What is the market's earnings forecast for Resideo Technologies next quarter?

What does Resideo Technologies do and what are its main business segments?

What were the key takeaways from Resideo Technologies's earnings call?

What is Resideo Technologies's latest dividend and current dividend yield?

What guidance did Resideo Technologies's management provide for the next earnings period?

What factors drove the changes in Resideo Technologies's revenue and profit?

What is Resideo Technologies's gross profit margin?

What were the key takeaways from Resideo Technologies’s earnings call?

- **Record Q3 Results**: $1.86B revenue, $0.89 EPS, and $229M EBITDA driven by new products like ElitePRO and SC5.
- **Transitory Challenges**: HVAC market softness and ERP implementation costs ($15M total) expected to resolve by Q2 2026.
- **2026 Growth Outlook**: Current analyst estimates are conservative; ADI targeting double-digit margins, P&S gross margin expansion continues.
- **New Product Pipeline**: ElitePRO shipments began in Q3, with strong interest in its energy-efficient, AI-driven features.

**【CEO Summary Section】**
- **Record Financial Performance**: Q3 2025 saw record high adjusted EBITDA ($229M), net revenue ($1.86B), and adjusted EPS ($0.89), driven by strong demand for new products like the First Alert SC5 and ElitePRO thermostats.
- **New Product Momentum**: The ElitePRO smart thermostat, introduced in Q3, is gaining traction with its advanced features and integration with Pro-IQ services. The Snap One integration is ahead of schedule, with $75M+ annual run-rate synergies expected by 2027.
- **Macro Challenges**: The residential HVAC market remains soft due to regulatory changes and inventory disruptions, but management views these as transitory and expects normalization by mid-2026.

**【CFO Financial Commentary】**
- **Key Metrics**: 
  - Total net revenue: $1.86B (+2% YoY)
  - Gross margin: 29.8% (+110bps YoY)
  - Adjusted EPS: $0.89 (vs. $0.59 YoY)
  - Adjusted EBITDA: $229M (+21% YoY)
- **One-Time Benefits**: The termination of the Honeywell Indemnification agreement contributed $150M to net income and $0.30 to EPS.
- **2025 Outlook**: 
  - Net revenue: $7.43B-$7.47B
  - Adjusted EBITDA: $818M-$832M
  - Adjusted EPS: $2.57-$2.67
- **2026 Outlook**: CFO states current analyst estimates for 2026 are at the low end of internal projections, citing strong new product pipelines and operational efficiency gains.

**【Q&A Highlights】**
- **ERP Implementation Impact**: Q3 saw $15M in incremental SG&A costs, with half of the impact expected in Q4. ADI's new ERP system is now live, and Q4 order rates are approaching pre-implementation levels.
- **Housing Market Risks**: P&S' HVAC channel revenue declined 10% YoY due to regulatory changes and inventory overhang, but management expects normalization by Q2 2026.
- **Margin Expansion Targets**: 
  - ADI: Double-digit operating margin achievable over 3-5 years
  - P&S: Gross margin expansion to continue, with 500bps+ gains since Q3 2023

Resideo Technologies, Inc. (REZI) Q3 2025 Earnings Call Transcript

Revenue

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REZI

REZI fundamentals

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