Resideo Q2 Results: ADI Sales Climb With Help From Snap One Acquisition
Resideo reported second quarter net income of $30 million and adjusted EBITDA of $175 million, which was above the high end of its outlook range.
Resideo Technologies (NYSE: REZI) recently released financial results for the second quarter of 2024, highlighting a growth in sales within its ADI Global Distribution division.
The company reported total sales of $1.59 billion for the quarter, a slight 1 percent decrease compared to the same period last year. Net profit came in at $30 million, a decline from the $50 million reported in the previous year. Adjusted EBITDA stood at $175 million, down from $155 million a year ago.
The ADI Global Distribution unit experienced a 4 percent year-over-year increase in sales, reaching $959 million. The growth was partly driven by the contribution of $45 million in revenue from Snap One, following Resideo’s acquisition of the company earlier this year. Additionally, ADI’s eCommerce channel saw an 8 percent year-over-year increase.
Resideo pointed out that ADI experienced volume growth in several sectors, such as fire, intrusion, Datacom and professional audio-visual (A/V). However, these gains were offset by declines in video surveillance and residential audio-visual compared to the previous year.
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ADI’s gross margin for the quarter was 19.4 percent, a 20 basis point improvement year-over-year, while its operating profit decreased by 13 percent to $62 million. Adjusted EBITDA for ADI also dropped slightly to $77 million from $79 million in the same quarter last year.
In the Aug. 8 earnings announcement, Resideo President and CEO Jay Geldmacher said the second quarter results demonstrated the substantial progress the company has made in transforming the structural profitability profile of the business and in executing on value-creating strategic transactions.
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“Products and Solutions delivered gross margin and Adjusted EBITDA margin at the highest levels since first quarter 2022,” he added. “The business accomplished these results in a market environment constrained by higher interest rates and low housing turnover. ADI continued to make progress in driving key strategic initiatives around e-commerce and exclusive brands sales and saw improved customer activity as the quarter progressed.”
In a leadership update, Resideo announced the appointment of Mike Carlet, the former CFO of Snap One, as the new CFO of Resideo, effective Aug. 9. Tony Trunzo, the outgoing CFO, will remain with the company until March 2025 to ensure a smooth transition.
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