The AES Corporation stock research
FY2025 Q1
The AES (AES) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased slightly while cost of revenue remained stable, leading to a modest increase in gross profit and an improvement in gross margin compared to the prior quarter. Compared to the same quarter a year earlier, revenue was lower and cost of revenue was similar, resulting in a significantly lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased slightly while cost of revenue remained stable, leading to a modest increase in gross profit and an improvement in gross margin compared to the prior quarter. Compared to the same quarter a year earlier, revenue was lower and cost of revenue was similar, resulting in a significantly lower gross profit and a weakened gross margin.
- The strongest observable margin driver is the improvement in gross margin from the prior quarter, driven by a higher gross profit relative to revenue. This contrasts with the year-ago quarter, where gross margin was substantially higher.
- Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and cost of revenue were both lower than the prior quarter, while gross profit was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.1%
Gross profit
$441.0M
Revenue
$2.9B
Cost of revenue
$2.5B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-5.0 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 | $2.9B | $553.0M | $2.4B | 18.8% |
| Sep 30, 2024 | $3.3B | $722.0M | $2.6B | 22.0% |
| Dec 31, 2024 | $3.0B | $420.0M | $2.5B | 14.2% |
| Mar 31, 2025 | $2.9B | $441.0M | $2.5B | 15.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.9 pts
Year-over-year change
Mar 31, 2024
-5.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin from the prior quarter, driven by a higher gross profit relative to revenue. This contrasts with the year-ago quarter, where gross margin was substantially higher.
Gross margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and cost of revenue were both lower than the prior quarter, while gross profit was higher.
Monitor the trend in cost of revenue relative to revenue, as it remained stable despite revenue changes.