Garmin | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 1.815 B

Revenue: As of FY2025 Q2, the actual value is USD 1.815 B, beating the estimate of USD 1.705 B.

EPS: As of FY2025 Q2, the actual value is USD 2.07, beating the estimate of USD 1.8595.

EBIT: As of FY2025 Q2, the actual value is USD 480.25 M, beating the estimate of USD 410.43 M.

Fitness Segment

• Net Sales: $605.4 million for the 13-weeks ended June 28, 2025, a 41% increase YoY.
• Gross Profit: $364.7 million, representing 60% of segment net sales, a 49% increase YoY.
• Operating Income: $197.6 million, representing 33% of segment net sales, an 84% increase YoY.

Outdoor Segment

• Net Sales: $490.4 million for the 13-weeks ended June 28, 2025, an 11% increase YoY.
• Gross Profit: $324.4 million, representing 66% of segment net sales, a 14% increase YoY.
• Operating Income: $157.9 million, representing 32% of segment net sales, a 16% increase YoY.

Aviation Segment

• Net Sales: $249.4 million for the 13-weeks ended June 28, 2025, a 14% increase YoY.
• Gross Profit: $185.5 million, representing 74% of segment net sales, a 15% increase YoY.
• Operating Income: $63.4 million, representing 25% of segment net sales, a 26% increase YoY.

Marine Segment

• Net Sales: $299.3 million for the 13-weeks ended June 28, 2025, a 10% increase YoY.
• Gross Profit: $164.3 million, representing 55% of segment net sales, an 11% increase YoY.
• Operating Income: $62.9 million, representing 21% of segment net sales, a 5% increase YoY.

Auto OEM Segment

• Net Sales: $170.2 million for the 13-weeks ended June 28, 2025, a 16% increase YoY.
• Gross Profit: $28.1 million, representing 17% of segment net sales, a 16% increase YoY.
• Operating Loss: -$9.5 million, representing -6% of segment net sales, compared to -$11.6 million YoY.

Cash Flow

• Operating Cash Flow: $594.0 million for the first half of 2025, compared to $690.6 million for the first half of 2024.
• Free Cash Flow: Not explicitly stated, but cash used in investing activities totaled -$246.1 million for the first half of 2025.

Future Outlook and Strategy

• Core Business Focus: Garmin Ltd. anticipates a decrease in cash outlays for income taxes in 2025 due to new U.S. tax legislation, with an estimated increase in the full-year effective tax rate by approximately 100 basis points.
• Non-Core Business: The acquisition of MYLAPS, a company providing technology solutions for sports timing and performance analysis, was completed on July 15, 2025, but was not material.