Garmin (GRMN) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 consolidated revenue of $1.54 billion, up 11% year-over-year, with strong growth in fitness, outdoor, and auto OEM segments.

• Operating income reached a record $333 million, up 12% year-over-year.

• Pro forma EPS rose 13% to $1.61; GAAP EPS was $1.72, up 20% year-over-year.

• Updated full-year 2025 guidance and recognized for industry trustworthiness and innovation.

• Cash flow from operations was $421 million, supporting dividends, share repurchases, and strategic investments.

Financial highlights

• Q1 revenue: $1.54 billion, up 11% year-over-year; gross profit: $885 million; gross margin: 57.6%.

• Operating margin: 21.7%; operating income: $333 million.

• Free cash flow: $381 million; cash and marketable securities: $3.9 billion at quarter end.

• Net income: $332.8 million, up 21% year-over-year.

• Paid $145 million in dividends and repurchased $27 million in shares during the quarter.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $6.85 billion, mainly due to favorable FX impacts.

• Gross margin expected at 58.5%, operating margin at 24.8%.

• Pro forma EPS guidance maintained at $7.80; full-year tax rate expected at 16.5%.

• Free cash flow for 2025 expected at $1.1 billion; CapEx at $350 million.

• Segment revenue growth estimates: Fitness +15% (raised), Outdoor +10%, Aviation +5%, Marine flat, Auto OEM +7%.