AL

Albemarle Corporation stock research

Mar 31, 2025

FY2025 Q1

Albemarle (ALB) Gross Margin — Quarter Ended Mar 31, 2025

Revenue was lower than both the prior quarter and the same quarter last year, while gross profit was higher. Cost of revenue declined more sharply than revenue, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue was lower than both the prior quarter and the same quarter last year, while gross profit was higher. Cost of revenue declined more sharply than revenue, resulting in an improved gross margin.

  • The strongest observable margin driver was the decline in cost of revenue relative to revenue, which outpaced the revenue decrease.
  • Compared to the immediately preceding quarter, gross margin improved as revenue decreased but gross profit increased. Relative to the same quarter one year earlier, gross margin also improved, with revenue lower and gross profit substantially higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

14.5%

Gross profit

$156.3M

Revenue

$1.1B

Cost of revenue

$920.6M

Quarter-over-quarter change

+3.3 pts

Year-over-year change

+11.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$1.4B-$10.6M$1.4B-0.7%
Sep 30, 2024$1.4B-$104.0M$1.5B-7.7%
Dec 31, 2024$1.2B$138.2M$1.1B11.2%
Mar 31, 2025$1.1B$156.3M$920.6M14.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+3.3 pts

Year-over-year change

Mar 31, 2024

+11.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the decline in cost of revenue relative to revenue, which outpaced the revenue decrease.

Compared to the immediately preceding quarter, gross margin improved as revenue decreased but gross profit increased. Relative to the same quarter one year earlier, gross margin also improved, with revenue lower and gross profit substantially higher.

Monitor the trajectory of cost of revenue, as its relationship with revenue is the primary factor influencing gross margin.