Company Participants - The earnings call featured key participants including Clifton Albert Pemble (President, CEO & Director), Douglas Gerard Boessen (CFO & Treasurer), and Teri Seck (Manager of Investor Relations) [1] Earnings Call Introduction - The Garmin Limited Second Quarter 2025 Earnings Conference Call was initiated by Teri Seck, who welcomed participants and noted the availability of the earnings press release and related slides on Garmin's Investor Relations website [2][3] Forward-Looking Statements - The earnings call included forward-looking statements regarding Garmin's future financial position, revenues, segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introductions, foreign currency, tariff impacts, and future demand for products [4]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 20% year over year, exceeding $1,800,000,000, setting a new second quarter record [4] - Gross margin expanded to 58.8%, a 150 basis point increase from the prior year [14] - Operating income reached $472,000,000, up 38% year over year, with a pro forma EPS of $2.17, up 37% year over year [4][14] - Full year revenue guidance updated to approximately $7,100,000,000, up from previous guidance of $6,850,000,000 [6][18] Business Segment Performance - **Fitness Segment**: Revenue increased by 41% to $605,000,000, driven by strong demand for advanced wearables [6][7] - **Outdoor Segment**: Revenue increased by 11% to $490,000,000, primarily from adventure watches [8] - **Aviation Segment**: Revenue increased by 14% to $249,000,000, with growth from both OEM and aftermarket products [9][10] - **Marine Segment**: Revenue increased by 10% to $299,000,000, led by chartplotters [11] - **Auto OEM Segment**: Revenue increased by 16% to $170,000,000, driven by increased shipments to BMW [12] Market Data and Key Metrics Changes - By geography, double-digit growth was achieved in all three regions: EMEA (25%), Americas (19%), and APAC (16%) [15] - The fitness segment's revenue growth estimate raised to 25% for the year, while outdoor and aviation segments maintained estimates of 10% and 7% respectively [7][11] Company Strategy and Industry Competition - The acquisition of MyLabs aims to enhance Garmin's offerings in timing and performance analysis for athletic events, expanding the addressable market [5] - Garmin is focusing on innovation and differentiation in product lines to capture market share in the growing wearable market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience and robust demand for differentiated products [5] - The company is preparing for future growth with new product launches and strategic investments [10][36] Other Important Information - Free cash flow for the second quarter was $127,000,000, a decrease from the prior year due to increased inventory [16] - The effective tax rate decreased to 16.5% from 17.9% in the prior year quarter [17] Q&A Session Summary Question: Impact of channel fill on fitness performance - Management indicated that channel fill was not a significant factor in driving outperformance, and there are no signs of stockpiling [22][23] Question: Full year outlook and operating profit guidance - Management explained that operating expenses are expected to increase due to R&D and SG&A, impacting operating profit leverage [25][26] Question: Garmin's growth paradigm and pricing power - Management believes Garmin is entering a new growth paradigm, with innovation driving higher price points rather than significant price hikes [35][39] Question: Opportunities from MyLabs acquisition - Management sees synergies in merging training and official timing experiences for competitive events [47] Question: Subscription momentum and working capital management - Management noted that subscription services are growing across all segments, and working capital is being managed as planned [73][76]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 20% to exceed $1,800,000,000, setting a new second quarter record [4] - Gross margin expanded to 58.8%, a 150 basis point increase year over year [15] - Operating income reached $472,000,000, up 38% year over year, with a pro forma EPS of $2.17, up 37% year over year [4][16] Business Segment Performance - **Fitness Segment**: Revenue increased by 41% to $605,000,000, driven by strong demand for advanced wearables, with operating income of $198,000,000 [6][8] - **Outdoor Segment**: Revenue grew by 11% to $490,000,000, with operating income of $158,000,000 [9] - **Aviation Segment**: Revenue rose by 14% to $249,000,000, with operating income of $63,000,000 [10] - **Marine Segment**: Revenue increased by 10% to $299,000,000, with operating income of $63,000,000 [12] - **Auto OEM Segment**: Revenue grew by 16% to $170,000,000, with a narrowed operating loss of $10,000,000 [14] Market Data and Key Metrics Changes - By geography, EMEA saw a 25% revenue growth, Americas 19%, and APAC 16% [17] - The company anticipates revenue growth estimates for the fitness segment to rise to 25%, outdoor to 10%, aviation to 7%, marine to 5%, and auto OEM to 10% for the year [8][10][12][14] Company Strategy and Industry Competition - The acquisition of MyLabs is expected to enhance Garmin's offerings in timing and performance analysis, expanding the addressable market [5] - The company is focused on innovation and differentiation in product lines to capture market share in the growing wearable market [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer resilience and robust demand for differentiated products [5] - Full year revenue guidance was updated to approximately $7,100,000,000, with a pro forma EPS of $8 [6][20] Other Important Information - The company reported a free cash flow of $127,000,000 for the quarter, with capital expenditures of approximately $46,000,000 [19] - The effective tax rate decreased to 16.5% from 17.9% year over year [19] Q&A Session Summary Question: Impact of channel fill on fitness performance - Management indicated that channel fill was not a significant factor in the fitness segment's outperformance, and there are no signs of stockpiling [25][26] Question: Drivers of operating profit guidance - Management explained that operating expenses are expected to increase due to R&D and SG&A, along with foreign currency impacts and the acquisition of MyLabs [28][30] Question: Garmin's growth paradigm - Management believes Garmin is entering a new higher revenue growth phase, driven by innovation and market opportunities [38][40] Question: Pricing power in consumer wearables - Management clarified that price increases are due to new product introductions rather than hikes on existing products, indicating strong demand for innovative offerings [42] Question: Opportunities from MyLabs acquisition - Management sees significant synergies in merging training and official timing experiences for competitive events [50][51] Question: Subscription momentum - Management noted that subscription services are growing across all segments, with a focus on building this revenue stream [76] Question: Working capital management - Management confirmed that working capital is on plan, with increased inventory to meet demand and mitigate potential tariff impacts [80]

Core Insights - Garmin reported revenue of $1.81 billion for the quarter ended June 2025, marking a 20.4% increase year-over-year and exceeding the Zacks Consensus Estimate of $1.74 billion by 4.41% [1] - The company's EPS for the quarter was $2.17, up from $1.58 in the same quarter last year, representing a surprise of 10.71% against the consensus estimate of $1.96 [1] Financial Performance Metrics - Fitness segment net sales reached $605.43 million, surpassing the average estimate of $513.54 million, reflecting a year-over-year increase of 41.3% [4] - Outdoor segment net sales were $490.36 million, slightly below the average estimate of $519.45 million, with a year-over-year change of 11.5% [4] - Auto OEM segment net sales totaled $170.15 million, exceeding the average estimate of $166.39 million, showing a 15.6% increase year-over-year [4] - Marine segment net sales were $299.26 million, slightly above the average estimate of $296.34 million, representing a 9.6% year-over-year change [4] - Aviation segment net sales reached $249.37 million, surpassing the average estimate of $242.18 million, with a year-over-year increase of 14.3% [4] Operating Income and Gross Profit - Fitness segment operating income was $197.63 million, significantly higher than the average estimate of $140.32 million [4] - Outdoor segment operating income was $157.88 million, below the average estimate of $185.99 million [4] - Aviation segment operating income reached $63.38 million, exceeding the average estimate of $55.4 million [4] - Marine segment operating income was $62.92 million, above the average estimate of $58.3 million [4] - Gross profit for the Fitness segment was $364.67 million, significantly higher than the average estimate of $298.72 million [4] - Outdoor segment gross profit was $324.43 million, slightly below the average estimate of $332.14 million [4] Stock Performance - Garmin shares have returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Consolidated revenue for Q2 2025 reached $181 billion, a 20% year-over-year increase[5] - Operating income for Q2 2025 was $472 million, a 38% year-over-year increase[7] - GAAP EPS for Q2 2025 was $207, a 33% year-over-year increase[18] - Pro Forma EPS for Q2 2025 was $217, a 37% year-over-year increase[18] Segment Performance - Fitness segment revenue for Q2 2025 was $605 million, a 41% year-over-year increase, with an operating income of $198 million[8] - Outdoor segment revenue for Q2 2025 was $490 million, an 11% year-over-year increase, with an operating income of $158 million[11] - Aviation segment revenue for Q2 2025 was $249 million, a 14% year-over-year increase, with an operating income of $63 million[12] - Marine segment revenue for Q2 2025 was $299 million, a 10% year-over-year increase, with an operating income of $63 million[14] - Auto OEM segment revenue for Q2 2025 was $170 million, a 16% year-over-year increase, with an operating income of -$10 million[16] Financial Position - Cash and marketable securities totaled $387 billion[23] Guidance - The company raised its 2025 revenue guidance to $71 billion[7,24]

Financial Performance - Garmin reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $1.96 per share, and up from $1.58 per share a year ago, representing an earnings surprise of +10.71% [1] - The company posted revenues of $1.81 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.41%, compared to $1.51 billion in the same quarter last year [2] - Over the last four quarters, Garmin has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Garmin shares have increased approximately 16% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $1.67 billion, and for the current fiscal year, it is $7.97 on revenues of $6.85 billion [7] - The outlook for the industry, specifically the Electronics - Miscellaneous Products sector, is favorable, ranking in the top 33% of over 250 Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

EXHIBIT 99.1 Garmin announces second quarter 2025 results Company reports record second quarter operating results and raises full year guidance Schaffhausen, Switzerland / July 30, 2025 / PR Newswire – Garmin ® Ltd. (NYSE: GRMN), today announced results for the second quarter ended June 28, 2025. Highlights for second quarter 2025 include: | information) | | | 13-Weeks Ended | | | | | 26-Weeks Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | June 28, | | June 29, | YoY | ...

Core Insights - Garmin Ltd. reported record second quarter operating results, achieving a 20% increase in net sales year-over-year, totaling $1.81 billion [2][9] - The company raised its full year guidance, now anticipating approximately $7.1 billion in revenue and pro forma EPS of $8.00 [15] Financial Performance - Net sales for the second quarter reached $1,814,564, compared to $1,506,671 in the prior year, reflecting a 20% increase [2] - Gross profit was $1,067,012, a 24% increase from $862,891 in the previous year, with a gross margin of 58.8% [2][9] - Operating income rose to $472,295, marking a 38% increase from $342,027 in the prior year, with an operating margin of 26.0% [2][9] - GAAP diluted EPS was $2.07, a 33% increase from $1.56, while pro forma diluted EPS was $2.17, a 37% increase from $1.58 [2][9] Segment Performance - Fitness segment revenue increased by 41% to $605,425, driven by strong demand for advanced wearables [4] - Outdoor segment revenue grew by 11% to $490,357, primarily due to growth in adventure watches [5] - Aviation segment revenue rose by 14% to $249,366, with contributions from both OEM and aftermarket products [6] - Marine segment revenue increased by 10% to $299,262, led by growth in chartplotters [7] - Auto OEM segment revenue increased by 16% to $170,154, primarily driven by growth in domain controllers [10] Cash Flow and Capital Management - Operating cash flows for the quarter were $173 million, with free cash flow of $127 million [13] - The company paid a quarterly dividend of approximately $173 million and repurchased $67 million of its shares [13] Guidance and Future Outlook - The company anticipates a gross margin of 58.5% and an operating margin of 24.8% for the full year 2025 [15] - The effective tax rate for the second quarter was 16.5%, down from 17.9% in the prior year [12]

Core Insights - Garmin Ltd. has acquired MYLAPS, a Dutch company specializing in integrated timing, live tracking, and performance analysis tools for sports [1][2] - The acquisition aims to enhance the competitive experience for athletes and spectators by combining Garmin's technology with MYLAPS' expertise [2] Company Overview - MYLAPS has been a leader in sports technology since 1982, known for inventing automatic sports timing and transforming performance measurement [2] - MYLAPS operates globally with over 200 full-time employees and has a presence in North America, Europe, Asia, and Australia [1][2] Strategic Implications - The acquisition is expected to set a new standard for performance-focused training and race-day technology, benefiting Garmin's extensive customer base [2] - Garmin's commitment to innovation in various markets, including fitness and outdoor activities, aligns with MYLAPS' capabilities in enhancing sports experiences [3]

Core Insights - Garmin (GRMN) is set to report its second-quarter 2025 results on July 30, with earnings estimated at $1.96 per share, reflecting a 24% year-over-year increase [1][2] - The revenue estimate for the same quarter is $1.74 billion, indicating a year-over-year growth of 15.35% [2][11] Revenue Segments - The Fitness segment is expected to generate revenues of $482.5 million, showing a 12.6% increase year-over-year, driven by strong demand for advanced wearables and new wellness products [5][4] - The Outdoor segment's revenue is projected at $469.1 million, representing a 6.6% year-over-year growth, supported by strong momentum in wearables and new product launches [7][6] - The Marine segment is anticipated to achieve revenues of $340.4 million, up 24.7% from the previous year, bolstered by new product launches and the acquisition of Lumishore [9][8] - The Aviation segment is expected to report revenues of $245.8 million, indicating a 12.6% year-over-year growth, aided by increased demand in private air travel and new product launches [12][10] - The Auto OEM segment is projected to reach $185.5 million in revenues, reflecting a significant 26% year-over-year growth, driven by increased shipments to BMW [12] Growth Drivers - Garmin's expanding product portfolio is a key growth driver for its top-line performance in Q2 2025 [3] - Collaborations with Zwift and Google Maps are likely to enhance product appeal and boost sales across various segments [11]