The AES Corporation stock research
FY2025 Q2
The AES (AES) Gross Margin — Quarter Ended Jun 30, 2025
For the quarter, revenue was little changed against both the prior quarter and the same quarter last year, while gross profit moved lower year over year. Cost of revenue was stable versus both periods, resulting in a gross margin that was slightly higher sequentially but notably lower compared with the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
For the quarter, revenue was little changed against both the prior quarter and the same quarter last year, while gross profit moved lower year over year. Cost of revenue was stable versus both periods, resulting in a gross margin that was slightly higher sequentially but notably lower compared with the year-ago period.
- Gross profit increased from the prior quarter even though revenue was stable, indicating that the cost of revenue decreased slightly on a sequential basis. The main driver of the gross margin improvement was the lower cost base relative to revenue.
- Compared with the prior quarter, gross margin improved as gross profit rose while cost of revenue fell. Versus the same quarter last year, gross margin weakened because gross profit decreased while revenue remained essentially the same, meaning cost of revenue absorbed a larger share of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.9%
Gross profit
$453.0M
Revenue
$2.9B
Cost of revenue
$2.4B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-2.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $2.9B | $453.0M | $2.4B | 15.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.8 pts
Year-over-year change
Jun 30, 2024
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased from the prior quarter even though revenue was stable, indicating that the cost of revenue decreased slightly on a sequential basis. The main driver of the gross margin improvement was the lower cost base relative to revenue.
Compared with the prior quarter, gross margin improved as gross profit rose while cost of revenue fell. Versus the same quarter last year, gross margin weakened because gross profit decreased while revenue remained essentially the same, meaning cost of revenue absorbed a larger share of revenue.
Monitor whether the lower cost of revenue seen in the current quarter persists or expands in future periods, as it directly supports gross margin recovery.