable 31% increase in net revenue, largely due to the Snap One acquisition, contributing to a gross margin increase to 21.3%. While Products and Solutions experienced a slight dip in revenue due to the Genesis divestiture, it continued to achieve gross margin improvement and recorded income from operations of $128 million.
Resideo’s management expressed optimism about the company’s performance, highlighting strong demand for new product introductions such as the Honeywell Home Focus Pro thermostat line. The integration of Snap One is proceeding well, with cross-selling opportunities and cost reduction actions being leveraged. Looking ahead, the company expects continued positive business momentum as it wraps up 2024 and enters 2025.
Overall, Resideo Technologies is poised to maintain its growth trajectory, supported by strategic product launches and operational efficiencies. The management remains focused on capitalizing on market demand and expanding its product offerings to enhance customer value and drive financial returns.
