Q3 2025 Financial Performance - Trimble's Q3 2025 as-adjusted revenue reached $901 million, reflecting an organic growth of 11%[16] - The company's as-adjusted Annual Recurring Revenue (ARR) stood at $2310 million, with an organic growth of 15%[12, 16] - Non-GAAP gross margin improved to 712%, a 90 basis points increase year-over-year[16] - Non-GAAP operating income margin expanded to 282%, a 140 basis points increase year-over-year[16] - Adjusted EBITDA margin increased to 299%, a 160 basis points increase year-over-year[16] Balance Sheet and Cash Flow - Year-to-date free cash flow was $206 million[20] - Cash and equivalents totaled $233 million, with total debt at $1392 million, resulting in net debt of $1159 million[20] FY25 Outlook - The company updated its FY25 revenue outlook to $3522 to $3562 billion[33] - The company expects organic ARR growth of 13% to 15%[33]

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]

Core Insights - Trimble has launched Trimble Materials, an end-to-end purchasing, inventory, and accounts payable software solution aimed at helping contractors manage material costs and enhance budget and inventory tracking [1][2] - The solution integrates with Trimble ERP systems, facilitating a more efficient construction management ecosystem by connecting material ordering, inventory, and accounting processes [3] - Trimble Materials will be showcased at the CFMA National Conference and is available for North American contractors as part of the Trimble Construction One software suite [5] Group 1 - The construction sector faces challenges in managing material orders due to volatile pricing and availability, which Trimble Materials addresses by providing a cohesive solution [2] - The software allows field users to search for materials, view inventory, and communicate with office teams, while office users can control and process orders more efficiently [4] - Trimble Materials creates a comprehensive view of purchasing activities and spend analysis, centralizing the contractor's purchasing and materials management process [4] Group 2 - Trimble is a global technology company that connects the physical and digital worlds, focusing on industries such as construction, geospatial, and transportation [5] - The company emphasizes innovation in precise positioning, modeling, and data analytics to enhance productivity and progress across essential industries [5]

Q1 2025 Financial Performance - As-reported revenue was $841 million, while as-adjusted revenue was $818 million[8] - As-adjusted organic revenue growth was +3%, and +10% excluding the impact of January 1 term license revenue[8,16] - As-reported ARR reached $2,176 million, with as-adjusted ARR at $2,111 million, representing +17% organic growth[8] - Non-GAAP EPS was $061, reaching the high-end of guidance[8] Segment Performance (As-Adjusted) - AECO revenue was $335 million with 0% organic growth, but +17% organic growth excluding January 1 term license revenue; ARR grew +19% organically to $1,294 million[25] - Field Systems revenue was $359 million, with +6% organic growth; ARR grew +25% organically to $358 million[28] - Transportation & Logistics revenue was $123 million, with +5% organic growth, or +6% excluding January 1 term license revenue; ARR grew +7% organically to $459 million[32] FY25 Outlook (As-Adjusted) - The company maintains full-year revenue guidance of $335 billion to $345 billion, representing +45% to +75% total growth and +40% to +70% organic growth[36] - Annualized Recurring Revenue (ARR) is projected to grow +13% to +15% organically[36] - Non-GAAP operating margin is expected to be between 263% and 273%, with Adjusted EBITDA margin between 278% and 288%[36]