Trimble Earnings Surpass Estimates in Q1, Revenues Decline Y/Y

Trimble TRMB has reported first-quarter 2025 non-GAAP earnings of 61 cents per share, surpassing the Zacks Consensus Estimate by 3.39%. The metric decreased 4.7% year over year.

Revenues of $840.6 million beat the Zacks Consensus Estimate by 4.11% but declined 11.8% year over year (2% up on an organic basis).

Product revenues (32.3% of total revenues) were $271.6 million, down 26% year over year. Subscription and services revenues (67.7% of total revenues) also decreased 2.9% year over year to $569 million.

TRMB generated annualized recurring revenues (ARR) of $2.18 billion, which increased 7% year over year (up 15% on an organic basis).

Trimble Inc. Price, Consensus and EPS Surprise

 

Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote

Trimble shares have underperformed the Zacks Industrial Products sector year to date. The stock has declined 8.3% compared with the sector’s 6.7% drop.

TRMB’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the surprise being 7.82%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

TRMB’s Q1 Quarterly Details

The AECO (Architecture, Engineering, Construction, and Owners) segment’s revenues (39.9% of total revenues) were $335.4 million, down 1.1% year over year.

The AECO segment delivered 19% ARR growth, driven by sustained momentum in bookings, strong performance from Trimble Construction One, and successful cross-selling and upselling initiatives.

Field Systems revenues (42.7% of total revenues) of $359.2 million fell 14.3% year over year. The segment achieved 25% ARR growth, led by strong demand in Civil Construction across all regions, robust performance in Positioning Services, and higher sales of Civil Construction and Geospatial subscription offerings.

Transportation and Logistics revenues (17.4% of total revenues) of $146 million declined 25.1% year over year. The segment saw 7% ARR growth, primarily driven by strong performance in Maps and Transporeon.

In the first quarter of 2025, the non-GAAP gross margin was 69.2%, expanding 340 basis points (bps) year over year.

On a non-GAAP basis, operating expenses accounted for 45.6% of total revenues, up 440 bps year over year.

The non-GAAP operating margin was 23.6%, contracting 100 bps year over year.

Trimble’s Balance Sheet & Cash Flow Details

At the end of the first quarter of 2025, cash and cash equivalents were $290 million, down from $738.8 million at the end of the fourth quarter of 2024.

Total debt was $1.39 billion at the end of the first quarter, unchanged from the prior quarter.

Cash generated by operating activities was $155.6 million in the reported quarter compared with $115.1 million in the previous quarter.

The free cash flow was $149 million compared with the previous quarter’s $109 million.

TRMB’s Q2 & 2025 Guidance

The company provided two presentations — one based on as-adjusted figures, excluding the financial results of the agriculture business (divested in the second quarter of 2024) and the mobility business (divested in the first quarter of 2025), and the other on a reported basis, incorporating all adjustments.

For the second quarter of 2025, Trimble expects reported and adjusted revenues between $815 million and $845 million.

TRMB expects the non-GAAP operating margin to be 23.5-24.5% on both a reported and adjusted basis.

The company anticipates non-GAAP earnings per share between 59 cents and 65 cents. 

For 2025, Trimble expects revenues between $3.37 billion and $3.47 billion on a reported basis, whereas adjusted revenues are anticipated between $3.35 billion and $3.45 billion.

ARR is expected to grow 12-14% organically on a reported basis and 13-15% organically on an adjusted basis.

The non-GAAP operating margin is expected to be 26.1-27.1% on a reported basis and 26.3-27.3% on an adjusted basis.

Non-GAAP earnings for 2025 are expected between $2.76 and $2.98 per share on a reported basis.

TRMB’s Zacks Rank & Stocks to Consider

Currently, Trimble carries a Zacks Rank #3 (Hold).

Constellium CSTM, Unifirst UNF and Crown Holdings CCK are some better-ranked stocks in the broader sector. These three stocks presently carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Year to date, Constellium shares moved up 2.5%, Unifirst has gained 5% and Crown Holdings has appreciated 17.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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