Trimble Inc. Reports Q2 2025 Revenue of $875.7 Million, Net Income Declines

Trimble Inc. reported its financial results for the second quarter of 2025, revealing total revenue of $875.7 million, a slight increase of 1% compared to $870.8 million in the same quarter of 2024. The company's product revenue decreased by 9% to $292.8 million, while subscription and services revenue grew by 6% to $582.9 million. For the first two quarters of 2025, total revenue was $1.716 billion, down 6% from $1.824 billion in the prior year. The company’s net income for the second quarter was $89.2 million, a significant decline from $1.316 billion in the same quarter of 2024, primarily due to a substantial gain from divestitures recorded in the previous year.

Trimble's operating income for the second quarter increased by 107% to $127.8 million, compared to $61.6 million in the prior year. This growth was attributed to improved gross margins, which rose to 68.3% from 62.7%, driven by a favorable product mix and lower amortization costs. The company reported a diluted earnings per share of $0.37, down from $5.34 in the same quarter of 2024, reflecting the impact of the previous year's divestiture gains.

Strategically, Trimble has been active in reshaping its portfolio through divestitures. In February 2025, the company completed the sale of its Mobility business to Platform Science for equity interests valued at $253.9 million. This followed the earlier divestiture of its Ag business in April 2024, which generated $1.9 billion in cash proceeds. These divestitures are part of Trimble's strategy to focus on higher-margin recurring revenue streams, which now account for 79% of total revenue in the second quarter of 2025, up from 75% in the same period last year.

Operationally, Trimble reported a decline in cash and cash equivalents, which fell to $265.9 million from $738.8 million at the end of 2024. The company’s total assets decreased to $9.099 billion from $9.488 billion, while total liabilities also declined to $3.411 billion from $3.743 billion. The annualized recurring revenue (ARR) reached $2.210 billion, reflecting a year-over-year growth of 5%. The company continues to focus on expanding its geographic reach and enhancing product adoption rates, particularly in its software and services segments.

Looking ahead, Trimble remains cautious about macroeconomic conditions, including geopolitical tensions and inflationary pressures, which could impact demand for its products and services. The company is committed to executing its Connect & Scale strategy, which aims to enhance customer outcomes and drive growth through software and services. Trimble anticipates that its ongoing focus on recurring revenue and strategic acquisitions will position it well for future growth, despite the challenges posed by the current economic environment.