Trimble : Earnings Supplement

Published: 2025-05-07 09:14:43 ET TRMB

Published on 05/07/2025 at 09:14

The following is a summary of our Q1-2025 results and updated FY-2025 and Q2-2025 guidance:

Q1-2025 Results

Trimble: +17% as-adjusted organic ARR growth, +3% as-adjusted organic revenue growth (+10% excluding the impact of Jan 1 term license renewals that occurred on January 1, 2024). Q1'25 better than expected; revenue above high-end of guidance; EPS at high-end of guidance

Non-GAAP gross margin of 69.9%, +180 bps year-over-year when compared to Q1'24 excluding the impact of January 1 term licenses.

Adjusted EBITDA margin of 25.9%, +100 bps year-over-year when compared to Q1'24 excluding the impact of January 1 term licenses.

Free cash flow of $149M YTD, which is down year-over-year due to lower EBITDA (divestitures), timing of tax payments, and higher incentive bonus payments.

64% recurring revenue, 78% software/services/recurring revenue illustrate portfolio transformation

AECO: +17% organic revenue growth excluding the impact of January 1 term licenses; +19% organic ARR growth

Revenue, ARR, and operating margin ahead of expectations

Continued strong bookings growth

Strong performance of Trimble Construction One offerings as well as growth in cross selling and upselling initiatives

27.3% operating margin, +50 bps year-over-year when compared to Q1'24 excluding the impact of January 1 term licenses

Field Systems: +6% as-adjusted organic revenue growth, +25% organic ARR growth

Revenue, ARR, and operating profit were ahead of expectations

Strength in Civil Construction in all regions

ARR growth driven by Positioning Services and increased sales of Civil Construction and Geospatial subscription offerings

Margin expansion driven by increased recurring revenue mix and cost containment

29.7% operating margin, +280 basis points year-over-year

T&L: +6% organic revenue growth excluding the impact of January 1 term licenses, +7% organic ARR growth

As-adjusted results exclude Mobility which was divested on February 8, 2025

Maps and Transporeon were primary drivers of growth in Q1

Operating margins down due to temporarily stranded costs from Mobility divestiture

21.2% operating margin, -200 bps year-over-year when compared to Q1'24 excluding the impact of January 1 term licenses

FY-2025 and Q1-2025 Guidance

Although Q1 was ahead of expectations, due to heightened macroeconomic uncertainty, we are maintaining our full year guidance for revenue and EPS for fiscal 2025.

Midpoint of revenue guidance maintained at $3.42B

Midpoint of EPS guidance maintained at $2.87

Full Year 2025 Outlook

FY'25 As-Reported

FY'25 As-Adjusted(1)

Annualized Recurring Revenue (ARR)

+12% to +14%

(Organic)

+13% to +15%

(Organic)

Revenue YoY

$3.37B to $3.47B

$3.35B to $3.45B

Total Growth

(9%) to (6%)

+4.5% to +7.5%

Organic Growth

+1% to +4%

+4.0% to +7.0%

Non-GAAP Operating Margin

26.1% to 27.1%

26.3% to 27.3%

Adj. EBITDA Margin

27.6% to 28.6%

27.8%-28.8%

Non-GAAP EPS

$2.76 to $2.98

Free Cash Flow

≈0.5x

(≈0.9x ex. adjustments)

1. As-adjusted figures exclude the financial results from the agriculture business (divested in Q2'24), mobility business (divested in Q1'25), and the 53rd week of fiscal 2024. Trimble had 53 weeks in fiscal 2024, compared to 52 weeks in most fiscal years.

Full Year 2025 Revenue Growth(1)

FY'25 As-Reported

FY'25 As-Adjusted

Organic

+1% to +4%

+4% to +7%

Acquisition

+1%

+1%

Divestiture

(10%)

0%

FX

0%

0%

Total Revenue Growth

(9%) to (6%)

+4.5% to +7.5%

1. Note: figures may vary due to rounding.

Q2'25 Outlook

Annualized Recurring Revenue (ARR)

+12% to +13% organic

+13% to 15% as-adjusted

Revenue YoY

$815 to $845M

Total Growth

-6% to -3% as-reported

Organic Growth

+2% to +6% as-adjusted(1)

Non-GAAP Operating Margin

23.5% to 24.5%

Adj. EBITDA Margin

25.0% to 26.0%

Non-GAAP EPS

$0.59 to $0.65

1. As-adjusted figures exclude the financial results from the agriculture business (divested in Q2'24), and mobility business (divested in Q1'25).

FY 2025 Segment Details and Outlook

AECO

Field Systems

T&L

Revenue

≈$1.465B

≈$1.42B

≈$515M as-adjusted

≈$535M as-reported

Organic revenue growth Y/Y %

+Mid-teens %

Minus LSD %

+MSD%

Organic ARR growth Y/Y %

+Mid-teens %

+Low/mid-teens %

+HSD %

Operating Income Margin %

≈32%

≈31%

≈24%

$M

As-Reported

FY-2025

Unallocated Corporate Expense

≈$115M

Depreciation

≈$48M

Equity Income

≈$3M

Net Interest Expense

≈$75M

Tax Rate

≈17.2%

Average Diluted Shares Outstanding

≈241M

Cash flow commentary

Our updated free cash flow conversion guidance (free cash flow:non-GAAP net income) is approximately 0.5X for FY25.

Our full year cash flow conversion is expected to be ≈0.9X after adjusting for a $250M tax payment related to gain on sale of the agriculture business and $35M in M&A transaction costs.

Disclaimer

Trimble Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 13:12 UTC.