Garmin(US:GRMN)2025-07-30 11:00Financial Performance - Record consolidated revenue of $1.81 billion, a 20% increase compared to the prior year quarter[4] - Gross margin expanded to 58.8% from 57.3% in the prior year quarter[4] - Operating income reached $472 million, a 38% increase compared to the prior year quarter[4] - GAAP EPS of $2.07 and pro forma EPS of $2.17, representing 37% growth in pro forma EPS over the prior year quarter[4] - Net income for the 26 weeks ended June 28, 2025, was $733,591, a 27% increase from $576,591 in the previous year[26] - GAAP net income for the 13 weeks ended June 28, 2025, was $400,822,000, compared to $300,630,000 for the same period in 2024, representing a 33.3% increase[35] - Pro forma net income for the 26 weeks ended June 28, 2025, was $732,538,000, up from $578,710,000 in 2024, indicating a 26.6% growth[35] - The diluted GAAP net income per share for the 26 weeks ended June 28, 2025, was $3.79, compared to $2.99 for the same period in 2024, marking a 26.8% increase[35] - The pro forma net income per share (diluted) for the 13 weeks ended June 28, 2025, was $2.17, compared to $1.58 in 2024, an increase of 37.3%[35] Revenue by Segment - Fitness segment revenue increased 41% in the second quarter, driven by strong demand for advanced wearables[6] - Outdoor segment revenue increased 11% in the second quarter, primarily due to growth in adventure watches[7] - Aviation segment revenue increased 14% in the second quarter, with contributions from both OEM and aftermarket product categories[8] - Marine segment revenue increased 10% in the second quarter, led by growth in chartplotters[9] - Auto OEM segment revenue increased 16% during the second quarter, primarily driven by growth in domain controllers[10] Guidance and Future Outlook - Full year 2025 guidance raised to approximately $7.1 billion in revenue and pro forma EPS of $8.00[14] Cash Flow and Financial Position - Free cash flow for the 13 weeks ended June 28, 2025, was $127,494,000, a decrease from $218,164,000 in 2024, reflecting a 41.6% decline[38] - The company's free cash flow for the 26 weeks ended June 28, 2025, was $508,221,000, down from $620,301,000 in 2024, a decrease of 17.9%[38] - The company's net cash provided by operating activities for the 13 weeks ended June 28, 2025, was $173,171,000, down from $255,321,000 in 2024, a decline of 32.2%[38] - Cash and cash equivalents at the end of the period were $2,072,906, slightly down from $2,080,154 at the beginning of the period, reflecting cash management strategies[26] Research and Development - Research and development expenses increased to $544,783 for the 26 weeks ended June 28, 2025, compared to $485,686 in the same period last year, highlighting a focus on innovation[28] Asset Growth - Total assets increased to $10,324,076 as of June 28, 2025, from $9,630,527 at the end of December 2024, indicating growth in the company's financial position[24] Regional Performance - The Americas region generated net sales of $878,014 for the 13 weeks ended June 28, 2025, a 19% increase year-over-year[30] - The EMEA region saw a 25% increase in net sales to $677,402 for the 13 weeks ended June 28, 2025, compared to $542,016 in the prior year[30] Currency Impact - The estimated impact of foreign currency gains and losses on diluted net income per share was $0.01 for the 26-week period ended June 28, 2025[41] - Management is unable to determine the potential future net effect of foreign currency exchange gains and losses for fiscal 2025 due to high variability[41] Management Insights - Management believes free cash flow is an important liquidity measure, defined as operating cash flows less capital expenditures[37]