Core Viewpoint - Garmin has launched the Force Current, a hands-free kayak trolling motor that enhances the fishing experience by allowing anglers to control their kayak without needing to set down their fishing rod [1][3]. Product Features - The Force Current features a brushless motor designed specifically for kayak fishing, providing full forward and reverse thrust for easy navigation in various environments [1][5]. - It includes two prop options: a high-efficiency prop for extended battery life and a weedless prop for navigating through aquatic vegetation [5]. - The motor delivers 50 pounds of thrust with 24V power and 30 pounds with 12V power, enabling anglers to move efficiently throughout the day [8]. Technology and Innovation - The trolling motor incorporates a wireless throttle and steering control system, allowing for hands-free operation [2][3]. - It offers wireless integration with chartplotters, enabling anglers to create routes and control various functions such as steering and anchor lock [8]. - The product features smart anchor lock technology with multi-band GPS to maintain position in challenging conditions [8]. Market Position and Pricing - Kayak fishing is identified as one of the fastest-growing segments in recreational fishing, prompting Garmin to expand its Force trolling motor lineup [3]. - The Force Current will be available for a suggested retail price of $3,599.99 with foot pedals or $2,999.99 without [5]. Company Background - Garmin is recognized as the world's largest marine electronics manufacturer and has been named Manufacturer of the Year by the National Marine Electronics Association for ten consecutive years [6].

Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% to $1.54 billion, setting a new first-quarter record, with gross and operating margins at 57.6% and 21.7% respectively, leading to record operating income of $333 million, up 12% year over year [4][17] - Pro forma EPS rose by 13% year over year to $1.61, while GAAP EPS was reported at $1.72 [17][4] Business Segment Data and Key Metrics Changes - **Fitness Segment**: Revenue increased by 12% to $385 million, driven by strong demand for advanced wearables, with operating income of $78 million and gross margin of 57.2% [10][11] - **Outdoor Segment**: Revenue surged by 20% to $438 million, with operating income of $129 million and gross margin of 64.2% [12] - **Aviation Segment**: Revenue grew by 3% to $223 million, with operating income of $48 million and gross margin of 75% [13][14] - **Marine Segment**: Revenue decreased by 2% to $319 million, with operating income of $87 million and gross margin of 58.2% [15] - **Auto OEM Segment**: Revenue increased by 31% to $169 million, with a gross margin of 18% and a narrowed operating loss of $9 million [16] Market Data and Key Metrics Changes - Revenue growth by geography showed 23% growth in EMEA, 9% in APAC, and 4% in the Americas [18] - Approximately 40% of revenue is generated in non-U.S. Dollar currencies, benefiting from a weaker U.S. Dollar [9][21] Company Strategy and Development Direction - The company is adapting to a dynamic global trade environment, with a focus on mitigating tariff impacts and maintaining a diversified business model [5][10] - New product launches, such as Garmin Connect Plus and the Vivoactive six smartwatch, are part of the strategy to enhance customer engagement and drive revenue growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted a modest reduction in demand due to the current trade environment, but emphasized strong product lines and a resilient business model [10][9] - The company is maintaining its revenue growth estimates for various segments, with a cautious outlook on potential demand shifts [10][14] Other Important Information - The company updated its full-year 2025 guidance, estimating revenue of approximately $6.85 billion, reflecting favorable foreign currency impacts and modest demand weakening [21][22] - The effective tax rate for the quarter was reported at 14.5%, down from 15.6% in the prior year [20] Q&A Session Summary Question: Demand trends across segments and inventory building - Management indicated no signs of weakness in demand, with strong sell-through rates and no overstocking observed [25][26] Question: Launch timing of Garmin Connect Plus - The decision to launch was driven by advancements in AI-based insights, with positive initial customer reception [28][30] Question: Disaggregation of demand weakness versus FX tailwinds - Management refrained from providing specific figures but acknowledged a modest decrease in demand while highlighting FX benefits [35][38] Question: Mitigation strategies for tariffs - Management is evaluating various mitigation strategies on a case-by-case basis, including sourcing actions and pricing adjustments [40][42] Question: Marine segment promotional timing - The decrease in marine revenue was attributed to the timing of promotions, with expectations of a ripple effect into the second quarter [49][50] Question: Consumer demand outlook for the second half - Management remains cautiously optimistic, factoring in potential softness but noting strong current demand [55][56] Question: Subscription and software revenue reporting - Subscription revenue will be reported separately once it reaches 10% of consolidated revenue [71][72] Question: Impact of tariffs on aviation products - The impact is limited as most aviation manufacturing occurs in the U.S., though some materials are sourced internationally [84]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% to $1,540,000,000, setting a new first-quarter record, with gross and operating margins at 57.6% and 21.7% respectively, leading to record operating income of $333,000,000, up 12% year over year [4][17] - Pro forma EPS rose by 13% year over year to $1.61, while GAAP EPS was reported at $1.72 [17] Business Segment Data and Key Metrics Changes - **Fitness Segment**: Revenue increased by 12% to $385,000,000, with operating income of $78,000,000 and margins at 57.2%. The segment is expected to grow by 15% for the year due to strong demand for advanced wearables [10][11] - **Outdoor Segment**: Revenue grew by 20% to $438,000,000, with operating income of $129,000,000 and margins at 64.2%. The segment is expected to maintain a 10% growth estimate for the year [12][13] - **Aviation Segment**: Revenue increased by 3% to $223,000,000, with operating income of $48,000,000 and margins at 21.5%. The growth estimate for 2025 remains at 5% [13][14] - **Marine Segment**: Revenue decreased by 2% to $319,000,000, with operating income of $87,000,000 and margins at 58.2%. The segment is expected to be flat for 2025 [15] - **Auto OEM Segment**: Revenue surged by 31% to $169,000,000, with a narrowed operating loss of $9,000,000. The growth estimate for 2025 is maintained at 7% [16] Market Data and Key Metrics Changes - Revenue growth by geography showed 23% growth in EMEA, 9% in APAC, and 4% in the Americas [18] - Approximately 40% of revenue is generated in non-U.S. Dollar currencies, benefiting from a weaker U.S. Dollar [8][21] Company Strategy and Development Direction - The company is adapting to a dynamic global trade environment, with a focus on mitigating tariff impacts and maintaining a diversified business model [5][10] - New product launches, including Garmin Connect Plus and the Vivoactive six smartwatch, are part of the strategy to enhance customer engagement and drive revenue growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic despite headwinds from tariffs and economic uncertainty, citing strong product lines and a resilient business model [10][21] - The company has updated its full-year guidance to reflect first-quarter results and current market assessments, estimating revenue of approximately $6,850,000,000 [21][22] Other Important Information - The company is pursuing various mitigation strategies for tariffs, including sourcing adjustments and potential pricing actions [39][60] - Free cash flow for the first quarter was $381,000,000, with expectations of approximately $1,100,000,000 for the full year [19][20] Q&A Session Summary Question: Demand trends across segments and inventory building - Management has not observed any significant weakness in demand, with strong sell-through rates and no indication of retailers overstocking [25][26] Question: Launch timing of Garmin Connect Plus - The decision to launch Connect Plus was driven by advancements in AI and a strong user base, with positive initial reception [28][29] Question: Disaggregation of demand weakness and FX tailwinds - Management indicated that while there is a possibility of modest demand reduction, the overall sentiment remains strong [36][37] Question: Mitigation tools for tariffs - The company is evaluating various mitigation strategies on a case-by-case basis, with no significant changes expected in the global footprint [39][41] Question: Marine segment revenue outlook - The decrease in marine revenue is attributed to timing shifts in promotions, with expectations of some impact into the second quarter [48][49] Question: Consumer demand outlook for the second half - Management included a conservative estimate for potential demand softness but noted strong current demand [55][56] Question: Pricing power and potential impacts from tariffs - Pricing actions are being evaluated on a case-by-case basis, with management committed to maintaining market share [59][60] Question: Performance across geographies - EMEA outperformed due to strong growth in wearables, while the Americas were impacted by lower growth in marine and aviation segments [66][67] Question: New product introductions and revenue guidance - The company anticipates significant contributions from new product releases throughout the year [76][77]

Core Viewpoint - Garmin has launched the Force® Pro, a powerful brushless trolling motor that enhances fishing experiences with advanced GPS positioning, reverse thrust control, and integrated sonar technology [1][2][3]. Product Features - The Force Pro features a brushless motor that delivers 100 pounds of thrust, allowing for quick movement in various water conditions while maintaining a quiet operation to avoid disturbing fish [4][10]. - It includes multi-band GPS for superior anchor lock performance, enabling precise positioning near fishing hotspots [5][6]. - The reverse thrust capability allows anglers to control their boat effectively without needing to reposition the motor, enhancing maneuverability in tight spaces [4][6]. Technological Integration - The Force Pro is equipped with the GT56UHD transducer, providing Ultra High-Definition sonar imaging for better visibility of underwater structures and fish [7]. - It offers wireless integration with Garmin chartplotters, allowing anglers to create and follow routes while fishing [7]. - The motor can be controlled via a compatible Garmin smartwatch, providing convenience and ease of use [7]. Market Positioning - The Force Pro will be showcased at the 2025 Bassmaster Classic, indicating Garmin's commitment to engaging with professional and recreational anglers [3][8]. - The product is priced at $3999.99 for a 50-inch shaft and $4099.99 for a 57-inch shaft, reflecting its premium positioning in the market [8]. Company Background - Garmin is recognized as a leading manufacturer in marine electronics, having been named Manufacturer of the Year by the National Marine Electronics Association for ten consecutive years [9].