Garmin reports strong marine segment growth in 2024 earnings
Garmin has announced its financial results for the fourth quarter and fiscal year ending 28 December 2024, showing a particularly strong performance in the marine segment.
The US electronics giant saw a 5 per cent increase in marine segment revenue in the fourth quarter, with growth across multiple categories. The gross margin was 58 per cent, and the operating margin was 20 per cent, leading to $51m in operating income.
For the full fiscal year, the marine segment achieved record revenue of $1.07bn, reflecting a 17 per cent year-on-year increase from $916.9m in FY2023, and the first time the segment has topped $1bn revenue.
Overall, Garmin reported consolidated revenue of $6.3bn, representing a 20 per cent increase compared to 2023. The gross margin improved to 58.7 per cent from 57.5 per cent, and the operating margin expanded to 25.3 per cent from 20.9 per cent. Operating income totalled $1.59bn, marking a 46 per cent increase over the prior year.
During 2024, Garmin received the National Boating Safety Award from the Sea Tow Foundation, while JL Audio — acquired by Garmin in 2023 — was also recognised with an Innovation Award from Home Technology Specialists of America.
Cliff Pemble, president and chief executive officer of Garmin, says, “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.”
Total operating expenses in the fourth quarter increased by 8 per cent to $564m, primarily due to higher personnel-related costs. The company recorded $80m in income tax expense, representing an effective tax rate of 15.6 per cent. Garmin generated $484m in operating cash flow and $399m in free cash flow during the quarter. The company paid a quarterly dividend of $144m and repurchased $33m in shares, leaving $238m remaining under the share repurchase programme.
As of 28 December 2024, Garmin held cash and marketable securities totalling approximately $3.7bn.
2025 fiscal year outlook
Garmin expects full-year 2025 revenue of approximately $6.80bn, an 8 per cent increase over 2024. The company projects a gross margin of 58.7 per cent, an operating margin of 25.0 per cent, and a pro forma EPS of $7.80. The pro forma effective tax rate is anticipated to be approximately 16.5 per cent.
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