Garmin Announces Fourth Quarter and Fiscal Year 2024 Results
2024 was a year of remarkable growth and achievement for Garmin as revenue for the year increased 20%, with record revenue in all five business segments including marine.
SCHAFFHAUSEN, Switzerland – Garmin® Ltd. (NYSE: GRMN), today announced results for the fourth quarter ended December 28, 2024.
Highlights for fourth quarter 2024 include:
Consolidated revenue of $1.82 billion, a 23% increase compared to the prior year quarter
Gross margin expanded to 59.3% from 58.3% in the prior year quarter
Operating margin expanded to 28.3% compared to 23.0% in the prior year quarter
Operating income was $516 million, a 52% increase compared to the prior year quarter
GAAP EPS of $2.25 and pro forma EPS(1) of $2.41, representing 40% growth in pro forma EPS over the prior year quarter
Shipped over 300 million units since inception
Runway Occupancy Awareness technology honored with a prestigious Laureate Award from Aviation Week Network
Garmin ranked No. 1 for the 21st consecutive year in Professional Pilot’s Avionics Manufacturers Product Support Survey
Launched the Approach® R50, portable golf launch monitor with a built-in simulator
Launched the Descent™ X50i, our first large-format dive computer
Highlights for fiscal year 2024 include:
Celebrated our 35th year anniversary of creating innovative products
Record consolidated revenue of $6.30 billion, a 20% increase compared to the prior year
All segments posted record full-year revenue
Gross margin expanded to 58.7% compared to 57.5% in the prior year
Operating margin expanded to 25.3% compared to 20.9% in the prior year
Record operating income of $1.59 billion, a 46% increase compared to the prior year
GAAP EPS of $7.30 and record pro forma EPS(1) of $7.39, representing 32% growth in pro forma EPS over the prior year
Executive Overview from Cliff Pemble, President and Chief Executive Officer:
“2024 was a year of remarkable growth and achievement for Garmin, resulting in record full-year consolidated revenue and record full-year revenue in all five of our segments, as well as record full-year consolidated operating income. We are entering 2025 with continued strong momentum from our robust product lineup and have many product launches planned during the year. I am very proud of what we accomplished in 2024 and look forward to all that 2025 will bring.” – Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.
Outdoor:
Revenue from the outdoor segment increased 29% in the fourth quarter with growth led by adventure watches. Gross and operating margins were 67% and 40%, respectively, resulting in $251 million of operating income. During the quarter, we launched the Approach R50, the only portable golf launch monitor with a built-in simulator, featuring a 10″ built-in color touchscreen display and more than 43,000 preloaded golf courses worldwide. We also launched the Descent X50i, our largest dive computer with a vivid 3″ color display providing rich information that is readable at a glance.
Marine:
Revenue from the marine segment increased 5% in the fourth quarter with growth across multiple categories. Gross and operating margins were 58% and 20%, respectively, resulting in $51 million of operating income. During the quarter, Garmin was awarded a 2024 National Boating Safety Award from the Sea Tow Foundation for the fourth consecutive year. Also during the quarter, JL Audio® received an Innovation Award for its Pavilion line of outdoor home speakers from Home Technology Specialists of America, Inc., a leading consumer electronics trade group.
Additional Financial Information:
Total operating expenses in the fourth quarter were $564 million, an 8% increase over the prior year, primarily driven by higher personnel-related costs.
In the fourth quarter of 2024, we reported $80 million of income tax expense, representing an effective tax rate of 15.6%. In the fourth quarter of 2023, we reported a $159 million income tax benefit. Excluding $181 million of income tax benefit due to the revaluation of certain Switzerland deferred tax assets, and $12 million of income tax benefit due to auto OEM manufacturing tax incentives in Poland, our pro forma effective tax rate(1) in the fourth quarter of 2023 was 9.0%. The increase in the current quarter effective tax rate compared to the prior year pro forma tax rate is primarily due to an increase in the combined federal and cantonal Switzerland statutory tax rate in response to global minimum tax requirements.
In the fourth quarter of 2024, we generated operating cash flow of $484 million and free cash flow(1) of $399 million. We paid a quarterly dividend of approximately $144 million and repurchased $33 million of the Company’s shares within the quarter, leaving approximately $238 million remaining as of December 28, 2024 in the share repurchase program authorized through December 2026. We ended the quarter with cash and marketable securities of approximately $3.7 billion.
Read the full report: https://www.prnewswire.com/news-release ... 79869.html
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