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• 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.

• Warning! GuruFocus has detected 5 Warning Sign with TRMB.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Trimble Inc (NASDAQ:TRMB) 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 (NASDAQ: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 (NASDAQ: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 (NASDAQ: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 (NASDAQ: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.