Trimble (TRMB) Announces Board Additions and Capital Allocation Update

Trimble Inc. (NASDAQ: TRMB) announced today the appointment of Kara Sprague and Ron Nersesian to its Board of Directors, effective February 5, 2024. Sprague is the Executive Vice President and Chief Product Officer at F5, Inc., and Nersesian is the Chairman of the Board of Directors of Keysight Technologies, and formerly served on Trimble's Board of Directors from November 2011 through May 2021.

"We are thrilled to welcome Kara and Ron to our Board," said Rob Painter, Trimble's CEO. "Kara's experience driving the growth and go-to-market transformation of a leading software business adds valuable perspective as software represents an increasingly core aspect of our business model. Ron brings a track record of prudent capital allocation and outstanding shareholder returns, including significant value creation during his tenure as CEO of Keysight."

The Company also announced today that the Board has authorized a common stock repurchase authorization of up to $800 million, which replaces the Company's existing authorization and goes into effect immediately. Trimble expects to utilize a significant amount of the authorization in 2024. The Company plans to host an investor day in the second half of 2024 where it will provide an update of the company's margin target in the context of the new segment reporting structure.

"We previously announced that we expect to repay $1.1 billion of debt and repurchase $400 million worth of shares with the proceeds from the proposed AGCO JV transaction, shortly following the close of the JV, which is expected to occur in the second quarter of 2024. Today's announcement maintains that plan while expanding our expectations for total repurchase activity in 2024. The prioritization of capital return and debt repayment reflects our near-term capital allocation priorities as well as our confidence in the value of Trimble's long-term plan. We are excited to execute in our core business and to continue to drive growth in revenue, cash flow and returns on capital. We expect any near-term acquisitions to focus on tuck-in opportunities that leverage the Company's industry leading commercial platforms," Painter added.

Shares of common stock may be repurchased from time to time, through accelerated share repurchase programs, open market transactions, privately-negotiated transactions, block purchases, tender offers or other means. The program may be suspended, modified or discontinued at any time at the Company's discretion without notice.

Kevin Galligan, Partner at JANA Partners, a Trimble shareholder, remarked: "We are pleased with these high-quality additions to Trimble's Board as well as the Company's capital allocation update. Trimble is an outstanding company with significant opportunity for value creation through its refined capital allocation approach, attractive mix of software and recurring revenue and potential to drive margin expansion. We look forward to supporting Rob and the Company as they execute their strategy to compound value."

Trimble will announce fourth quarter and full year 2023 earnings on February 12, 2024.

Additional biographical information on Board appointees is included below:

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