Trimble 2025 Q1 Earnings EPS Climbs 17.4%

Trimble (TRMB) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Trimble's Q1 2025 earnings showed an EPS increase of 17.4% to $0.27, exceeding the prior year’s $0.23, indicating robust earnings growth. The company's net income also increased by 16.6%, reaching $66.70 million. Despite a revenue decline, this solid earnings performance highlights operational resilience. Trimble maintained its full-year revenue guidance between $3.37 billion and $3.47 billion, with GAAP EPS projected to be between $1.43 and $1.64. Non-GAAP EPS is expected to range from $2.76 to $2.98. For Q2 2025, Trimble anticipates revenue between $815 million and $845 million, with GAAP EPS of $0.26 to $0.32 and non-GAAP EPS of $0.59 to $0.65.

Revenue

Trimble's total revenue in Q1 2025 was $840.60 million, marking a decrease from $953.30 million in Q1 2024. The revenue breakdown includes $271.60 million from the Product segment, $335.40 million from AECO, $359.20 million from Field Systems, $569 million from Subscription and Services, and $146 million from T&L.

Earnings/Net Income

Trimble's EPS increased by 17.4% to $0.27 in Q1 2025, up from $0.23 in Q1 2024. Net income rose by 16.6% to $66.70 million, indicating a strong performance. The EPS growth reflects positive financial trends.

Price Action

The stock price of Trimble decreased by 1.55% during the latest trading day, but increased by 10.06% over the past week and rose 14.72% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing TRMB stock following a revenue beat and holding for 30 days yielded moderate returns but involved significant volatility and risk. The strategy's compound annual growth rate (CAGR) was 11.31%, underperforming the benchmark by 24.71%. Moreover, it experienced a maximum drawdown of -59.42% and had a Sharpe ratio of 0.34, illustrating a challenging risk-return profile. This highlights the critical need for effective risk management when engaging in such volatile investment scenarios.

CEO Commentary

"We began the year with strong momentum, delivering a first quarter record annualized recurring revenue of $2.18 billion and surpassing expectations on both top and bottom lines," said Rob Painter, CEO of Trimble. He highlighted that the company achieved a 10% organic revenue growth and a 17% growth in ARR, emphasizing the strength of their business model despite market uncertainties. Painter reiterated the focus on maintaining strategic clarity and durability in operations, noting that the company's recent divestiture enhances its competitive positioning. He expressed optimism about continuing to capitalize on cross-sell opportunities and the ongoing AI initiatives that could drive future growth.

Guidance

Trimble maintains its full-year 2025 revenue guidance of $3.37 billion to $3.47 billion and expects GAAP EPS between $1.43 and $1.64, with non-GAAP EPS projected at $2.76 to $2.98. For the second quarter of 2025, the company anticipates revenue of $815 million to $845 million, with GAAP EPS of $0.26 to $0.32 and non-GAAP EPS in the range of $0.59 to $0.65. The guidance reflects a degree of conservatism in light of current market uncertainties.

Additional News

In recent weeks, Trimble announced a significant strategic development. The company completed the divestiture of its Mobility business, which closed on February 8, 2025. This move aligns with Trimble's strategic focus on strengthening its core operations and enhancing competitive positioning. Additionally, Trimble appointed KPMG LLP as its new auditor, succeeding its previous audit firm. This change is part of Trimble's commitment to maintaining rigorous financial oversight and transparency. Furthermore, Trimble has expanded its regional presence by introducing Trimble Dimensions Australia, a regional user conference, to enhance its engagement with customers and stakeholders in the region.