Garmin Reports 11% Revenue Growth to $1.54 Billion in Q1 2025

Garmin Ltd. reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $1.54 billion, a rise of 11% from $1.38 billion in the same period last year. The company's gross profit also saw an increase, totaling $884.5 million compared to $802.1 million in the prior year, resulting in a gross margin that remained relatively stable. Operating income rose to $332.8 million, up 12% from $298.4 million in the first quarter of 2024. Net income for the quarter was $332.8 million, translating to a diluted earnings per share of $1.72, compared to $1.43 in the previous year.

The company experienced notable growth across several segments, particularly in fitness and outdoor products, which accounted for 29% of total revenue in the first quarter of 2025, up from 26% in the prior year. Fitness revenue was bolstered by strong demand for advanced wearables, while outdoor revenue benefited from increased sales of adventure watches. Conversely, marine revenue declined due to the timing of promotions. The aviation segment also saw growth, primarily driven by OEM product sales, while auto OEM revenue increased due to growth in domain controllers.

Garmin's operational metrics reflected a positive trend, with total unit sales increasing to 4,362 from 3,890 year-over-year. The company reported a cash and cash equivalents balance of approximately $2.18 billion as of March 29, 2025, alongside marketable securities totaling $1.73 billion. The company’s total assets increased to $9.79 billion, up from $9.63 billion at the end of the previous fiscal year. Additionally, Garmin's employee headcount rose slightly, reflecting ongoing investments in talent to support growth initiatives.

In terms of strategic developments, Garmin has continued to focus on enhancing its product offerings and expanding its market presence. The company has been actively engaged in share repurchase activities, having repurchased shares worth approximately $90.2 million under its $300 million share repurchase program initiated in February 2024. The company also reported a foreign currency gain of $24.8 million, attributed to fluctuations in various currencies against the U.S. dollar, which positively impacted its financial results.

Looking ahead, Garmin expressed confidence in its ability to sustain growth, supported by a diversified product portfolio and a strong cash position. The company anticipates that its existing cash balances and cash flow from operations will be sufficient to meet future capital expenditures, working capital needs, and potential strategic acquisitions. However, Garmin acknowledged the ongoing challenges posed by global economic conditions and trade regulations, which could impact its operations and financial performance in the future.