10-KPeriod: FY2024

GARMIN LTD Annual Report, Year Ended Dec 28, 2024

Filed February 19, 2025For Securities:GRMN

Summary

Garmin Ltd. (GRMN) reported a strong fiscal year 2024, with net sales increasing by 20% year-over-year to $6.3 billion, driven by broad-based growth across its key segments. The Fitness and Auto OEM segments showed particularly robust growth, up 32% and 44% respectively, highlighting the company's ability to innovate and meet evolving consumer and industry demands. This top-line growth, coupled with improved gross margins and operating expense leverage, resulted in a significant 46% increase in total operating income to $1.6 billion. The company maintains a healthy balance sheet with approximately $3.7 billion in cash, cash equivalents, and marketable securities, providing ample liquidity. Garmin also continued its commitment to shareholder returns through dividends and share repurchases, demonstrating financial discipline. Despite facing macroeconomic uncertainties and competitive pressures, Garmin's diversified business model across fitness, outdoor, aviation, marine, and auto OEM segments, supported by its vertically integrated manufacturing and strong brand loyalty, positions it well for continued success.

Financial Highlights

49 data points
Beta

Revenue

$6.30B

58.7% Gross Margin

Net Income

$1.41B

22.4% Net Margin

EPS (Diluted)

$7.30

Total Assets

$9.63B

Cash & Equivalents

$2.08B

Free Cash Flow

$1.24B

Financial Statements
Beta
Revenue$6.30B
Cost of Revenue$2.60B
Gross Profit$3.70B
R&D Expenses$993.60M
SG&A Expenses$1.11B
Operating Expenses$2.10B
Operating Income$1.59B
Net Income$1.41B
EPS (Basic)$7.35
EPS (Diluted)$7.30
Shares Outstanding (Basic)192.06M
Shares Outstanding (Diluted)193.28M

Key Highlights

  • 1Net sales increased 20% to $6.3 billion in fiscal year 2024, driven by strong demand across multiple segments.
  • 2Fitness segment revenue surged 32% to $1.8 billion, fueled by wearables, while Auto OEM revenue grew an impressive 44% to $611 million.
  • 3Total operating income saw substantial growth, increasing 46% to $1.6 billion, reflecting improved profitability.
  • 4Consolidated gross margin improved by 120 basis points to 59% due to favorable product mix and lower costs within key segments.
  • 5Operating expenses as a percentage of revenue decreased to 33% from 37% in the prior year, showcasing operational efficiency.
  • 6The company ended the year with a strong liquidity position, holding $3.7 billion in cash, cash equivalents, and marketable securities.
  • 7Garmin returned capital to shareholders through $576 million in dividends and $62 million in share repurchases during fiscal year 2024.

Frequently Asked Questions

Garmin's 20% net sales growth to $6.3 billion in fiscal year 2024 was driven by robust demand across its diverse product portfolio. Key contributors included strong sales in the Fitness segment (up 32%), particularly wearables, and significant growth in the Auto OEM segment (up 44%) due to increased domain controller shipments. The Outdoor segment also saw solid growth (up 16%), and the Marine segment benefited from the acquisition of JL Audio.

Profitability improved significantly in fiscal year 2024. Gross profit increased by 23% to $3.7 billion, leading to a consolidated gross margin of 59%, up 120 basis points from the prior year. Operating expenses as a percentage of net sales decreased from 37% to 33%, contributing to a 46% surge in total operating income to $1.6 billion. Net income grew 9% to $1.4 billion.

Garmin maintains a strong financial position. As of December 28, 2024, the company held approximately $3.7 billion in cash, cash equivalents, and marketable securities, providing substantial liquidity. Cash flow from operating activities was robust at $1.4 billion for the fiscal year, supporting capital expenditures, dividends, share repurchases, and strategic investments.

The filing highlights several risks, including intense competition in its various markets, reliance on third-party suppliers for components, potential product development delays, cybersecurity threats, and geopolitical risks, particularly concerning operations in Taiwan. Additionally, global economic conditions, foreign currency fluctuations, and potential changes in trade regulations could impact future performance.