Garmin selected as exclusive marine electronics and audio supplier to IBBI through 2029
Garmin (NYSE: GRMN) has been chosen as the exclusive marine electronics and audio supplier for Independent Boat Builders, Inc. (IBBI) through 2029. Starting from the 2025 model year, IBBI member-owners will have direct access to Garmin's comprehensive range of marine electronics and audio solutions, including products from JL Audio, Fusion, and Clarion Marine. IBBI, a 15-owner network responsible for over 25% of boats sold in the U.S., has had a longstanding relationship with Garmin since 2014. Garmin has been recognized multiple times with IBBI's Supplier of the Year award and continues to be celebrated for its innovation and customer service.
- Garmin becomes the exclusive marine electronics and audio supplier for IBBI until 2029.
- IBBI members will have access to Garmin's full range of products starting model year 2025.
- IBBI accounts for over 25% of all boats sold in the U.S., boosting Garmin's market reach.
- The agreement includes well-regarded brands such as JL Audio, Fusion, and Clarion Marine.
- None.
Insights
Garmin's exclusive agreement with IBBI marks a strategic move that can have significant implications for its financial performance. Long-term contracts typically offer revenue stability and predictability, which can be positive for the stock's valuation. With IBBI member-owners responsible for building over 25% of all boats sold in the U.S., this agreement solidifies Garmin's market presence in the marine electronics sector.
From a financial perspective, the exclusivity and duration of the agreement through 2029 provide a steady stream of income, which can be reassuring for investors looking for long-term growth. Moreover, Garmin's history of being selected as IBBI's supplier, including multiple Supplier of the Year awards, reinforces the company's reputation for reliability and quality, which can be attractive to institutional investors.
However, investors should also consider the potential risks. While the deal enhances revenue stability, it also ties a significant portion of Garmin's marine electronics business to a single customer group. This concentration risk means that any downturn in the boat manufacturing industry could impact Garmin's earnings.
In the short term, the announcement could lead to a positive reaction in the stock market as investors digest the benefits of this agreement. Long-term benefits include potential market share gains and enhanced customer loyalty, but investors should remain vigilant about the broader industry health and economic conditions affecting recreational marine activities.
The decision by Independent Boat Builders, Inc. (IBBI) to select Garmin as its exclusive supplier is a noteworthy development in the marine electronics market. This long-term agreement not only strengthens Garmin's positioning but also potentially reshapes market dynamics. The inclusion of well-regarded brands such as JL Audio, Fusion and Clarion Marine under the Garmin umbrella enhances the company's value proposition to IBBI members.
Given that IBBI members produce a substantial portion of boats sold in the U.S., this deal extends Garmin's reach and influence within a critical segment of the market. The commitment from IBBI suggests a high level of satisfaction with Garmin's product quality and customer service, which can bode well for the brand's reputation and customer retention.
The marine electronics market is characterized by technological advancements and innovation and Garmin's leadership in this space, as evidenced by its repeated recognition from the National Marine Electronics Association, underscores its competitive edge. This agreement supports Garmin's strategic objective to dominate the marine sector by leveraging its broad product portfolio and consistently strong performance.
For retail investors, it's important to recognize that this agreement aligns with broader market trends favoring integrated, high-quality marine solutions. The deal not only consolidates Garmin's market position but may also drive incremental revenue from bundled product offerings. Understanding these aspects can help investors gauge the long-term growth potential embedded in this partnership.
Long-term agreement includes Garmin, JL Audio, Fusion and Clarion Marine products
"We are so pleased to extend and strengthen our long-standing relationship with these boat builders to include both electronics and audio exclusively from Garmin. From chartplotters and navigation with leading Garmin Navionics+™ mapping to trolling motors, stereos, speakers and more, Garmin offers a robust product portfolio known for quality and innovation—backed by award-winning support—that will continue to benefit our mutual customers now and into the future."
–Dan Bartel, Garmin Vice President of Global Consumer Sales
IBBI member-owners have chosen Garmin for over a decade. Prior to becoming its exclusive marine electronics supplier in 2018, Garmin had been a supplier of choice for IBBI since 2014. In 2019, audio was added when Fusion was named IBBI's marine stereo and entertainment supplier of choice. Garmin was also the recipient of IBBI's prestigious Supplier of the Year award in 2018, 2019 and 2024, a direct result of its dedication to IBBI boat builders and the group's collective customers.
"Garmin continues to set the standard when it comes to product innovation and customer service, and we are proud to continue doing business with such a trusted and recognized manufacturer. From product quality to support, the members of IBBI continue to be impressed with Garmin and the great benefits they provide to the end customer so extending our agreement was an easy decision."
–Tom Broy, IBBI President
Engineered on the inside for life on the outside, Garmin products have revolutionized life for anglers, sailors, mariners and boat enthusiasts everywhere. Committed to developing the most innovative, highest quality, and easiest to use marine electronics the industry has ever known, Garmin believes every day is an opportunity to innovate and a chance to beat yesterday. For the ninth consecutive year, Garmin was named the Manufacturer of the Year by the National Marine Electronics Association (NMEA). Other Garmin marine brands include Navionics® and JL Audio. For more information, visit Garmin's virtual Newsroom, email our press team, connect with @garminmarine or follow our blog.
About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (NYSE: GRMN). Garmin Ltd. is incorporated in
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Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 30, 2023, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at www.garmin.com/en-US/company/investors/earnings/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
MEDIA CONTACT:
Carly Hysell
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SOURCE Garmin International, Inc.
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