#Switzerland #Revenue #Garmin #Q1 2025 #Schaffhausen

Garmin Reports Record Performance in First Quarter 2025

On April 30, 2025, Garmin Ltd. (NYSE: GRMN) announced its financial results for the first quarter ended March 29, 2025, showcasing a remarkable performance with record revenue and a resilient business model amidst fluctuating global trade conditions. Here are the key highlights:

Key Financial Highlights

• - Record Consolidated Revenue: Garmin achieved consolidated revenue of $1.54 billion, reflecting an impressive 11% increase compared to the previous year.
• - Gross Margin: The gross margin for the quarter stood at 57.6%, slightly down from 58.1% in the previous year.
• - Operating Margin: Operating margin improved to 21.7%, up from 21.6% year-over-year.
• - Record Operating Income: Operating income rose by 12%, reaching $333 million.
• - Earnings Per Share (EPS): GAAP EPS was reported at $1.72, while the pro forma EPS increased by 13% to $1.61 compared to the same quarter last year.
• - Trustworthiness Recognition: Garmin was honored as one of the Top 10 Most Trustworthy Companies in America by Newsweek, underscoring its reputation in the industry.
• - Awards in Aviation and Marine: The company celebrated multiple awards for their exceptional products in aviation and marine sectors, further solidifying their standing in these markets.

Segment Performances

Fitness Segment

The fitness segment marked a 12% revenue increase, driven mainly by the rising demand for advanced wearables. Operating income within this segment reached $78 million, supported by launches such as the Garmin Connect+ and the latest vívoactive® 6 smartwatch featuring an enhanced AMOLED display.

Outdoor Segment

Garmin’s outdoor segment experienced a robust 20% growth, attributed to increasing sales of adventure watches. Key product launches included the Instinct® 3 and the Montana® handheld GPS, with operating income hitting $129 million.

Aviation Segment

In aviation, Garmin saw a 3% revenue growth primarily due to OEM products, resulting in an operating income of $48 million. Notable announcements included the selection of the G3000 PRIME integrated flight deck for Pilatus aircraft.

Marine Segment

Despite a slight decline of 2% in marine revenue due to promotional timings, this segment achieved an operating income of $87 million. New product certifications included the innovative Force® Pro trolling motor.

Auto OEM Segment

The auto OEM sector showed significant growth of 31%, largely sparked by advancements in domain controllers, although it recorded an operating loss of $9 million. During this period, the new 2025 Gold Wing motorcycle from Honda was highlighted for integrating Garmin’s infotainment system.

Financial Management and Future Outlook

Garmin's total operating expenses increased by 10% year-over-year, propelled by personnel-related costs in R&D and SGA. The company generated strong operating cash flows amounting to $421 million and free cash flow of $381 million. It maintained a robust cash position with approximately $3.9 billion in cash and securities.

For the fiscal year 2025, Garmin anticipates a consolidated revenue of around $6.85 billion while maintaining their pro forma EPS guidance at $7.80. The board proposed a cash dividend of $3.60 per share to be approved at the upcoming annual meeting.

Conclusion

As articulated by Garmin’s CEO, Cliff Pemble, the company delivered stellar results attributed to its diverse product lineup amidst a challenging global landscape. As Garmin continues to innovate and expand, stakeholders are optimistic about the opportunities that lie ahead.

For more details, Garmin will host a webcast on April 30, 2025, discussing its financial performance and strategies moving forward.