Albemarle Corporation stock research
FY2025 Q3
Albemarle (ALB) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was essentially stable compared to the prior quarter, while gross profit declined and cost of revenue increased, leading to a lower gross margin. Relative to the same quarter last year, revenue was slightly lower, but gross profit improved from a loss to a positive figure, and cost of revenue decreased, resulting in a much higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was essentially stable compared to the prior quarter, while gross profit declined and cost of revenue increased, leading to a lower gross margin. Relative to the same quarter last year, revenue was slightly lower, but gross profit improved from a loss to a positive figure, and cost of revenue decreased, resulting in a much higher gross margin.
- The strongest observable margin driver in the current quarter was the improvement in gross profit relative to the year-ago period, pulling gross margin from negative territory to positive. The increase in cost of revenue relative to the prior quarter, despite stable revenue, is notable.
- Compared with the immediately preceding quarter, revenue was stable, but gross profit was lower and cost of revenue was higher, so gross margin weakened. Compared with the same quarter one year earlier, revenue was slightly lower, yet gross profit improved substantially and cost of revenue was lower, so gross margin strengthened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.0%
Gross profit
$117.6M
Revenue
$1.3B
Cost of revenue
$1.2B
Quarter-over-quarter change
-5.8 pts
Year-over-year change
+16.7 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $1.2B | $138.2M | $1.1B | 11.2% |
| Mar 31, 2025 | $1.1B | $156.3M | $920.6M | 14.5% |
| Jun 30, 2025 | $1.3B | $196.9M | $1.1B | 14.8% |
| Sep 30, 2025 | $1.3B | $117.6M | $1.2B | 9.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-5.8 pts
Year-over-year change
Sep 30, 2024
+16.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver in the current quarter was the improvement in gross profit relative to the year-ago period, pulling gross margin from negative territory to positive. The increase in cost of revenue relative to the prior quarter, despite stable revenue, is notable.
Compared with the immediately preceding quarter, revenue was stable, but gross profit was lower and cost of revenue was higher, so gross margin weakened. Compared with the same quarter one year earlier, revenue was slightly lower, yet gross profit improved substantially and cost of revenue was lower, so gross margin strengthened significantly.
Monitor the trend of cost of revenue relative to revenue, as it increased sequentially while revenue was stable, directly pressuring gross margin.