Trimble (TRMB) Piper Sandler 5th Annual Growth Frontiers Conference summary

Business overview and growth drivers

• 2026 is positioned as a year of continued execution, leveraging large, under-penetrated global markets with only 25% penetration and a $72 billion addressable market as of late 2024.

• The Connect and Scale strategy focuses on connecting workflows and data across platforms in engineering, construction, and transportation, with $1.4 billion in cross-sell opportunities identified.

• Q2 saw 10% revenue growth despite tariff headwinds, 12% ARR growth, and 21% EPS growth year-over-year, with full-year guidance raised by $65 million in revenue and $0.13 in EPS.

AECO segment and AI integration

• AECO has delivered mid-teens or higher ARR growth for 28 consecutive quarters, reaching nearly $1.6 billion in ARR by Q2.

• Durable growth is driven by market size, execution, and expanding cross-sell opportunities, with AI seen as a key future unlock.

• Trusted data, domain expertise, and integration of digital and physical workflows create competitive moats.

• Document Crunch acquisition brought AI-forward risk management, addressing costly and lengthy construction disputes.

• Launch of Trimble Financials targets smaller and mid-size customers, aiming to grow them into the ecosystem and cross-sell higher-value products as they scale.

Field systems and business model transition

• Field systems are transitioning from hardware-driven to subscription-based models, with ARR growth supported by conversions from perpetual licenses and bundling hardware/software.

• Subscription offerings unlock new addressable markets, with about 50% of new bookings from new customers.

• Technology assurance in subscriptions keeps customers current with hardware advancements, reducing procurement friction.

• Mixed fleet support and expansion of Trimble Technology Labs increase market access and standardization opportunities.