Smart home products manufacturer and distributor Resideo Technologies reported its 2024 fourth quarter and full-year financial results on Feb. 20, which showed a drastic 4Q and full-year sales increase in its ADI Global Distribution unit.

Resideo 4Q & 2024 Results

Resideo posted total 4Q sales of $1.86 billion, up 21% year-over-year compared to $1.54 billion in 4Q23, while organic revenue was up 5% year-over-year. Gross margin of 28.5% increased 100 basis-points from the same period a year prior.

Net profit of $23 million trailed the $82 million of the same period a year prior. Adjusted EBITDA of $187 million increased 26% year-over-year compared to the $149 million in 4Q23.

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For its full-year, the company reported sales of $6.76 billion, up 8% year-over-year compared to 2023’s $6.24 billion, while net profit of $116 million trailed the $210 million of a year earlier.

Resideo reported an adjusted EBITDA of $693 million which increased 17% year-over-year.

ADI Global Distribution 4Q & 2024 Results

At ADI, the unit’s 4Q sales of $1.2 billion increased 39% year-over-year, while organic revenue was up 9% driven by broad-based growth across product categories.

Gross margin of 21.6% increased 360 bps year-over-year. Resideo said that the increase in margin was accredited to organic exclusive brand net revenue which grew 34% year-over-year and organic eCommerce revenue which increased 22% from the same period a year prior.

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Adjusted EBITDA of $91 million increased 57% driven by strong cost discipline and the addition of Snap One.

On April 15, Resideo announced its acquisition of Snap One — a manufacturer and distributor of audio/video, networking, surveillance, power and structured wiring products for connected homes and businesses. Resideo finalized the acquisition in June 2024 for a purchase price of $1.4 billion. The company said the integration is underway and it has “achieved approximately $17 million in run-rate synergies in 2024.”

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For its full-year, ADI reported sales of $4.19 billion, up 18% year-over-year, driven by the inclusion of $553 million of Snap One revenue. Organic growth increased 2% excluding the impact of the acquisition and foreign currency.

Excluding Snap One, the eCommerce channel grew 11% year-over-year, while exclusive brands increased 20%.

Gross margin of 20.3% was up 160 bps year-over-year. Resideo said the increase was impacted by the inclusion of Snap One and higher margin eCommerce and exclusive brands sales, partially offset by a more competitive pricing environment.

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Operating profit of $195 million decreased 18% year-over-year from 2023’s $238 million, while adjusted EBITDA increased to $318 million from 2023’s $275 million. The company said EBITDA was primarily impacted by the Snap One acquisition.

“The ADI and Products and Solutions teams drove excellent operational execution, generating organic net revenue growth in both segments, continued gross margin expansion, healthy Adjusted EBITDA growth and record operating cash generation,” Resideo President and CEO Jay Geldmacher said in the company’s financial release.

2025 Outlook

Resideo released its outlook for 2025 first quarter and full-year financial expectations. The company expects 1Q net sales between $1.72 billion to $1.77 billion and adjusted EBITDA of $150 million to $170 million.

For its full year, Resideo expects sales between $7.28 billion to $7.48 billion and adjusted EBITDA between $725 million and $805 million.

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Geldmacher added: “As we look ahead to 2025, Resideo remains focused on growing organically and expanding the company’s margin profile.  With the Snap One integration well underway and synergy capture ahead of schedule, ADI has momentum from its broad-based product category strength and positive returns from its strategic e-commerce and Exclusive Brands investments.”