Trimble (TRMB) Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 10, 2026 astatine 10:46 AM CST 43 min read

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Wednesday, Feb. 19, 2025 astatine 8:00 a.m. ET

• President & Chief Executive Officer — Rob Painter

• Chief Financial Officer — Phil Sawarynski

Rob Painter: Welcome everyone. Before I get started, our presumption is disposable connected our website, and delight notation to the Safe Harbor Statement. Our fiscal commentary volition bespeak non-GAAP show metrics, including integrated maturation comparisons, which notation to the corresponding play of the anterior year, unless different noted. In addition, our P&L commentary volition stress comparables connected an as-adjusted basis, which excludes our agriculture business, our precocious divested mobility business, and the other week that we had successful the 4th fourth of 2024. Starting connected Slide 4, we ended the twelvemonth connected an emphatically beardown note. As reported, 4th fourth gross astatine $983 million, ARR astatine $2.26 billion, and EPS astatine $0.89 were each supra the midpoint of our guidance.

On an as-adjusted basis, gross was up 9% for the 4th and 6% for the year, with ARR up 16%. Gross margins astatine 71.7% correspond the archetypal clip that we person crossed the 70% level. Kudos to our planetary colleagues and partners. Phil volition locomotion america done further details of as-adjusted show successful his commentary, which is indispensable to acceptable the close baseline for fiscal 2025. Moving to Slide 5, our show successful the 4th fourth capped a transformative twelvemonth for Trimble. For those newer to the Trimble story, we telephone our strategy Connect and Scale. Our exertion is digitizing and transforming enactment successful the construction, geospatial, and proscription industries.

These markets are large, global, underserved, and under-penetrated with a combined addressable marketplace of implicit $70 billion. By executing our strategy, We person simplified, focused, and strengthened Trimble. We present study nether 3 segments, with enactment perfectly aligned to this structure. We person besides transformed our concern exemplary successful the process, delivering compelling and compounding fiscal returns. On an as-reported basis, betwixt 2019 and 2024, ARR accrued from $1.2 cardinal to implicit $2.26 billion. Recurring gross doubled arsenic a percent of wide gross to 62% percent and wide bundle and services accrued to 76% of revenue. Gross margins successful 2024 astatine 68.2% person accrued implicit 1000 ground points.

All of this has translated into implicit 400 ground points of EBITDA betterment with 2024 ending astatine 27.2%. At our Investor Day successful December, we outlined the progression and absorption of our strategy, detailing our close to triumph astatine the intersection of product, technology, and go-to-market. We laid retired our [3-4-30] (ph) ambition done 2027 to present $3 cardinal of ARR, $4 cardinal of revenue, and 30% EBITDA margins. By delivering transformative outcomes for our customers, we are poised to present compelling returns to our shareholders. Today, I'll item the past fewer months of Connect and Scale strategical progression successful 3 areas. First, merchandise and go-to-market done the lens of our customers. Second, exertion innovation. And third, superior allocation.