Trimble (TRMB) Baird 2026 Global Industrial Conference summary

Platform strategy and market opportunity

• Platform strategy centers on connecting workflows across construction from concept to maintenance, and transportation from shipping through settlement.

• Construction spending exceeds $10T; up to one-third of project spend can be reworked or wasted, and 90% of projects are over schedule or budget.

• Field-to-office connectivity combines hardware, software and field data into a shared source of truth; linked workflows support higher-value solutions than standalone applications.

• Addressable markets were cited at $72B overall, ~25% penetrated, and $50B for AECO, 20% penetrated; digitization and AI could expand the opportunity.

Financial model and capital allocation

• Software and services account for almost 80% of revenue on a recurring basis; operating and EBITDA margins have expanded nearly 500 bps since 2020.

• Current-year operating margin guidance rose to 36%, ~100 bps above the prior level; current-year EPS growth guidance is ~17%.

• YTD share repurchases exceeded $550M, with ~$770M remaining under authorization; repurchases since the start of 2025 totaled ~$1.4B.

• Construction represents ~85% of revenue, and North America contributes more than half.

Business performance and ARR outlook

• AECO net retention, excluding SketchUp, is ~110%; gross retention remains stable, net new ARR is growing, and management expects it to exit the year at its highest level.

• Recurring-business RPO is ~13% at the overall level, with AECO the majority; management cited this as visibility into 2027.

• AECO ARR is approaching $1.7B; roughly one-third of bookings come from new logos, while cross-sell opportunity exceeds $1B and bundles aim to deepen customer adoption.

• Field Systems has ~$400M ARR; about half is positioning services, roughly half of that is correction services, with a large share tied to agriculture.

• Field Systems ARR headwinds include winding down a low-margin white-label product, lower transport transaction activity, weaker South American agriculture, and below-plan correction-service renewals.