Trimble Q3 Earnings Beat Estimates, Revenues Increase Y/Y

Trimble TRMB 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, Karat Packaging KRT, and Hubbell HUBB 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%.

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