Slides
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Fourth Quarter and Full Year 2025 Earnings February 18, 2026
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Safe Harbor Statement These materials include projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2026 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, tariffs and other global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10 -K for the year ended December 27, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001 - 41118). A copy of Garmin’s 2025 Form 10-K can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this presentation and in the attachments is as of December 27, 2025. Undue reliance should not be placed on the forward-looking statements in this webcast, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
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Business Update Cliff Pemble President and CEO
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Consolidated Q4 2025 BUSINESS INSIGHTS Revenue Operating marginOperating income • Record fourth quarter consolidated revenue and operating income • Double-digit revenue growth driven by strong results in fitness, aviation, and marine segments • Record fourth quarter pro forma EPS of $2.79, up 16% over the prior-year quarter $2.12B 28.9% 17% y/y growth $614M 19% y/y growth
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Consolidated FY 2025 BUSINESS INSIGHTS Revenue Operating marginOperating income $7.25B 25.9% 15% y/y growth $1.88B 18% y/y growth • Record consolidated full year revenue and operating income • Record revenue in each of our five segments • Optimistic outlook for 2026 • Proposing a 17% dividend increase • Board of Directors recently approved a $500 million share repurchase program
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Fitness FY 2025 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth led by strong demand for wearables, with outstanding operating results • Announced collaboration with Truemed to assist customers with using pre-tax HSA/FSA funds for select Garmin products • Recently published Garmin Connect Data Report showing an 8% increase in activity levels over the prior year • Enhanced Connect+ with addition of AI-based nutrition tracking $2.36B 33% y/y growth $726M 31% 50% y/y growth
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SEGMENT INSIGHTS Revenue Operating margin Operating incomeOutdoor FY 2025 • Revenue growth led by strong demand for adventure watches • Launched inReach Mini 3 Plus satellite communicator with voice, text and photo sharing • Received several CES Innovation Awards for groundbreaking achievements in technology $2.05B 5% y/y growth $690M 34% 2% y/y decline
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Aviation FY 2025 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth driven by both OEM and aftermarket product categories • Launched D2 Air X15 and D2 Mach 2 smartwatches • G5000H flight deck selected for Brazilian Air Force UH-60 Black Hawk helicopters • First customer use of Autoland showcases the power of this extraordinary safety technology $987M 13% y/y growth $257M 26% 22% y/y growth
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SEGMENT INSIGHTS Revenue Operating marginOperating incomeMarine FY 2025 • Revenue growth driven by multiple categories led by chartplotters • Expanded our flagship chartplotter lineup with premium GPSMAP 9000xsv • Launched Garmin OnBoard man overboard and engine cutoff solution for boaters • Named Most Innovative Marine Company along with other industry accolades $1.18B 10% y/y growth $251M 21% 6% y/y growth
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Auto OEM FY 2025 SEGMENT INSIGHTS Revenue Operating marginOperating income • Revenue growth driven by increased shipments of domain controllers • Showcased our next-gen Unified Cabin at the recent Consumer Electronics Show, including a collaboration with Meta • Announcing our next large domain controller program is with Mercedes-Benz, with significant production volumes ramping in 2027 • Shift certain R&D resources to other segments $665M 9% y/y growth ($49M) (7%)
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Financial Update Doug Boessen CFO and Treasurer
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Income Statement Q4 (in millions) Q4 2025 Q4 2024 Y/Y Net sales $2,125 $1,823 17% Gross profit 1,258 1,080 17% Margin % 59.2% 59.3% (10 bps) Operating expenses 644 564 14% Operating income $614 $516 19% Margin % 28.9% 28.3% 60 bps GAAP EPS $2.73 $2.25 21% Pro Forma EPS $2.79 $2.41 16%
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Income Statement Full Year (in millions) 2025 2024 Y/Y Net sales $7,246 $6,297 15% Gross profit 4,256 3,697 15% Margin % 58.7% 58.7% - Operating expenses 2,380 2,103 13% Operating income $1,876 $1,594 18% Margin % 25.9% 25.3% 60 bps GAAP EPS $8.59 $7.30 18% Pro Forma EPS $8.56 $7.39 16%
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Revenue Q4 (in millions) Q4 2025 Q4 2024 Change Americas $1,035 $855 21% EMEA 803 701 14% APAC 288 266 8% Total $2,125 $1,823 17% (in millions) Q4 2025 Q4 2024 Change Fitness $766 $539 42% Outdoor 628 629 0% Aviation 274 237 16% Marine 297 251 18% Auto OEM 160 166 (3%) Total $2,125 $1,823 17%
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Revenue Full Year (in millions) 2025 2024 Change Americas $3,454 $3,036 14% EMEA 2,742 2,319 18% APAC 1,050 942 12% Total $7,246 $6,297 15% (in millions) 2025 2024 Change Fitness $2,357 $1,774 33% Outdoor 2,054 1,962 5% Aviation 987 877 13% Marine 1,183 1,073 10% Auto OEM 665 611 9% Total $7,246 $6,297 15%
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Operating Expenses $295 $259 $0 $50 $100 $150 $200 $250 $300 $350 $400 R&D Q4 2025 Q4 2024 $349 $305 SG&A (in millions)
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Other Financial Items FY 2025 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Accounts Receivable Inventory Free Cash Flow Dividends Paid Capital Expenditures Pro Forma Effective Tax Rate Share Repurchases $4.13B $1.77B $1.25B $270M $1.36B $664M 17.4% $181M
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Guidance 2026 Revenue $7.9 billion Gross margin 58.5% Operating margin 25.5% Pro forma Tax rate 16.0% Pro forma EPS $9.35 All amounts and %’s are approximate.
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Appendix February 18, 2026
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Non-GAAP Financial Information To supplement our financial results presented in accordance with GAAP , this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP , and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below. The tables in the subsequent slides provide reconciliations between the GAAP and non-GAAP measures. The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the full year 2025 and 2024 there were no such discrete tax items identified. Pro forma effective tax rate
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Non-GAAP Financial Information Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods. Pro forma net income (earnings) per share (In thousands, except per share information) December 27, December 28, December 27, December 28, 2025 2024 2025 2024 GAAP net income 528,681$ 435,734$ 1,663,887$ 1,411,436$ Foreign currency gains / losses (1) 13,734 36,184 (7,847) 20,599 Tax effect of foreign currency gains / losses (2) (2,306) (5,637) 1,366 (3,450) Pro forma net income 540,109$ 466,281$ 1,657,406$ 1,428,585$ GAAP net income per share: Basic 2.75$ 2.27$ 8.65$ 7.35$ Diluted 2.73$ 2.25$ 8.59$ 7.30$ Pro forma net income per share: Basic 2.81$ 2.43$ 8.61$ 7.44$ Diluted 2.79$ 2.41$ 8.56$ 7.39$ Weighted average common shares outstanding: Basic 192,336 192,075 192,467 192,060 Diluted 193,777 193,759 193,616 193,281 13-Weeks Ended 52-Weeks Ended (2) The tax effect of foreign currency gains and losses was calculated using the pro forma effective tax rate of 16.8% and 17.4% for the 13-weeks and fiscal year ended December 27, 2025, respectively, and the pro forma effective tax rate of 15.6% and 16.7% for the 13-weeks and fiscal year ended December 28, 2024, respectively. (1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses.
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Management believes that free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property a nd equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operations and allows more accurate comparisons of the Company’s results between periods. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities. Non-GAAP Financial Information Free cash flow (In thousands) December 27, December 28, December 27, December 28, 2025 2024 2025 2024 Net cash provided by operating activities 553,785$ 483,890$ 1,633,359$ 1,432,471$ Less: purchases of property and equipment (124,173) (84,702) (270,446) (193,571) Free Cash Flow 429,612$ 399,188$ 1,362,913$ 1,238,900$ 13-Weeks Ended 52-Weeks Ended
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Forward-looking financial measures The forward-looking financial measures in our 2026 guidance include certain economic assumptions such as foreign currency exchange rates and tariffs which are fluid and can rapidly change favorably or unfavorably. The forward-looking financial measures in our 2026 guidance do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above. The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.03 per share for the 52-weeks ended December 27, 2025. At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2026, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non- GAAP financial measures.