| Imagery Source: Wikimedia Commons / Terry Umbenhaur |
| Information Source: Garmin Ltd |
| Garmin Ltd. (NYSE: GRMN) today announced results for the second quarter ended June 28, 2025. |
| Highlights for the second quarter 2025 include: |
- Record consolidated revenue of $1.81 billion, a 20% increase compared to the prior year quarter
|
- Gross margin expanded to 58.8% compared to 57.3% in the prior year quarter
|
- Operating margin expanded to 26.0% from 22.7% in the prior year quarter
|
- Record operating income of $472 million, a 38% increase compared to the prior year quarter
|
- GAAP EPS of $2.07 and pro forma EPS(1) of $2.17, representing 37% growth in pro forma EPS over the prior year quarter
|
- Launched the next-generation Forerunner® 570 and Forerunner 970, adding new training tools and recovery insights
|
- Launched SmartCharts, the first dynamic, data-driven aviation charts tailored to simplify terminal procedures for pilots
|
- Announced our revolutionary Autoland has been certified for the Cirrus SR Series G7+, the first piston-powered aircraft with Garmin’s autonomous emergency landing system
|
- Recently completed the strategic acquisition of MYLAPS, a global market leader in sports timing and performance analysis.s
|
| Executive Overview from Cliff Pemble, President and Chief Executive Officer: |
| “We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire. We are very pleased with our results so far in 2025, which have exceeded our expectations and give us confidence to raise our full-year guidance.” -Cliff Pemble, President and Chief Executive Officer of Garmin Ltd. |
| Fitness: Revenue from the fitness segment increased 41% in the second quarter, with growth led by strong demand for advanced wearables. Gross and operating margins were 60% and 33%, respectively, resulting in $198 million of operating income. During the quarter, we launched the Forerunner 570 and Forerunner 970 with advanced new training features, personalised training plans from Garmin Coach for running and triathlons. Also during the quarter, we launched the new Venu® X1 with an ultrathin case and a class-leading 2-inch display, resulting in a sleek and lightweight design that is easy to read and packed full of our most popular features. We also launched the Index™ Sleep Monitor, our first smart sleep band, for a more comprehensive view of users’ overall fitness and recovery. |
| Outdoor: Revenue from the outdoor segment increased 11% in the second quarter, primarily due to growth in adventure watches. Gross and operating margins were 66% and 32%, respectively, resulting in $158 million of operating income. During the quarter, we launched the Instinct® 3 Tactical Edition, adding a bright AMOLED display and a metal-reinforced bezel, a built-in LED flashlight, and a rucking activity. Also during the quarter, we launched Tread® 2, our latest all-terrain navigator, offering larger touchscreens and additional mapping options to enrich off-road adventures. |
| Aviation: Revenue from the aviation segment increased 14% in the second quarter, with growth contributions from both the OEM and aftermarket product categories. Gross and operating margins were 74% and 25%, respectively, resulting in $63 million of operating income. During the quarter, we launched SmartCharts, the first dynamic, data-driven charts tailored in real-time for the specific aircraft and approach being flown. Also during the quarter, we introduced the G5000® PRIME integrated flight deck, bringing our latest industry-leading cockpit innovations to Part 25 transport aircraft. We also announced that the Garmin Autoland system was certified for the Cirrus SR G7+ Series, becoming the first piston-powered aircraft equipped with this award-winning system. For the tenth consecutive year, we were recognised by Embraer as a Best Supplier, most recently in the Electrical and Electronic Systems category. |
| Marine: Revenue from the marine segment increased 10% in the second quarter, with growth across multiple categories led by chartplotters. Gross and operating margins were 55% and 21%, respectively, resulting in $63 million of operating income. During the quarter, we launched the GPSMAP® 15x3 chartplotters, with a premium ultrawide display. Also, we launched quatix® 8, our most advanced purpose-built smartwatch for mariners. |
| Auto OEM: Revenue from the auto OEM segment increased 16% during the second quarter, primarily driven by growth in domain controllers. Gross margin was 17% and we recorded an operating loss of $10 million in the quarter. We recently shipped the one millionth BMW domain controller out of our U.S. manufacturing facility, demonstrating our capability as a respected tier 1 supplier to the North American automotive market. |
| Additional Financial Information: |
| Total operating expenses in the second quarter were $595 million, a 14% increase over the prior year. Research and development and selling, general and administrative expenses increased 14% and 15%, respectively, driven primarily by personnel-related costs. |
| The effective tax rate in the second quarter was 16.5% compared to the effective tax rate of 17.9% in the prior year quarter. The decrease in the current quarter is primarily due to an increase in uncertain tax position reserve releases as compared to the same period last year. |
| In the second quarter of 2025, we generated operating cash flows of $173 million and free cash flow(1) of $127 million. We paid a quarterly dividend of approximately $173 million and repurchased $67 million of the Company’s shares within the quarter, leaving approximately $143 million remaining as of June 28, 202,5, in the $300 million share repurchase program authorised through December 2026. We ended the quarter with cash and marketable securities of approximately $3.9 billion. |
| (1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow. |
| 2025 Fiscal Year Guidance: |
| Based on our performance in the first half of 2025, we are raising our full-year 2025 guidance. We now anticipate revenue of approximately $7.1 billion and pro forma EPS of $8.00 based on gross margin of 58.5%, operating margin of 24.8% and a full-year tax rate of 17.5% (see attached discussion on Forward-looking Financial Measures). |
| Dividend Recommendation: |
| The Board of Directors has established September 26, 2025, as the payment date for the next dividend instalment of $0.90 per share with a record date of September 12, 2025. At the 2025 annual shareholders’ meeting, Garmin shareholders, by Swiss corporate law, approved a cash dividend in the total amount of $3.60 per share, payable in four equal instalments on dates to be determined by the Board in its discretion. The first payment was made on June 27, 2025. The Board currently anticipates the scheduling of the remaining quarterly dividend instalments as follows: |
| Dividend Date |
Record Date |
$s per share |
| December 26, 2025 |
December 12, 2025 |
$0.90 |
| March 27, 2026 |
March 13, 2026 |
$0.90 |
|
| For the full document, click the link below |
| Garmin Ltd |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
