Garmin (GRMN) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated revenue of $6.30B for FY 2024 (up 20% year-over-year) and $1.82B for Q4 (up 23%), with record operating income of $1.59B (up 46%) and significant margin expansion across all segments and regions.

• Pro forma EPS for Q4 was $2.41 (up 40% year-over-year); full-year pro forma EPS was $7.39 (up 32%).

• Board proposes a 20% dividend increase to $3.60 per share, payable in four installments, pending shareholder approval.

• Growth achieved in every business segment and across all geographic regions, with over 300 million units shipped and 35th anniversary celebrated.

• Strong product launches and industry awards across multiple segments.

Financial highlights

• Q4 2024 revenue was $1.82B (up 23% year-over-year); operating income $516M (up 52%); operating margin 28.3%; gross margin 59.3%.

• FY 2024 revenue was $6.30B (up 20%); operating income $1.59B (up 46%); operating margin 25.3%; gross margin 58.7%.

• Free cash flow for FY 2024 was $1.24B; cash and marketable securities at year-end totaled $3.7B.

• Dividends paid in 2024 totaled $572M; share repurchases were $62M.

• Double-digit revenue growth in EMEA (31%), Americas (16%), and APAC (12%) for the year.

Outlook and guidance

• FY25 revenue guidance is $6.80B (up 8% year-over-year); gross margin expected at 58.7%, operating margin at 25%, and pro forma EPS at $7.80 (up 6%).

• Free cash flow for 2025 projected at $1.1B, with $350M in capital expenditures.

• Pro forma effective tax rate for 2025 expected at 16.5%.

• Annual dividend proposed at $3.60 per share, a 20% increase.

• Segment revenue growth estimates for 2025: Fitness +10%, Outdoor +10%, Aviation +5%, Marine +4%, Auto OEM +7%.