#Switzerland #Schaffhausen #SmartCharts #Garmin Ltd #Forerunner

Garmin Reports Excellent Results for Q2 2025

Garmin Ltd. (NYSE: GRMN) has declared outstanding results for the second quarter ended June 28, 2025, showcasing significant growth and expanding margins across all business segments. The company achieved a record consolidated revenue of $1.81 billion, representing a 20% increase compared to the same period last year. Notably, the gross margin expanded to 58.8% from 57.3% in the prior year, while the operating margin increased to 26.0% from 22.7% in the previous year quarter.

Financial Highlights

The operating income reached a remarkable $472 million, marking a 38% increase from the previous year. Additionally, the GAAP earnings per share (EPS) stood at $2.07, while the pro forma EPS was $2.17, reflecting a 37% growth in pro forma EPS year-over-year. This solid financial performance has allowed Garmin to raise its full-year guidance confidently.

Product Innovations

During this quarter, Garmin launched notable products, including the next-generation Forerunner® 570 and Forerunner 970. These new offerings come equipped with advanced training tools and recovery insights aimed at enhancing users' fitness experiences. Furthermore, Garmin introduced SmartCharts, the first dynamic, data-driven aviation charts designed to simplify terminal procedures for pilots. An exciting technological achievement was reaching the certification of Garmin's revolutionary Autoland for the Cirrus SR Series G7+, making it the first piston-powered aircraft to feature this autonomous emergency landing system.

In addition to product launches, Garmin recently completed a strategic acquisition of MYLAPS, a leading company in sports timing and performance analysis, further broadening its market reach in sport technology.

Segment Performance

Garmin's performance across various segments displayed robust growth:

• - Fitness: Revenues for this segment surged by 41%, driven by high demand for advanced wearables, resulting in an operating income of $198 million.
• - Outdoor: This segment showed an 11% growth, generating $158 million in operating income, primarily supported by the popularity of adventure watches.
• - Aviation: Revenue increased by 14%, with a reported $63 million in operating income, benefiting from both OEM and aftermarket products.
• - Marine: This segment's revenue rose by 10%, primarily due to increased sales of chartplotters, leading to an operating income of $63 million.
• - Auto OEM: Despite overall revenue growth of 16%, this segment experienced an operating loss of $10 million.

These results indicate Garmin’s consistent dedication to innovation and customer satisfaction across its diversified product lines.

Looking Ahead

The solid performance in the first half of 2025 has prompted Garmin to revise its full-year expectations, now targeting approximately $7.1 billion in revenue for the fiscal year, alongside a pro forma EPS of $8.00. The company anticipates a gross margin of 58.5% and an operating margin of 24.8%.

Garmin's Board of Directors has also set the date for the next quarterly dividend to be paid on September 26, 2025, approved at $0.90 per share.

Conclusion

Garmin's impressive second-quarter results exemplify the company's commitment to innovation and excellence in its products and services. As Garmin continues to expand its market presence and deliver outstanding financial performance, stakeholders can anticipate further growth and advancements in their offerings throughout the year.