Trimble (TRMB) to Widen Civil Contractor Reach With B2W Buyout
Trimble TRMB is consistently expanding its construction portfolio on the back of innovative product introductions and strategic acquisitions.
This is evident from the fact that TRMB recently completed the takeover of B2W Software, a leading provider of advanced solutions for heavy civil construction management.
B2W offers an integrated suite of applications consisting of estimating, scheduling, field tracking, equipment maintenance, data capture and business intelligence.
By combining B2W’s solutions with its field data, project management, finance and human capital management solutions, Trimble aims to help civil contractors enhance productivity, increase profitability and maintain sustainability.
Thus, the buyout of B2W is likely to help Trimble gain momentum among heavy civil and infrastructure contractors.
Further, the B2W acquisition will add strength to Trimble’s Buildings and Infrastructure segment, and drive segmental revenues in the days ahead.
The segment generated revenues of $382.6 million, accounting for 41% of total second-quarter 2022 revenues, which increased 4.9% from the prior-year quarter’s level.
Trimble Inc. Price and Consensus
Trimble Inc. price-consensus-chart | Trimble Inc. Quote
Increasing Construction Initiatives
With the addition of B2W's comprehensive suite of pre-construction and operations capabilities, Trimble will bolster its civil infrastructure portfolio and connected construction management platform named Trimble Construction One.
Apart from this recent effort, TRMB’s acquisition of AgileAssets, a Texas-based Software-as-a-Service (SaaS) and mobile solutions provider for transportation asset lifecycle management, remains noteworthy.
TRMB unveiled the updated versions of Tekla software solutions for constructible building information modeling, structural engineering and steel fabrication management. With the upgrade in Tekla solutions, Trimble focuses on advancing the constructible process, thereby enhancing construction productivity, efficiency and quality.
Trimble also introduced the Trimble Jobsite Connectivity Bundle, a software bundle linking 3D models and data to Trimble civil construction hardware and software solutions.
Efforts to Boost Prospects
With the acquisition of B2W, Trimble is expected to expand its presence in the booming construction market.
The market is witnessing significant growth recently owing to the increasing number of construction projects. Rising government expenditure on planned infrastructure projects is also driving the market.
According to the EMR report, the global construction market is likely to hit $14.4 trillion by 2026, witnessing a CAGR of 3.5% between 2022 and 2027.
The heavy and civil engineering construction market is expected to touch $2.73 trillion in 2026, seeing a CAGR of 9.2% during the 2022-2026 forecast period, per The Business Research Company report.
We believe that Trimble’s solid potential in these promising markets is likely to help it win investors’ confidence in the near and the long term.
Shares of TRMB have been down 31.8% in the year-to-date period compared with the Computer and Technology sector’s decline of 29.9%.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks ANET, Teradata TDC and Monolithic Power Systems MPWR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), Teradata and Monolithic Power Systems carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 18.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.6%.
Teradata has lost 27.4% in the year-to-date period. The long-term earnings growth rate for TDC is currently projected at 25%.
Monolithic Power Systems has lost 15.1% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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