Archer-Daniels-Midland Company stock research
FY2025 Q1
Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased compared to the preceding quarter, while cost of revenue also decreased; the gross margin weakened as the decline in gross profit outpaced the decline in revenue. Compared with the same quarter a year ago, revenue increased but gross profit declined, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased compared to the preceding quarter, while cost of revenue also decreased; the gross margin weakened as the decline in gross profit outpaced the decline in revenue. Compared with the same quarter a year ago, revenue increased but gross profit declined, leading to a lower gross margin.
- The most observable margin driver is the sharper proportional decline in gross profit relative to revenue, which compressed the gross margin sequentially and year-over-year.
- Compared to the prior quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, and the gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.2%
Gross profit
$1.2B
Revenue
$6.1B
Cost of revenue
$19.0B
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-8.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $6.2B | $1.4B | $20.9B | 22.7% |
| Sep 30, 2024 | $6.0B | $1.4B | $18.6B | 22.8% |
| Dec 31, 2024 | $6.3B | $1.4B | $20.1B | 21.6% |
| Mar 31, 2025 | $6.1B | $1.2B | $19.0B | 19.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.4 pts
Year-over-year change
Mar 31, 2024
-8.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the sharper proportional decline in gross profit relative to revenue, which compressed the gross margin sequentially and year-over-year.
Compared to the prior quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, revenue was higher but gross profit was lower, and the gross margin was also lower.
Monitor whether the trend of gross profit declining faster than revenue continues in subsequent quarters.