Resideo Technologies, Inc. (NYSE:REZI) Q2 2024 Earnings Call August 8, 2024 5:00 PM ET

Company Participants

Jason Willey - Vice President, Investor Relations
Jay Geldmacher - Chief Executive Officer
Tony Trunzo - Chief Financial Officer
Rob Aarnes - President, Resideo’s ADI Global Distribution Business
Tom Surran - President, Products and Solutions

Conference Call Participants

Erik Woodring - Morgan Stanley
Michael Fisher - Evercore
Isaac Sellhausen - Oppenheimer
Danny Pfeiffer - JPMorgan

Operator

Ladies and gentlemen, at this time, I would like to welcome everyone to the Resideo Technologies Second Quarter 2024 Earnings Call. Today’s call is being recorded. [Operator Instructions] It is now my pleasure to turn the call over to Mr. Jason Willey, Vice President of Investor Relations. Mr. Willey, please go ahead.

Jason Willey

Good afternoon, everyone, and thank you for joining us for Resideo’s second quarter 2024 earnings call. On today’s call will be Jay Geldmacher, Resideo’s Chief Executive Officer; Tony Trunzo, our Chief Financial Officer; Rob Aarnes, President of Resideo’s ADI Global Distribution Business; Tom Surran, President of our Products and Solutions business; and Mike [indiscernible], incoming Chief Financial Officer. A copy of our earnings release and related presentation materials are available on the Investor Relations page of our website at investors.resideo.com.

We would like to remind you that this afternoon’s presentation 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 Resideo’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.

With that, I will turn the call over to Jay.

Jay Geldmacher

Thank you, Jason and thanks to everyone for joining us today. We performed very well in the second quarter with adjusted EBITDA of $175 million, well above the high end of our outlook range. Products & Solutions adjusted EBITDA margin of 24.8% was 460 basis points better than Q2 last year as gross margin exceeded 41% as we continue to manage operating costs. Our operating improvements translated into another quarter of strong free cash flow, which was $77 million for the period and $325 million for the last 12 months.