Garmin Announces 4th Quarter, Fiscal Year 2024 Results – RVBusiness – Breaking RV Industry News
SCHAFFHAUSEN, Switzerland – Garmin Ltd. (NYSE: GRMN), announced results for the fourth quarter ended Dec. 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 DescentTM 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.
Fitness
Revenue from the fitness segment increased 31% in the fourth quarter with growth across all categories led by strong demand for wearables. Gross and operating margins were 57% and 30%, respectively, resulting in $159 million of operating income. During the quarter, we launched Lily® 2 Active, our smallest smartwatch with GPS, featuring a timeless design and up to nine days of battery life in smartwatch mode. We also recently released our 2024 Connect Fitness Report which highlights overall health and fitness trends of our customers around the world.
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.
Aviation
Revenue from the aviation segment grew 9% in the fourth quarter with growth contributions from both the OEM and aftermarket product categories. Gross and operating margins were 75% and 27%, respectively, resulting in $64 million of operating income. During the quarter, Textron Aviation announced the G3000® PRIME integrated flight deck with Autoland for the Cessna Citation CJ4 Gen3. Also, the G3000 PRIME has been selected by BETA Technologies for the ALIA conventional take-off and landing electric aircraft, which conducted its inaugural flight during the quarter.
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.
Auto OEM
Revenue from the auto OEM segment increased 30% during the fourth quarter due to increased shipments of domain controllers. Gross margin was 17%, and we recorded an operating loss of $9 million in the quarter. Our Unified Cabin domain controller solution was recognized as a Consumer Electronics Show 2025 Innovation Award Honoree in the in-vehicle entertainment category.
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.
- See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow.
Click here to read the full financial report.
