Garmin hits record growth in all segments

Garmin (Grmn 2.13%))) On February 19, 2025, he reported on the result of the fourth quarter of 2024 and provided extraordinary results in all business areas. The navigation and wearables Technology Company achieved record income and considerable margin extension. Here are three information from the company's telephone conference with investors after you have reported the profits.

Record growth and expand the margins in all segments

Garmin achieved an outstanding financial performance in 2024, with each business segment achieving record income.

We have achieved growth in every segment, which led to income from the record segment and consolidated income from the data record. 2024 was also a year of historical importance and was our 35th year in the company. Since we were founded in 1989, we have delivered more than 300 million navigation and communication devices, including more than 18 million that were delivered in 2024.

– Cliff Pemble, President and CEO

The financial results were impressive, with consolidated sales rose 20% to 6.3 billion US dollars for the entire year. The operating result rose by 46% to almost 1.6 billion US dollars, and the operational margins rose to 25%, which reflected both the improved gross margins and the operational leverage.

Product innovations that drive new market chances

Garmin's persistent investments in product innovations create growth opportunities by introducing new product categories and penetrating new markets. The company emphasized two important new products that show this strategy.

We strategically focus on creating growth opportunities by introducing new product categories and penetrating new markets. During the quarter we launched two products that rise for the definition of a Halo product because they change the game in their respective markets. The first product I would like to mention is the R50 approach, the only portable golf start monitor with an integrated simulator. … we also launched the descent X50i, our first large -formatic diving computer.

– Cliff Pemble

Strong fitness segment growth and new customer acquisition

Garmin's fitness segment delivered an exceptional performance, won market shares and became an important growth driver.

2024 was an exciting year because the demand for running, cycling and wellness products was robust and new customers deal with the healthy active lifestyles that our brand represents. We have recorded growth in every product category, led by strong contributions from progressive wearables. For the year, fitness turnover rose by 32% to 1.77 billion US dollars. The gross margin was 58%, an improvement in the basis points of 480 in the previous year … Operating results more than doubled compared to the previous year to $ 483 million and the operating margin changed by around 1,000 basis points to 27%.

– Cliff Pemble

The margin extension in this segment resulted from what Pemble described as “lower product costs and cheap mix”. The CEO also dealt directly with market share profits and said: “In the area of ​​Wearables in particular, we see many other new customers for Garmin and benefit from market share profits, which drives our results.”

Look ahead

Garmin's management got confidence in further growth for 2025, with CEO Pemble said: “We expect the group turnover from 2025 to increase by about 8% to $ 6.8 billion.” This outlook is supported by a proposed 20% dividend increase, which will be coordinated by the shareholders at its upcoming annual meeting.

The company plans to build on its success through continued product innovation. As Pemble noted: “With a view to the future, we have planned many product launches for 2025 that further strengthen our portfolio, with some new categories for Garmin.”