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]