Mar 29

Garmin Q1 2025 Earnings Report

Garmin reported strong Q1 2025 results with record revenue and operating income.

Key Takeaways

Garmin posted a robust Q1 2025, delivering record quarterly revenue and operating income, led by double-digit growth in Outdoor and Auto OEM segments. The company maintained full-year EPS guidance, highlighting product innovation and operational resilience amid global trade uncertainties.

Record Q1 revenue of $1.54 billion, up 11% year-over-year

Operating income rose 12% to $332.8 million

Pro forma EPS grew 13% to $1.61

Outdoor and Auto OEM segments led segment growth with 20% and 31% increases, respectively

Total Revenue
$1.54B
Previous year: $1.38B
+11.1%
EPS
$1.61
Previous year: $1.42
+13.4%
Gross Margin
57.6%
Previous year: 58.1%
-0.9%
Operating Margin
21.7%
Previous year: 21.6%
+0.5%
Effective Tax Rate
14.5%
Previous year: 15.6%
-7.1%
Gross Profit
$885M
Previous year: $802M
+10.3%
Cash and Equivalents
$2.18B
Previous year: $1.92B
+13.2%
Free Cash Flow
$381M
Previous year: $402M
-5.3%
Total Assets
$9.79B
Previous year: $8.63B
+13.4%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Garmin reaffirmed its full-year pro forma EPS guidance of $7.80 while raising revenue expectations to $6.85 billion, anticipating continued resilience despite global trade uncertainties.

Positive Outlook

  • Full-year revenue guidance raised to $6.85 billion
  • Pro forma EPS guidance maintained at $7.80
  • Operating margin projected at 24.8%
  • Gross margin forecasted at 58.5%
  • Tax rate estimate lowered to 16.5%

Challenges Ahead

  • Global trade developments create uncertainty
  • Marine revenue declined due to promotional timing
  • Auto OEM segment posted an operating loss despite revenue growth
  • Gross margin slightly declined year-over-year
  • Lower cash flow compared to prior year period

Revenue & Expenses

Visualization of income flow from segment revenue to net income