Resideo Technologies Reports Strong 2024 Financial Performance and 2025 Outlook Insights
Resideo Technologies Reports Strong 2024 Financial Performance and 2025 Outlook Insights
Resideo Technologies, Inc. (NYSE: REZI), recognized for its innovation in sensing and control products, disclosed its financial results for the full year and fourth quarter ending December 31, 2024, showcasing significant growth in various metrics.
Full Year Highlights
For the fiscal year 2024, Resideo achieved a net revenue of $6.76 billion, an increase of 8% compared to the previous year's $6.24 billion. This growth was fueled by robust operational performance across its segments, specifically ADI and Products and Solutions, which both demonstrated organic net revenue growth. The net income for 2024 stood at $116 million, translating to $0.61 per fully diluted share, albeit a decrease from $210 million or $1.42 per share in 2023.
Additional key performance indicators include:
- - Adjusted EBITDA rose to $693 million, reflecting a 17% increase from last year’s $590 million.
- - The cash generated from operating activities reached a remarkable $444 million, breaking previous records.
Fourth Quarter Performance
The fourth quarter results further emphasized the company's growth trajectory, with net revenues reaching $1.86 billion, a 21% increase from $1.54 billion in Q4 2023. However, the net income reported was $23 million, down significantly from $82 million a year prior. The adjusted EBITDA for this period was $187 million, marking a 26% increase from $149 million in the previous year’s fourth quarter.
A notable achievement of the Products and Solutions segment was maintaining a gross margin of 40.8%, marking the seventh consecutive quarter of year-over-year improvement, further solidifying Resideo’s position in the market.
Segment Performance
In terms of segment performance, Products and Solutions net revenue totaled $2,564 million, showing a slight decline of 4% compared to 2023 but reflected growth when excluding the Genesis divestiture effects. The gross margin for this segment stood at 41.0%, which is a substantial improvement over the previous year.
Conversely, the ADI Global Distribution segment reported net revenues of $4,197 million, marking an 18% rise from 2023, bolstered by innovative products and an expanding e-commerce presence. Despite facing some softness in the market, their recovery in the latter half of the year was exemplary, particularly within key categories like residential security and video surveillance.
Strong Outlook for 2025
Looking forward to 2025, Resideo is optimistic, highlighting plans for continued organic growth and margin expansion. The integration of the Snap One acquisition has already begun yielding synergies ahead of schedule, enhancing ADI's momentum.
Jay Geldmacher, President and CEO of Resideo, remarked on the company’s position, saying, "Resideo finished 2024 in a strong position, exceeding the high-end of the range for all four of our key financial metrics. As we look ahead to 2025, we remain focused on growing organically and expanding the company’s margin profile."
Conclusion
Resideo Technologies has demonstrated resilience and innovation throughout 2024, setting a solid foundation for anticipated growth in 2025. The company's strategic focus on product innovation and operational efficiency bodes well for its stakeholders and market position moving forward. For more insights and details, visit Resideo's Investor Relations page.
Topics General Business）
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