Resideo Technologies, Inc.

Good afternoon, my name is Eric and I will be your conference operator today. At this time, I would like to welcome everyone to the Residio 2025 second quarter earnings call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one 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.

Good afternoon, everyone. And thank you for joining us for Residio second quarter 2025 earnings call. On today's call will be Jay Geldmacher, Residio's chief executive officer, Mike Carlett, our chief financial officer, Rob Arnes, president of Residio's CDI global distribution business, and Tom Saran, president of Residio'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 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 10K and other SEC filings. In addition, we will discuss non-GAAP financial measures on today's call. These non-GAAP financial measures, which can sometimes be identified by the use of adjusted in the description of the measure, 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 .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. Residio delivered exceptional results in our second fiscal quarter. Both net revenue and adjusted EBITDA were new record highs and those two financial metrics plus adjusted EPS all exceeded the high end of our outlook range. These record results are consistent with our team's continued execution and the company's healthy operating fundamentals. We achieved year over year organic revenue growth of 10% ADI and 5% in our products and solution business segments. Gross margin expansion and increased EBITDA generation were underpinned by growing operating income dollars at ADI and P&S, both sequentially and year over year. Demand for our new products, including the Honeywell Home Focus Pro Thermostats and First Alert Combined Smoke and Carbon monoxide connected detectors continues to be strong. We are excited about our pipeline of new products that both business segments are introducing in the second half of 2025. ADI's integration of SNAP1 continues to progress well and ahead of schedule. Tom, Rob and Mike will speak in greater detail to our execution and results shortly. Residio has been executing amidst a dynamic macro and economic environment. While our market outlook continues to be relatively cautious, especially given the ongoing dialogue around tariffs by the US administration, we believe our pipeline of products and the strength of our integration of SNAP1 is positioning us well. Our tariff mitigation actions have been effective and are materially unchanged from what we shared last quarter. Consistent with the first quarter, ADI and P&S customer demand in the second quarter has been healthy. Even as we have raised prices to pass along the cost impact of tariffs, our relationships with our customers continue to be excellent. We have also taken other actions, such as working with our partners in our supply chains to mitigate the impact of tariffs. Residio continues to remain agile and we believe we are well prepared to react to new developments in this dynamic environment. I am pleased with the team's consistent execution. Through the strength of our business, Residio is raising its 2025 outlook, which Mike will speak more to in his comments. Let me now hand the call over to Tom.