Resideo Technologies, Inc.

Good afternoon, my name is Eric and I will be your conference operator today at this time. Again, thank you. I would like to hand the conference over to your host today, Chris Lee, Global Head of Strategic Finance. You may begin your conference.

Thank you, Eric. Good afternoon, everyone, and thank you for joining us for Resideo's first quarter 2025 earnings call. On today's call will be Jay Gelmacher, Resideo's Chief Executive Officer, Mike Harlett, our Chief Financial Officer, Rob Arness, President of Resideo's ADI Global Distribution Business, and Tom Saran, President of Resideo's Products and Solutions business. We would like to remind you that this afternoon's call contains forward-looking statements. Statements other than historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors including those described from time to time in the Residio's filings with the Securities and Exchange Commission. The company assumes no obligation to update any such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our annual report on Form 10-K and other SEC filings. In addition, we will discuss non-GAAP financial measures on today's call. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our GAAP results. A reconciliation of GAAP to non-GAAP financial measures is included in our earnings press release and earnings presentation, which are both accessible on the investor relations page of our website at investor.residio.com. Unless stated otherwise, all numbers and results discussed on today's call, other than revenue, are on a non-GAAP basis. With that, I will turn the call over to Jay.

Thank you, Chris, and thanks to everyone for joining us today. On today's call, I will briefly cover Resideo's quarterly performance and then share our perspectives on tariffs and how Resideo is executing through this unpredictable macroeconomic environment before handing off the call to Tom, Rob, and Mike. As a result of our team's continued execution, Resideo was at or above the high end of the range for all the metrics we provided for our quarterly financial outlook. Total net revenue of approximately 1.8 billion, which includes the impact of the SNAP-1 acquisition, grew 19% year-over-year. Total gross margin was 28.9% of 200 basis points year-over-year. Total adjusted EBITDA grew 23% year-over-year to 168 million. Total adjusted earnings per share grew 34% year over year to 63 cents. I am pleased with our strong first quarter results that were supported by healthy operating fundamentals. We achieved 6% organic revenue growth year over year at our products and solutions business segment. At our ADI business segment, we achieved 4% organic revenue growth year over year, despite two less selling days in the quarter, versus the same period last year, and 7% organic average daily sales. Gross margin expansion and EBITDA generation were underpinned by growing operating income dollars year over year. Demand for our new Honeywell Home Focus Pro thermostats and First Alert Vista H series security products continues to be strong, and the velocity around new product introduction is accelerating for both products and solutions and ADI. Moving on to tariffs, we have all seen the shifts in policy to date. In this fluid environment, Resideo remains agile and we are well prepared to react to any new development. Based on what we know today about tariff policy, we have taken actions in the first and second quarters that have two goals. First, to essentially mitigate the cost impact of any tariffs across both products and solutions and ADI. And second, to be well positioned relative to our competition at the current time. Let me walk through each business segment, the potential exposure and the key mitigation actions. In the products and solutions business segment, we benefit from having a global manufacturing footprint where regional demands are generally sourced in region. As shown on page nine of our earnings presentation, for goods sold in the United States, about 90% are produced in our Mexico facilities or sourced from Mexican suppliers. Of the goods sourced from Mexico, about 98% are USMCA compliant and not currently subject to tariffs. For those goods that are not manufactured or sourced from USMCA compliant sources, we're evaluating bringing production into our Mexico facilities or sourcing from other Mexico manufacturers. It is worth noting that we have a variety of manufacturing facilities globally and are constantly evaluating new sites, both of which gives us optionality as we continue this assessment. We have also communicated a phased price increase to our customers intended to offset the cost impact of the tariffs. In the ADI business segment, determining the tariff impact is more nuanced than products and solutions. As shown on page 10 of our earnings presentation, ADI is exposed to more significant China tariffs given its purchasing profile, and we cannot predict supplier actions around price. As such, we have taken a conservative approach and estimate a maximum potential impact before any mitigations to be between 20 and 25% of ADI's total cost of goods sold. However, This will be offset by mitigation actions that include the following. ADI has communicated a phase price increase to our customers to offset the tariff cost impact. We have also made strategic inventory purchases and taken commercial actions with our suppliers. In addition to the evolving tariff landscape, we're closely monitoring data points around customer behavior. Customer demand in the first quarter was healthy across both businesses and we saw minimal signs of customer hesitancy or order cancellation. We saw limited indications of customers buying ahead of anticipated tariff-related price increases. These data points to date are positive indicators on our current customer demand. As a result of our strong first quarter and the tariff mitigation actions we are taking, Resilio is maintaining is 2025 outlook. We believe our strong execution and proactive approach enables Resideo to manage through the uncertainties associated with this highly dynamic environment for the rest of the year. Mike will speak more to this in his comments. Let me now hand the call over to Tom.