Garmin Ltd. · NYSE:GRMN
Garmin — Q4 2024 Earnings Presentation
25 slides from Garmin's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 Earnings
Q4 2024 Earnings February 19, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement These materials include projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with s
Slide 3: Business Update
Business Update Cliff Pemble President and CEO
Slide 4: Consolidated Q4 2024 results
Consolidated Revenue Operating income Operating margin Q4 2024 $1.82B $516M 28.3% 23% y/y growth 52% y/y growth BUSINESS INSIGHTS • Record consolidated fourth quarter revenue • Gross and operating margins expanded, resulting in record fourth quarter operating income • Record pro forma EPS of $2.41,
Slide 5: Consolidated FY 2024 results
Consolidated Revenue Operating income Operating margin FY 2024 $6.30B $1.59B 25.3% 20% y/y growth 46% y/y growth BUSINESS INSIGHTS • Record consolidated full year revenue • Gross and operating margins expanded, resulting in record full year operating income • Since inception, Garmin has delivered ov
Slide 6: Fitness segment
Fitness Revenue Operating income Operating margin FY 2024 $1.77B $483M 27% 32% y/y growth 108% y/y growth SEGMENT INSIGHTS • Growth across all product categories, led by strong demand for our running products • Launched Lily 2 Active, our smallest smartwatch with GPS • 2025 revenue growth estimate:
Slide 7: Outdoor segment
Outdoor Revenue Operating income Operating margin FY 2024 $1.96B $703M 36% 16% y/y growth 36% y/y growth SEGMENT INSIGHTS • Revenue growth led by strong demand for adventure watches • Launched new halo products: the Approach R50 & Descent X50i • 2025 revenue growth estimate: +10%
Slide 8: Aviation segment
Aviation Revenue Operating income Operating margin FY 2024 $877M $211M 24% 4% y/y growth 7% y/y decline SEGMENT INSIGHTS • Revenue growth in both OEM and aftermarket product categories • Ranked No. 1 in product support for the 21st consecutive year • Received the Aviation Week Laureate award for Run
Slide 9: Marine segment
Marine Revenue Operating income Operating margin FY 2024 $1.07B $236M 22% 17% y/y growth 32% y/y growth SEGMENT INSIGHTS • Revenue growth primarily driven by the acquisition of JL Audio; organic growth of 6%, outperforming industry trends • JL Audio home Pavilion outdoor speakers were honored with a
Slide 10: Auto OEM segment
Auto OEM Revenue Operating income Operating margin FY 2024 $611M ($39M) (6%) 44% y/y growth SEGMENT INSIGHTS • Revenue growth driven by increased shipments of domain controllers • Business wins expand our domain controller customer base • Expecting continued softness across the global OEM landscape
Slide 11: Financial Update
Financial Update Doug Boessen CFO and Treasurer
Slide 12: Income Statement Q4
Income Statement Q4 (in millions) Q4 2024 Q4 2023 Y/Y Net sales $1,823 $1,483 23% Gross profit 1,080 864 25% Margin % 59.3% 58.3% 100 bps Operating expenses 564 524 8% Operating income $516 $340 52% Margin % 28.3% 23.0% 540 bps GAAP EPS $2.25 $2.82 (20)% Pro Forma EPS $2.41 $1.72 40%
Slide 13: Income Statement Full Year
Income Statement Full Year (in millions) FY 2024 FY 2023 Y/Y Net sales $6,297 $5,228 20% Gross profit 3,697 3,005 23% Margin % 58.7% 57.5% 120 bps Operating expenses 2,103 1,913 10% Operating income $1,594 $1,092 46% Margin % 25.3% 20.9% 440 bps GAAP EPS $7.30 $6.71 9% Pro Forma EPS $7.39 $5.59 32%
Slide 14: Revenue Q4
Revenue Q4 (in millions) Q4 2024 Q4 2023 Change Fitness $539 $412 31% Outdoor 629 486 29% Aviation 237 217 9% Marine 251 240 5% Auto OEM 166 127 30% Total $1,823 $1,483 23% (in millions) Q4 2024 Q4 2023 Change Americas $855 $733 17% EMEA 701 523 34% APAC 266 226 18% Total $1,823 $1,483 23%
Slide 15: Revenue Full Year
Revenue Full Year (in millions) FY 2024 FY 2023 Change Fitness $1,774 $1,345 32% Outdoor 1,962 1,697 16% Aviation 877 846 4% Marine 1,073 917 17% Auto OEM 611 423 44% Total $6,297 $5,228 20% (in millions) FY 2024 FY 2023 Change Americas $3,036 $2,614 16% EMEA 2,319 1,776 31% APAC 942 838 12% Total $
Slide 16: Operating Expenses
Operating Expenses R&D SG&A $325 $305 $300 $286 $275 $259 $250 $237 $225 $200 (in millions) $175 $150 $125 $100 $75 $50 $25 $0 Q4 2024 Q4 2023 * SG&A includes Advertising Expense. See Appendix for additional information.
Slide 17: Other Financial Items FY 2024
Other Financial Items FY 2024 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Free Cash Flow Pro Forma Effective Tax Rate $3.70B $1.24B Accounts Receivable Capital Expenditures 16.7% $983M $194M Inventory Dividends Paid $1.47B $572M Share Repurchases $62M
Slide 18: Guidance 2025
Guidance 2025 Revenue $6.80B Gross margin 58.7% Operating margin 25.0% Pro forma Tax rate 16.5% Pro forma EPS $7.80 All amounts and %’s are approximate.
Slide 19: Garmin
A GARMIN.
Slide 20: Appendix
Appendix February 19, 2025
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share
Slide 22: Pro forma effective tax rate
Non-GAAP Financial Information Pro forma effective tax rate The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income
Slide 23: Pro forma net income per share
Non-GAAP Financial Information Pro forma net income (earnings) per share Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent c
Slide 24: Free cash flow
Non-GAAP Financial Information Free cash flow Management believes that free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and eq
Slide 25: Forward-looking financial measures
Forward-looking financial measures The forward-looking financial measures in our 2025 guidance do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculatin