Trimble (TRMB, Financial) has entered a collaboration with InvenSense, aiming to develop a cutting-edge navigation system. This innovative solution integrates Trimble's ProPoint Go engine and its RTX correction service with TDK's SmartAutomotive Inertial Measurement Units module provided by InvenSense. This partnership is expected to enhance navigation capabilities, combining precision technology from both companies to offer a more advanced tool in the industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Trimble Inc (TRMB, Financial) is $83.71 with a high estimate of $89.11 and a low estimate of $77.00. The average target implies an upside of 15.13% from the current price of $72.71. More detailed estimate data can be found on the Trimble Inc (TRMB) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Trimble Inc's (TRMB, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Trimble Inc (TRMB, Financial) in one year is $54.45, suggesting a downside of 25.11% from the current price of $72.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Trimble Inc (TRMB) Summary page.
TRMB Key Business Developments
Release Date: May 07, 2025
- Revenue: $841 million, up 3% organically and 10% after adjustments.
- ARR (Annual Recurring Revenue): $2.11 billion, up 17% organically.
- EPS (Earnings Per Share): $0.61, ahead of expectations.
- Gross Margin: Expanded 180 basis points to 69.9%.
- EBITDA Margin: 25.9%, a 100 basis points expansion year over year.
- Free Cash Flow: $149 million, conversion rate of 1 times net income.
- AECO ARR: $1.29 billion, up 19% for the quarter.
- Field Systems ARR: $358 million, up 25% for the quarter.
- Transportation ARR: $459 million, up 7% for the quarter.
- Operating Income (AECO): 27.3%, increased 50 basis points year over year.
- Operating Income (Field Systems): 29.7%, increased 280 basis points.
- Operating Margins (Transportation): 21.2%, expected to improve in the next quarters.
- Share Buyback: $627 million of shares repurchased in the first quarter.
- Leverage Ratio: Less than 1.3 times, below the long-term target of 2.5 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Trimble Inc (TRMB, Financial) reported a strong start to 2025 with a 3% organic revenue growth and a 17% increase in ARR, surpassing expectations.
- The company successfully transitioned to a software-centric business model, with three-quarters of its operations now software-based and two-thirds ARR asset-light.
- Trimble Inc (TRMB) demonstrated resilience in the face of macroeconomic uncertainties, maintaining its guidance for the year while injecting conservatism into its outlook.
- The company's AI initiatives are progressing well, with internal and external applications driving cost efficiencies and revenue growth.
- Trimble Inc (TRMB) achieved a record $1.29 billion in ARR for its AECO segment, with strong cross-selling efforts contributing to this success.
Negative Points
- Despite strong performance, Trimble Inc (TRMB) is maintaining a conservative outlook due to macroeconomic uncertainties, including tariffs and trade policy.
- The company faces a $10 million quarterly impact from tariffs, primarily affecting its Field Systems segment, although surcharges have been implemented to offset this.
- There is modest softness in the public sector in the US, with slightly longer sales cycles for enterprise customers.
- Trimble Inc (TRMB) is experiencing longer sales cycles with its largest customers, particularly in the construction ERP market.
- The company has some stranded costs related to the divestiture of its mobility business, which will continue to be a headwind in 2025.
