Financial Data and Key Metrics Changes - Consolidated revenue increased 17% to over $2.1 billion in Q4 2025, marking a new record for the fourth quarter and the first quarter to exceed $2 billion [5][20] - Full year consolidated revenue rose 15% to $7.25 billion, a new annual record, with gross margin at 58.7% and operating margin expanding 60 basis points to 25.9% [6][7] - Record operating income of nearly $1.9 billion for the full year, up 18% year-over-year, with pro forma EPS of $8.56, a 16% increase [21][26] Business Segment Data and Key Metrics Changes - Fitness segment revenue surged 33% to $2.36 billion, driven by wearables, with operating income increasing 50% year-over-year to $726 million [10] - Outdoor segment revenue grew 5% to $2.05 billion, primarily from adventure watches, with operating income of $690 million [12] - Aviation segment revenue increased 13% to $987 million, with operating income rising 22% to $257 million [14] - Marine segment revenue rose 10% to $1.18 billion, with operating income of $251 million [16] - Auto OEM segment revenue increased 9% to $665 million, but operating loss was $49 million [18] Market Data and Key Metrics Changes - Americas region achieved strong double-digit growth of 21%, with quarterly revenue exceeding $1 billion for the first time [23] - EMEA region grew by 14% and APAC region by 8% in Q4 2025 [23] - For the full year, EMEA grew 18%, Americas 40%, and APAC 12% [23] Company Strategy and Development Direction - The company focuses on market diversification and creating essential products, which has been a successful strategy since its inception [6] - Future guidance anticipates revenue growth of approximately 9% to $7.9 billion in 2026, with operating income expected to exceed $2 billion for the first time [8][27] - The company plans to continue leveraging its vertically integrated business model to optimize cost structures amid supply chain challenges [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and highlighted strong relationships with suppliers [8][9] - The company expects continued strong performance in the fitness segment, driven by demand for current products and new introductions [11] - Management noted that the overall market for wearables is on a steady growth path, with Garmin gaining market share [78] Other Important Information - The company proposed an annual dividend of $4.20 per share, reflecting a 17% increase, and announced a $500 million share repurchase program [9][26] - The company is exploring new product categories and enhancing existing services, such as the Connect Plus program, which has seen high engagement [49][60] Q&A Session Summary Question: Impact of memory costs on 2026 guidance - Management indicated that while memory costs are under pressure, they do not quantify individual components of the cost structure [29][30] Question: Factors contributing to wearables growth - Management noted that growth was primarily volume-driven, with minor impacts from average selling price [32][33] Question: Future of auto OEM business - Management acknowledged that while initial projections were optimistic, they are now focusing on achieving scale and investing for future growth [38][39] Question: Growth opportunities in aviation - Management confirmed that projects like the Black Hawk helicopter represent growth opportunities, utilizing commercial components for military applications [47][48] Question: Update on Connect Plus uptake - Management reported high conversion rates for the nutrition feature added to Connect Plus, indicating strong customer interest [49] Question: Global wearables market trends - Management believes the overall wearables market is experiencing steady growth, with Garmin successfully gaining market share [78]

Fourth Quarter and Full Year 2025 Earnings February 18, 2026 Safe Harbor Statement These materials include projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company's expected fiscal 2026 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and th ...

Core Insights - Garmin reported record revenue and profit for both the fourth quarter and fiscal year 2025, with a consolidated revenue of $2.12 billion for Q4, a 17% increase year-over-year, and $7.25 billion for the full year, a 15% increase [1][2] - The company announced a 17% increase in dividends and a new $500 million share repurchase program [1] Financial Performance - Q4 2025 GAAP EPS was $2.73, with pro forma EPS of $2.79, reflecting a 16% growth in pro forma EPS compared to the prior year [1] - Operating income for Q4 was $614 million, a 19% increase year-over-year, with an operating margin of 28.9% [1] - Fiscal year 2025 GAAP EPS was $8.59, with record pro forma EPS of $8.56, also representing a 16% growth over the previous year [1] Segment Performance - Fitness segment revenue increased by 42% in Q4, driven by strong demand for wearables, with operating income of $257 million [1] - Outdoor segment revenue remained flat compared to the prior year, with operating income of $234 million [1] - Aviation segment revenue grew by 16% in Q4, with operating income of $85 million [1] - Marine segment revenue increased by 18% in Q4, with operating income of $52 million [1] - Auto OEM segment revenue decreased by 3% in Q4, resulting in an operating loss of $14 million [1] Cash Flow and Expenses - Operating cash flow for Q4 was $554 million, with free cash flow of $430 million [1] - Total operating expenses in Q4 were $644 million, a 14% increase from the prior year [1] Future Guidance - For fiscal year 2026, Garmin expects revenue of $7.9 billion, a 9% increase over 2025, with pro forma EPS projected at $9.35 [1]