Garmin, Ltd. reported sales rose 12 percent in its Fitness segment and 20 percent in its Outdoor segment, while its Marine segment showed a 2 percent decline.

In its other two segments, sales grew 3 percent in the Aviation segment and 31 percent in the Auto OEM segment.

Companywide highlights for the quarter include:

  • Record consolidated revenue of $1.54 billion, an 11 percent increase compared to the prior year quarter.
  • Gross margin of 57.6 percent compared to 58.1 percent in the prior year quarter.
  • Operating margin expanded to 21.7 percent from 21.6 percent in the prior year quarter.
  • Record operating income of $333 million, a 12 percent increase compared to the prior year quarter.
  • GAAP EPS of $1.72 and pro forma EPS of $1.61, representing 13 percent growth in pro forma EPS over the prior year quarter.

President and CEO Cliff Pemble said, “We delivered another quarter of outstanding financial results, which Garmin attributes to its strong lineup of highly differentiated products that customers desire. While recent developments in global trade have created an atmosphere of uncertainty for many companies, Garmin remains optimistic because of the resilience and flexibility its vertically integrated and highly diversified business model offers. We are very pleased with its results so far, and Garmin looks forward to the opportunities ahead as the year continues to unfold.”

Segment Performance

  • Fitness: Revenue from the fitness segment increased 12 percent in the first quarter, with growth led by strong demand for advanced wearables. Gross and operating margins were 57 percent and 20 percent, respectively, resulting in $78 million of operating income. During the quarter, Garmin Fitness announced Garmin Connect+, a premium plan offering personalized insights driven by artificial intelligence, enhanced live tracking, and exclusive achievement badges. Also, during the quarter, Garmin was recognized as one of the Most Innovative Fitness and Wellness Companies of 2025 by Athletech News. Garmin also recently announced the vívoactive 6, its newest health and fitness smartwatch with a brighter AMOLED display that includes more than 80 preloaded sports apps and provides access to Garmin Coach running and strength training plans.
  • Outdoor: Revenue from the outdoor segment increased 20 percent in the first quarter primarily due to growth in adventure watches. Gross and operating margins were 64 percent and 29 percent, respectively, resulting in $129 million operating income. During the quarter, Garmin launched several wearables, including Instinct 3, DescentTM G2, Tactix 8, Approach S44, and Approach S50. Also during the quarter, Garmin launched the new Montana handheld GPS series with optional SOS satellite communication capabilities and the new Approach G20, the first GPS golf handheld with unlimited battery life in sunny conditions.
  • Aviation: Revenue from the aviation segment increased 3 percent in the first quarter, with growth primarily driven by the OEM product categories. Gross and operating margins were 75 percent and 22 percent, respectively, resulting in $48 million of operating income. During the quarter, Garmin announced that the G3000 Prime integrated flight deck was selected by Pilatus for its new PC-12 Pro aircraft, with deliveries anticipated to begin in the second half of 2025, and PC-7 MKX military training aircraft. Also during the quarter, Garmin introduced GCOTM 14, its first carbon monoxide detector for aircraft.
  • Marine: Revenue from the marine segment decreased 2 percent in the first quarter due to the timing of promotions, which contributed to lower revenue from multiple product categories in the quarter. Gross and operating margins were 58 percent and 27 percent, respectively, resulting in $87 million of operating income. During the quarter, Garmin launched the Force Pro trolling motor, which has a multi-band GPS for improved control, reverse thrust capabilities, and a built-in sonar transducer.
  • Auto OEM: Revenue from the auto OEM segment increased 31 percent during the first quarter, primarily driven by growth in domain controllers. Gross margin was 18 percent and Garmin recorded an operating loss of $9 million in the quarter. During the quarter, Honda introduced the 2025 Gold Wing motorcycle, which includes a Garmin infotainment system.

Additional Financial Information
Total operating expenses in the first quarter were $552 million, a 10 percent increase over the prior year. Research and development and selling, general and administrative expenses increased 11 percent and 9 percent, respectively, driven primarily by personnel-related costs. The effective tax rate in the first quarter was 14.5 percent compared to the effective tax rate of 15.6 percent in the prior-year quarter. The decrease in the current quarter is primarily due to increased tax benefits from stock-based compensation. In the first quarter of 2025, Garmin generated operating cash flows of $421 million and free cash flow of $381 million. The company paid a quarterly dividend of approximately $145 million and repurchased $27 million of the company’s shares within the quarter, leaving approximately $210 million remaining as of March 29, 2025, in the share repurchase program authorized through December 2026. The company ended the quarter with cash and marketable securities of approximately $3.9 billion.

2025 Fiscal Year Guidance
Based upon its first quarter results and its assessment of the current global trade environment, Garmin is updating its full-year 2025 expectations for revenue to approximately $6.85 billion and maintaining its pro forma EPS of $7.80 based on gross margin of 58.5 percent, operating margin of 24.8 percent and a full year tax rate of 16.5 percent. Previously, expectations called for revenues of $6.80 billion, a gross margin of 58.7 percent, operating income of 25.0 percent, a pro forma tax rate of 16.5 percent, and pro forma EPS of $7.80.

Image courtesy Garmin