Garmin forecasts 2025 results above estimates on strong outdoor wearables demand

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(Reuters) – Swiss navigation device maker Garmin forecast full-year results above Wall Street estimates on Wednesday, banking on continued momentum in its outdoor and auto OEM segments.

Its U.S.-listed shares were up 8.9% in early trading.

Garmin makes wearables designed for a niche market of professionals and specializes in GPS-enabled products for defense and recreational needs, charging a premium for its high-end, specialized products.

Its strong and specialized business advantage has helped it fend off competition from smartphone makers like Apple and Samsung, which have launched wearables in the high-end market — that Garmin currently dominates — with the launch of the Apple Watch Ultra and Galaxy Watch Ultra wearables, respectively.

For the full-year 2025, Garmin expects revenue of approximately $6.80 billion, above analysts’ estimate of $6.72 billion, according to data compiled by LSEG.

On a pro forma basis, it expects to report a full-year adjusted profit of $7.80 per share, beating an estimate of $7.74 per share.

Garmin’s outdoor segment, its largest by revenue, saw strong demand for its adventure watches in the holiday-season quarter, reporting quarterly revenues of $629.4 million, trouncing an estimate of $585.6 million.

Revenue from its auto OEM segment jumped 30% to $165.8 million, led by increased shipments of domain controllers to automakers such as BMW.

For the quarter ended December 31, Garmin reported revenues of $1.82 billion, above analysts’ estimate of $1.7 billion, according to data compiled by LSEG.

On a pro forma basis, its profit was $2.41 per share, while analysts expected a profit of $2.03 per share.

(Reporting by Rishi Kant in Bengaluru; Editing by Pooja Desai)