A. O. Smith Corporation stock research
FY2025 Q1
A. O. Smith (AOS) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both increased from the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened as cost of revenue declined less than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both increased from the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened as cost of revenue declined less than revenue.
- The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as gross profit grew faster than cost of revenue. This indicates a favorable relationship between revenue and cost of revenue in the current quarter.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$375.4M
Revenue
$963.9M
Cost of revenue
$588.5M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-0.4 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 | $1.0B | $396.0M | $628.3M | 38.7% |
| Sep 30, 2024 | $902.6M | $337.3M | $565.3M | 37.4% |
| Dec 31, 2024 | $912.4M | $338.1M | $574.3M | 37.1% |
| Mar 31, 2025 | $963.9M | $375.4M | $588.5M | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.9 pts
Year-over-year change
Mar 31, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as gross profit grew faster than cost of revenue. This indicates a favorable relationship between revenue and cost of revenue in the current quarter.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the allowance for credit losses, which increased from the prior quarter end, as it may affect future revenue recognition and cost of revenue.