The Boeing Company stock research
FY2025 Q1
The Boeing (BA) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both improved compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin turned positive from negative in the prior quarter and was higher than the year-ago level.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both improved compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin turned positive from negative in the prior quarter and was higher than the year-ago level.
- The strongest observable margin driver is the increase in revenue outpacing the increase in cost of revenue, leading to a higher gross profit and gross margin.
- Compared to the prior quarter, revenue was higher and cost of revenue was slightly higher, resulting in a shift from negative to positive gross profit and a significantly improved gross margin. Compared to the same quarter last year, both revenue and cost of revenue were higher, with gross profit and gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.4%
Gross profit
$2.4B
Revenue
$19.5B
Cost of revenue
$17.1B
Quarter-over-quarter change
+22.8 pts
Year-over-year change
+1.1 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 | $16.9B | $1.2B | $15.6B | 7.3% |
| Sep 30, 2024 | $17.8B | -$3.5B | $21.3B | -19.7% |
| Dec 31, 2024 | $15.2B | -$1.6B | $16.8B | -10.4% |
| Mar 31, 2025 | $19.5B | $2.4B | $17.1B | 12.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+22.8 pts
Year-over-year change
Mar 31, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in revenue outpacing the increase in cost of revenue, leading to a higher gross profit and gross margin.
Compared to the prior quarter, revenue was higher and cost of revenue was slightly higher, resulting in a shift from negative to positive gross profit and a significantly improved gross margin. Compared to the same quarter last year, both revenue and cost of revenue were higher, with gross profit and gross margin also higher.
Monitor the trajectory of cost of revenue relative to revenue, as the current improvement in gross margin depends on revenue growth outpacing cost growth.