Deere Stock And 2 Software Plays Built On Fleet Telematics Recurring Revenue

Fleet telematics and trucking software used to be a niche topic. Right now it sits where hardware, data and subscription models meet, and that mix is quietly reshaping how trucks are bought, operated and financed. Investors who ignore this shift risk missing where new recurring revenue may build. This article walks through three stocks exposed to that trend and why each could matter for your watchlist.

The stocks highlighted below are just a sample set, and the full screen surfaced 19 more U.S. and Canadian fleet telematics and trucking software platforms with equally interesting stories that this article does not cover.

To go deeper into the opportunity, analyze and identify potential high-conviction ideas directly in the Fleet Telematics & Trucking Software Platforms screener.

Astec Industries (ASTE)

Overview: Astec Industries designs, builds and services asphalt, concrete and aggregate equipment that road builders and materials producers use worldwide, increasingly with telematics and automation baked in.

Operations: Astec generates US$913.9 million from Infrastructure Solutions and US$676.8 million from Materials Solutions, with the United States contributing US$1.25b of revenue.

Market Cap: US$880 million

Astec Industries matters for this fleet telematics theme because its road-building machines are gradually moving from one-time hardware sales toward monitored, service-heavy equipment that can plug into uptime and truck-as-a-service style contracts.

"The recent acquisition of TerraSource, which delivers high-margin, recurring aftermarket parts revenue (63% of TerraSource revenue; 80% gross margin), is likely to enhance Astec's consolidated net margins and provide more stable, predictable earnings."

What happens to those margin ambitions if one unseen pressure on connected equipment demand and pricing breaks the current set of assumptions?

If that pressure is on your mind, read the full narrative for Astec Industries to see how TerraSource economics, fleet connectivity and capital intensity could be quietly decoupling.

Karooooo (KARO)

Overview: Karooooo runs a subscription-based mobility platform that helps fleets track vehicles, manage drivers and streamline last mile delivery across multiple regions.

Operations: Karooooo generates about ZAR 5.2b from Cartrack and ZAR 596 million from Karooooo Logistics, highlighting a fleet software led revenue mix.

Market Cap: US$1.87b

For a trucking focused reader, Karooooo is where telematics, routing software and uptime monitoring meet a subscription model that looks very close to the truck as a service themes reshaping how fleets pay for reliability instead of just hardware.

"Rising cross selling of AI camera video and Cartrack Tag, both still at relatively low penetration across the installed base yet already contributing to ARPU uplift and new subscriber wins, creates headroom for higher subscription revenue and improved unit economics."

What happens to those unit economics if one unresolved shift in how fleets bundle telematics into long term service contracts moves against Karooooo?

If that contract risk matters to you, read the full narrative for Karooooo to see whether accelerating cross selling can offset bundled pricing pressure and reshape Karooooo’s long term opportunity.

Deere (DE)

Overview: Deere & Company manufactures and finances connected agriculture, turf, construction and forestry equipment, embedding telematics that support data driven fleet uptime.

Operations: Deere generates about US$16.9b from Production & Precision AG, US$13.8b from Construction and Forestry, and US$11.7b from Small AG & Turf.

Market Cap: US$173.1b

Deere gives this telematics screen a different angle because its connected tractors and construction machines show how equipment uptime, data and financing can knit together into service like economics across entire fleets, not just long haul trucks.

"Expansion of Deere’s digital ecosystem, with more than 520 million engaged acres, nearly 1.2 million connected machines and over 450,000 monthly active users in John Deere Operations Center, builds on the prior focus on software and data services and points to a growing base for recurring revenue and potentially higher earnings from digital tools layered on the installed equipment fleet."

What happens to that recurring revenue ambition if one unseen pressure on how farmers and contractors pay for autonomy shifts the pricing balance?

That pricing question is exactly what the full narrative for Deere unpacks, showing where Deere’s digital ecosystem could accelerate or stall as autonomy reshapes fleet economics.

Seeking Fresh Alternatives Beyond Telematics?

New themes gain momentum fast, and once the crowd arrives the early edge fades. Scan fresh stock ideas before they are widely picked over and consider them while they are still less followed.

• Spot potential breakouts in smaller companies before they get widely talked about by running through the 14 elite penny stocks with strong financials while the data is still under the radar for now.
• Track where AI-related earnings and cash flows might be gaining momentum by reviewing the curated list of 39 profitable AI stocks that aren't just burning cash while pricing still reflects early expectations.
• Anchor a watchlist around potential resilience by scanning the list of solid balance sheet and fundamentals (25 results) before renewed attention pulls more investors toward stronger fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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