Air Products and Chemicals, Inc. stock research
FY2025 Q2
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit decreased, driven by a higher cost of revenue, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q2
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit decreased, driven by a higher cost of revenue, resulting in a lower gross margin.
- The increase in cost of revenue, while revenue remained unchanged, was the most significant factor behind the decline in gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin weakened. The same quarter one year earlier also showed a higher gross margin than the current period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.6%
Gross profit
$862.3M
Revenue
$2.9B
Cost of revenue
$2.1B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-2.5 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 | $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% |
| Mar 31, 2025 | $2.9B | $862.3M | $2.1B | 29.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.6 pts
Year-over-year change
Mar 31, 2024
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue, while revenue remained unchanged, was the most significant factor behind the decline in gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin weakened. The same quarter one year earlier also showed a higher gross margin than the current period.
Monitor the trajectory of cost of revenue relative to revenue.