Trimble Inc. Reports $840.6 Million Revenue in Q1 2025, Net Income Increases to $66.7 Million

Trimble Inc. reported a total revenue of $840.6 million for the first quarter of 2025, a decrease of 12% compared to $953.3 million in the same period of 2024. The decline was primarily driven by a 26% drop in product revenue, which fell to $271.6 million from $367.1 million, while subscription and services revenue decreased by 3% to $569.0 million. Despite the overall revenue decline, the company achieved a net income of $66.7 million, up from $57.2 million a year earlier, resulting in diluted earnings per share of $0.27, compared to $0.23 in the first quarter of 2024.

The company's financial performance reflects significant changes from the previous fiscal period, particularly in its operating segments. The AECO segment saw a slight revenue decline of 1% to $335.4 million, while the Field Systems segment experienced a 14% drop to $359.2 million. The Transportation and Logistics (T&L) segment reported a 25% decrease in revenue, totaling $146.0 million. Operating income for the overall company decreased to $97.5 million from $109.2 million, although the operating income margin remained relatively stable at 11.6%.

Strategically, Trimble has been active in reshaping its business through divestitures. Notably, the company completed the sale of its Mobility business to Platform Science on February 8, 2025, for equity interests valued at $253.9 million. This divestiture is part of a broader strategy to focus on higher-margin subscription services and software solutions. The company also reported a significant increase in annualized recurring revenue (ARR), which grew by 7% year-over-year to $2.176 billion, indicating a shift towards a more stable revenue model.

Operationally, Trimble's customer base and engagement metrics have shown resilience. The company reported a strong demand for its Civil Construction solutions, contributing to organic growth in subscription revenue across all segments. However, the impact of prior year software renewals negatively affected revenue growth, particularly in the AECO segment. The company’s total cash and cash equivalents decreased significantly to $290.0 million from $738.8 million at the end of 2024, reflecting increased stock repurchases and cash used in financing activities.

Looking ahead, Trimble remains focused on executing its Connect & Scale strategy, which emphasizes software and services, geographic expansion, and targeted acquisitions. The company is closely monitoring macroeconomic conditions, including geopolitical tensions and inflationary pressures, which may impact its operations. Despite these challenges, Trimble's shift towards a recurring revenue model is expected to enhance its financial stability and growth potential in the coming quarters.