When diving into the financial landscape of Garmin net worth, we find a thriving company that continues to outperform expectations. At Ando Money, we aim to provide you with an in-depth look into Garmin’s financial journey.
Let’s delve into its key revenue segments and recent growth trends that contribute to its success.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Garmin Ltd. |
| Full Name | Garmin Ltd. |
| Website | garmin.com |
| Industry | Technology |
| Traded as | NYSE: GRMN |
| ISIN | KYG372601099 |
| Founded | 1989 |
| Founders | Gary Burrell, Min Kao |
| Country/Territory | Switzerland |
| Headquarters | Schaffhausen, Switzerland |
| Chief Executive Officer | Cliff Pemble |
| Number of Employees | Over 20,000 |
| Market Cap | $32.68 Billion |
| Total Assets | $8.88 Billion |
| Total Equity | $7.00 Billion |
| Revenue (Q2 2024) | $1.51 Billion |
| Net Income (Q2 2024) | $300.6 Million |
What is the Net Worth/ Market Cap of Garmin in 2024?
As of October 2024, Garmin’s market cap stands at $32.68 Billion. This valuation places Garmin as one of the leading players in its field, securing its position among the world’s top companies by market capitalization.
When comparing it to other technology and financial giants, Garmin holds its ground firmly, showcasing stable growth. If you are interested in learning more about how Garmin’s valuation compares to the ‘richest company‘ peers, explore more about this topic here.
Other companies related to Garmin:
- Apple Inc.
- Fitbit Inc.
- GoPro Inc.
- Sony Corporation
- Samsung Electronics
- TomTom N.V.
- Honeywell International
- Boeing Co.
- Textron Inc.
- Raymarine
Estimated to data suggests that Garmin’s financial performance remains robust, contributing significantly to its growing net worth.
Garmin Financial Performance Overview
Fitness Segment: Key Revenue Contributors
The fitness segment has been a game-changer for Garmin, generating $428.4 million in revenue during Q2 2024. A 28% YoY growth indicates the segment’s importance to the company’s overall financial performance.
The growth is primarily driven by wearables, which remain a significant part of Garmin’s portfolio. In fact, wearables like smartwatches and fitness trackers have been widely adopted by consumers, making them one of the top-selling products.
Moreover, Garmin capitalizes on seasonal campaigns and events like Global Running Day, where users collectively ran nearly 11 million miles, surpassing previous year milestones.
Such events not only bolster user engagement but also drive sales, contributing to steady revenue growth.
Outdoor Segment: Trends and Revenue Drivers
The outdoor segment brings in $439.9 million in Q2 2024, though it experienced a slight 2% decrease YoY. This decrease is mainly due to a downturn in adventure watch sales.
However, Garmin continually invests in product innovation, such as launching the Approach Z30 smart laser rangefinder and the Alpha LTE dog tracking collar.
These innovations are tailored to meet shifting consumer preferences and market demand.
Despite the decrease, the outdoor segment maintains healthy margins, with a gross margin of 65% and an operating margin of 31%, reinforcing its role as a steady contributor to Garmin’s financial health.
Aviation Segment: Steady Performance and Growth Factors
Aviation stands as a strong pillar for Garmin, with Q2 2024 revenue at $218.3 million, staying relatively flat compared to the previous year.
The segment’s performance is balanced between the growth in OEM (Original Equipment Manufacturer) products and a slight downturn in aftermarket product categories.
The segment has robust gross margins at 74%, demonstrating the segment’s profitability.
Key partnerships, such as recognition by Embraer as a “Best Supplier” for its G3000® Prodigy Touch flight deck systems, highlight the segment’s growth potential and ongoing industry trust.
Marine Segment: Strategic Acquisitions and Revenue Uplift
The marine segment’s revenue surged by 26% YoY to reach $272.9 million in Q2 2024, partly due to the strategic acquisition of JL Audio.
This acquisition contributed significantly to Garmin’s marine sales and expanded its product portfolio.
Garmin’s introduction of innovative products like the Force® Kraken trolling motor series and Panoptix™ PS-22 Ice Fishing Bundle aligns with its commitment to market growth.
These products not only cater to consumer demand but have also won industry awards, enhancing Garmin’s brand reputation in the marine space.
Auto OEM Segment: High Growth and Development Initiatives
The auto OEM segment saw remarkable growth, achieving a 41% increase in revenue to $147.2 million in Q2 2024.
This growth is largely attributed to advancements in domain controllers and the expansion of Garmin’s technology within the automotive industry.
Garmin’s collaboration with key automotive manufacturers and its recent “Global Award for Excellence in Technology and Development” from Yamaha Motor underscores the segment’s potential for further development and revenue contribution.
Geographic Revenue Distribution and Growth Patterns
Garmin’s revenue is geographically diverse. In Q2 2024, the Americas contributed $740.6 million, an increase of 15% YoY. The EMEA region followed, with $542 million in revenue and an 18% YoY growth, while the APAC region brought in $224.1 million, a modest 1% increase YoY.
The growth patterns in these regions underscore Garmin’s expanding global presence and adaptability to different markets.
Operating Income and Margins Across Segments
The consolidated gross margin for Q2 2024 was 57.3%, while the operating margin stood at 22.7%. Each segment contributes differently, with the fitness, aviation, and outdoor segments holding higher gross margins, enhancing Garmin’s overall profitability.
Effective cost management strategies across the company have sustained a positive operating income, with Q2 2024 reporting a 20% increase YoY to $342 million.
Cash Flow, Shareholder Returns, and Financial Health
Garmin showcases a strong financial position, with operating cash flows of $255 million and free cash flow of $218 million for Q2 2024.
A quarterly dividend of $0.75 per share highlights Garmin’s commitment to returning value to shareholders.
With cash and marketable securities totaling around $3.4 billion, the company maintains significant liquidity, enhancing its financial stability.
Future Revenue Guidance and Financial Outlook
Garmin anticipates full-year revenue of around $5.95 billion, with a gross margin of 57.0% and an operating margin of 21.3%.
The company remains optimistic about its continued growth across all segments and regions, maintaining confidence in achieving its financial guidance and shareholder value in the upcoming quarters.
FAQs About Garmin
How Has Garmin’s Fitness Segment Performed Recently?
In Q2 2024, Garmin’s fitness segment recorded a 28% YoY increase in revenue, primarily driven by wearables and innovative product launches like premium cycling computers.
What Contributed to the Growth in Its Marine Segment?
The marine segment experienced 26% YoY growth, largely due to Garmin’s acquisition of JL Audio and product expansion, such as the Force® Kraken trolling motor series.
What Revenue Growth Has Company Achieved Geographically?
Garmin’s revenue in Q2 2024 grew in the Americas by 15%, in EMEA by 18%, and in APAC by 1%, showing a strong global presence and market adaptability.
What Is Its Current Financial Guidance for 2024?
Garmin projects its 2024 revenue to be around $5.95 billion, with a gross margin of 57.0% and an operating margin of 21.3%.
How Does Garmin Distribute Shareholder Returns?
Garmin maintains a strong dividend policy, with a quarterly dividend of $0.75 per share and an active share repurchase program, enhancing shareholder value.
Conclusion
Garmin’s financial performance showcases its steady growth across multiple segments. For readers looking to delve deeper into financial insights or leave comments, be sure to visit Ando Money.
