Garmin

“A shut down of airspace or imposition of restrictions on general aviation would harm our business. A shutdown of airspace could cause reduced sales of our general aviation products and delays in the shipment of our products manufactured in our Taiwan manufacturing facilities to our global distribution facilities, which would affect our ability to supply new and existing products to our dealers and distributors.”

Annual report 2025A · The company itself

“Federal Aviation Administration (FAA) certification is required for all of our aviation products that are intended for installation in type-certificated aircraft. To the extent required, certification is an expensive and time-consuming process that requires significant focus and resources. An inability to obtain, or excessive delay in obtaining, such certifications could have an adverse effect on our ability to introduce new products and, for certain aviation OEM products, our customers’ ability to sell airplanes.”

Annual report 2025A · The company itself

“Aviation Garmin designs, manufactures, and markets a wide range of innovative aircraft avionics solutions to the broad and diverse aviation sector. Avionics are sold directly into aircraft OEM applications as well as through Garmin’s worldwide dealer network for retrofit installations on existing aircraft.”

Annual report 2025A · The company itself

“Seasonality The Company’s net sales are subject to seasonal fluctuation. Sales of the Company’s consumer products are generally highest in the fourth quarter due to increased demand during the holiday buying season, and many marine products experience increased demand in the first and second quarters in advance of the summer boating season.”

Annual report 2025A · The company itself

“Outdoor Aviation Marine Auto OEM Gross profit dollars in fiscal year 2025 increased 15%, primarily due to the increase in net sales compared to the year-ago period as described above. Consolidated gross margin was flat when compared to the year-ago period.”

Annual report 2025A · The company itself

“Fitness Garmin offers a broad range of products and services designed for use in health, wellness, and fitness activities. Garmin currently offers the following product categories and related services within the Fitness segment to consumers around the world: • Running: Garmin running watches are offered under the Forerunner® product series.”

Annual report 2025A · The company itself

“Outdoor Garmin offers a broad range of products and services designed for use in outdoor activities.”

Annual report 2025A · The company itself

“Consumer Automotive: Garmin offers products for the consumer automotive markets and purpose-built products to support the ecosystems of the motorcycle, RV, trucking, and powersports markets.”

Annual report 2025A · The company itself

“Marine Garmin offers a broad range of products and services designed for use in marine recreation applications.”

Annual report 2025A · The company itself

“We have made and may continue making significant investments in the auto OEM segment, the associated cost of which may negatively impact total company profits. We have been awarded several tier-one and tier-two auto OEM supplier contracts. To fulfill the associated program commitments, we have invested significantly in facilities, research and development, and other operating expenses.”

Annual report 2025A · The company itself

“Consumer Automotive: Garmin offers products for the consumer automotive markets and purpose-built products to support the ecosystems of the motorcycle, RV, trucking, and powersports markets.”

Annual report 2025A · The company itself

“Auto OEM Garmin has cultivated key relationships with leading automobile manufacturers to be the provider of a variety of hardware and software solutions for their vehicles. Garmin currently offers the following product categories to the global auto market: • Domain Controllers: Garmin is a tier-one supplier of domain controllers, offering remote computing modules that control various systems throughout a vehicle including infotainment, instrumentation, key advanced driver-assistance systems (ADAS) functionality, and rear seat entertainment.”

Annual report 2025A · The company itself

“A significant portion of our revenue has been, and we expect in the future will continue to be, derived from sales of newly introduced products. The market for our products is characterized by rapidly changing technology, evolving industry standards and regulations and changes in customer needs.”

Annual report 2025A · The company itself

“Garmin Connect+ offers premium features, including personalized insights and performance dashboards, to users on a subscription basis. The Connect IQ™ application development platform enables third parties to create a variety of applications that run on a wide assortment of Garmin devices.”

Annual report 2025A · The company itself

“Garmin products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and OEMs. Garmin also sells its products and services directly through the Garmin online webshop (garmin.com), subscriptions for connected services, and Garmin retail stores.”

Annual report 2025A · The company itself

“Any past or future acquisition could also result in difficulties assimilating acquired employees, operations, and products and diversion of capital and management’s attention away from other business issues and opportunities. Integration of acquired companies may result in problems related to integration of technology and inexperienced management teams.”

Annual report 2025A · The company itself

“Garmin products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and OEMs. Garmin also sells its products and services directly through the Garmin online webshop (garmin.com), subscriptions for connected services, and Garmin retail stores.”

Annual report 2025A · The company itself

“Garmin Connect+ offers premium features, including personalized insights and performance dashboards, to users on a subscription basis. The Connect IQ™ application development platform enables third parties to create a variety of applications that run on a wide assortment of Garmin devices.”

Annual report 2025A · The company itself

“We have operations outside the United States that make up a significant portion of our total revenue, which can present challenges depending on economic and geopolitical conditions on both a global and regional scale. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for our products and services.”

Annual report 2025A · The company itself

“Gross margins for our products may fluctuate or erode. Gross margins in some of our segments are volatile and could decline in the future due to competitive price reductions that are not fully offset by material cost reductions. In addition, our overall gross margin may fluctuate from period to period due to a number of other factors, including product mix, foreign exchange rates, tariffs, freight and component costs, manufacturing facility utilization, and unit volumes.”

Annual report 2025A · The company itself

“Inflation Our business has at times been impacted by increasing costs. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases.”

Annual report 2025A · The company itself

“Extended disruptions at these suppliers or global shortages of essential components, such as memory chips, could impact Garmin’s ability to meet customer demand due to component shortages or increased lead times, or cause Garmin to incur higher product costs.”

Annual report 2025A · The company itself

“Gross margins for our products may fluctuate or erode. Gross margins in some of our segments are volatile and could decline in the future due to competitive price reductions that are not fully offset by material cost reductions. In addition, our overall gross margin may fluctuate from period to period due to a number of other factors, including product mix, foreign exchange rates, tariffs, freight and component costs, manufacturing facility utilization, and unit volumes.”

Annual report 2025A · The company itself

“Materials Garmin purchases components from a large number of qualified suppliers. Although many components essential to Garmin’s business are generally available from multiple sources, certain key components are currently obtained by the Company from single or limited sources, which subjects Garmin to supply and pricing risks. For these components, the Company has limited near-term flexibility to use other suppliers if a current vendor becomes unavailable or is unable to meet requirements.”

Annual report 2025A · The company itself

“Our business is subject to disruptions and uncertainties caused by geopolitical instability, war or terrorism. Geopolitical instability, acts of war or acts of terrorism could have a material adverse impact on our business, financial condition and results of operations.”

Annual report 2025A · The company itself

“Some of our products also use satellite signals from Russia’s GLONASS, the European Union Galileo system, and the Chinese BDS. National or European authorities may provide preferential access to signals to companies associated with their markets, including our competitors, which could harm our competitive position.”

Annual report 2025A · The company itself

“We have operations outside the United States that make up a significant portion of our total revenue, which can present challenges depending on economic and geopolitical conditions on both a global and regional scale. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for our products and services.”

Annual report 2025A · The company itself

“Natural disasters, catastrophic events, or climate change and associated requirements and pressures could affect our financial results. Natural disasters and extreme weather events, such as tsunamis, typhoons, floods, wildfires, or earthquakes, could occur in a region where we have a manufacturing or warehousing facility which could cause disruptions in our business operations, loss of inventory, or affect the sale of our products. Global climate change could also result in certain types of these natural disasters occurring more frequently or with greater intensity.”

Annual report 2025A · The company itself

“We have operations outside the United States that make up a significant portion of our total revenue, which can present challenges depending on economic and geopolitical conditions on both a global and regional scale. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for our products and services.”

Annual report 2025A · The company itself

“The currencies that have historically created a majority of the Company’s exchange rate exposure include the Taiwan Dollar, Euro, and Polish Zloty. Garmin Corporation, headquartered in Xizhi, Taiwan, uses the local currency as the functional currency.”

Annual report 2025A · The company itself

“Certain of the goods we import are subject to tariffs and duties imposed by customs authorities of the jurisdictions into which they are imported. We manufacture our products in, and source goods from, multiple jurisdictions, such as Taiwan and China among others. New or increased tariffs, duties, or other trade restrictions imposed on products, goods, or components we import into the United States or other countries could materially adversely affect our business, financial condition and results of operations.”

Annual report 2025A · The company itself

“The currencies that have historically created a majority of the Company’s exchange rate exposure include the Taiwan Dollar, Euro, and Polish Zloty. Garmin Corporation, headquartered in Xizhi, Taiwan, uses the local currency as the functional currency.”

Annual report 2025A · The company itself

“Recruiting and retaining the skilled personnel we require to maintain and grow our market position has been and is expected to continue to be challenging. Shortages in qualified workforce personnel may lead to increased compensation costs in order for us to recruit and retain such personnel.”

Annual report 2025A · The company itself

“As of December 27, 2025, the Company had approximately 23,000 full and part-time employees worldwide, of whom approximately 8,100 were in the Americas region, 11,400 were in APAC (Asia Pacific and Australian Continent), and 3,500 were in EMEA (Europe, the Middle East, and Africa).”

Annual report 2025A · The company itself

“Research and development expense increased 13% in absolute dollars and remained relatively flat as a percent of revenue compared to the year-ago period. The absolute dollar increase was primarily due to higher engineering personnel-related expenses.”

Annual report 2025A · The company itself

“Selling, general and administrative expense increased 13% in absolute dollars and remained relatively flat as a percent of revenue when compared to the year-ago period. The absolute dollar increase was primarily due to higher personnel-related expenses and advertising.”

Annual report 2025A · The company itself

“A significant portion of our revenue has been, and we expect in the future will continue to be, derived from sales of newly introduced products. The market for our products is characterized by rapidly changing technology, evolving industry standards and regulations and changes in customer needs.”

Annual report 2025A · The company itself

“If we do not correctly anticipate demand for our products, we may not be able to secure sufficient quantities or cost-effective production of our products or we could have costly excess production or inventories. The demand for our products depends on many factors and may be difficult to forecast due to our increasingly diverse product portfolio, intensifying competition in the markets for our products, and the maturing of markets for some of our products.”

Annual report 2025A · The company itself

“Public health emergencies, including epidemics or pandemics, could have significant impacts on our business. Widespread public health emergencies, including epidemics or pandemics, such as the COVID-19 pandemic, have significantly affected, and may in the future significantly affect, our business due to their impact on the economy and the demand for our products and services, disruptions to our operations, supply chain and sales and distribution channels, and government-imposed restrictions.”

Annual report 2025A · The company itself

“Our radar altimeter products for aircraft operate in a radio frequency band just above the C-band that has been allocated for 5G mobile wireless systems. There is a risk that 5G telecommunication systems operating in the vicinity of airports could cause harmful interference to radar altimeters resulting in inaccurate altimeter readings or complete altimeter failure.”

Annual report 2025A · The company itself

“Principal properties of Garmin include approximately 2,244,000 square feet of owned facilities located in Olathe, Kansas (U.S.), approximately 255,000 square feet of owned and leased facilities located across various locations in the United Kingdom, approximately 319,000 square feet of leased facilities located in Wroclaw, Poland, and approximately 1,847,000 square feet of owned facilities located across various locations in Taiwan. These properties are considered principal properties due to the nature of the business activities carried out at each location.”

Annual report 2025A · The company itself

“Principal properties of Garmin include approximately 2,244,000 square feet of owned facilities located in Olathe, Kansas (U.S.), approximately 255,000 square feet of owned and leased facilities located across various locations in the United Kingdom, approximately 319,000 square feet of leased facilities located in Wroclaw, Poland, and approximately 1,847,000 square feet of owned facilities located across various locations in Taiwan. These properties are considered principal properties due to the nature of the business activities carried out at each location.”

Annual report 2025A · The company itself

“Principal properties of Garmin include approximately 2,244,000 square feet of owned facilities located in Olathe, Kansas (U.S.), approximately 255,000 square feet of owned and leased facilities located across various locations in the United Kingdom, approximately 319,000 square feet of leased facilities located in Wroclaw, Poland, and approximately 1,847,000 square feet of owned facilities located across various locations in Taiwan. These properties are considered principal properties due to the nature of the business activities carried out at each location.”

Annual report 2025A · The company itself