Garmin (GRMN) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated revenue of $6.30B for FY 2024, up 20% year-over-year, and record Q4 revenue of $1.82B, up 23% year-over-year, with significant margin expansion and strong performance across all segments and regions.

• Operating income for FY 2024 rose 46% to $1.59B, with operating margin at 25.3%.

• Pro forma EPS for Q4 was $2.41 (up 40% year-over-year); full-year pro forma EPS was $7.39 (up 32%).

• Outperformed initial 2024 guidance and achieved growth in every business segment and region.

• Board proposes a 20% dividend increase to $3.60 per share, pending shareholder approval.

Financial highlights

• Q4 2024 gross margin was 59.3% (up 100 bps); operating margin was 28.3% (up 540 bps); FY 2024 gross margin was 58.7% (up 120 bps); operating margin was 25.3%.

• Free cash flow for FY 2024 was $1.24B; ended year with $3.7B in cash and marketable securities.

• Paid $572M in dividends and repurchased $62M in shares in 2024; $238M remains authorized for repurchases.

• Generated $1.43B in operating cash flow for FY24.

• Ended year with $5.99B in retained earnings.

Outlook and guidance

• FY25 revenue expected at $6.80B (up 8%), gross margin 58.7%, operating margin 25.0%, and pro forma EPS guidance of $7.80.

• Pro forma effective tax rate for 2025 expected at 16.5%.

• Free cash flow guidance for 2025 is $1.1B, with $350M in capital expenditures.

• Segment revenue growth estimates for 2025: Fitness +10%, Outdoor +10%, Aviation +5%, Marine +4%, Auto OEM +7%.