Garmin announces second quarter 2025 results
Garmin (NYSE:GRMN) reported exceptional Q2 2025 results with record revenue of $1.81 billion, up 20% year-over-year. The company achieved significant margin expansion with gross margin reaching 58.8% and operating margin increasing to 26.0%. Operating income grew 38% to a record $472 million, with GAAP EPS of $2.07 and pro forma EPS of $2.17.
All five segments delivered double-digit growth, led by Fitness (+41%), Auto OEM (+16%), Aviation (+14%), Outdoor (+11%), and Marine (+10%). The company maintains a strong financial position with $3.9 billion in cash and marketable securities. Based on strong H1 2025 performance, Garmin raised its full-year guidance, now expecting revenue of $7.1 billion and pro forma EPS of $8.00.
Garmin (NYSE:GRMN) ha riportato risultati eccezionali per il secondo trimestre del 2025 con un fatturato record di 1,81 miliardi di dollari, in crescita del 20% rispetto all'anno precedente. L'azienda ha ottenuto una significativa espansione dei margini, con un margine lordo che ha raggiunto il 58,8% e un margine operativo salito al 26,0%. L'utile operativo è aumentato del 38% raggiungendo un record di 472 milioni di dollari, con un utile per azione GAAP di 2,07 dollari e un utile per azione pro forma di 2,17 dollari.
Tutti e cinque i segmenti hanno registrato una crescita a doppia cifra, guidati da Fitness (+41%), Auto OEM (+16%), Aviazione (+14%), Outdoor (+11%) e Marine (+10%). L'azienda mantiene una solida posizione finanziaria con 3,9 miliardi di dollari in contanti e titoli negoziabili. Sulla base delle forti performance del primo semestre 2025, Garmin ha rivisto al rialzo le previsioni per l'intero anno, ora prevedendo un fatturato di 7,1 miliardi di dollari e un utile per azione pro forma di 8,00 dollari.
Garmin (NYSE:GRMN) reportó resultados excepcionales en el segundo trimestre de 2025 con un ingreso récord de 1,81 mil millones de dólares, un aumento del 20% interanual. La compañía logró una significativa expansión de márgenes, con un margen bruto que alcanzó el 58,8% y un margen operativo que subió al 26,0%. El ingreso operativo creció un 38% hasta un récord de 472 millones de dólares, con una ganancia por acción GAAP de 2,07 dólares y una ganancia por acción pro forma de 2,17 dólares.
Los cinco segmentos registraron un crecimiento de dos dígitos, liderados por Fitness (+41%), Auto OEM (+16%), Aviación (+14%), Outdoor (+11%) y Marine (+10%). La compañía mantiene una sólida posición financiera con 3,9 mil millones de dólares en efectivo y valores negociables. Basándose en el sólido desempeño del primer semestre de 2025, Garmin elevó su guía para todo el año, esperando ahora ingresos de 7,1 mil millones de dólares y una ganancia por acción pro forma de 8,00 dólares.
Garmin (NYSE:GRMN)은 2025년 2분기 실적에서 기록적인 18억 1천만 달러의 매출을 기록하며 전년 대비 20% 성장한 뛰어난 성과를 보고했습니다. 회사는 총이익률이 58.8%에 도달하고 영업이익률이 26.0%로 증가하는 등 마진이 크게 확대되었습니다. 영업이익은 38% 증가하여 4억 7,200만 달러의 기록을 세웠으며, GAAP 주당순이익은 2.07달러, 프로포마 주당순이익은 2.17달러를 기록했습니다.
피트니스(+41%), 자동차 OEM(+16%), 항공(+14%), 아웃도어(+11%), 해양(+10%) 등 모든 다섯 부문이 두 자릿수 성장을 달성했습니다. 회사는 39억 달러의 현금 및 유가증권을 보유하며 강력한 재무 상태를 유지하고 있습니다. 2025년 상반기 강력한 실적을 바탕으로 Garmin은 연간 가이던스를 상향 조정하여 매출 71억 달러와 프로포마 주당순이익 8.00달러를 예상하고 있습니다.
Garmin (NYSE:GRMN) a publié des résultats exceptionnels pour le deuxième trimestre 2025 avec un chiffre d'affaires record de 1,81 milliard de dollars, en hausse de 20 % par rapport à l'année précédente. La société a réalisé une expansion significative des marges, avec une marge brute atteignant 58,8 % et une marge opérationnelle passant à 26,0 %. Le résultat opérationnel a augmenté de 38 % pour atteindre un record de 472 millions de dollars, avec un BPA GAAP de 2,07 $ et un BPA pro forma de 2,17 $.
Tous les cinq segments ont affiché une croissance à deux chiffres, menés par Fitness (+41 %), Auto OEM (+16 %), Aviation (+14 %), Outdoor (+11 %) et Marine (+10 %). La société maintient une solide position financière avec 3,9 milliards de dollars en liquidités et titres négociables. Sur la base des solides performances du premier semestre 2025, Garmin a relevé ses prévisions annuelles, prévoyant désormais un chiffre d'affaires de 7,1 milliards de dollars et un BPA pro forma de 8,00 $.
Garmin (NYSE:GRMN) meldete außergewöhnliche Ergebnisse für das zweite Quartal 2025 mit einem Rekordumsatz von 1,81 Milliarden US-Dollar, was einem Anstieg von 20 % im Jahresvergleich entspricht. Das Unternehmen erzielte eine deutliche Margenausweitung, wobei die Bruttomarge 58,8 % und die operative Marge 26,0 % erreichte. Das Betriebsergebnis stieg um 38 % auf einen Rekordwert von 472 Millionen US-Dollar, mit einem GAAP-Gewinn je Aktie von 2,07 US-Dollar und einem Pro-forma-Gewinn je Aktie von 2,17 US-Dollar.
Alle fünf Segmente verzeichneten zweistelliges Wachstum, angeführt von Fitness (+41 %), Auto OEM (+16 %), Luftfahrt (+14 %), Outdoor (+11 %) und Marine (+10 %). Das Unternehmen verfügt über eine starke Finanzlage mit 3,9 Milliarden US-Dollar in bar und marktfähigen Wertpapieren. Aufgrund der starken Ergebnisse im ersten Halbjahr 2025 hat Garmin seine Jahresprognose angehoben und erwartet nun einen Umsatz von 7,1 Milliarden US-Dollar sowie einen Pro-forma-Gewinn je Aktie von 8,00 US-Dollar.
- Record Q2 revenue of $1.81B, up 20% year-over-year
- Operating income increased 38% to $472M
- Gross margin expanded to 58.8% from 57.3%
- All segments achieved double-digit growth
- Strong cash position with $3.9B in cash and marketable securities
- Raised full-year 2025 guidance
- Quarterly dividend of $0.90 per share maintained
- Active share repurchase program with $143M remaining
- Auto OEM segment reported operating loss of $10M
- Operating expenses increased 14% year-over-year
- Foreign currency losses of $23.5M in Q2 2025 compared to $4.8M loss in Q2 2024
Insights
Garmin delivered exceptional Q2 results with record revenue, expanded margins, and raised 2025 guidance across all business segments.
Garmin's Q2 2025 results significantly exceeded expectations, with record consolidated revenue of
The standout performer was the Fitness segment, which grew an extraordinary
Cash generation remains robust with
Most significantly, management raised its full-year 2025 guidance, now anticipating revenue of approximately
Company reports record second quarter operating results and raises full year guidance
Highlights for second quarter 2025 include:
- Record consolidated revenue of
$1.81 billion 20% increase compared to the prior year quarter - Gross margin expanded to
58.8% compared to57.3% in the prior year quarter - Operating margin expanded to
26.0% from22.7% in the prior year quarter - Record operating income of
$472 million 38% increase compared to the prior year quarter - GAAP EPS of
$2.07 $2.17 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
(In thousands, except per | 13-Weeks Ended | 26-Weeks Ended | ||||||||||||||||||||||
June 28, | June 29, | YoY | June 28, | June 29, | YoY | |||||||||||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
Net sales | $ | 1,814,564 | $ | 1,506,671 | 20 % | $ | 3,349,663 | $ | 2,888,320 | 16 % | ||||||||||||||
Fitness | 605,425 | 428,404 | 41 % | 990,147 | 771,296 | 28 % | ||||||||||||||||||
Outdoor | 490,357 | 439,872 | 11 % | 928,853 | 806,065 | 15 % | ||||||||||||||||||
Aviation | 249,366 | 218,253 | 14 % | 472,481 | 435,108 | 9 % | ||||||||||||||||||
Marine | 299,262 | 272,953 | 10 % | 618,699 | 599,689 | 3 % | ||||||||||||||||||
Auto OEM | 170,154 | 147,189 | 16 % | 339,483 | 276,162 | 23 % | ||||||||||||||||||
Gross profit | 1,067,012 | 862,891 | 24 | % | 1,951,557 | 1,665,030 | 17 | % | ||||||||||||||||
Gross margin % | 58.8 | % | 57.3 | % | 58.3 | % | 57.6 | % | ||||||||||||||||
Operating Income | 472,295 | 342,027 | 38 | % | 805,119 | 640,437 | 26 | % | ||||||||||||||||
Operating income % | 26.0 | % | 22.7 | % | 24.0 | % | 22.2 | % | ||||||||||||||||
GAAP diluted EPS | $ | 2.07 | $ | 1.56 | 33 | % | $ | 3.79 | $ | 2.99 | 27 | % | ||||||||||||
Pro forma diluted EPS(1) | $ | 2.17 | $ | 1.58 | 37 | % | $ | 3.78 | $ | 3.00 | 26 | % | ||||||||||||
(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS | ||||||||||||||||||||||||
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
Outdoor:
Revenue from the outdoor segment increased
Aviation:
Revenue from the aviation segment increased
Marine:
Revenue from the marine segment increased
Auto OEM:
Revenue from the auto OEM segment increased
Additional Financial Information:
Total operating expenses in the second quarter were
The effective tax rate in the second quarter was
In the second quarter of 2025, we generated operating cash flows of
(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
Dividend Recommendation:
The Board of Directors has established September 26, 2025, as the payment date for the next dividend installment of
Dividend Date | Record Date | $s per share | ||
December 26, 2025 | December 12, 2025 | |||
March 27, 2026 | March 13, 2026 |
Webcast Information/Forward-Looking Statements:
The information for Garmin Ltd.'s earnings call is as follows:
When: | Wednesday, July 30, 2025, 10:30 a.m. Eastern |
Where: | Join a live stream of the call at the following link |
An archive of the live webcast will be available until July 29, 2026 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events page.
This release includes 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 similar meanings. Any statements regarding the Company's expected fiscal 2025 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company's expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company's plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 28, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 28, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin's 2024 Form 10-K and the Q2 2025 Form 10-Q can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of June 28, 2025. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.
Garmin, the Garmin logo, the Garmin delta, Forerunner, G5000, GPSMAP, Instinct, quatix, Tread, and venu are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the
Investor Relations Contact: | Media Relations Contact: |
Teri Seck | Krista Klaus |
913/397-8200 | 913/397-8200 |
Garmin Ltd. and Subsidiaries | ||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
(In thousands, except per share information) | ||||||||||||||||
13-Weeks Ended | 26-Weeks Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales | $ | 1,814,564 | $ | 1,506,671 | $ | 3,349,663 | $ | 2,888,320 | ||||||||
Cost of goods sold | 747,552 | 643,780 | 1,398,106 | 1,223,290 | ||||||||||||
Gross profit | 1,067,012 | 862,891 | 1,951,557 | 1,665,030 | ||||||||||||
Research and development expense | 276,663 | 243,151 | 544,783 | 485,686 | ||||||||||||
Selling, general and administrative expenses | 318,054 | 277,713 | 601,655 | 538,907 | ||||||||||||
Total operating expense | 594,717 | 520,864 | 1,146,438 | 1,024,593 | ||||||||||||
Operating income | 472,295 | 342,027 | 805,119 | 640,437 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 31,724 | 29,286 | 62,231 | 54,313 | ||||||||||||
Foreign currency (losses) gains | (23,512) | (4,828) | 1,248 | (2,547) | ||||||||||||
Other (expense) income | (256) | (513) | 730 | 809 | ||||||||||||
Total other income (expense) | 7,956 | 23,945 | 64,209 | 52,575 | ||||||||||||
Income before income taxes | 480,251 | 365,972 | 869,328 | 693,012 | ||||||||||||
Income tax provision | 79,429 | 65,342 | 135,737 | 116,421 | ||||||||||||
Net income | $ | 400,822 | $ | 300,630 | $ | 733,591 | $ | 576,591 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 2.08 | $ | 1.57 | $ | 3.81 | $ | 3.00 | ||||||||
Diluted | $ | 2.07 | $ | 1.56 | $ | 3.79 | $ | 2.99 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 192,523 | 192,074 | 192,534 | 191,982 | ||||||||||||
Diluted | 193,416 | 192,899 | 193,557 | 192,808 | ||||||||||||
Garmin Ltd. and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(In thousands) | ||||||||
June 28, 2025 | December 28, 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,072,208 | $ | 2,079,468 | ||||
Marketable securities | 515,038 | 421,270 | ||||||
Accounts receivable, net | 1,010,578 | 983,404 | ||||||
Inventories | 1,788,020 | 1,473,978 | ||||||
Deferred costs | 18,518 | 24,040 | ||||||
Prepaid expenses and other current assets | 415,069 | 353,993 | ||||||
Total current assets | 5,819,431 | 5,336,153 | ||||||
Property and equipment, net | 1,290,714 | 1,236,884 | ||||||
Operating lease right-of-use assets | 179,299 | 164,656 | ||||||
Noncurrent marketable securities | 1,285,887 | 1,198,331 | ||||||
Deferred income tax assets | 852,551 | 822,521 | ||||||
Noncurrent deferred costs | 5,222 | 6,898 | ||||||
Goodwill | 640,554 | 603,947 | ||||||
Other intangible assets, net | 147,285 | 154,163 | ||||||
Other noncurrent assets | 103,133 | 106,974 | ||||||
Total assets | $ | 10,324,076 | $ | 9,630,527 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 397,303 | $ | 359,365 | ||||
Salaries and benefits payable | 193,598 | 210,879 | ||||||
Accrued warranty costs | 71,197 | 62,473 | ||||||
Accrued sales program costs | 104,310 | 108,492 | ||||||
Other accrued expenses | 254,359 | 216,721 | ||||||
Deferred revenue | 108,444 | 110,997 | ||||||
Income taxes payable | 282,988 | 294,582 | ||||||
Dividend payable | 519,863 | 144,349 | ||||||
Total current liabilities | 1,932,062 | 1,507,858 | ||||||
Deferred income tax liabilities | 89,194 | 103,274 | ||||||
Noncurrent income taxes payable | 3,704 | 7,014 | ||||||
Noncurrent deferred revenue | 24,553 | 28,321 | ||||||
Noncurrent operating lease liabilities | 148,608 | 134,886 | ||||||
Other noncurrent liabilities | 844 | 776 | ||||||
Stockholders' equity: | ||||||||
Common shares (194,901 and 194,901 shares authorized and issued; 192,542 and 192,468 shares outstanding) | 19,490 | 19,490 | ||||||
Additional paid-in capital | 2,317,294 | 2,247,484 | ||||||
Treasury shares (2,359 and 2,433 shares) | (356,358) | (270,521) | ||||||
Retained earnings | 6,039,512 | 5,999,183 | ||||||
Accumulated other comprehensive income (loss) | 105,173 | (147,238) | ||||||
Total stockholders' equity | 8,125,111 | 7,848,398 | ||||||
Total liabilities and stockholders' equity | $ | 10,324,076 | $ | 9,630,527 | ||||
Garmin Ltd. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(In thousands) | ||||||||
26-Weeks Ended | ||||||||
June 28, 2025 | June 29, 2024 | |||||||
Operating Activities: | ||||||||
Net income | $ | 733,591 | $ | 576,591 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 75,980 | 67,890 | ||||||
Amortization | 17,423 | 21,047 | ||||||
Loss on sale or disposal of property and equipment | 350 | 128 | ||||||
Unrealized foreign currency (gains) losses | (16,566) | 3,165 | ||||||
Deferred income taxes | (49,754) | (35,778) | ||||||
Stock compensation expense | 82,279 | 65,983 | ||||||
Realized loss on marketable securities | 706 | 29 | ||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Accounts receivable, net of allowance for doubtful accounts | 17,902 | (8,600) | ||||||
Inventories | (206,276) | (11,368) | ||||||
Other current and noncurrent assets | (37,092) | (39,759) | ||||||
Accounts payable | (2,591) | 92,065 | ||||||
Other current and noncurrent liabilities | 2,408 | (62,099) | ||||||
Deferred revenue | (6,843) | 667 | ||||||
Deferred costs | 7,262 | (2,516) | ||||||
Income taxes | (24,820) | 23,181 | ||||||
Net cash provided by operating activities | 593,959 | 690,626 | ||||||
Investing activities: | ||||||||
Purchases of property and equipment | (85,738) | (70,325) | ||||||
Purchase of marketable securities | (465,372) | (281,297) | ||||||
Redemption of marketable securities | 306,469 | 203,775 | ||||||
Net (payments for) cash from acquisitions | (1,973) | 5,011 | ||||||
Other investing activities, net | 503 | (321) | ||||||
Net cash used in investing activities | (246,111) | (143,157) | ||||||
Financing activities: | ||||||||
Dividends | (317,748) | (284,246) | ||||||
Proceeds from issuance of treasury shares related to equity awards | 29,065 | 24,530 | ||||||
Purchase of treasury shares related to equity awards | (33,431) | (16,264) | ||||||
Purchase of treasury shares under share repurchase plan | (93,632) | (9,713) | ||||||
Net cash used in financing activities | (415,746) | (285,693) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 60,650 | (17,761) | ||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (7,248) | 244,015 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 2,080,154 | 1,694,156 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 2,072,906 | $ | 1,938,171 | ||||
Garmin Ltd. and Subsidiaries Net Sales, Gross Profit and Operating Income by Segment (Unaudited (In thousands)
| ||||||||||||||||||||||||
Fitness | Outdoor | Aviation | Marine | Auto | Total | |||||||||||||||||||
13-Weeks Ended June 28, 2025 | ||||||||||||||||||||||||
Net sales | $ | 605,425 | $ | 490,357 | $ | 249,366 | $ | 299,262 | $ | 170,154 | $ | 1,814,564 | ||||||||||||
Gross profit | 364,670 | 324,429 | 185,472 | 164,338 | 28,103 | 1,067,012 | ||||||||||||||||||
Operating income (loss) | 197,630 | 157,881 | 63,383 | 62,921 | (9,520) | 472,295 | ||||||||||||||||||
13-Weeks Ended June 29, 2024 | ||||||||||||||||||||||||
Net sales | $ | 428,404 | $ | 439,872 | $ | 218,253 | $ | 272,953 | $ | 147,189 | $ | 1,506,671 | ||||||||||||
Gross profit | 245,248 | 284,214 | 161,366 | 147,787 | 24,276 | 862,891 | ||||||||||||||||||
Operating income (loss) | 107,610 | 135,592 | 50,485 | 59,892 | (11,552) | 342,027 | ||||||||||||||||||
26-Weeks Ended June 28, 2025 | ||||||||||||||||||||||||
Net sales | $ | 990,147 | $ | 928,853 | $ | 472,481 | $ | 618,699 | $ | 339,483 | $ | 3,349,663 | ||||||||||||
Gross profit | 584,813 | 606,964 | 353,374 | 348,271 | 58,135 | 1,951,557 | ||||||||||||||||||
Operating income (loss) | 275,344 | 286,668 | 111,739 | 149,785 | (18,417) | 805,119 | ||||||||||||||||||
26-Weeks Ended June 29, 2024 | ||||||||||||||||||||||||
Net sales | $ | 771,296 | $ | 806,065 | $ | 435,108 | $ | 599,689 | $ | 276,162 | $ | 2,888,320 | ||||||||||||
Gross profit | 440,050 | 526,953 | 323,992 | 327,039 | 46,996 | 1,665,030 | ||||||||||||||||||
Operating income (loss) | 175,743 | 242,543 | 102,619 | 147,583 | (28,051) | 640,437 | ||||||||||||||||||
Garmin Ltd. and Subsidiaries | ||||||||||||||||||||||||
Net Sales by Geography (Unaudited) | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
13-Weeks Ended | 26-Weeks Ended | |||||||||||||||||||||||
June 28, | June 29, | YoY | June 28, | June 29, | YoY | |||||||||||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
Net sales | $ | 1,814,564 | $ | 1,506,671 | 20 % | $ | 3,349,663 | $ | 2,888,320 | 16 % | ||||||||||||||
878,014 | 740,577 | 19 % | 1,623,747 | 1,456,694 | 11 % | |||||||||||||||||||
EMEA | 677,402 | 542,016 | 25 % | 1,246,355 | 1,005,399 | 24 % | ||||||||||||||||||
APAC | 259,148 | 224,078 | 16 % | 479,561 | 426,227 | 13 % | ||||||||||||||||||
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 and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.
The tables below provide reconciliations between the GAAP and non-GAAP measures.
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 tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first half 2025 and 2024 there were no such discrete tax items identified.
Pro forma net income (earnings) per share
Management believes 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 to permit a consistent comparison of the Company's performance between periods.
(In thousands, except per share information) | 13-Weeks Ended | 26-Weeks Ended | ||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
GAAP net income | $ | 400,822 | $ | 300,630 | $ | 733,591 | $ | 576,591 | ||||||||
Foreign currency gains / losses(1) | 23,512 | 4,828 | (1,248) | 2,547 | ||||||||||||
Tax effect of foreign currency gains / losses(2) | (3,889) | (862) | 195 | (428) | ||||||||||||
Pro forma net income | $ | 420,445 | $ | 304,596 | $ | 732,538 | $ | 578,710 | ||||||||
GAAP net income per share: | ||||||||||||||||
Basic | $ | 2.08 | $ | 1.57 | $ | 3.81 | $ | 3.00 | ||||||||
Diluted | $ | 2.07 | $ | 1.56 | $ | 3.79 | $ | 2.99 | ||||||||
Pro forma net income per share: | ||||||||||||||||
Basic | $ | 2.18 | $ | 1.59 | $ | 3.80 | $ | 3.01 | ||||||||
Diluted | $ | 2.17 | $ | 1.58 | $ | 3.78 | $ | 3.00 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 192,523 | 192,074 | 192,534 | 191,982 | ||||||||||||
Diluted | 193,416 | 192,899 | 193,557 | 192,808 | ||||||||||||
(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the
|
(2) The tax effect of foreign currency gains was calculated using the effective tax rates of |
Free cash flow
Management believes 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 equipment. Management believes excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company's operations and allows more accurate comparisons of the Company's results between periods. This metric may also be useful to investors but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities.
(In thousands) | 13-Weeks Ended | 26-Weeks Ended | ||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net cash provided by operating activities | $ | 173,171 | $ | 255,321 | $ | 593,959 | $ | 690,626 | ||||||||
Less: purchases of property and equipment | (45,677) | (37,157) | (85,738) | (70,325) | ||||||||||||
Free cash flow | $ | 127,494 | $ | 218,164 | $ | 508,221 | $ | 620,301 | ||||||||
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 guidance provided above 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 calculating the non-GAAP measures described above.
The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was
At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2025, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures.
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SOURCE Garmin Ltd.
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