TRIMBLE INC.

Trimble Inc. is a leading technology solutions and platform provider that enables office professionals and field workers to connect their workflows and industry lifecycles, driving a more productive, efficient, and sustainable future. The company focuses on the industries that build, maintain, and move the world, including building, civil and infrastructure construction, geospatial, natural resources, utilities, and transportation. Trimble serves multi-trillion-dollar global industries that operate in demanding environments with technology adoption in the earlier phases relative to other industries. Products are sold in more than 160 countries through dealers, joint ventures, original equipment manufacturers, and other channels, with sales supported by offices located in over 40 countries.

Trimble competes in highly competitive markets and faces direct competition from other GNSS, software, optical, and laser suppliers, as well as from large, well-established companies in design software, enterprise resource planning solutions, and collaboration and project management offerings. The company holds over 1,000 unique patents reflective of its technology portfolio and deep domain knowledge. Key strategic alliances include joint ventures with Caterpillar, AGCO Corporation, Hilti, and Nikon. Trimble competes principally on the basis of innovation, differentiated products, domain expertise, service, quality, and geographic reach.

Trimble generates revenue primarily through the sale of hardware, software, subscriptions, maintenance and support, and professional services. An increasing portion of revenue is generated through subscription revenue, which includes SaaS and new subscription services for integrated solutions. Software, services, and recurring revenue represented 79% and 76% of total revenue for 2025 and 2024. The company's strategy is centered on two open industry cloud platforms, one in construction and one in transportation and logistics, and underlying common data environments as the nucleus of connected solutions.

The AECO segment primarily serves organizations across architecture, engineering, construction, and asset ownership through a connected lifecycle solution. Its most substantial product portfolios are focused on architectural and interior design, structural and civil engineering, building and infrastructure construction, and the operations and maintenance of assets. In 2025, AECO segment revenue was $1,498.6 million ¹, representing 42% of total revenue, with segment operating income of $512.1 million ² and an operating margin of 34.2% ³. The Field Systems segment provides software and hardware products and services to surveying and mapping professionals, civil construction, building construction field services, and positioning systems. In 2025, Field Systems segment revenue was $1,539.5 million ⁴, representing 43% of total revenue, with segment operating income of $478.1 million ⁵ and an operating margin of 31.1% ⁶. The T&L segment provides a suite of solutions for shippers, carriers, retailers, and intermediaries globally, maintaining a substantial footprint within the truckload freight market. In 2025, T&L segment revenue was $549.2 million ⁷, representing 15% of total revenue, with segment operating income of $120.5 million ⁸ and an operating margin of 21.9% ⁹.

On February 8, 2025, Trimble completed the sale of its Mobility business to Platform Science, Inc. in exchange for equity ownership interests with a fair value of $253.9 million ¹⁰, resulting in ownership or rights to acquire ownership of 32.5% ¹¹ of Platform Science's expanded business. On April 1, 2024, Trimble completed the sale and contribution of its Ag business to AGCO in exchange for $1.9 billion ¹² of cash proceeds and an equity ownership interest in PTx Trimble with a fair value of $275.6 million ¹³, retaining a 15% ¹⁴ stake. In December 2025, the Board of Directors approved a new stock repurchase program for up to $1.0 billion ¹⁵ in repurchases of common stock. During 2025, Trimble repurchased approximately 12.2 million ¹⁶ shares of common stock at an average price of $71.86 ¹⁷ per share for a total of $875.4 million ¹⁸.

Total revenue for 2025 was $3,587.3 million ¹⁹, a decrease of 3% compared to $3,683.3 million ²⁰ in 2024. Gross margin was $2,477.9 million ²¹, or 69.1% ²² of revenue, compared to $2,396.3 million ²³, or 65.1% ²⁴ of revenue in 2024. Operating income was $592.0 million ²⁵, or 16.5% ²⁶ of revenue, compared to $460.7 million ²⁷, or 12.5% ²⁸ of revenue in 2024. Net income was $424.0 million ²⁹ compared to $1,504.4 million ³⁰ in 2024. Diluted earnings per share was $1.76 ³¹ compared to $6.09 ³² in 2024. Annualized Recurring Revenue was $2,392.3 million ³³ at the end of 2025, representing growth of 6% ³⁴ year-over-year.

Trimble's growth strategy is centered on executing its multi-year Connect & Scale platform strategy. The Connect element is a platform strategy to connect more customer workflows, industry lifecycles, and solution offerings, including integrating more customer data through cloud offerings, making more solutions available on a subscription basis, and further incorporating AI capabilities. The Scale element involves investing in core people, processes, and technologies that allow the platforms to scale, streamlining and standardizing internal processes. The company continues to focus on delivering customer outcomes that can enable productivity, quality, safety, transparency, and environmental sustainability, and on addressing attractive markets with significant growth and profitability potential.

Trimble is focused on software, services, and data as fundamental elements of its growth strategy, with software and services targeted for the needs of vertical end markets. The company views international expansion as an important element of its strategy and continues to position itself in geographic markets that will serve as important sources of future growth. Trimble pursues strategic and targeted acquisitions, divestitures, joint ventures, and investments to enhance its market position, and continues to partner with leaders in various fields by investing in early-to-growth stage companies through its venture fund and through strategic formation of joint ventures.

Gross margin and gross margin as a percentage of revenue increased in 2025 due to the improved mix of higher margin subscription and software term license sales, lower intangible amortization expense due to fully amortized intangibles, as well as the divestiture of lower margin businesses. Operating income as a percentage of revenue increased primarily due to organic revenue and gross margin expansion, and to a lesser extent, lower acquisition and divestiture transaction expenses, partially offset by the loss of divestiture income. The company expects to continue the active development of new products.

Trimble's global operations include major research, development, manufacturing, and logistics operations in the United States, the Netherlands, India, Germany, the United Kingdom, New Zealand, Finland, Canada, and Sweden. The company outsources the manufacturing of many hardware products to key contract manufacturing partners, including Jabil and Benchmark Electronics Inc. Trimble manufactures its optics-based products and some GPS products at its plants in Dayton, Ohio and Danderyd, Sweden. The company's primary design, manufacturing, and distribution sites in Dayton, Ohio; Sunnyvale, California; Eindhoven, Netherlands; and Danderyd, Sweden are registered to ISO9001:2015.

Trimble believes that developing and introducing new solutions are critical to its future success. Software and services already account for over 70% of the company's R&D investment. The company holds over 1,000 unique issued and enforceable patents covering key technology areas. In 2025, R&D expense was $630.7 million ³⁵, or 17.6% ³⁶ of revenue. Capital expenditures for property and equipment were $25.3 million ³⁷ in 2025. The Board of Directors approved a stock repurchase program for up to $1.0 billion ³⁸ in December 2025. The company has not declared or paid any cash dividends on its common stock during any period for which financial information is provided in this report and does not anticipate paying any cash dividends in the foreseeable future.

Macroeconomic conditions continue to present significant challenges globally, driven by geopolitical tensions, tariff and trade policies, exchange rate and interest rate volatility, and persistent inflationary pressures. The heightened trade tensions and related imposition of tariffs and export control restrictions between the United States and its trading partners remain uncertain. If there were a deterioration in the global economy, the economies of the countries or regions where customers are located or do business, or the industries served, the demand for products and services would likely decrease. The company is closely monitoring global trade developments.

Trimble faces risks from supply chain disruptions, including dependence upon a limited number of contract manufacturers and specific suppliers for critical components. The company has experienced disruption in its supply chain and related events, including extended delivery times for certain components and increased freight costs. In response to the imposition of significant new tariffs, the company has restructured its global fulfillment network, moving away from a largely centralized inventory in the U.S. to maintaining more commodity, component, and product inventory in several regions around the world, which has introduced new risks and challenges regarding local inventory management, procurement, and product distribution.

Trimble operates globally and is subject to significant risks from adverse economic, political, regulatory, and other global and regional conditions, including the imposition of new and changing tariffs which can increase supply costs and create difficulties in forecasting. The company has identified material weaknesses in internal control over financial reporting related to information technology general controls and process-level control activities for revenue, income taxes, and other financial reporting processes, which if not remediated could result in a material misstatement of financial statements. Trimble faces substantial competition in its markets, and AI functionality is becoming increasingly important; if the company does not develop and expand its AI capabilities on pace with competitors, product offerings may fall behind. The company is dependent on the continued operation of GPS and other GNSS systems, and any curtailment of operating capability or limitations on access could degrade product performance. Trimble's debt of $1.4 billion ³⁹ could adversely affect cash flow and limit flexibility, and the company is subject to financial covenants including a requirement to timely file SEC reports.

Management's message emphasizes the execution of the multi-year Connect & Scale platform strategy, which contains two elements: Connect, a platform strategy to connect more customer workflows, industry lifecycles, and solution offerings, and Scale, which is about investing in the core people, processes, and technologies that allow the platforms to scale. The company continues to focus on key priorities including delivering customer outcomes that enable productivity, quality, safety, transparency, and environmental sustainability; focusing on platforms, software, services, and data; addressing attractive markets with significant growth and profitability potential; capitalizing on domain knowledge and technological innovation; driving geographic expansion; optimizing go-to-market strategies; and pursuing strategic and targeted acquisitions, divestitures, joint ventures, and investments. Management highlighted the success in driving annualized recurring revenue of $2,392.3 million ⁴⁰, which represents growth of 6% ⁴¹ year-over-year at the end of 2025, and noted that excluding the impact of foreign currency, acquisitions, and divestitures, organic ARR growth was 14% ⁴². The company also emphasized that software, services, and recurring revenue represented 79% ⁴³ and 76% ⁴⁴ of total revenue for 2025 and 2024, and that the shift toward recurring revenue has positively impacted revenue mix, growth, and profitability over time, leading to improved visibility in the businesses.