Q2 2024 Resideo Technologies Inc Earnings Call Transcript
Key Points
- Resideo Technologies Inc (REZI) reported an adjusted EBITDA of $175 million, exceeding the high end of their outlook range.
- The company achieved a gross margin of over 41%, marking the fifth consecutive quarter of year-over-year gross margin expansion.
- The acquisition of Snap One is expected to add significant value, with targeted annual run rate synergies of $75 million by 2026.
- First Alert safety products saw a 20% year-over-year sales increase, marking the third consecutive quarter of double-digit growth.
- Resideo Technologies Inc (REZI) reported strong free cash flow of $77 million for the quarter and $325 million over the last 12 months.
- Revenue for the second quarter was $1.59 billion, a 1% decrease compared to the same period last year.
- The European HVAC market faced challenges due to changes in government incentive programs and political uncertainty.
- The security market sales remained slow, impacting overall performance.
- The ADI business experienced a 3% decline in adjusted EBITDA compared to the previous year, excluding Snap One's contribution.
- The company faces ongoing challenges in the residential housing market due to high interest rates and low existing home sales.
Ladies and gentlemen, at this time, I would like to welcome everyone to the Resideo Technologies second-quarter 2024 earnings call. Today's call is being recorded. (Operator Instructions)
It is now my pleasure to turn the call over to Mr. Jason Willey, Vice President of Investor Relations. Mr. Willey, please go ahead.
Good afternoon, everyone, and thank you for joining us for Resideo's second-quarter 2024 earnings call. On today's call will be Jay Geldmacher, Resideo's Chief Executive Officer; Tony Trunzo, our Chief Financial Officer; Rob Aarnes, President of Resideo's ADI Global Distribution Business; Tom Surran, President of our Products and Solutions business; and Mike Carlet, Incoming Chief Financial Officer. A copy of our earnings release and related presentation materials are available on the Investor Relations page of our website at investors.resideo.com.
We would like to remind you that this afternoon's presentation contains forward-looking statements.
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