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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Trimble's earnings call indicates strong financial performance with revenue and ARR growth, improved margins, and strategic partnerships. The Q&A session confirmed positive sentiment, highlighting strong product offerings and market opportunities, despite minor concerns about tariffs and sales cycles. Overall, the optimistic guidance and solid execution suggest a positive stock price movement.
Revenue $841 million, up 3% organically and up 10% after adjusting for the timing of January 1st term license revenue.
Annual Recurring Revenue (ARR) $2.11 billion, up 17% organically.
Earnings Per Share (EPS) $0.61, ahead of expectations.
Gross Margin 69.9%, expanded 180 basis points year-over-year.
EBITDA Margin 25.9%, which is a 100 basis points expansion year-over-year.
Free Cash Flow $149 million, representing a conversion rate of 1 times net income.
Cash on Balance Sheet $290 million.
Leverage Ratio Less than 1.3 times, well below the long-term target rate of 2.5 times.
Share Buyback $627 million of shares bought back in the first quarter.
Operating Income (AECO) 27.3%, increased 50 basis points year-over-year.
Operating Income (Field Systems) 29.7%, increased 280 basis points year-over-year.
Operating Income (Transportation) 21.2%, expected to improve in the next three quarters.
AI Capabilities: Trimble is releasing AI capabilities into customer-facing solutions, including natural language prompted design and automating invoices.
2025 Versions of Solutions: Trimble launched the 2025 versions of its engineering and architecture design solutions, incorporating new AI features.
Market Expansion in Construction: Trimble's ARR in AECO grew 19% to a record $1.29 billion, indicating strong market positioning.
Transportation Market Positioning: Transportation ARR grew 7% to a record $459 million, with a strong presence in Europe, Middle East, and North America.
Operational Efficiency: Gross margins expanded 180 basis points to 69.9%, reflecting improved operational efficiency.
Share Buyback: Trimble repurchased $627 million of shares in Q1 2025, indicating strong cash flow management.
Divestiture of Transportation Mobility: Trimble sold its Transportation Mobility business to Platform Science, focusing on core competencies.
AI Strategy: Trimble is actively pursuing AI integration across various functions to enhance operational efficiency and customer service.
Economic Uncertainty: The company acknowledges uncertainty in tariffs and trade policy, which could impact operations and economic conditions.
Competitive Pressures: In the event of an economic downturn, Trimble believes it can outperform weaker competitors who may reduce investment or exit the market.
Supply Chain Challenges: Tariffs are adding approximately $10 million per quarter to costs in the Field Systems segment, although surcharges have been implemented to offset this.
Sales Cycle Lengthening: There is a noted softness in the public sector in the U.S. and slightly longer sales cycles with enterprise customers.
Market Segmentation Risks: While there are pockets of strength in certain segments, there is also modest weakness observed, particularly in the public sector.
Regulatory Issues: The company is maintaining a conservative outlook due to potential regulatory impacts from tariffs and trade policies.
AI Initiatives: Trimble is actively pursuing AI applications to enhance customer service and internal operations, including AI-driven marketing, sales coaching, and customer success solutions.
Cross-Sell Opportunities: Trimble identified $1.4 billion in cross-sell opportunities within its portfolio, aiming to leverage its strong balance sheet to market subscription models.
Business Model Transformation: Trimble has transformed its business model to be predominantly software-based, with a focus on asset-light operations and recurring revenue.
Divestiture of Transportation Mobility: The sale of the Transportation Mobility business to Platform Science is part of Trimble's strategic focus to concentrate on areas where it has a competitive advantage.
2025 Revenue Guidance: Trimble maintains its full-year revenue guidance at a midpoint of $3.42 billion.
Earnings Per Share Guidance: The earnings per share guidance for 2025 is set at $2.87.
Organic ARR Growth Guidance: Trimble expects organic ARR growth at a midpoint of 14% for 2025.
Second Quarter Revenue Guidance: For Q2 2025, Trimble expects revenue between $815 million and $845 million.
Second Quarter EPS Guidance: EPS for Q2 2025 is projected to be between $0.59 and $0.65.
Organic Growth for Q2: Organic growth for Q2 is anticipated to be in the 2% to 6% range.
Share Buyback Program: Trimble bought back $627 million of shares in the first quarter and has $373 million of authorization remaining.
Trimble's earnings call highlights strong financial performance, increased revenue and EPS guidance, and a positive outlook on AI and innovation. The Q&A section reveals analyst confidence in growth strategies, though some uncertainties remain regarding 2026 margins and specific EPS details. New OEM partnerships and focus on ARR growth are positive indicators. Overall, the sentiment is positive, with potential for stock price appreciation.
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