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- **Record Growth**: Q3 revenue up 12% to $1.8B, with Fitness (+30%), Marine (+20%), and Aviation (+18%) leading.
- **EPS Beat**: Pro forma EPS raised to $8.15, +$0.15 from prior guidance.
- **Outdoor Challenge**: 3% full-year growth due to fenix 8 anniversary, but long-term outlook strong.
- **Cash Flow Strength**: Free cash flow $425M, +128% YoY.
- **Tariff Mitigation**: Inventory up 22% to offset potential increases.

**【CEO Summary Section】**
- **Record Q3 Revenue**: $1.8 billion (+12% YoY), driven by double-digit growth in Fitness (+30%), Marine (+20%), and Aviation (+18%).
- **Segment Highlights**:
  - **Fitness**: Venu 4, Edge 550/850, Bounce 2 launches; 29% full-year growth guidance.
  - **Outdoor**: fenix 8 Pro (satellite, microLED) launched late Q3; revised 3% full-year growth due to fenix 8 anniversary.
  - **Aviation**: GFC 600 autopilot certifications; 10% full-year growth.
  - **Marine**: ECHOMAP Ultra 2, Force Current; 10% full-year growth.
  - **Auto OEM**: 3M BMW domain controllers shipped; 8% full-year growth despite legacy program declines.
- **Updated Guidance**: Full-year pro forma EPS raised to $8.15 (+$0.15), revenue $7.1 billion.

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP EPS $2.08, pro forma EPS $1.99; free cash flow $425M (+128% YoY).
- **Margins**: Gross margin 59.1% (-90bps vs. prior quarter); operating margin 25.8% (-180bps YoY).
- **Cost Management**: Operating expenses +15% YoY, driven by R&D and SG&A (+$37M and $38M).
- **Balance Sheet**: Cash $3.9B; inventory +22% YoY to mitigate tariffs.
- **Tax Rate**: 21.2% (Q3) vs. 17.9% (2024Q3) due to U.S. tax law changes.

**【Q&A Key Highlights】**
- **Outdoor Segment**: fenix 8 Pro launch timing limited Q3 impact; long-term growth driven by innovation.
- **Gross Margin**: Q4 expected to mirror Q3 trends (tariffs, FX, promotions).
- **Auto OEM**: 2026 challenges from legacy program declines offset by new BMW program.
- **Channel Inventory**: Healthy and lean ahead of Q4; no channel stuffing.
- **Tariffs**: Mitigated via inventory build; stable outlook.


Garmin Ltd. (GRMN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GRMN

GRMN fundamentals

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