Garmin had consolidated revenue of $1.5 billion in the second quarter, a 14% increase compared to the prior-year quarter. Gross and operating margins were 57.3% and 22.7%, respectively.
Operating income of $342 million was a 20% increase year-over-year.
“Garmin delivered another impressive quarter of growth in both revenue and operating profit, made possible by an innovative lineup and the strength of our diversified business model,” president and chief executive officer Cliff Pemble said in a statement.
He added that the results “have exceeded our expectations and give us confidence to raise our full-year revenue and EPS guidance.”
Marine-segment revenues increased 26% in the quarter, driven primarily by the acquisition of JL Audio. Gross and operating margins were 54% and 22%, respectively, resulting in $60 million of operating income. Garmin expanded the Force Kraken trolling motor series with a 48-inch shaft length and introduced a new Panoptix PS-22 sonar for ice fishing.
Garmin was also chosen as the exclusive electronics and audio supplier for Independent Boat Builders through 2029.
Total operating expenses in the second quarter were $521 million, a 10% increase year-over-year. Research-and-development costs increased 8% mostly due to personnel engineering costs. Selling, general and administrative expenses increased 11% due to personnel-related costs, including the impact of the acquisition of JL Audio.
Garmin generated operating cash flow of $255 million and free cash flow of $218 million in the quarter. The company said it is adjusting its guidance for the year, anticipating revenue of approximately $5.95 billion, operating margin of 21.3% and full-year effective tax rate of 16%.
