Resideo’s first quarter results were well received by the market, reflecting both strong execution and resilience in the face of ongoing macroeconomic uncertainty. Management pointed to robust organic growth in its Products and Solutions segment, healthy customer demand, and continued margin expansion as primary drivers. CEO Jay Geldmacher highlighted the positive impact of new product launches, such as the Honeywell Home FocusPRO thermostats and First Alert VISTA security products, as well as successful tariff mitigation strategies. Additionally, President Tom Surran noted that the Products and Solutions business achieved its eighth consecutive quarter of year-over-year gross margin expansion, powered by efficient factory utilization and a steady cadence of new product introductions.
Is now the time to buy REZI? Find out in our full research report (it’s free).
Resideo (REZI) Q1 CY2025 Highlights:
- Revenue: $1.77 billion vs analyst estimates of $1.72 billion (19.1% year-on-year growth, 3% beat)
- Adjusted EPS: $0.63 vs analyst estimates of $0.31 (significant beat)
- Adjusted EBITDA: $168 million vs analyst estimates of $168.5 million (9.5% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $7.39 billion at the midpoint
- Adjusted EPS guidance for the full year is $2.35 at the midpoint, beating analyst estimates by 6%
- EBITDA guidance for the full year is $765 million at the midpoint, above analyst estimates of $730.3 million
- Operating Margin: 7.7%, in line with the same quarter last year
- Market Capitalization: $3.31 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Resideo’s Q1 Earnings Call
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Ian Zaffino (Oppenheimer) asked how tariff-related price increases might affect demand. President Rob Aarnes explained that ADI’s phased pricing is modeled after inflationary periods, and Products and Solutions expects minimal demand impact due to limited exposure.
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Erik Woodring (Morgan Stanley) inquired about changes in customer purchasing behavior amid tariff volatility. CEO Jay Geldmacher and segment leaders reported minimal pull-forward buying and continued healthy demand through April and early May.
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Woodring (Morgan Stanley) also sought perspective on where Resideo stands in the residential and commercial spending cycles. President Tom Surran described the residential market as somewhat depressed but stable, while Aarnes noted that commercial demand and Snap One integration are mitigating residential softness.
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Hannah (Evercore ISI, for Amit Daryanani) questioned the potential for gross margin leverage if housing turnover improves. CFO Michael Carlet stated that structural improvements and new product introductions could lead to ongoing margin expansion, regardless of market recovery.
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No further analyst questions were posed on the call.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) Resideo’s execution of phased pricing and tariff mitigation strategies, (2) continued progress integrating Snap One and realizing cross-selling opportunities within ADI, and (3) the launch and market adoption of new smart home and safety products. Additionally, developments in the broader housing market and any significant policy shifts on tariffs will be important markers for tracking future performance.
Resideo currently trades at $22.31, up from $17.46 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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