Garmin Ltd. · NYSE:GRMN
Garmin — Q1 2025 Earnings Presentation
22 slides from Garmin's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 Earnings April 30, 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
Consolidated Revenue Operating income Operating margin Q1 2025 $1.54B $333M 21.7% 11% y/y growth 12% y/y growth BUSINESS INSIGHTS • Record quarterly consolidated revenue and operating income • Three segments with double-digit revenue growth • Double-digit operating income and pro forma EPS growth •
Slide 5: Tariffs
Tariffs Assumptions • 10% baseline tariff with no exclusions • +145% tariff on China sourced materials • A weaker USD • Strategic and selective mitigations • A modest reduction in demand Impact assessment • $100 million estimated gross impact from tariffs • No change to pro forma EPS guidance with a
Slide 6: Fitness
Fitness Revenue Operating income Operating margin Q1 2025 $385M $78M 20% 12% y/y growth 14% y/y growth SEGMENT INSIGHTS • Revenue growth led by strong demand for advanced wearables, reflecting market share gains • Announced Connect+, a premium service that offers AI insights, enhanced live tracking,
Slide 7: Outdoor
Outdoor Revenue Operating income Operating margin Q1 2025 $438M $129M 29% 20% y/y growth 20% y/y growth SEGMENT INSIGHTS • Revenue growth driven primarily by adventure watches • Launched new wearables for a variety of passions • inReach SOS Report provides insights on SOS incidents and emphasizes th
Slide 8: Aviation
Aviation Revenue Operating income Operating margin Q1 2025 $223M $48M 22% 3% y/y growth 7% y/y decline SEGMENT INSIGHTS • Revenue growth driven by OEM product categories • Announced the G3000 PRIME integrated flight deck was selected by Pilatus for its new PC-12 PRO aircraft and its PC-7 MKX militar
Slide 9: Marine
Marine Revenue Operating income Operating margin Q1 2025 $319M $87M 27% 2% y/y decline 1% y/y decline SEGMENT INSIGHTS • Timing of promotions contributed to lower revenue • Launched the new Force Pro trolling motor with innovative reverse thrust control and superior anchor lock performance • Named S
Slide 10: Auto OEM
Auto OEM Revenue Operating income Operating margin Q1 2025 $169M ($9M) (5%) 31% y/y growth SEGMENT INSIGHTS • Growth driven by increased shipments of domain controllers • Infotainment system supplier for the 2025 Honda Gold Wing • 2025 revenue growth estimate: +7% (unchanged)
Slide 11: Financial Update
Financial Update Doug Boessen CFO and Treasurer
Slide 12: Income Statement Q1
Income Statement Q1 (in millions) Q1 2025 Q1 2024 Y/Y Net sales $1,535 $1,382 11% Gross profit 885 802 10% Margin % 57.6% 58.1% (50 bps) Operating expenses 552 504 10% Operating income $333 $298 12% Margin % 21.7% 21.6% 10 bps GAAP EPS $1.72 $1.43 20% Pro Forma EPS $1.61 $1.42 13%
Slide 13: Revenue Q1
Revenue Q1 (in millions) Q1 2025 Q1 2024 Change Fitness $385 $343 12% Outdoor 438 366 20% Aviation 223 217 3% Marine 319 327 (2%) Auto OEM 169 129 31% Total $1,535 $1,382 11% (in millions) Q1 2024 Q1 2024 Change Americas $746 $716 4% EMEA 569 463 23% APAC 220 202 9% Total $1,535 $1,382 11%
Slide 14: Operating Expenses
Operating Expenses R&D SG&A $300 $284 $275 $268 $261 $250 $243 $225 $200 $175 (in millions) $150 $125 $100 $75 $50 $25 $0 Q1 2025 Q1 2024
Slide 15: Other Financial Items Q1 2025
Other Financial Items Q1 2025 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Free Cash Flow Pro Forma Effective Tax Rate $3.90B $381M Accounts Receivable Capital Expenditures 14.5% $787M $40M Inventory Dividends Paid $1.58B $145M Share Repurchases $27M
Slide 16: Guidance
Guidance 2025 Revenue $6.85B Gross margin 58.5% Operating margin 24.8% Tax rate 16.5% EPS $7.80 All amounts and %’s are approximate.
Slide 17: GARMIN.
A GARMIN.
Slide 18: Appendix
Appendix April 30, 2025
Slide 19: 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 20: Non-GAAP Financial Information
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 21: Non-GAAP Financial Information
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 22: Forward-looking financial measures
Forward-looking financial measures The forward-looking financial measures in our 2025 guidance include certain economic assumptions such as foreign currency exchange rates and tariffs which are fluid and can rapidly change favorably or unfavorably. The forward-looking financial measures in our 2025