Garmin(GRMN) - 2025 Q4 - Annual Results

Financial Performance - Consolidated revenue for Q4 2025 reached $2.12 billion, a 17% increase year-over-year, with full-year revenue of $7.25 billion, up 15% from the previous year[2][3] - Operating income for Q4 2025 was $614 million, a 19% increase year-over-year, contributing to a record full-year operating income of $1.88 billion, an 18% increase from the prior year[2][3] - Pro forma EPS for Q4 2025 was $2.79, representing a 16% growth compared to the prior-year quarter, with full-year pro forma EPS of $8.56, also a 16% increase[2][3] - Garmin reported net sales of $2,124,955 thousand for the 13 weeks ended December 27, 2025, representing a 16.6% increase from $1,822,560 thousand in the same period last year[24] - The company's gross profit for the same period was $1,258,260 thousand, up 16.6% from $1,079,926 thousand year-over-year[24] - Operating income increased to $614,154 thousand for the 13 weeks ended December 27, 2025, compared to $516,082 thousand in the prior year, reflecting a 19% growth[24] - Garmin's net income for the 52 weeks ended December 27, 2025, was $1,663,887 thousand, a 17.9% increase from $1,411,436 thousand in the previous year[28] - The company reported a diluted net income per share of $2.73 for the 13 weeks ended December 27, 2025, compared to $2.25 in the same period last year, reflecting a 21.3% increase[24] - Garmin's net sales for the 52 weeks ended December 27, 2025, reached $7,245,519 thousand, a 15.1% increase from $6,296,903 thousand in the previous year[24] - GAAP net income for the 13 weeks ended December 27, 2025, was $528,681, compared to $435,734 in 2024, marking a 21% increase[37] - Pro forma net income for the 13 weeks ended December 27, 2025, was $540,109, up from $466,281 in 2024[37] - The estimated impact of foreign currency gains and losses on diluted net income per share was $0.03 for the 52 weeks ended December 27, 2025[43] - The pro forma effective tax rate for the fiscal year 2025 was 16.8% for the 13 weeks ended December 27, 2025[38] Segment Performance - The fitness segment saw a 42% revenue increase in Q4 2025, driven by strong demand for wearables, while the outdoor segment's revenue remained flat compared to the prior year[5][6] - The aviation segment's revenue increased by 16% in Q4 2025, with significant contributions from both OEM and aftermarket products[7] - The marine segment reported an 18% revenue increase in Q4 2025, led by growth in chartplotters[8] - The auto OEM segment experienced a 3% revenue decline in Q4 2025, attributed to legacy programs nearing end-of-life[9] Cash and Investments - Garmin plans to propose a 17% increase in dividends, with a cash dividend of $4.20 per share for the fiscal year 2026[16] - The company announced a new $500 million share repurchase program, replacing the previous $300 million program[17] - Cash and cash equivalents at the end of the year were $2,279,360 thousand, up from $2,080,154 thousand, indicating improved liquidity[28] Future Guidance - Guidance for fiscal year 2026 includes expected revenue of $7.9 billion, a 9% increase over 2025, with pro forma EPS projected at $9.35[13][14] - Management anticipates that forward-looking financial measures for 2026 will be influenced by economic factors such as foreign currency exchange rates and tariffs[41] Research and Development - Research and development expenses rose to $294,984 thousand for the 13 weeks ended December 27, 2025, compared to $258,752 thousand in the same period last year, indicating a focus on innovation[24] Asset Growth - The total assets of Garmin increased to $10,993,669 thousand as of December 27, 2025, up from $9,630,527 thousand a year earlier, showing strong financial growth[26] Free Cash Flow - Free cash flow for the 13 weeks ended December 27, 2025, was $429,612, compared to $399,188 in 2024, indicating an 8% increase[40] Regional Performance - The Americas region generated $1,034,565 in net sales for the 13 weeks ended December 27, 2025, up 21% from $854,816 in 2024[32]