台灣國際航電 (GRMN) 2025 Q2 法說會逐字稿

Thank you for standing by. And welcome to the Garmin Limited second quarter 2025 earnings conference call. (Operator Instructions)

感謝您的支持。歡迎參加 Garmin Limited 2025 年第二季財報電話會議。（操作員指示）

I'd now like to turn the call over to Teri Seck, Director of Investor Relations. You may begin.

現在我想將電話轉給投資者關係總監 Teri Seck。你可以開始了。

Good morning. We would like to welcome you to Garmin Limited's second quarter 2025 earnings call. Please note that the earnings press release and related slides are available at Garmin's investor relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website.

早安.歡迎您參加 Garmin Limited 2025 年第二季財報電話會議。請注意，收益新聞稿及相關幻燈片可在Garmin投資者關係網站www.garmin.com/stock上取得。網路直播及相關文字記錄的存檔也將在我們的網站提供。

This earnings call includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenues, segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introductions, foreign currency, tariff impacts, future demand for our products and plans and objectives are forward-looking statements.

本次收益電話會議包括有關 Garmin Ltd. 及其業務的預測和其他前瞻性聲明。任何關於我們未來財務狀況、收入、部門成長率、收益、毛利率、營業利潤率、未來股息或股票回購、市場份額、產品介紹、外幣、關稅影響、我們產品的未來需求以及計劃和目標的陳述均為前瞻性陳述。

The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-Q and in our Form 10-K filed with the Securities and Exchange Commission.

本次收益電話會議中討論的前瞻性事件和情況可能不會發生，並且由於影響 Garmin 的風險因素，實際結果可能會存在重大差異。有關這些風險因素的資訊包含在我們向美國證券交易委員會提交的 10-Q 表和 10-K 表中。

Presenting on behalf of Garmin Ltd. this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天早上代表 Garmin Ltd. 發言的有總裁兼執行長 Cliff Pemble 和財務長兼財務主管 Doug Boessen。

At this time, I would like to turn the call over to Cliff Pemble.

現在，我想將電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone. As announced earlier today, Garmin delivered another quarter of outstanding financial results with strong growth in consolidated revenue, operating profit and earnings. Consolidated revenue increased 20%, exceeding $1.8 billion, which is a new second quarter record, and we experienced double-digit sales growth in every business segment.

謝謝你，Teri，大家早安。正如今天早些時候宣布的那樣，Garmin 本季再次取得了出色的財務業績，綜合收入、營業利潤和收益均強勁增長。綜合營收成長20%，超過18億美元，創下第二季新高，每個業務部門的銷售額都實現了兩位數成長。

Gross and operating margins expanded to 58.8% and 26%, respectively, resulting in record second quarter operating income of $472 million, up 38% year-over-year and pro forma EPS of $2.17, up 37% year-over-year. Yesterday, we announced the acquisition of MYLAPS, a global market leader in timing and performance analysis for athletic motorsports and equestrian competition.

毛利率和營業利潤率分別擴大至 58.8% 和 26%，導致第二季營業收入達到創紀錄的 4.72 億美元，年增 38%，預計每股收益為 2.17 美元，年增 37%。昨天，我們宣布收購 MYLAPS，該公司是運動賽車和馬術比賽計時和性能分析領域的全球市場領導者。

MYLAPS supports an impressive customer base, including the Boston Marathon, IRONMAN and Formula 1 racing to name just a few. We believe that the combination of Garmin devices with MYLAPS timing and race management technology will provide a comprehensive experience for our passionate customers from training to race day while also expanding our addressable market.

MYLAPS 支援著令人印象深刻的客戶群，其中包括波士頓馬拉松、IRONMAN 和一級方程式賽車等等。我們相信，Garmin 設備與 MYLAPS 計時和比賽管理技術的結合將為我們熱情的客戶提供從訓練到比賽日的全面體驗，同時也擴大我們的潛在市場。

We are very excited to welcome the MYLAPS team to Garmin and look forward to all that we can accomplish together. We are very pleased with our results so far in 2025, which have exceeded our expectations. From our vantage point, consumers have been resilient and demand for our highly differentiated products has been robust.

我們非常高興地歡迎 MYLAPS 團隊加入 Garmin，並期待我們能夠共同取得成就。我們對 2025 年迄今的成果非常滿意，這超出了我們的預期。從我們的角度來看，消費者一直具有韌性，對我們高度差異化產品的需求一直很強勁。

Given our strong performance, we are updating our full year guidance. We now anticipate revenue of approximately $7.1 billion and pro-form EPS of $8 per share. Doug will discuss our financial results and outlook in greater detail in a few minutes. But first, I'll provide a few remarks on the performance of each business segment.

鑑於我們強勁的表現，我們正在更新全年業績指引。我們現在預計營收約為 71 億美元，每股收益為 8 美元。幾分鐘後，道格將更詳細地討論我們的財務表現和前景。但首先，我將對每個業務部門的表現發表一些評論。

Starting with fitness, revenue increased 41% to $605 million, with growth led by strong demand for advanced wearables. Gross and operating margins expanded to 60% and 33%, respectively, resulting in operating income of $198 million. During the quarter, we launched the Forerunner 570 and Forerunner 970 with new training features and personalized training plans from Garmin coach for running and triathlons.

從健身開始，營收成長了 41%，達到 6.05 億美元，成長主要得益於對先進穿戴裝置的強勁需求。毛利率和營業利益率分別擴大至 60% 和 33%，營業收入達 1.98 億美元。在本季度，我們推出了 Forerunner 570 和 Forerunner 970，它們配備了新的訓練功能以及 Garmin 教練為跑步和鐵人三項提供的個人化訓練計劃。

These new devices have been enthusiastically embraced by the market and helped drive the remarkable second quarter financial performance of the segment. We also launched the new Venu X1 with an ultrathin case and class-leading 2-inch display, resulting in a sleek lightweight design that is easy to read and packed with our most popular features.

這些新設備受到了市場的熱烈歡迎，並幫助推動了該部門第二季度出色的財務表現。我們還推出了新款 Venu X1，它具有超薄外殼和一流的 2 英寸顯示屏，設計時尚輕巧，易於閱讀，並配備了我們最受歡迎的功能。

Also during the quarter, we launched several new category-defining products, including the Index Sleep Monitor, the Tacx Alpine gradient simulator and the Varia Vue bike headlight with an integrated 4K resolution camera. Given the first half performance of the fitness segment and the continued demand we are expecting for our advanced wearables, we are raising our revenue growth estimate to 25% for the year.

此外，在本季度，我們推出了幾款新的類別定義產品，包括 Index 睡眠監測器、Tacx Alpine 梯度模擬器和整合 4K 解析度攝影機的 Varia Vue 自行車頭燈。鑑於健身部門上半年的表現以及我們對先進穿戴裝置的持續需求的預期，我們將今年的營收成長預期上調至 25%。

Moving to Outdoor revenue increased 11% to $490 million, with growth driven primarily by adventure watches. Gross and operating margins expanded to 66% and 32%, respectively, resulting in operating income of $158 million. During the quarter, we launched the Instinct 3 Tactical Edition with a bright AMOLED display and metal reinforced bezel, a built-in LED flashlight and support for popular new activities such as rucking.

戶外業務收入成長 11% 至 4.9 億美元，成長主要得益於探險手錶。毛利率和營業利益率分別擴大至 66% 和 32%，營業收入達 1.58 億美元。在本季度，我們推出了 Instinct 3 Tactical Edition，它配備明亮的 AMOLED 顯示器和金屬增強邊框、內建 LED 手電筒，並支援徒步等流行的新活動。

Also during the quarter, we launched new Tread all-terrain navigators that offer larger touchscreens and additional mapping options to enrich off-road adventures. We are pleased with the performance of the outdoor segment so far this year. Looking forward, we expect growth to moderate as we pass the one-year anniversary of the highly successful fenix 8 launch. With this in mind, we are maintaining our revenue growth estimate of 10% for the year.

此外，在本季度，我們還推出了新的 Tread 全地形導航儀，它提供更大的觸控螢幕和額外的地圖選項，以豐富越野探險。我們對今年迄今為止戶外部門的表現感到滿意。展望未來，我們預計隨著 fenix 8 上市一週年大獲成功，成長將會放緩。考慮到這一點，我們維持今年 10% 的營收成長預期。

Looking next at aviation, revenue increased 14% in the second quarter to $249 million with growth contributions from both OEM and aftermarket product categories. Gross and operating margins expanded to 74% and 25%, respectively, resulting in operating income of $63 million. During the quarter, Embraer recognized Garmin as the top supplier in the electrical and electronic systems category for the 10th consecutive year, validating the long-term investments we have made, creating innovative products and building strong relationships with our customers.

接下來看看航空業，第二季營收成長 14%，達到 2.49 億美元，成長主要來自 OEM 和售後產品類別。毛利率和營業利潤率分別擴大至 74% 和 25%，營業收入達 6,300 萬美元。本季度，巴西航空工業公司連續第十年將 Garmin 評為電氣和電子系統類別的頂級供應商，這證明了我們所做的長期投資、創造創新產品以及與客戶建立的牢固關係。

We're also preparing for the future with game-changing new products and features such as the recently announced G5000 PRIME integrated flight deck for part 25 aircraft and the addition of FAA Data Comm to the GTN 750Xi navigator, which expands the availability of modern digital communications to the aftermarket.

我們也正在為未來做準備，推出改變遊戲規則的新產品和功能，例如最近宣布的用於第 25 部分飛機的 G5000 PRIME 集成駕駛艙，以及在 GTN 750Xi 導航儀中添加 FAA 數據通信，從而擴大了現代數字通信在售後市場的可用性。

We also launched SmartCharts, which has the potential to be one of the most disruptive new products for aviation in quite some time. Using SmartCharts, pilots can see their position on context-specific georeference charts, making instrument approaches much more intuitive and easier to fly. Also during the quarter, we announced that Garmin Autoland was certified with the Cirrus SR G7+ series, becoming the first piston-powered aircraft equipped with this award-winning safety system.

我們也推出了 SmartCharts，它有可能成為相當長一段時間內航空領域最具顛覆性的新產品之一。使用 SmartCharts，飛行員可以在特定上下文的地理參考圖上看到自己的位置，從而使儀表進場更加直觀且更容易飛行。此外，在本季度，我們宣布 Garmin Autoland 獲得了 Cirrus SR G7+ 系列的認證，成為第一架配備此屢獲殊榮的安全系統的活塞動力飛機。

Given the first half performance of the aviation segment, we are raising our revenue growth estimate to 7% for the year. Turning to the marine segment. Revenue increased 10% to $299 million with growth across multiple categories, led primarily by chart plotters. Gross and operating margins were 55% and 21%, respectively, resulting in operating income of $63 million.

鑑於航空部門上半年的表現，我們將全年營收成長預期上調至 7%。轉向海洋領域。營收成長 10% 至 2.99 億美元，多個類別均實現成長，其中主要以海圖繪圖儀為主。毛利率和營業利益率分別為 55% 和 21%，營業收入達 6,300 萬美元。

During the quarter, we launched the GPSMAP 15x3 chart plotters with an ultra-wide display that offers as much display area as two separate 9-inch chartplotters, making information easier to read while maximizing the use of space in the instrument panel. Also during the quarter, we launched the quatix 8, our most advanced purpose-built smartwatch for mariners.

在本季度，我們推出了具有超寬顯示器的 GPSMAP 15x3 海圖儀，其顯示面積相當於兩個獨立的 9 吋海圖儀，使資訊更易於閱讀，同時最大限度地利用儀表板的空間。此外，在本季度，我們還推出了 quatix 8，這是我們最先進的專為海員打造的智慧手錶。

The marine market has easily surpassed our lowered expectations, demonstrating resilience and stability in an otherwise dynamic macroeconomic environment. Given our first half performance and the current trends in the market, we are raising our revenue growth estimate to 5% for the year. And moving finally to the auto OEM segment.

海洋市場輕鬆超越了我們降低的預期，在充滿活力的宏觀經濟環境中展現了彈性和穩定性。鑑於我們上半年的業績和當前的市場趨勢，我們將全年營收成長預期上調至 5%。最後轉向汽車 OEM 領域。

Revenue increased 16% to $170 million, with growth driven primarily by increased shipments of domain controllers to BMW. Gross margin was 17%, and the operating loss narrowed from the prior year to $10 million. We recently shipped our one millionth BMW domain controller from our US manufacturing facility, demonstrating our capability as a respected Tier 1 supplier to the North American automotive market.

營收成長 16% 至 1.7 億美元，成長主要得益於向寶馬 (BMW) 出貨的網域控制器增加。毛利率為17%，營業虧損較上年收窄至1,000萬美元。我們最近從美國製造工廠發貨了第一百萬台寶馬域控制器，證明了我們作為北美汽車市場受人尊敬的一級供應商的能力。

We also continue to make progress on the launch of our next significant auto OEM program in the second half of 2026. Given the first half performance of the auto OEM segment, we are raising our revenue growth estimate to 10% for the year.

我們也在 2026 年下半年推出下一個重要的汽車 OEM 計畫方面繼續取得進展。鑑於汽車 OEM 部門上半年的表現，我們將今年的營收成長預期上調至 10%。

That concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug?

我的發言到此結束。接下來，Doug 將向您介紹我們的財務業績的更多詳細資訊。道格？

Thanks, Cliff. Good morning, everyone. I'd like to begin by reviewing our second quarter financial results, provide comments on the balance sheet, cash flow statement, taxes and updated guidance. We posted revenue of $1,815 billion for the second quarter, representing a 20% increase year-over-year. Gross margin was 58.8%, a 150-basis point increase in the prior year quarter.

謝謝，克里夫。大家早安。首先，我想回顧一下我們第二季的財務業績，並對資產負債表、現金流量表、稅務和最新指引發表評論。我們第二季的營收為 18,150 億美元，年增 20%。毛利率為58.8%，較去年同期增加150個基點。

The increase was primarily due to product mix. During the quarter, the cost impact from tariffs was not significant, was more than offset by higher revenue associated with the weakness of the US dollar relative to other major currencies. Operating expense as a percentage of sales was 32.8%, 100 basis point decrease. Operating income was $472 million, a 38% increase.

成長主要歸因於產品組合。本季度，關稅對成本的影響並不顯著，但被美元兌其他主要貨幣疲軟帶來的營收成長所抵銷。營業費用佔銷售額的比例為32.8%，下降了100個基點。營業收入為 4.72 億美元，成長 38%。

Operating margin was 26%, a 330-basis point increase in the prior year quarter. Our GAAP EPS was $2.07, pro forma EPS was $2.17. Next, we'll look at second quarter revenue by segment and geography. In the second quarter, we achieved double-digit growth in all five of our segments, led by the fitness segment with outstanding growth of 41%.

營業利益率為 26%，較去年同期增加 330 個基點。我們的 GAAP 每股收益為 2.07 美元，預測每股收益為 2.17 美元。接下來，我們來看看第二季按部門和地區劃分的收入情況。第二季度，我們的五個部門均實現了兩位數成長，其中健身部門的增幅最大，達到 41%。

By geography, we achieved double-digit growth in all three of our regions, led by 25% growth in EMEA, followed by 19% growth in Americas and 16% growth in APAC. Looking next, operating expenses. Second quarter operating expense increased by $74 million or 14%. Research and development increased approximately $34 million. SG&A increased approximately $40 million compared to prior year quarter.

從地理來看，我們在所有三個地區都實現了兩位數的成長，其中歐洲、中東和非洲地區成長最快，為 25%，其次是美洲地區成長 19%，亞太地區成長 16%。接下來是營運費用。第二季營運費用增加了 7,400 萬美元，成長 14%。研發費用增加約 3,400 萬美元。銷售、一般及行政費用與去年同期相比增加了約 4,000 萬美元。

Both increases were primarily due to personnel-related expenses. A few highlights on the balance sheet, cash flow statement and taxes. We ended the quarter with cash and marketable securities of approximately $3.9 billion. Accounts receivable increased both year-over-year and sequentially to approximately $1 billion following the seasonally strong sales in the second quarter.

兩次增長主要都是由於人員相關費用所致。資產負債表、現金流量表和稅收的一些亮點。本季末，我們的現金和有價證券總額約為 39 億美元。由於第二季銷售旺盛，應收帳款環比和年比均有所成長，達到約 10 億美元。

Inventory increased year-over-year sequentially to approximately $1.8 billion. We are executing our strategy to increase the inventory of certain product lines to support strong customer demand as well as mitigate the effects of potential increases in tariffs. During the second quarter of 2025, we generated free cash flow of $127 million, $91 million decrease from the prior year quarter, primarily due to an increase in inventory.

庫存年增至約 18 億美元。我們正在執行我們的策略，增加某些產品線的庫存，以支持強勁的客戶需求並減輕潛在關稅增加的影響。2025 年第二季度，我們產生了 1.27 億美元的自由現金流，比去年同期減少 9,100 萬美元，主要原因是庫存增加。

Capital expenditures for the second quarter of 2025 were approximately $46 million, approximately $9 million higher than the prior year quarter. We expect full year 2025 free cash flow to be approximately $1.2 billion with capital expenditures of approximately $350 million. During the second quarter of 2025, we paid dividends of approximately $173 million and purchased $67 million of company stock.

2025 年第二季的資本支出約為 4,600 萬美元，比去年同期高出約 900 萬美元。我們預計 2025 年全年自由現金流約為 12 億美元，資本支出約 3.5 億美元。2025 年第二季度，我們支付了約 1.73 億美元的股息，並購買了價值 6,700 萬美元的公司股票。

At quarter end, we had approximately $143 million remaining in the share repurchase program, which authorized through December 2026. We report an effective tax rate of 16.5% compared to 17.9% in the prior year quarter. The decrease in effective tax rate is primarily due to the release of tax reserves. Turning next to our full year guidance.

截至本季末，我們的股票回購計畫剩餘金額約為 1.43 億美元，該計畫授權有效期至 2026 年 12 月。我們報告的有效稅率為 16.5%，而去年同期為 17.9%。有效稅率的下降主要是因為稅收儲備的釋放。接下來談談我們的全年指引。

We estimate revenue of approximately $7.1 billion compared to our previous guidance of $6.85 billion. We expect gross margin to be approximately 58.5%, which is consistent with our previous guidance. We expect the impact from tariffs to be lower than we previously estimated. However, this favorable impact will be offset by unfavorable foreign currency impacts on product costs due to the strengthening of the Taiwan dollar.

我們預計營收約為 71 億美元，而我們先前的預期為 68.5 億美元。我們預計毛利率約為58.5%，這與我們先前的預期一致。我們預計關稅的影響將低於我們先前的估計。然而，這項有利影響將被新台幣走強對產品成本的不利外匯影響所抵銷。

We expect our operating margin to be approximately 24.8%, consistent with our previous guidance. Also, we expect a pro forma effective tax rate of 17.5% compared to our previous guidance of 16.5%, which incorporates the impact from the new US tax bill. We expect the new tax bill will result in a decrease in US tax deductions and credits in 2025, primarily due to the change in capitalization requirements of certain R&D costs. Expected pro forma earnings per share is approximately $8 compared to our previous guidance of $7.80.

我們預期營業利潤率約為 24.8%，與我們先前的預期一致。此外，我們預計有效稅率為 17.5%，而我們先前的預期為 16.5%，這考慮了美國新稅法的影響。我們預期新稅法將導致2025年美國稅收減免和抵免減少，這主要是由於某些研發成本的資本化要求而改變。預計每股收益約為 8 美元，而我們先前的預期為 7.80 美元。

This concludes our formal remarks. Rob, can you please open the line for Q&A?

我們的正式發言到此結束。羅布，你能開闢問答專線嗎？

(Operator Instructions) Joseph Cardoso, JPMorgan.

（操作員指示）摩根大通的約瑟夫·卡多佐。

Maybe just for my first question, obviously, you had another strong fitness performance this quarter. I'm trying to get a sense of the outperformance though, particularly as it relates to any potential influences from channel fill. You obviously talked about a lot of new products in the quarter and then potentially any pull forward that you might have visibility into and whether that is having any impact on the back half outlook? And then I have a quick follow-up.

也許只是我的第一個問題，顯然，本季您的健康表現再次強勁。我試圖了解這種優異表現，特別是因為它與渠道填充的任何潛在影響有關。您顯然談到了本季度的許多新產品，然後您可能會看到任何潛在的推動力，以及這是否會對下半年的前景產生影響？然後我有一個快速的後續問題。

Joe, in terms of channel fill, there's always some channel fill impact when a new product comes out, but we have a broad product line. So it was not a significant factor in driving outperformance. And in terms of pulling forward of demand, we really don't see any of that happening. Retailers aren't willing to take big bets on inventory.

喬，就通路填充而言，新產品推出時總是會對通路填充產生一些影響，但我們的產品線很廣泛。因此，這並不是推動業績優異的重要因素。就提前拉動需求而言，我們確實沒有看到任何這種情況發生。零售商不願意在庫存上投入巨額資金。

And they also have credit limits that are in place that from exceeding limits that we set. So we feel like the channel is well managed. We also monitor the registration of our products, and we can compare our sell-in versus sell-out, and we really don't see any signs of stockpiling.

而且他們也有信用限額，不得超過我們設定的限額。所以我們覺得該通路管理得很好。我們也監控我們產品的註冊情況，我們可以比較我們的銷售情況和銷售情況，我們確實沒有看到任何囤積的跡象。

Got it. I appreciate the color there, Cliff. And then maybe for the second question, just relative to the full year outlook, the implied second half growth for revenue and gross profit is roughly in the 10% range, plus or minus, depending on revenue or gross profit you're looking at there. But you're guiding operating profit dollars to be flat. Can you maybe just flesh that out a bit?

知道了。我很欣賞那裡的色彩，克里夫。然後對於第二個問題，僅相對於全年前景，下半年收入和毛利的隱含增長大約在 10％ 的範圍內，正負取決於您所關注的收入或毛利。但您預計營業利潤將保持穩定。能稍微詳細解釋一下嗎？

Like what are the drivers that's kind of leading to this like a little bit atypical leverage that we're used to seeing from Garmin? And then just maybe just stacking on to that question, any -- can you guys size what you're now embedding for tariffs and then FX relative to the full year guide?

例如，哪些驅動因素導致了這種我們在 Garmin 常見的非典型槓桿效應？然後也許只是圍繞這個問題，你們能否根據全年指南估算出現在嵌入的關稅和外匯規模？

Sure. So I'll give you a little bit background on the operating expense assumptions. And these are for the full year as a percentage of sales, we are expecting that to increase about 30 basis points, maybe about 10 basis points in R&D and 20 basis points in SG&A. And that R&D increase is primarily due to headcount increases as well as normal merit primarily to develop new features and new products.

當然。因此，我將向您介紹一些有關營運費用假設的背景資訊。這是全年銷售額的百分比，我們預計會增加約 30 個基點，其中研發費用可能增加約 10 個基點，銷售、一般及行政費用可能增加約 20 個基點。研發費用的增加主要歸因於員工人數的增加以及用於開發新功能和新產品的正常開支。

Then as it relates to SG&A, that's going up primarily to build infrastructure for that growth. A few additional items are driving operating expense primarily in the back half here, one of which is a foreign currency impacts. We talked about the foreign currency impacts on the top line revenue, but also there will be increases in expenses due to those foreign currency impacts.

然後，由於它與銷售、一般和行政費用 (SG&A) 相關，其上漲主要是為了建立實現這一增長的基礎設施。一些額外的項目主要推動了後半部分的營運費用，其中之一就是外匯影響。我們討論了外匯對營業收入的影響，但外匯影響也會導致支出增加。

Also, we recently announced the acquisition of MYLAPS. So we'll have the additional expenses relating to MYLAPS in the back half. And also, given our strong performance we have increased performance-based compensation in there. Another one due to the increased revenue is due to co-op advertising that we do have.

此外，我們最近宣布收購 MYLAPS。因此，我們將在後半部分產生與 MYLAPS 相關的額外費用。此外，鑑於我們出色的表現，我們也提高了基於績效的薪酬。收入增加的另一個原因是我們確實有合作廣告。

As it relates to tariffs, we're currently assuming basically the current rates that are effective for that, our tariff estimate is lower now today than it was in April primarily because of the change in some of those tariffs as well as not having a tariff on wearables from that standpoint. And that's really offset in the gross margin line item by unfavorable impact on our gross margin due to the strength of the Taiwan dollar, which will increase our product costs that we have from that standpoint.

至於關稅，我們目前基本上假設現行稅率有效，我們今天的關稅估算低於 4 月份的水平，主要是因為部分關稅發生了變化，而且從這個角度來看可穿戴設備沒有關稅。而這實際上在毛利率項目中被新台幣走強對我們的毛利率產生的不利影響所抵消，從這個角度來看，這將增加我們的產品成本。

And then as it relates to FX, overall, the FX has moved during the year. So right now, we're expecting FX on a top line revenue to be a favorable item as it was here in Q2 for us.

就外匯而言，整體而言，外匯在年內有所變動。因此，目前，我們預計外匯對營業收入將是一個有利因素，就像第二季的情況一樣。

Erik Woodring, Morgan Stanley.

摩根士丹利的艾瑞克‧伍德林。

I have two. Maybe, Cliff, I'll start with you and just taking a very big step back, looking at your growth CAGR over the last 10-years. Revenue growth has been in and around 7% to 8% EPS has been, call it, 11% or 12%, clear leverage in the model. What's interesting about this year is that both last year and this year is you're clearly outperforming that growth rate.

我有兩個。也許，克里夫，我會從你開始，退後一大步，看看你過去 10 年的複合年增長率。營收成長率一直在 7% 到 8% 左右，每股盈餘則達到了 11% 或 12%，模型的槓桿作用很明顯。今年有趣的是，無論是去年還是今年，你們的成長率都明顯超過了這個水準。

But there is some deleverage in the model, which you just kind of explained. But I guess my big picture question is, do you believe that Garmin is entering kind of this new higher revenue growth paradigm, especially as auto OEM is not the headwind that it once was. But in fact, a tailwind to growth. Can you maybe just unpack how you're thinking about Garmin's growth algorithm relative to history?

但模型中存在一些去槓桿現象，您剛才已經解釋過了。但我想我的大問題是，您是否相信 Garmin 正在進入這種新的更高收入成長模式，特別是當汽車 OEM 不再像以前那樣成為逆風時。但事實上，這是成長的順風。您能否解釋一下您對 Garmin 相對於歷史的成長演算法的看法？

And if there is kind of a true structural change in that growth rate today relative to history? And then a quick follow-up, please.

那麼相對於歷史而言，今天的成長率是否發生了真正的結構性變化？然後請快速跟進。

Yes. I think we've made a lot of progress and evolution in our company over the past 10-years. In the past 10-years, the wearable market has emerged and blossomed. And while we're a smaller market share player, we're gaining share and the market is relatively stable. So that's been a really good opportunity for us. We entered that market, because we believed that we had something to offer there.

是的。我認為我們公司在過去的十年中取得了很大的進步和發展。在過去的10年裡，穿戴式裝置市場興起並蓬勃發展。雖然我們的市場份額較小，但我們正在擴大市場份額，而且市場相對穩定。所以這對我們來說是一個非常好的機會。我們進入了那個市場，因為我們相信我們可以在那裡提供一些東西。

And we have high levels of innovation and differentiation in our product lines that we believe would drive growth. So we continue to see that as an opportunity. But all over the company and in our segments, we see opportunities in every one of them. And so consequently, we're simply running as fast as we can towards those opportunities.

我們的產品線具有高度的創新和差異化，我們相信這將推動成長。因此我們繼續將此視為一個機會。但在整個公司和我們的各個部門中，我們都看到了機會。因此，我們只是盡可能快地追逐這些機會。

And especially when it involves creating unique products that either our competitors aren't interested in or haven't thought of, and we try to be a class leader when it comes to both existing product categories and creating new product categories. So we're excited and optimistic about the future. We believe that there's more work to be done, and we'll continue investing and working hard to achieve it.

特別是在涉及創造我們的競爭對手不感興趣或沒有想到的獨特產品時，我們試圖在現有產品類別和創造新產品類別方面成為領先者。因此，我們對未來感到興奮和樂觀。我們相信還有更多工作要做，我們將繼續投入並努力實現它。

Okay. All right. No, that's super helpful. And then maybe as a follow-up, we've seen Garmin make some relatively significant price hikes across a number of different kind of smart wearable products over the last, let's call it, year plus. What have you learned about the elasticity of demand of your customer base? And how does that inform your Garmin's ability to maybe take more price in the future? How should we think about the relative pricing power of the consumer wearables business, please?

好的。好的。不，這非常有幫助。然後也許作為後續行動，我們看到 Garmin 在過去一年多的時間內對多種不同類型的智慧穿戴產品進行了相對大幅的價格上漲。您對客戶群的需求彈性有何了解？這如何說明 Garmin 未來可能會獲得更高的價格？請問我們該如何看待消費穿戴裝置業務的相對定價能力？

Well, I probably would take exception to significant price hikes in the past year. What we've done is we've introduced new product lines with new features that can command a higher price point because they do more for the customer. So we aren't necessarily moving prices on existing categories of products and existing SKUs, we're doing innovation.

好吧，我可能會對過去一年價格的大幅上漲表示反對。我們所做的是推出具有新功能的新產品線，這些產品線可以定價更高，因為它們能為顧客提供更多服務。因此，我們不一定會改變現有產品類別和現有 SKU 的價格，我們正在進行創新。

We're creating new utility for the customer that they're willing to step up and pay for. So unique products, innovation is something that customers always love, and we've been successful in doing that. In terms of elasticity, I think when we introduce a product at the higher end, our strategy is to continue to push and promote the products that it overlaps with and ultimately replaces.

我們正在為客戶創造他們願意付費的新效用。因此，獨特的產品和創新總是受到顧客的喜愛，而我們在這方面也取得了成功。在彈性方面，我認為當我們推出高端產品時，我們的策略是繼續推動和推廣與其重疊並最終取代的產品。

So we have a one-two strategy where we can promote products that have been in the market a while and play on the value side, while at the same time, offering new products with innovation and at higher price points.

因此，我們採取了「一二」策略，即我們可以推廣已經上市一段時間並發揮價值的產品，同時提供具有創新性和更高價格的新產品。

Okay. Super helpful. And then maybe, Doug, just one clarification question, which just confirming that within the calendar '25 guide, both overall and at the segment level, the acquisition that you announced overnight is fully included in that guide. That would not be incremental. I just wanted to get that one clarification.

好的。超有幫助。然後，道格，也許只有一個澄清問題，只是確認在 25 年日曆指南中，無論是整體還是細分級別，您昨晚宣布的收購都完全包含在該指南中。這不會是漸進的。我只是想得到一點澄清。

Yes. MYLAPS is actually factored into guidance from the top line as well as the expenses.

是的。MYLAPS 實際上是從營業收入和支出兩個方面來考慮指導的。

Correct.

正確的。

Jordan Lyonnais, Bank of America.

喬丹·里昂，美國銀行。

Could you guys talk a little bit more about MYLAPS, what you're seeing the opportunity is, where you're expecting synergies just across the segments?

你們能否再多談談 MYLAPS 的情況，你們看到了哪些機會，你們期望在哪些領域產生協同效應？

MYLAPS is a company that specializes in timing of competitive events, whether they're running events, triathlons, auto racing or even horse racing. And so their equipment and their services are very critical, especially to some of those high visibility events that are out there. There's a significant overlap with their market interest and our interest in terms of particularly the running and triathlon cycling racing events.

MYLAPS 是一家專門為競技賽事提供計時服務的公司，無論是跑步賽事、鐵人三項賽、賽車或賽馬。因此，他們的設備和服務非常關鍵，特別是對於一些備受矚目的活動。他們的市場興趣與我們的興趣有很大的重疊，特別是在跑步和鐵人三項自行車賽事方面。

Today, users of our products do a lot of training. And then when they go to race day, they use our devices, but the official timing is somewhat separate and disconnected from the devices that they're using during the race. So we see an opportunity to merge the experiences from the training that takes place leading up to an event through the actual participation in the event itself.

今天，我們的產品的用戶做了很多培訓。然後，當他們參加比賽時，他們會使用我們的設備，但官方計時與他們在比賽期間使用的設備有些不同且脫節。因此，我們看到了一個機會，可以將活動前培訓中的經驗與實際參與活動本身的經驗結合起來。

And we can do it in a dynamic and integrated way because we now have access to both the unrest information as well as the official timing information.

我們可以以一種動態和綜合的方式做到這一點，因為我們現在可以獲得騷亂資訊以及官方的時間資訊。

Ivan Feinseth, Tigress Financial Partners.

伊凡‧費因塞斯 (Ivan Feinseth)，Tigress Financial Partners 成員。

Congratulations on another great quarter. I have two questions. Recently, Health Secretary, RFK has been very outspoken talking about his vision for smart wearables as an integral part of helping people manage their health. And what are your thoughts and the opportunities you see for Garmin because you have a diverse line of wearables with a lot of proprietary measurements as well as the Connect app and the Garmin Health platform.

恭喜您又一個季度取得優異成績。我有兩個問題。最近，衛生大臣羅伯特甘迺迪（RFK）直言不諱地談論了他對智慧穿戴裝置的願景，認為它是幫助人們管理健康不可或缺的一部分。您認為 Garmin 有哪些機會？因為您擁有多樣化的穿戴式裝置系列，具備大量專有測量功能，還有 Connect 應用程式和 Garmin Health 平台。

Well, our thoughts are one of excitement. We have always believed in the utility of wearable devices to help people observe and manage their health. You can't change what you can't measure. So wearables play an integral part of that. And we're really excited about the fact that we have a very diverse product line. So there's not one size fits all for every customer. Instead, we offer a range of things that appeals to somebody's lifestyle and their goals.

嗯，我們的想法是興奮的。我們一直相信穿戴式裝置能夠幫助人們觀察和管理自己的健康狀況。你無法改變你無法衡量的事情。因此穿戴式裝置在其中扮演著不可或缺的角色。我們對自己擁有非常多樣化的產品線感到非常興奮。因此，沒有一種方案適合所有客戶。相反，我們提供一系列適合人們的生活方式和目標的東西。

So I think it presents a significant opportunity for us. And of course, we're at the forefront in terms of sensor measurements and creating health metrics for people that are useful and actionable. And so we believe there's a lot of opportunity going forward.

所以我認為這對我們來說是一個重要的機會。當然，我們在感測器測量和為人們創建有用且可操作的健康指標方面處於領先地位。因此我們相信未來還有很多機會。

My second question is the next big thing in smart wearables is glasses that a lot of people believe they will be as ubiquitous as cell phones and watches. And what do you see as your opportunity there, especially for a lot of the ones that are on the market right now don't have screens in the display that is being talked about coming to integrate your data from your watch into that for, let's say, when you're running.

我的第二個問題是，智慧型穿戴裝置的下一個熱門產品是眼鏡，許多人相信它們將像手機和手錶一樣無處不在。您認為您的機會是什麼，特別是對於目前市場上的許多產品來說，它們沒有顯示屏，人們正在談論將手錶中的數據集成到其中，比如說，當您跑步時。

And also a while back, you did make a device that clipped on to glasses that kind of created a heads-up display into a pair of glasses. So what are your thoughts on opportunities in that area?

不久前，您還製作了一種可以夾在眼鏡上的裝置，可以將平視顯示器變成眼鏡。那麼您對該領域的機會有何看法？

Well, I think it remains to be seen. Glasses have come and gone once and the utility and the concerns around the use of those in public have always come up in the context. So I'd say it's a wait-and-see thing. I think people want choices when it comes to things they wear, including watches and glasses. And so there may be some special use cases for those. But in general, we believe that the utility of a wearable is still very strong.

嗯，我認為這還有待觀察。眼鏡已經出現並消失了，其實用性以及在公共場合佩戴眼鏡的擔憂始終是人們關注的焦點。所以我認為這是需要等待觀察的事情。我認為人們在選擇穿戴物品時希望有選擇，包括手錶和眼鏡。因此，它們可能有一些特殊的用例。但整體來說，我們認為穿戴式裝置的實用性還是很強的。

Tim Long, Barclays.

巴克萊銀行的提姆朗。

Two also, if I could. First, maybe if you could touch a little bit on fitness category. Any color you have on the strength there, how it's looking from kind of repeat users or new installed base for Garmin, if you have any color there? And then secondly, if you could just dig into Europe, you highlighted pretty strong growth there. It's been several quarters of outperformance. Maybe dig into what's driving that and how sustainable that growth can be there?

如果可以的話，也有兩個。首先，能否稍微談談健身類別。您對此有何看法？從重複使用者或 Garmin 新安裝使用者的角度來看，它表現如何？其次，如果您深入研究歐洲，您會發現那裡的成長相當強勁。已經連續幾季表現優異。也許可以深入研究一下推動這一增長的因素以及這種增長的可持續性如何？

Okay. Yes. In terms of fitness categories, all the categories were strong. I would say that advanced wearables, as we mentioned in our comments, was the biggest driver. And we did call out running, specifically the 400, 570 and 970, although running was not really the only driver, we saw strength across all of our products, including what we call our advanced wearables, which is our Venu and vívoactive line.

好的。是的。就健身類別而言，所有類別均表現強勁。我想說，正如我們在評論中提到的，先進的可穿戴設備是最大的驅動力。我們確實提到了跑步，特別是 400、570 和 970，儘管跑步並不是唯一的驅動力，但我們看到所有產品都表現出強勁實力，包括我們所謂的高級可穿戴設備，即我們的 Venu 和 vÃvoactive 系列。

So those were very, very strong. In terms of repeat users versus new users, we're seeing a stronger growth in the new user category. So new people coming to Garmin for the first time. And so we're excited by that. It means that people are recognizing that we offer something different and are coming to us for a solution. In terms of Europe performance, I think if you normalize for FX, you'd probably see that Europe was pretty much in line with the other geographies.

所以它們非常非常強大。就重複用戶與新用戶而言，我們看到新用戶類別的成長更為強勁。所以這是新人第一次接觸 Garmin。因此我們對此感到興奮。這意味著人們認識到我們提供的產品與眾不同，並向我們尋求解決方案。就歐洲的表現而言，我認為如果你對外匯進行標準化，你可能會發現歐洲與其他地區的表現基本上一致。

So I think FX had part of the responsibility for the outperformance in Europe.

因此我認為外匯對歐洲的優異表現負有部分責任。

Joe Nolan, Longbow Research.

喬·諾蘭（Joe Nolan），長弓研究公司。

This is Joe Nolan on for David. The marine market remains relatively soft, but you guys continue to deliver growth there. Can you just talk about some of the factors driving that growth and just what you -- what's giving you confidence in raising the guide there?

喬諾蘭 (Joe Nolan) 代替大衛上場。船舶市場仍然相對疲軟，但你們繼續在那裡實現成長。您能否談談推動這種增長的一些因素以及是什麼讓您有信心提高那裡的指導？

I think growth in marine, for sure, the market has been a little bit towards the downside. We feel like it's been stabilizing. It has faced a lot more uncertainty as people try to process, especially boat builders, the issues of tariffs that affect them as well as consumer sentiment. But in general, we've seen stable demand for our products, and especially where we're providing products with unique innovation and differentiation, we're seeing people come to Garmin and taking share in those categories as well.

我認為，海運業的成長，市場肯定已經有點下滑了。我們感覺情況已經趨於穩定。當人們（尤其是船舶製造商）試圖處理影響他們以及消費者情緒的關稅問題時，它面臨著更多的不確定性。但總體而言，我們的產品需求穩定，尤其是當我們提供具有獨特創新和差異化的產品時，我們看到人們紛紛選擇 Garmin 並在這些類別中佔有一席之地。

Got it. Okay. And then on the auto OEM side, you mentioned progressing as planned with the new program. Can you just give us an update on where that stands right now?

知道了。好的。然後在汽車 OEM 方面，您提到新計劃正在按計劃進展。您能否向我們介紹目前的情況？

Well, as I said, we're making good progress on that. We're in the process of validating our production lines globally to be able to support the new device and the new design and to prove that we can run at scale and deliver the quality. So it's a very involved process working with the car maker and quite a few test runs, pilot runs, evaluations and feedback that goes into making sure we're ready towards the end of 2026.

嗯，正如我所說，我們在這方面取得了良好的進展。我們正在全球範圍內驗證我們的生產線，以便能夠支援新設備和新設計，並證明我們能夠大規模運作並提供高品質的產品。因此，與汽車製造商合作是一個非常複雜的過程，需要進行相當多的測試運行、試運行、評估和回饋，以確保我們在 2026 年底做好準備。

Ben Bollin, Cleveland Research.

克利夫蘭研究公司的 Ben Bollin。

Cliff, I was hoping we could start. Could you talk a little bit about how you're thinking about the subscription momentum, the materiality, the progress? And what's the right way for us to assess your progress? Do we -- is it as simple as looking at the deferred? Is there something else you think we should look at? Curious your thoughts there. And then I have a follow-up for Doug.

克里夫，我希望我們可以開始了。您能否談談您對訂閱動能、實質和進展的看法？我們該如何正確評估您的進步呢？我們——這就像查看延期一樣簡單嗎？您認為我們還應該考慮其他什麼嗎？好奇你的想法。然後我要跟進一下 Doug 的情況。

Yes. I think subscriptions are a growing part of our business. We, of course, haven't triggered the 10% threshold to disclose that yet. So we aren't providing specifics on it. But I would tell you that in every segment, we're looking for opportunities to build subscription and service revenues. Outdoor has been a big driver of that with our in-reach system.

是的。我認為訂閱是我們業務中不斷成長的一部分。當然，我們還沒有觸及披露這項資訊的 10% 門檻。因此我們不會提供具體細節。但我想告訴你，在每個領域，我們都在尋找機會來增加訂閱和服務收入。透過我們的觸及系統，戶外一直是推動這項進程的重要動力。

Fitness has been increasing a lot, both with our kids Bounce wearable as well as Garmin Connect Plus. And then aviation is another one where we offer subscription services for content for the cockpit that is in growth mode. So we're growing across the whole business. And of course, we're driving towards as much as we can grow there. But until it triggers that 10%, we won't disclose it.

我們的兒童健身水平得到了很大的提高，既使用了 Bounce 可穿戴設備，也使用了 Garmin Connect Plus。然後，航空是另一個我們為處於成長模式的駕駛艙內容提供訂閱服務的領域。因此我們的整個業務都在成長。當然，我們正在盡最大努力在那裡實現成長。但在觸發那 10% 之前，我們不會透露它。

Okay. Doug, a follow-up. Just thoughts on working capital management, both in 2Q and the balance of the year, receivables and inventory up decent amount year-over-year and sequential. You've talked a little bit about the trend there. What do you see? How is it going to plan? And any thoughts for the balance of the year? That's it for me.

好的。道格，後續行動。只是關於營運資本管理的想法，無論是在第二季度還是在今年的餘額中，應收帳款和庫存都比去年同期和連續有相當大的增長。您剛才談到了那裡的趨勢。你看到了什麼？計劃進行得如何？今年的平衡有什麼想法嗎？對我來說就是這樣。

Yes. As it relates to our working capital really going as planned. As it relates to inventory, our strategy is to have inventory for our increased customer demand, but also, we've increased inventory to mitigate potential increases in tariffs. There's currently no tariff on wearables and a potential increase in that. So that was a strategy of ours to increase the inventory.

是的。因為這與我們的營運資金確實按計劃進行有關。就庫存而言，我們的策略是為不斷增長的客戶需求儲備庫存，同時，我們也增加了庫存以緩解潛在的關稅上漲。目前穿戴式裝置沒有關稅，但關稅可能會增加。這就是我們的增加庫存的策略。

As it relates to receivables, that's primarily related to the growth in our sales, which is a function of that, maybe a little timing depending upon how the sales came in during the month. But everything from a working capital is pretty well on plan. From a free cash flow estimate for the year, we're expecting at $1.2 billion, which is very similar to what it was last year.

就應收帳款而言，這主要與我們的銷售額成長有關，銷售額的成長與此有關，可能與當月的銷售額有一點時間關係。但從營運資金來看一切都在按計畫進行。根據今年的自由現金流估算，我們預計將達到 12 億美元，與去年的水準非常相似。

We're expecting to have increased operating earnings there, that will probably be offset by increase in inventory, but things are going as planned, and we're reacting to the current environment that we're in.

我們預計那裡的營業收入會增加，但這可能會被庫存的增加所抵消，但事情正在按計劃進行，我們正在對當前所處的環境做出反應。

And that concludes our question-and-answer session. I will now turn the call back over to Teri Seck for some final closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給 Teri Seck，請他做最後的總結演講。

Thank you all for joining us today. As always, Doug and I are available for callbacks, and we will all talk to you later. Have a great day. Bye.

感謝大家今天的參與。像往常一樣，Doug 和我都可以接聽回電，我們稍後會與您交談。祝你有美好的一天。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。