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Trimble's Q3 EPS of $0.81 beat estimates and rose 15.7% year over year on higher revenues.
AECO and Field Systems segments delivered strong organic growth and margin expansion.
Trimble guided for higher Q4 and 2025 earnings, with ARR and revenue growth targets through 2027.
Trimble (TRMB - Free Report) reported third-quarter 2025 non-GAAP earnings of 81 cents per share, which surpassed the Zacks Consensus Estimate by 12.5% and increased 15.7% on a year-over-year basis.
Revenues of $901.2 million beat the Zacks Consensus Estimate by 3.41% and increased 3% year over year (up 10% on an organic basis). Organic growth benefited from strong revenues from the AECO (Architecture, Engineering, Construction, and Owners) segment and Field Systems with Transportation & Logistics continued to grow in a challenging freight market.
Product revenues (33.6% to total revenues) totaled $302.5 million, down 1.7% on a year-over-year basis. Subscription and services revenues (66.4% of total revenues) increased 5.4% year over year to $598.7 million.
Annualized Recurring Revenues (ARR) of $2.31 billion increased 6% on a year-over-year basis (up 14% on an organic basis).
The AECO (Architecture, Engineering, Construction, and Owners) segment revenues (39.8% of total revenues) were $358.5 million, up 17.2% year over year. The AECO segment delivered 17% year-over-year organic growth in ARR.
Field Systems revenues (45.4% of total revenues) of $408.7 million increased 8% year over year on an organic basis and 9.1% on a reported basis. The segment saw 18% organic ARR growth in the reported quarter.
Transportation & Logistics (T&L) revenues (14.9% of total revenues) of $134 million declined 31.4% year over year. The segment registered 7% adjusted organic ARR growth.
TRMB’s Q3 Operating Details
In the third quarter of 2025, non-GAAP gross margin was 71.2%, expanding 280 basis points (bps) year over year.
Adjusted EBITDA was $269.4 million with adjusted EBITDA margin of 29.9%, up 160 bps year over year.
On a non-GAAP basis, operating expenses accounted for 43% of revenues, up 20 bps year over year.
Non-GAAP operating margin was 28.2%, which expanded 250 bps year over year.
AECO operating margin of 31.8% expanded 270 bps year over year. Field Systems operating margin expanded 40 bps year over year to 33.4%. T&L operating margin expanded 10 bps year over year to 25.8% in the reported quarter.
TRMB’s Balance Sheet Details
At the end of third-quarter 2025, cash and cash equivalents were $232.7 million, down from $265.9 million at the end of second-quarter 2025.
Total debt was $1.39 billion at the end of the third quarter compared with $1.51 billion at the second-quarter end.
The company bought shares worth $50 million in the reported quarter. TRMB currently has $273 million under its current repurchase authorization.
TRMB Offers Positive Guidance
For the fourth quarter of 2025, Trimble expects revenues to be in the range of $927-$967 million. The company expects non-GAAP earnings to be in the band of 91-99 cents per share.
For 2025, Trimble expects revenues to be between $3.545 billion and $3.585 billion. The company expects 2025 non-GAAP earnings to be in the range of $3.04-$3.12 per share.
For 2026, Trimble expects revenues to be in the mid- to-high single-digit range. For 2027, Trimble currently expects $3 billion in ARR, $4 billion in revenues and 30% EBITDA.
Image: Bigstock
Trimble Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Trimble (TRMB - Free Report) reported third-quarter 2025 non-GAAP earnings of 81 cents per share, which surpassed the Zacks Consensus Estimate by 12.5% and increased 15.7% on a year-over-year basis.
Revenues of $901.2 million beat the Zacks Consensus Estimate by 3.41% and increased 3% year over year (up 10% on an organic basis). Organic growth benefited from strong revenues from the AECO (Architecture, Engineering, Construction, and Owners) segment and Field Systems with Transportation & Logistics continued to grow in a challenging freight market.
Product revenues (33.6% to total revenues) totaled $302.5 million, down 1.7% on a year-over-year basis. Subscription and services revenues (66.4% of total revenues) increased 5.4% year over year to $598.7 million.
Annualized Recurring Revenues (ARR) of $2.31 billion increased 6% on a year-over-year basis (up 14% on an organic basis).
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
TRMB Q3 Top-line Details
The AECO (Architecture, Engineering, Construction, and Owners) segment revenues (39.8% of total revenues) were $358.5 million, up 17.2% year over year. The AECO segment delivered 17% year-over-year organic growth in ARR.
Field Systems revenues (45.4% of total revenues) of $408.7 million increased 8% year over year on an organic basis and 9.1% on a reported basis. The segment saw 18% organic ARR growth in the reported quarter.
Transportation & Logistics (T&L) revenues (14.9% of total revenues) of $134 million declined 31.4% year over year. The segment registered 7% adjusted organic ARR growth.
TRMB’s Q3 Operating Details
In the third quarter of 2025, non-GAAP gross margin was 71.2%, expanding 280 basis points (bps) year over year.
Adjusted EBITDA was $269.4 million with adjusted EBITDA margin of 29.9%, up 160 bps year over year.
On a non-GAAP basis, operating expenses accounted for 43% of revenues, up 20 bps year over year.
Non-GAAP operating margin was 28.2%, which expanded 250 bps year over year.
AECO operating margin of 31.8% expanded 270 bps year over year. Field Systems operating margin expanded 40 bps year over year to 33.4%. T&L operating margin expanded 10 bps year over year to 25.8% in the reported quarter.
TRMB’s Balance Sheet Details
At the end of third-quarter 2025, cash and cash equivalents were $232.7 million, down from $265.9 million at the end of second-quarter 2025.
Total debt was $1.39 billion at the end of the third quarter compared with $1.51 billion at the second-quarter end.
The company bought shares worth $50 million in the reported quarter. TRMB currently has $273 million under its current repurchase authorization.
TRMB Offers Positive Guidance
For the fourth quarter of 2025, Trimble expects revenues to be in the range of $927-$967 million. The company expects non-GAAP earnings to be in the band of 91-99 cents per share.
For 2025, Trimble expects revenues to be between $3.545 billion and $3.585 billion. The company expects 2025 non-GAAP earnings to be in the range of $3.04-$3.12 per share.
For 2026, Trimble expects revenues to be in the mid- to-high single-digit range. For 2027, Trimble currently expects $3 billion in ARR, $4 billion in revenues and 30% EBITDA.
Zacks Rank & Other Stocks to Consider
Currently, Trimble carries a Zacks Rank #2 (Buy).
Crane Company (CR - Free Report) , Karat Packaging (KRT - Free Report) , and Hubbell (HUBB - Free Report) are stocks worth considering in the broader Zacks Industrial Products sector. Each of the three stocks has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Crane Company, Karat Packaging, and Hubbell is pegged at 14.6%, 12.1%, and 10%, respectively.
Shares of Crane Company and Hubbell have appreciated 25.9% and 11.8%, year to date, respectively, while Karat Packaging dropped 16.2%.