Trimble(TRMB)2025-05-12 20:46Financial Performance - Total revenue for the first quarter of 2025 was $840.6 million, a decrease of 11.8% compared to $953.3 million in the first quarter of 2024[14] - Product revenue decreased to $271.6 million, down 26.0% from $367.1 million year-over-year[14] - Subscription and services revenue was $569.0 million, a slight decrease of 2.5% from $586.2 million in the previous year[14] - Gross margin for the first quarter of 2025 was $560.8 million, compared to $593.6 million in the same quarter of 2024[14] - Consolidated operating income for Q1 2025 was $97.5 million, compared to $109.2 million in Q1 2024, a decline of 10.6%[51] - Net income increased to $66.7 million, up 16.6% from $57.2 million in the first quarter of 2024[14] - Earnings per share for the first quarter of 2025 were $0.27, compared to $0.23 in the same quarter of 2024[14] - Net income for Q1 2025 was $66.7 million, up from $57.2 million in Q1 2024, representing a growth of 16%[65] - Basic and diluted earnings per share for Q1 2025 were both $0.27, compared to $0.23 in Q1 2024, indicating an increase of 17%[65] Cash Flow and Assets - Cash and cash equivalents decreased to $290.0 million from $738.8 million at year-end 2024[12] - Total assets decreased to $8,898.9 million from $9,488.3 million at year-end 2024[12] - Cash flow from operating activities for the first quarter of 2025 was $155.6 million, down from $233.8 million in the same period last year[20] - The company’s cash and cash equivalents at the end of the first quarter of 2025 were $290.0 million, compared to $261.6 million at the end of the first quarter of 2024[20] - The company had total long-term debt of $1,391.0 million as of Q1 2025, slightly up from $1,390.6 million at year-end 2024[54] Investments and Divestitures - The company plans to continue investing in research and development to introduce new products and deliver targeted solutions[5] - Trimble Inc. completed the sale of its Mobility business for equity interests valued at $253.9 million on February 8, 2025[34] - The company deconsolidated $277.3 million of net assets, including $145.3 million of goodwill, following the Mobility divestiture[35] - Trimble Inc. completed the sale of its Ag business for $1.9 billion in cash proceeds and an equity interest in a joint venture valued at $275.6 million on April 1, 2024[37] - The Ag business divestiture resulted in a pre-tax gain of $1.7 billion recognized in the second quarter of 2024[38] - As of the end of the first quarter of 2025, Trimble Inc. had remaining authorized funds of $372.6 million under its new stock repurchase program[31] - The company repurchased approximately 9.0 million shares of common stock at an average price of $69.93 per share, totaling $627.4 million in the first quarter of 2025[32] Equity and Intangible Assets - Total equity investments increased to $619.1 million in Q1 2025 from $361.0 million at year-end 2024, representing a growth of 71.5%[40] - The carrying amount of equity method investments was primarily related to a 15% investment in PTx Trimble, valued at $220.5 million in Q1 2025[42] - Total intangible assets amounted to $2,058.6 million in Q1 2025, with a net carrying amount of $988.7 million after accumulated amortization[45] - Goodwill increased to $5,106.6 million in Q1 2025, up from $4,988.4 million at year-end 2024, reflecting a growth of 2.4%[46] - Total inventories decreased to $187.2 million in Q1 2025 from $194.3 million at year-end 2024, a decline of 3.6%[47] Revenue Recognition and Deferred Revenue - Deferred revenue at the end of Q1 2025 was $892.8 million, compared to $818.6 million at the end of Q1 2024, reflecting a year-over-year increase of 9%[62] - Approximately $1.7 billion in revenue is expected to be recognized from remaining performance obligations, with $1.2 billion or 72% anticipated to be recognized in the next 12 months[63] Tax and Obligations - The effective income tax rate increased to 22.8% in Q1 2025 from 21.6% in Q1 2024, primarily due to lower U.S. federal R&D credits[66] - Unrecognized tax benefits at the end of Q1 2025 were $46.4 million, slightly up from $45.8 million at the end of Q1 2024[67] - The company had unconditional purchase obligations of approximately $430.6 million at the end of Q1 2025, primarily related to service agreements and inventory purchases[68] Foreign Currency Impact - In Q1 2025, foreign currency exchange rate fluctuations had an unfavorable impact of $9.4 million on revenue and $0.9 million on operating income[136] - The company entered into foreign currency forward contracts with a nominal amount of $505.9 million at the end of Q1 2025, aimed at minimizing exchange rate fluctuations[138] Corporate Governance - On April 25, 2025, the company appointed KPMG LLP as its new independent registered public accounting firm, replacing Ernst & Young LLP[70]