Financial Data and Key Metrics Changes - The company reported fourth-quarter revenue of $970 million, a 9% increase year-over-year, and full-year revenue of $3.57 billion, up 10% [3][21] - Annual recurring revenue (ARR) grew 14% to $2.39 billion, with a notable 16% increase in the AECO segment and a 20% increase in field systems [3][21] - Earnings per share (EPS) for the quarter was $1, up 12%, and for the year was $3.13, up 10% [3][22] - Gross margins expanded to 74.6%, and EBITDA margins reached 33.5% for the quarter [22] Business Line Data and Key Metrics Changes - AECO segment delivered $454 million in revenue, up 15%, and ARR of $1.48 billion, up 16% [6][24] - Field systems revenue was $379 million, up 4%, and ARR was $409 million, up 20% [11][24] - Transportation and logistics segment reported revenue growth of 4% and ARR growth of 7% [15][24] Market Data and Key Metrics Changes - The company noted a strong performance in the machine control guidance as a service and growth in the automotive and geospatial markets [31] - The transportation market remains challenged, but the company continues to grow despite these conditions [15][21] Company Strategy and Development Direction - The company is focused on a "connect and scale" strategy, integrating hardware and software to enhance customer outcomes [4][27] - There is a strong emphasis on AI as a force multiplier to accelerate value delivery across the business [4][9] - The company aims to expand its recurring revenue base, which has increased from 40% to 65% of total revenue [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards achieving $3 billion in ARR and $4 billion in revenue by 2027 [22][25] - The macroeconomic environment is expected to remain consistent, with some challenges in the freight market and muted federal government business [44] - Management anticipates continued strong growth in the field systems segment, despite a natural deceleration in ARR growth due to prior conversions [31][32] Other Important Information - The company repurchased approximately $148 million worth of shares in the fourth quarter, reflecting confidence in long-term value [19] - The company has a substantial $925 million remaining under its current share repurchase authorization [19] Q&A Session Summary Question: Can you speak to the strengths in field systems ARR growth? - Management noted strong performance in machine control guidance as a service and growth in automotive and geospatial markets [31] Question: How will the construction industry adopt Agentic AI? - Management believes Trimble platforms are well-positioned for customers to adopt Agentic workflows, leveraging existing data and relationships [35][36] Question: What are the assumptions for the macro environment in 2026 guidance? - Management expects a consistent macro environment with challenges in the freight market and pockets of strength in construction [44] Question: Where are new customers coming from in AECO? - New customers are coming from geographic expansion and product penetration, with a strong adoption of bundled offerings [47][48] Question: How does the company plan to monetize AI features? - Monetization will include consumption models and tiered offerings, with a focus on integrating AI capabilities into existing solutions [37][71] Question: What is the technology infrastructure readiness for AI features? - The company is already on a path to be AI-ready, having invested in the necessary technology infrastructure over the past few years [82]

Financial Data and Key Metrics Changes - The company reported $970 million in revenue for Q4 2025, a 9% increase year-over-year, and $3.57 billion for the full year, up 10% [3][19] - Annual recurring revenue (ARR) grew 14% to $2.39 billion, with a 16% increase in the AECO segment and a 20% increase in field systems [3][19] - Earnings per share (EPS) for Q4 was $1, up 12%, and $3.13 for the year, up 10% [3][19] - Gross margins expanded to 74.6% in Q4 and 71.7% for the full year, with EBITDA margins at 33.5% and 29.3% respectively [19][20] Business Line Data and Key Metrics Changes - AECO segment delivered $454 million in revenue, up 15%, and ARR of $1.48 billion, up 16% [5][21] - Field systems revenue was $379 million, up 4%, with ARR at $409 million, up 20% [10][22] - Transportation and logistics segment saw revenue growth of 4% to $136 million and ARR growth of 7% to $508 million [14][22] Market Data and Key Metrics Changes - The company noted a strong performance in the civil construction market, contributing to the growth in field systems [10][22] - The transportation market remains challenged, but the company continues to grow despite these conditions [14][22] Company Strategy and Development Direction - The company is focused on a "connect and scale" strategy, integrating hardware and software to enhance customer outcomes [4][5] - There is a strong emphasis on AI as a force multiplier to accelerate value delivery across the business [4][8] - The company aims to expand its recurring revenue base, which has increased from 40% to 65% of total revenue [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards achieving $3 billion in ARR and $4 billion in revenue by 2027 [19][24] - The macroeconomic environment is expected to remain consistent, with some challenges in the freight market and muted federal government business [31] - Management anticipates continued strong growth in the AECO and field systems segments, with a focus on capitalizing on cross-selling opportunities [9][31] Other Important Information - The company repurchased approximately $148 million worth of shares in Q4, reflecting confidence in long-term value [17] - The company is focused on tuck-in acquisitions to strengthen its core market positions, particularly in construction software [18] Q&A Session Summary Question: Can you speak to the strengths in field systems ARR growth? - Management noted strong performance in machine control guidance as a service and software conversions driving growth [26] Question: How will the construction industry ramp up adoption of Agentic AI? - Management believes Trimble platforms are well-positioned for Agentic workflows, leveraging existing customer relationships and data [28] Question: What are the assumptions for the macro environment in 2026 guidance? - Management expects a consistent macro environment with muted federal business and challenges in the freight market [31] Question: Where are new customers coming from in AECO? - New customers are coming from geographic expansion and product penetration, with a strong focus on integrated solutions [33] Question: How does the company view the adoption of AI in its customer base? - Management sees AI as a force multiplier and anticipates strong adoption as they roll out new capabilities [45] Question: What is the technology infrastructure readiness for AI features? - The company has been investing in technology infrastructure and is well-prepared for AI capabilities [50]

Core Insights - Trimble forecasts annual revenue and earnings above Wall Street estimates, driven by increased demand from its strategy of bundling navigation products with software solutions for various industries [1] Group 1: Financial Performance - The company anticipates higher annual revenue and earnings, indicating strong market performance and effective strategic initiatives [1] Group 2: Strategic Initiatives - Trimble's strategy involves bundling navigation products with software solutions, which is expected to enhance demand across different sectors [1]

© 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 ...

Revenue Performance - Trimble reported record annualized recurring revenue of $2.39 billion, up 6% year-over-year, and 14% on an organic basis[8]. - Fourth quarter revenue was $970 million, down 1% year-over-year, but up 4% on an organic basis[8]. - Total revenue for fiscal 2025 was $3,587.3 million, down 3% year-over-year, but up 6% on an organic basis[9]. - Total revenue for 2025 was $3,587.3 million, a decline from $3,683.3 million in 2024[23]. - Segment revenue for AECO in Q4 2025 reached $454.4 million, up from $413.8 million in Q4 2024, representing a growth of 9.5%[21]. Income and Earnings - GAAP operating income for Q4 was $216.2 million, representing 22.3% of revenue, while non-GAAP operating income was $313.1 million, or 32.3% of revenue[8]. - Trimble's GAAP net income for Q4 was $156.6 million, with diluted earnings per share of $0.65[8]. - Net income for 2025 was $424.0 million, a decrease from $1,504.4 million in 2024[19]. - GAAP net income for the latest quarter was $156.6 million, compared to $90.2 million in the previous quarter, and $424.0 million in the same quarter last year[24]. - Non-GAAP net income reached $240.8 million, up from $221.5 million quarter-over-quarter, and $756.3 million year-over-year[24]. Cash Flow and Share Repurchase - Operating cash flow for 2025 was $386.2 million, down from $531.4 million in 2024[19]. - The company repurchased approximately 1.9 million shares for $148.1 million during Q4 2025[8]. - The company repurchased $863.4 million in common stock during 2025, compared to $175.0 million in 2024[19]. - Free cash flow for the latest quarter was $360.9 million, down from $497.8 million in the previous quarter[24]. - The company reported a net cash decrease of $494.4 million in 2025, contrasting with a net increase of $508.9 million in 2024[19]. Future Guidance - For full-year 2026, Trimble expects revenue between $3,810 million and $3,910 million, with GAAP earnings per share guidance of $2.04 to $2.23[4]. - In Q1 2026, Trimble anticipates revenue between $893 million and $918 million, with GAAP earnings per share of $0.32 to $0.36[5]. - Forecasted GAAP diluted net income per share for the first quarter of 2026 is projected to be between $0.32 and $0.36[24]. - Non-GAAP diluted net income per share is expected to range from $0.69 to $0.74 for the first quarter of 2026[24]. Operating Metrics - Adjusted EBITDA for Q4 was $324.8 million, representing 33.5% of revenue[8]. - Non-GAAP gross margin for Q4 2025 was $723.3 million, or 74.6% of revenue, compared to $705.2 million, or 71.7% in Q4 2024[23]. - Operating income for the Field Systems segment in 2025 was $478.1 million, with an operating income margin of 31.1%[21]. - Non-GAAP operating income was $313.1 million, reflecting a 32.3% margin, compared to $283.6 million and a 28.8% margin in the previous quarter[24]. - The company reported a GAAP operating income of $216.2 million, which is a 22.3% margin, compared to $173.5 million and a 17.6% margin in the previous quarter[24]. Asset Management - Trimble's total assets at the end of 2025 were $9,312.0 million, a decrease from $9,488.3 million in 2024[17]. - Cash paid for income taxes in 2025, excluding tax for the Ag divestiture, was $150.1 million, compared to $106.1 million in 2024[19]. - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $24.8 million in 2025[19]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures to provide a clearer view of core operating performance, excluding non-recurring items[26].

Core Insights - Trimble Inc. reported strong financial results for Q4 and full year 2025, exceeding expectations and achieving record gross margins and operating income margins [1][2] - The company announced guidance for 2026, projecting revenue between $3.81 billion and $3.91 billion, with GAAP EPS of $2.04 to $2.23 and non-GAAP EPS of $3.42 to $3.62 [1][2] Financial Highlights - Q4 2025 revenue was $969.8 million, a 1% decrease year-over-year but a 4% increase on an organic basis [1][2] - Adjusted EBITDA for Q4 was $324.8 million, representing 33.5% of revenue [1][2] - Annualized recurring revenue (ARR) reached $2.39 billion, up 6% year-over-year and 14% on an organic basis [1][2] Share Repurchase and Earnings - In Q4 2025, Trimble repurchased approximately 1.9 million shares for $148.1 million [1][2] - GAAP net income for Q4 was $156.6 million, with diluted EPS of $0.65; non-GAAP net income was $240.8 million, with non-GAAP diluted EPS of $1.00 [1][2] Fiscal Year Performance - For fiscal 2025, Trimble's total revenue was $3.59 billion, down 3% year-over-year but up 6% on an organic basis [1][2] - The company repurchased approximately 12.2 million shares for $875.4 million during the fiscal year [1][2] Forward-Looking Guidance - For Q1 2026, Trimble expects revenue between $893 million and $918 million, with GAAP EPS of $0.32 to $0.36 and non-GAAP EPS of $0.69 to $0.74 [1][2] - The guidance assumes approximately 239 million shares outstanding and includes specific tax rate assumptions for GAAP and non-GAAP measures [1][2] Segment Performance - In Q4 2025, the AECO segment generated revenue of $454.4 million, Field Systems $378.9 million, and T&L $136.5 million [3][4] - Operating income margins for these segments were 44.1%, 30.0%, and 22.9% respectively [3][4] Cash Flow and Capital Expenditures - Cash flow from operating activities for fiscal 2025 was $386.2 million, with free cash flow of $360.9 million after capital expenditures of $25.3 million [3][4] - The company reported a decrease in cash and cash equivalents to $253.4 million at the end of 2025 [3][4]

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Company Overview - Trimble Inc. has a market capitalization of $15.5 billion and provides software, hardware, and positioning solutions across various industries including architecture, engineering, construction, transportation, and logistics [1] Stock Performance - Over the past 52 weeks, Trimble's stock has declined by 13.5%, while the S&P 500 Index has increased by nearly 14% [2] - Year-to-date, Trimble's shares are down 17.1%, contrasting with a slight rise in the S&P 500 [2] - Compared to the State Street Technology Select Sector SPDR ETF, Trimble's stock has underperformed by nearly 17% over the past year [3] Recent Financial Results - On November 5, Trimble's shares rose by 2.5% following the release of Q3 2025 results, which exceeded expectations with revenue of $901.2 million and record annualized recurring revenue of $2.31 billion [6] - The company reported adjusted operating income of $254.2 million, adjusted EPS of $0.81, and adjusted EBITDA of $269.4 million [6] - Trimble raised its full-year 2025 guidance, projecting revenue between $3.55 billion and $3.59 billion, and adjusted EPS between $3.04 and $3.12, indicating confidence in its Connect & Scale strategy [6] Analyst Expectations - For the fiscal year ending December 2025, analysts anticipate Trimble's EPS to grow by 15.8% year-over-year to $2.56 [7] - The company's earnings surprise history is mixed, with three out of the last four quarters beating consensus estimates [7] - Among 13 analysts covering Trimble, the consensus rating is a "Strong Buy," supported by 11 "Strong Buy" ratings, one "Moderate Buy," and one "Hold" [7] Price Target Update - Barclays has raised its price target on Trimble to $101 while maintaining an "Overweight" rating [8]

Company Overview - Trimble Inc. specializes in scientific and technical instruments across various sectors, including agriculture, construction, and geospatial services, helping to improve productivity and efficiency in these industries [1][5] - The company has a market capitalization of approximately $15.4 billion, positioning it as a significant player in its field despite facing competition from other technology firms [1] Recent Trading Activity - On January 29, 2026, April Delaney sold Trimble shares valued between $1,001 and $15,000, indicating ongoing interest from institutional investors [2] - AlphaQuest LLC acquired 11,762 shares valued at approximately $960,000 during the third quarter, as reported in their latest 13F filing with the SEC [2] - Other institutional investors, such as Salomon and Ludwin LLC, Root Financial Partners LLC, and Catalyst Capital Advisors LLC, have also made investments in Trimble, with stakes valued at $25,000, $30,000, and $34,000 respectively [3] Stock Performance - Trimble's stock price is currently $64.72, reflecting a decrease of approximately 4.65%, with a trading range today between $64.68 and $68.08 [4][5] - Over the past year, the stock has experienced a high of $87.50 and a low of $52.91, indicating volatility in its market performance [4] - Today's trading volume for Trimble on the NASDAQ exchange is 810,218 shares [4]

Core Insights - The Zacks Industrial Products sector is expected to face a year-over-year earnings decline of 2.1% in Q4 2025, contrasting with a 3% growth in the previous quarter, while revenues are projected to increase by 10.5% [3] Industry Overview - The Industrial Products sector is experiencing challenges due to ongoing weakness in the manufacturing sector, with the Manufacturing PMI indicating contraction for ten consecutive months [5] - The New Orders Index has also shown a decline, with readings of 48.7%, 47.3%, and 47.4% for October, November, and December respectively [6] - Inflationary pressures, labor market slack, supply-chain disruptions, and cautious consumer spending are impacting the sector's performance [7] Positive Factors - Companies involved in commercial and defense aerospace markets are benefiting from strong aftermarket and OEM demand, supported by robust air travel and government backing [8] - Resilience in nondurables, business supplies, and food & beverage markets is expected to positively influence the sector's results [8] Earnings Estimates and Stock Performance - Kennametal Inc. (KMT) is projected to report a 40% year-over-year increase in Q4 EPS, driven by strength in the Metal Cutting segment and increased defense spending [12][13] - Mueller Water Products, Inc. (MWA) is expected to see an 8% year-over-year increase in earnings, supported by solid demand across its product lines and manufacturing efficiencies [14][15] - Trimble Inc. (TRMB) anticipates a 7.9% year-over-year increase in earnings, benefiting from strong growth in recurring revenue streams and customer adoption of digital solutions [16][17]