10-QPeriod: Q2 FY2025

GARMIN LTD Quarterly Report for Q2 Ended Jun 28, 2025

Filed July 30, 2025For Securities:GRMN

Summary

Garmin Ltd. reported a strong second quarter for fiscal year 2025, with significant year-over-year growth across key financial metrics. Net sales increased by 20% to $1.81 billion for the quarter and by 16% to $3.35 billion for the first half of the year. This growth was primarily driven by robust performance in the Fitness segment, which saw a 41% increase in net sales for the quarter, fueled by high demand for advanced wearables. The Outdoor segment also showed resilience with an 11% increase in quarterly net sales, supported by adventure watch sales. Profitability saw substantial improvements, with operating income rising by 38% to $472.3 million in the second quarter and by 26% to $805.1 million for the first half. This was supported by a 24% increase in gross profit for the quarter, with consolidated gross margin expanding by 150 basis points to 59%. The company also demonstrated improved operational efficiency, with total operating expenses as a percentage of revenue decreasing. Diluted earnings per share increased to $2.07 for the quarter and $3.79 for the first half, reflecting strong operational execution and profitability.

Financial Highlights

50 data points
Beta

Revenue

$1.81B

58.8% Gross Margin

Net Income

$400.82M

22.1% Net Margin

EPS (Diluted)

$2.07

Total Assets

$10.32B

Cash & Equivalents

$2.07B

Free Cash Flow

$127.50M

Financial Statements
Beta
Revenue$1.81B
Cost of Revenue$747.55M
Gross Profit$1.07B
R&D Expenses$276.66M
SG&A Expenses$318.05M
Operating Expenses$594.72M
Operating Income$472.30M
Net Income$400.82M
EPS (Basic)$2.08
EPS (Diluted)$2.07
Shares Outstanding (Basic)192.52M
Shares Outstanding (Diluted)193.42M

Key Highlights

  • 1Net sales surged 20% year-over-year to $1.81 billion in Q2 2025, and 16% to $3.35 billion in the first half.
  • 2Operating income increased significantly by 38% to $472.3 million in Q2 2025 and by 26% to $805.1 million in the first half.
  • 3The Fitness segment was a key driver of growth, with net sales up 41% in Q2 2025 due to strong demand for advanced wearables.
  • 4Consolidated gross margin improved by 150 basis points to 59% in Q2 2025.
  • 5Operating expenses as a percentage of revenue decreased, indicating improved operational leverage.
  • 6Diluted earnings per share (EPS) rose to $2.07 in Q2 2025, up from $1.56 in the prior year period.
  • 7The company maintained a strong liquidity position with approximately $3.9 billion in cash, cash equivalents, and marketable securities as of June 28, 2025.

Frequently Asked Questions

Garmin's revenue growth in the second quarter of 2025 was primarily driven by strong demand in the Fitness segment for advanced wearables, and solid sales in the Outdoor segment, particularly adventure watches. Growth was also observed in the Aviation and Marine segments, led by OEM and aftermarket product categories, and chartplotters, respectively.

Garmin demonstrated robust profitability, with operating income increasing by 38% year-over-year in the second quarter of 2025. This improvement was supported by a 24% increase in gross profit dollars and an expansion of the consolidated gross margin by 150 basis points to 59%. Operating expenses as a percentage of revenue also decreased, contributing to enhanced operational efficiency.

Garmin maintained a strong liquidity position, holding approximately $3.9 billion in cash, cash equivalents, and marketable securities as of June 28, 2025. The company believes its existing cash balances and cash flow from operations are sufficient to meet its short- and long-term projected working capital needs, capital expenditures, and other cash requirements.

Foreign currency fluctuations had a mixed impact. In the second quarter of 2025, a weakening U.S. dollar against the Taiwan Dollar resulted in a significant loss, though this was partially offset by gains from the U.S. dollar weakening against the Euro and British Pound Sterling. For the first half of 2025, the overall impact was a net gain due to a weakening U.S. dollar against the Euro, British Pound Sterling, and Polish Zloty, offset by a loss against the Taiwan Dollar.