Air Products and Chemicals, Inc. stock research
FY2025 Q1
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Dec 31, 2024
Revenue, gross profit, and cost of revenue all decreased relative to the prior quarter, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were slightly lower while cost of revenue also declined, leading to a small improvement in gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue, gross profit, and cost of revenue all decreased relative to the prior quarter, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit were slightly lower while cost of revenue also declined, leading to a small improvement in gross margin.
- The strongest observable driver is the larger proportional decline in revenue compared to cost of revenue from the preceding quarter, which compressed the margin. The year-over-year improvement reflects a smaller revenue decline relative to the cost reduction.
- Gross margin weakened sequentially but improved slightly year-over-year, reflecting differing rates of change between revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.2%
Gross profit
$915.0M
Revenue
$2.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
-2.8 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $2.9B | $938.7M | $2.0B | 32.0% |
| Jun 30, 2024 | $3.0B | $979.9M | $2.0B | 32.8% |
| Sep 30, 2024 | $3.2B | $1.1B | $2.1B | 34.0% |
| Dec 31, 2024 | $2.9B | $915.0M | $2.0B | 31.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.8 pts
Year-over-year change
Dec 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the larger proportional decline in revenue compared to cost of revenue from the preceding quarter, which compressed the margin. The year-over-year improvement reflects a smaller revenue decline relative to the cost reduction.
Gross margin weakened sequentially but improved slightly year-over-year, reflecting differing rates of change between revenue and cost of revenue.
Monitor the trend in revenue and cost of revenue to assess whether the margin can stabilize or improve further.