Resideo Technologies, Inc.

Hello, everyone. Thank you for joining us and welcome to the Resideo fourth quarter and full year 2025 financial results conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Chris Lee, Global Head of Strategic Finance. Chris, please go ahead.

Thank you. Good afternoon, everyone, and thank you for joining us for Resideo's fourth quarter and full year 2025 earnings call. On today's call will be Jay Geldmacher, Resideo's chief executive officer, Mike Carlett, 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 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, 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 the financial data workbook, which is 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. I'm very pleased with how our business finished 2025, largely exceeding our financial outlook in the fourth quarter. Products and solutions delivered results driven by better than expected activity across multiple channels, including HVAC. ADI reported flat results, but on a positive note, achieved operational stabilization, providing conviction for future growth. Our sustained execution throughout 2025 enabled Resideo to report record highs in net revenue, adjusted EBITDA, and adjusted EPS on an annual basis. We also exceeded the high end of our 2025 outlook ranges in net revenue, adjusted EBITDA, adjusted EPS, and adjusted cash provided by operations during a dynamic and uncertain global macroeconomic environment. Looking at the full year results and the growth compared to the prior year, net revenue was approximately $7.5 billion, growing 11%. Adjusted EBITDA was $833 million, up 20%. Adjusted earnings per share was $2.68, growing 17%. and adjusted cash provided by operations was $453 million, up 2%. Let's now go into some of the annual highlights for each business segment before I hand the call off to Tom and Rob to talk about their quarterly business highlights. In 2025, products and solutions grew organic net revenue by 4% year over year, driven primarily by strong volume demand for our safety products and increased prices for our OEM products. Gross margin expanded by 110 basis points year-over-year as we continued to gain improvements in operational efficiency. Our commitment to introducing new and differentiated products remained evident with 10 major new product introductions in the year, including the first alert, SC5 connected smoke and carbon monoxide detector, and the Honeywell Home Elite Pro Thermostat. We believe customer reception for these new products has been very positive and is building demand momentum for another year of exciting new product introductions in 2026. In 2025, ADI grew organic net revenue by 3% year over year, driven primarily by growth across all product categories and accomplished with three less selling days. Organic average daily sales growth was 4%. Gross margins expanded by 200 basis points in 2025 versus the prior year due primarily to favorable product mix and sales of lower cost inventory. We are proceeding very well on the integration of SNAP-1. Rob will talk more about the team's progress to date. In closing, we demonstrated resilience in 2025 by maintaining our execution focus, which generates conviction and momentum toward our anticipated business separation later this year that we believe unlocks significant shareholder value. Our separation activities are progressing well, and we intend to provide more details in the coming months as we get closer to the official separation anticipated to occur in the second half of 2026. Let me now hand the call over to Tom.