This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Artificial intelligence has dominated the construction technology conversation in recent years. Amid that push, solutions that use AI for scheduling, permitting and preconstruction appealed to investors as 2025 drew to a close. Here are six contech firms that pulled in fresh funding in Q4 of 2025. PermitFlow $54 million New York City-based PermitFlow, a co ...

Group 1: Acquisition Announcement - Deere & Company announced the acquisition of construction technology company Tenna to scale and grow its business using Tenna's customer-focused mixed-fleet model [1][7] - Tenna is part of The Conti Group and provides a platform that automates and optimizes construction operation workflows [2] - The deal is expected to close in February 2026, pending regulatory approvals, with Tenna continuing to operate independently under its own brand [3][7] Group 2: Financial Performance - Deere reported fourth-quarter fiscal 2025 earnings of $3.93 per share, missing the Zacks Consensus Estimate of $3.96, and reflecting a 14% decrease from the prior-year quarter due to higher production costs and tariff impacts [4] - Net sales of equipment operations reached $10.6 billion, a 14% year-over-year increase, surpassing the Zacks Consensus Estimate of $9.99 billion; total net sales, including financial services, were $12.4 billion, up 11% year over year [5] Group 3: Stock Performance - Deere's shares have increased by 9.2% over the past year, outperforming the industry's growth of 6.9% [6]

Acquisition Overview - Deere & Company has agreed to acquire Tenna, a US-based construction technology company, for an undisclosed amount, with the transaction subject to regulatory approval and expected completion by February 2026 [1] - Following the acquisition, Tenna will operate independently under its existing tradename, focusing on expanding its mixed-fleet management model [2] Technology and Operations - Tenna's technology integrates operations across job sites, equipment shops, and office locations, helping contractors manage resources effectively [3] - The platform automates workflows and enables near real-time monitoring of assets, providing insights on equipment status and trends to support decision-making [3] Company Background and Market Strategy - Deere & Company, established in 1837, manufactures construction, agricultural, and forestry machinery, and has recently updated its backhoe range to enhance operator comfort and jobsite visibility [4] - During its Investor Day 2025, Deere announced a target of 10% compound annual growth rate in net sales from 2025 to 2030 and plans to launch in-house designed excavators for the North American market in mid-2026, with excavators representing approximately 40% of earthmoving equipment sales [5] Financial Performance - In the fourth quarter of fiscal 2025, Deere's Construction and Forestry segment sales increased by 27% due to higher shipment volumes, while operating profit grew by 6%, although growth was tempered by increased production costs [6]

Overview of the AI in Construction Market - The AI in construction market is projected to grow from USD 11.1 billion in 2025 to USD 24.3 billion by 2030, with a compound annual growth rate (CAGR) of 16.9% driven by investments in digital infrastructure, labor shortages, and stricter safety regulations [1][2] - The adoption of AI technologies is increasing among contractors, who utilize predictive analytics, cloud-based platforms, and autonomous equipment to enhance resource management, reduce overruns, and ensure safety compliance [1][2] Key Trends in AI In Construction Market - **Predictive Analytics for Cost and Schedule Optimization**: Predictive analytics tools allow contractors to simulate various scenarios using real-time data, helping to anticipate delays and cost overruns, thus reducing labor costs and project delays [3] - **Construction-Site Safety Enhancement**: AI-powered safety solutions utilize computer vision and sensors to monitor compliance and detect equipment issues, significantly reducing incident rates and insurance claims [4] - **Automation and Robotics Adoption**: Labor shortages are prompting the use of robotics for tasks like bricklaying and rebar tying, which improves accuracy and reduces manual labor hours [5][6] - **Sustainability and Cloud-Based Deployments**: AI solutions assist firms in meeting environmental standards by optimizing energy use and monitoring emissions, while cloud-based platforms facilitate real-time collaboration and data centralization [7] Market Segmentation in AI In Construction Industry - The market is segmented by components (solutions and services), applications (planning, safety, autonomous equipment, etc.), deployment (cloud, on-premises, hybrid), project lifecycle phases, end-users, and project types [10] Key Players in AI In Construction Market - Major companies include Autodesk, Smartvid.io, Doxel, Trimble, and Bentley Systems, each offering various AI-driven solutions for project planning, safety management, and efficiency tracking [9][12] Conclusion - The AI in construction market presents substantial growth opportunities, with a focus on efficiency, safety, and sustainability driving adoption across various regions, particularly in North America and Asia Pacific [11]

Core Insights - EarthCam announced significant enhancements to its AI-powered visual intelligence for construction management at Procore's Groundbreak 2025, introducing features like automated schedule documentation and image tagging for permit milestones [1][2][3] Company Enhancements - New capabilities include automated schedule documentation, image tagging for permit milestones, and AI-powered visual data integration with Procore's project management platform, aimed at improving safety, progress monitoring, and scheduling [1][3] - EarthCam's ninth-generation integration with Procore now features automated schedule visualization, linking project schedules with high-resolution visual data, thus creating a one-stop visual timeline for construction milestones [4][5] Industry Challenges Addressed - EarthCam's visual intelligence addresses persistent challenges in the construction industry, such as manual project documentation and fragmented record-keeping, which often lead to wasted time and miscommunication [2][3] - The integration of EarthCam's technology helps eliminate manual tasks, reduce safety risks, and enhance productivity by providing a comprehensive visual record for project management [3][4] New Tools and Features - The new Permit Milestone Tag allows users to mark permit-related events directly within the EarthCam AI Media Dashboard, streamlining the permitting and inspection documentation process [5][6] - Data captured by EarthCam's visual intelligence, including material deliveries and equipment usage, can be integrated into Procore Analytics 2.0, enabling live dashboards that combine various project metrics [6][7] Company Background - EarthCam is recognized as a global leader in visual intelligence for construction, with a legacy of documenting projects valued at over a trillion dollars [9][10] - The company provides camera rentals, professional installation, and AI analytics to enhance construction project management efficiency [7][9]

Company Transition - Procore has announced Ajei Gopal as the new CEO, succeeding founder Tooey Courtemanche, who will step down in November [1][2] - Gopal, with 35 years of experience, is set to start on November 10, following Procore's Q3 earnings announcement [2] - Courtemanche will transition to focus on his role as chair of the board of directors [2] Leadership Background - Before joining Procore, Gopal served as CEO of Ansys from 2017 to 2025, where he significantly increased revenue and market value [3] - Gopal has held senior positions at Hewlett-Packard, CA Technologies, and Symantec, and was an operating partner at Silver Lake [3] Industry Context - Courtemanche's leadership coincided with a significant shift in the construction industry from paper to digital project management [4] - The construction sector is increasingly adopting tailored technological solutions amid a surge of artificial intelligence offerings [6] - Courtemanche emphasized Procore's mission-driven approach to empower builders, highlighting Gopal's experience in scaling software companies [8]

Core Insights - The construction technology sector is experiencing significant investment, with a recent $110 million round of venture capital funding highlighting the demand for solutions that consolidate data and improve jobsite layout efficiency [1] Funding Highlights - **GreenLite**: Raised $49.5 million in Series B funding, led by Insight Partners, to enhance its AI-powered permitting review software, LiteTable, which aids in compliance and code requirements [3][4][5] - **Mechasys**: Secured $23 million in Series A funding, led by Idealist Capital, to advance its projected reality technology, the XR projector, which offers precise layout solutions for construction projects [6][7] - **DroneDeploy**: Achieved $15 million in strategic funding and reached break-even, supported by existing investors including Emergence Capital and Scale Venture Partners [8] Market Trends - The construction technology landscape is increasingly focused on AI and projected reality solutions, indicating a shift towards more efficient and accurate construction processes [1][6] - The influx of capital into these firms suggests strong investor confidence in the potential for technological advancements to transform the construction industry [2][5]

Financial Data and Key Metrics Changes - Revenue for the quarter was $876 million, up 9% organically [6] - Annual Recurring Revenue (ARR) reached $2.21 billion, up 14% organically [6] - Earnings per share (EPS) was $0.71, reflecting a 15% year-over-year increase [6][22] - Gross margins expanded by 210 basis points to 70.6% [22] - EBITDA margins increased by 170 basis points year-over-year to 27.4% [22] Business Line Data and Key Metrics Changes - AECO segment reported ARR of $1.36 billion and revenue of $350 million, both up 16% [10][23] - Field Systems revenue increased by 3% to $393 million, with ARR up 17% to $358 million [13][24] - Transportation and Logistics segment saw revenue and ARR both rise by 8% [16][25] Market Data and Key Metrics Changes - The construction market remains strong, with healthy backlogs and hiring activity among customers [19] - The transportation market is stabilizing, with more upward catalysts than downward [19] - The public sector is experiencing mixed performance, with state-level departments of transportation showing strength while federal business is down significantly [60][62] Company Strategy and Development Direction - The company is focused on its "Connect and Scale" strategy, which aims to bundle solutions and enhance customer access to technology [4][3] - There is a strong emphasis on AI capabilities, with ongoing efforts to integrate AI across various functions and products [5][8] - The company aims to achieve $3 billion in ARR, $4 billion in revenue, and a 30% EBITDA margin by 2027 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing rollout of AI and its potential to unlock efficiency and customer value [8][19] - Customer sentiment remains stable, with positive pockets of growth in energy infrastructure and civil construction [44] - The company is navigating macroeconomic uncertainties, including tariffs and inflation, but sees opportunities outweighing risks [18][20] Other Important Information - The company repurchased $50 million of shares in the second quarter, with $323 million of authorization remaining [21] - The repeal of Section 174 is expected to provide a cash flow benefit of approximately $50 million in 2025 [20] Q&A Session Summary Question: Can you talk about how Trimble's platform benefits from adding AI capabilities? - Management believes the quality of AI correlates with the quantity and quality of underlying data, expressing optimism about a data-forward future [31][32] Question: Where is the traction coming from in bundling products together? - About two-thirds of bookings are from existing customers, indicating strong cross-sell opportunities [35] Question: What is the update on customer sentiment and cycle times? - Overall customer sentiment remains similar to previous quarters, with strength noted in data centers and civil infrastructure [44] Question: How is the model transition in Field Systems performing? - ARR in Field Systems was up 17%, indicating strong customer adoption of the subscription model [49] Question: What is the outlook for the public sector? - Federal business is down significantly, but state-level departments of transportation are performing well [60][62] Question: How is the rollout of TC1 in Europe progressing? - TC1 bookings have nearly doubled year-over-year, with positive early reception in Europe [66] Question: How is the SMB market performing in AECO? - The SMB market continues to show relative strength, with many larger contractors working with SMBs to execute projects [71]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $876 million, up 9% organically compared to the previous year [6] - Annual Recurring Revenue (ARR) reached $2.21 billion, up 14% organically [6] - Earnings per share (EPS) was $0.71, reflecting a 15% year-over-year increase [6][23] - Gross margins expanded by 210 basis points to 70.6% [23] - EBITDA margins increased by 170 basis points year-over-year to 27.4% [23] Business Line Data and Key Metrics Changes - AECO segment reported ARR of $1.36 billion and revenue of $350 million, both up 16% [11][24] - Field Systems revenue was $393 million, up 3%, with ARR at $358 million, up 17% [14][25] - Transportation and Logistics revenue and ARR both increased by 8% [16][26] Market Data and Key Metrics Changes - The construction market remains strong, with healthy backlogs and hiring activity among customers [19] - The transportation market is stabilizing, with more upward catalysts than downward [19] - The public sector showed mixed results, with federal business down significantly while state-level departments of transportation are performing well [62] Company Strategy and Development Direction - The company is focused on its "Connect and Scale" strategy, which aims to integrate workflows and enhance customer access to technology [4][3] - There is a strong emphasis on AI capabilities, with ongoing training and deployment across various functions [9][10] - The company aims to achieve $3 billion in ARR, $4 billion in revenue, and a 30% EBITDA margin by 2027 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the AI-driven future and the company's readiness to leverage its unique dataset [9][34] - Customer sentiment remains stable, with positive pockets of growth in energy infrastructure and civil construction [44] - The company is navigating macroeconomic uncertainties, including tariffs and inflation, but sees opportunities outweighing risks [18][21] Other Important Information - The company repurchased $50 million in shares during the quarter, with $323 million remaining in authorization [22] - The repeal of Section 174 is expected to provide a cash flow benefit of approximately $50 million in 2025 [21] Q&A Session Summary Question: Can you talk about how Trimble's platform benefits from adding AI capabilities? - Management believes the quality of AI correlates with the quantity and quality of underlying data, expressing optimism about a data-forward future [31][32] Question: Where is the traction coming from in bundling products together? - About two-thirds of bookings are from existing customers, indicating strong cross-sell opportunities [36] Question: What is the update on customer sentiment and cycle times? - Customer sentiment remains similar to Q1, with strength noted in energy infrastructure and civil construction [43][44] Question: How is the public sector performing? - Federal business is down significantly, while state-level departments of transportation are strong due to infrastructure spending [62] Question: How is the adoption of recurring revenue models in field systems? - The company has seen a 17% year-over-year increase in ARR for field systems, indicating strong customer adoption [49][50]

Core Insights - APEX Technologies has been named the newest Trimble Technology Outlet, expanding its offerings of Trimble technology to customers using John Deere construction equipment across multiple states in the central U.S. [1][2] - The partnership aims to enhance jobsite productivity and profitability by providing Trimble grade control solutions, site positioning systems, and correction services directly to customers [4][5] Company Overview - APEX Technologies is the technology division of McCoy Construction & Forestry, which specializes in sales, parts, and service for construction technology related to GPS/GNSS, machine control, and laser equipment [7] - McCoy Construction & Forestry operates as a family-owned John Deere dealer with 25 locations across the central U.S., offering new and used equipment sales, rentals, and extensive product support [8] Industry Context - Trimble's strategy includes expanding its distribution network through authorized resellers, making it easier for users of various machine types to access and utilize Trimble technology [3] - The collaboration with APEX is expected to provide superior support, including installation, service, and training, to enhance customer experience and operational efficiency [4][5]