Stock for Recurring Growth by Year's End 2025
In the world of positioning and workflow technology, Trimble stands out as a significant player. With a market capitalization of $19 billion, the NASDAQ-listed company (TRMB) is making waves in industries such as construction, agriculture, geospatial surveying, and transportation.
Trimble's stock experienced a change of 2.54% today, but its current price sits at $81.66. The company's market value could potentially increase further if it manages to hit the projected Free Cash Flow ($FCF) estimates of $436 million in 2025 and almost $1 billion in 2027.
Trimble's traditional positioning hardware is used to precisely track and guide equipment, vehicles, and field positions. Major companies like Caterpillar and AGCO (with brands like Fendt and Massey Ferguson) integrate Trimble's advanced hardware and software to enhance machine control, precision farming, and site management.
The company's business model does not tie up cash in inventory or waiting for customers to pay. This, coupled with a gross margin of 64.62%, indicates a lean and efficient operation. Trimble's capital expenditures are less than 1% of revenue on a trailing-12-month basis.
Wall Street forecasts Trimble's revenue to decline by 4.5% in 2025 and grow by 6.9% in 2026. However, the discrepancy in these forecasts is due to Trimble's existing noncore businesses and the shift in revenue from hardware to recurring software revenue. Trimble's growing software solutions gather data from its hardware to improve a customer's workflows, and the company's annualized recurring revenue (ARR) is growing at a mid-teens rate. In fact, the ARR is projected to grow at a 13%-15% rate in 2025.
As a growth stock, Trimble is poised for continued expansion in the tech-driven future. With its focus on improving workflows and its strong financial performance, Trimble is an exciting company to watch in the positioning and workflow technology sector.
