Trimble (NasdaqGS:TRMB) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsGuy Hardwick - BarclaysJonathan Ho - PartnerJosh Tilton - SVP of Equity ResearchKristen Owen - Managing DirectorPhil Sawarynski - CFORob Painter - President and CEOTami Zakaria - Head of Machinery, Engineering, Construction Equity ResearchConference Call ParticipantsJason Celino - Managing Director and Software Equity Research AnalystNay Soe Naing - Equity Research AnalystRob Mason - Senior Research AnalystOperat ...

Trimble (NasdaqGS:TRMB) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsGuy Hardwick - BarclaysJonathan Ho - PartnerJosh Tilton - SVP of Equity ResearchKristen Owen - Managing DirectorPhil Sawarynski - CFORob Painter - President and CEOTami Zakaria - Head of Machinery, Engineering, Construction Equity ResearchConference Call ParticipantsJason Celino - Managing Director and Software Equity Research AnalystNay Soe Naing - Equity Research AnalystRob Mason - Senior Research AnalystOperat ...

© 2026 Trimble, Inc - All Rights Reserved Forward-Looking Statements Trimble Inc. Fourth Quarter and Full Year 2025 Earnings Summary Certain statements made in this presentation and any subsequent Q&A period are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational resu ...

Financial Data and Key Metrics Changes - The company reported revenue of $901 million for the third quarter, representing an 11% year-over-year increase [5] - Annual Recurring Revenue (ARR) grew by 15% to $2.31 billion, with a notable 17% increase in the AECO segment [5] - Earnings per share (EPS) increased by 16% year-over-year to $0.81, exceeding guidance [27] - Recurring revenue accounted for 63% of total revenue, with software and services making up 78% [6] Business Line Data and Key Metrics Changes - AECO segment achieved $1.42 billion in ARR and $358 million in revenue, both up 17% [29] - Field Systems revenue increased by 8% to $409 million, with ARR growing by 18% [30] - Transportation and Logistics segment reported a 4% revenue growth and a 7% increase in ARR [32] Market Data and Key Metrics Changes - The company noted strong demand for AI data centers, with significant global backlogs among customers [12] - The business is resilient due to its diverse end markets, including infrastructure, residential, energy, and commercial sectors [12] Company Strategy and Development Direction - The company is focused on its "Connect and Scale" strategy, which aims to deliver transformative outcomes to global customers [3] - Partnerships with organizations like RFK Racing and Liverpool FC are part of the strategy to enhance brand visibility and application of technology [4] - The company is committed to integrating AI across its business to drive internal efficiencies and product innovation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2027 targets, with a focus on $3 billion in ARR, $4 billion in revenue, and 30% EBITDA [35] - The impact of the U.S. Federal government shutdown was anticipated to be contained to single-digit millions in the second half of 2025 [7][39] - Management highlighted the importance of AI as a tool to enhance value propositions and extend leadership in the market [12] Other Important Information - The company repurchased $50 million worth of shares during the third quarter, reflecting confidence in long-term value [25] - The balance sheet remains strong with $233 million in cash and a leverage ratio of 1.2 times [28] Q&A Session Summary Question: Impact of government shutdown - Management anticipated a lower impact from the government shutdown, estimating single-digit millions in the second half of the year [39] Question: Strength in AECO segment - Management noted strong performance across AECO components, particularly in BIM and engineering solutions, and highlighted the success of ProjectSight in Europe [42][43] Question: 2026 growth outlook - Management expressed confidence in 2026 growth, indicating that the performance to date improves confidence in achieving 2027 targets [49] Question: AI adoption among customers - Management observed increasing customer interest in AI, with many seeking to unlock data and improve operational efficiency [56][59] Question: OEM strategy and partnerships - Management discussed the importance of OEM relationships and the ability to serve mixed fleet markets, highlighting recent partnerships with various manufacturers [70][100] Question: FedRAMP certification opportunities - Management indicated that FedRAMP certification is important for security posture and could open opportunities in federal business, though no revenue is expected from it in 2026 [113] Question: SketchUp pricing impact - Management discussed pricing dynamics for SketchUp, emphasizing the importance of optimizing pricing strategies to penetrate the market effectively [118][120]

Trimble Inc. FY Conference Summary Company Overview - **Company**: Trimble Inc. (NasdaqGS:TRMB) - **Date of Conference**: September 11, 2025 - **Key Speaker**: Phil Sawarynski, CFO Core Industry Insights - **Industry Focus**: Trimble operates primarily in the construction software, field systems, and transportation sectors, emphasizing technology integration and data connectivity across workflows [3][4][8]. Key Strategic Initiatives - **Connect and Scale Strategy**: This initiative aims to enhance connectivity among workflows, data, and stakeholders, leveraging both hardware and software to create a cohesive ecosystem [11][12][13]. - **Divestitures**: Trimble has divested its agriculture and mobility businesses to streamline operations and focus on core software offerings, resulting in a business model that is now approximately 80% software-related, with two-thirds of revenue being recurring [4][5]. Financial Performance and Projections - **Financial Model**: The company has a gross margin exceeding 70% and is targeting $3 billion in Annual Recurring Revenue (ARR), $4 billion in total revenue, and 30% EBITDA margins by 2027 [16][17]. - **Market Opportunity**: Trimble identifies a $72 billion addressable market, with only 25% penetration, and a $50 billion addressable market in the AECO segment, with only 20% penetration, indicating significant growth potential [19][20]. Customer Segmentation and Product Offerings - **Customer Segments**: The business is segmented into AECO (construction software), field systems (hardware and software), and transportation (logistics). There is significant overlap among customer bases across these segments [8][9]. - **Trimble Construction One (TC1)**: This productization strategy simplifies customer engagement by offering a framework contract that allows for easy addition of capabilities, reducing sales friction [21][25]. Growth Drivers - **Recurring Revenue Growth**: The company is focusing on converting existing perpetual licenses to subscriptions and launching new subscription-based products, which has led to accelerated ARR growth [29][30]. - **Cross-Sell and Upsell Opportunities**: Trimble estimates a $1 billion opportunity for cross-selling to existing customers in the AECO segment alone, highlighting the effectiveness of their sales reorganization [20][23]. Challenges and Market Dynamics - **Transportation Sector**: The transportation business is currently facing a freight recession, but Trimble is optimistic about future growth as market conditions improve. The company aims to unlock $400 million in cross-sell and upsell opportunities within this segment [39][40]. Conclusion - Trimble is strategically positioned to leverage its technology and data capabilities to drive growth in the construction and transportation sectors. The focus on recurring revenue, productization, and customer-centric strategies is expected to enhance its market presence and financial performance in the coming years [4][5][16].

Q2'25 Financial Performance - Trimble's Q2'25 as-adjusted revenue reached $876 million, reflecting a 9% organic growth compared to Q2'24[17] - The company's ARR (Annual Recurring Revenue) stood at $2,210 million, demonstrating a 14% organic increase year-over-year[13, 17] - Non-GAAP Gross Margin improved to 706%, a 210 bps increase from 685% in Q2'24[17] - Non-GAAP Operating Income Margin also saw a 210 bps rise, reaching 254% compared to 233% in the previous year[17] - Adjusted EBITDA Margin expanded by 170 bps to 274% from 257% in Q2'24[17] Segment Performance - AECO (Architects, Engineers, Construction, Owners) segment revenue was $350 million, with a 16% organic growth[23] and ARR of $1,360 million, also up by 16% organically[23] - Field Systems segment revenue reached $393 million, showing a 3% organic increase[26], and ARR grew by 17% organically to $358 million[26] - Transportation & Logistics (T&L) segment revenue was $133 million, reflecting an 8% organic growth[30], with ARR at $492 million, also up by 8% organically[30] FY'25 Outlook - The company updated its FY'25 revenue guidance to $346 to $354 billion, an increase of $100 million at the midpoint[34] - Organic revenue growth for FY'25 is projected to be between 6% and 9%[34]

Financial Data and Key Metrics Changes - The company has transformed from being approximately 50% software five years ago to 75% software today [6] - Annual Recurring Revenue (ARR) has increased to over $2.1 billion, growing 17% organically in the first quarter [7] - Gross margins have improved by 1,200 basis points over the last five years, currently around 70% [7] - EBITDA has seen a 500 basis point improvement during the same timeframe [7] Business Line Data and Key Metrics Changes - The AECO (Architecture, Engineering, Construction, and Owners) software business is projected to reach about $1.4 billion in ARR this year [13] - The company has simplified its offerings, creating over 20 purpose-built bundles to enhance customer accessibility [15] - The construction software segment has seen a 19% growth in ARR in the first quarter, with two-thirds of new bookings coming from existing customers [22] Market Data and Key Metrics Changes - The company operates in 70 countries, with a significant presence in the U.S. market, benefiting from recent infrastructure laws and acts [50][51] - The construction software market is growing in the low single digits, while the company is growing at 19%, indicating market share gains [52] Company Strategy and Development Direction - The company's strategy focuses on "connect and scale," aiming to connect users, data, and stakeholders across industry lifecycles [9] - The company is pursuing a global expansion strategy, particularly in underserved markets like India and the Middle East [66] - The company is exploring both organic growth and potential M&A opportunities to enhance its capabilities in various markets [69] Management's Comments on Operating Environment and Future Outlook - Management sees a healthy backlog among customers, with labor being a bottleneck rather than demand [51] - The company believes it can continue to grow ARR in the teens for the foreseeable future, driven by a strong product-market fit and execution [23] - Management acknowledges the cyclical nature of the construction industry but emphasizes the secular trend towards digitization [57] Other Important Information - The company has undergone 23 divestitures and seven acquisitions in the last five years to simplify and focus its business [8] - The company is leveraging AI for internal efficiencies and customer-facing applications, enhancing productivity and service delivery [95][96] Q&A Session Summary Question: Where do you see new logo wins coming from? - New logo wins are expected to come from mid-sized contractors, with a focus on developing technology to penetrate further down market [89] Question: Can you provide more details about SketchUp? - SketchUp is a key product in the architecture and design suite, growing faster than the segment average, with over 200 million in ARR [91] Question: How is Trimble's cyclicality changing? - The company has a more durable business model today, with two-thirds of revenue being recurring, which provides resilience against market fluctuations [56] Question: What opportunities does Trimble see in the rental market? - The rental market presents opportunities for technology portability, especially in regions where rental is a common business practice [80] Question: How does the company plan to achieve its gross margin targets? - The company aims to reach 74% gross margin by 2027 through organic growth and a favorable mix of software over hardware [106]