Chan Park's questions to Resideo Technologies Inc (REZI) leadership • Q3 2024
Question
Chan Park of Evercore ISI questioned the higher-than-expected SG&A expenses in the quarter and the future cadence of OpEx. He also asked for an outlook on 2025 gross margins, given the expected slowdown in Products and Solutions margin expansion and pricing headwinds at ADI.
Answer
CFO Mike Carlet explained that Q3 SG&A was slightly inflated by single-digit millions due to onetime, non-systemic events and should normalize going forward. Regarding 2025 margins, Carlet stated that while official guidance is not yet available, the company remains positive about future gross margin accretion opportunities in the Products and Solutions segment, particularly driven by new product introductions.