Resideo's Q4 2024: Navigating Contradictions in Pricing, Supply Chains, and Market Demand

These are the key contradictions discussed in Resideo's latest 2024Q4 earnings call, specifically including: ADI's Pricing Strategy and Competitive Landscape, Supply Chain Footprint and Tariff Changes, Market Demand and Order Volume Trends, and Growth and Margin Accretion Expectations for Snap One:



Strong Financial Performance and Growth:
- Resideo Technologies, Inc. reported total net revenue of approximately $6.8 billion for 2024, up 8% year-over-year.
- The growth was driven by strong execution across both Products & Solutions and ADI Global Distribution business segments.

Product and Solutions Segment Performance:
- The Products & Solutions segment experienced a positive growth rate in organic revenue, rounding to flat year-over-year.
- This was attributed to realized price increases across product categories and improvements in operational efficiency.

ADI Global Distribution Growth:
- ADI Global Distribution reported a 2% organic net revenue growth year-over-year in 2024.
- The growth was supported by overcoming soft market conditions, strength in digital channels, and the integration of Snap One.

Record Free Cash Flow Generation:
- The company generated $444 million in total cash from operations, exceeding its outlook of at least $375 million.
- The record was driven by better-than-usual working capital metrics and the positive contribution from Snap One.

Snap One Integration and Synergies:
- Resideo achieved approximately $17 million of run rate synergies from the Snap One acquisition in 2024, which is 40% higher than expected.
- The successful integration and realization of synergies were driven by the best practices of both organizations and strategic focus on exclusives brands.