Cummins Inc. stock research
FY2024 Q4
Cummins (CMI) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both declined compared to the prior quarter, while cost of revenue rose, leading to a lower gross margin. Relative to the same quarter last year, revenue was also lower but gross profit was unchanged, and cost of revenue decreased, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both declined compared to the prior quarter, while cost of revenue rose, leading to a lower gross margin. Relative to the same quarter last year, revenue was also lower but gross profit was unchanged, and cost of revenue decreased, resulting in a higher gross margin.
- The gross margin change was driven primarily by the relationship between revenue and cost of revenue. Cost of revenue increased sequentially and decreased year-over-year, while revenue declined in both periods, causing the margin to weaken sequentially and improve year-over-year. The company's 10-K filing describes a diversified global power solutions business, but no specific segment-level margin detail is provided in this analysis.
- Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter a year ago, gross margin improved as cost of revenue declined while revenue was slightly lower and gross profit held steady.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.1%
Gross profit
$2.0B
Revenue
$8.4B
Cost of revenue
$6.4B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $8.4B | $2.0B | $6.4B | 24.3% |
| Jun 30, 2024 | $8.8B | $2.2B | $6.6B | 24.9% |
| Sep 30, 2024 | $8.5B | $2.2B | $6.3B | 25.7% |
| Dec 31, 2024 | $8.4B | $2.0B | $6.4B | 24.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.6 pts
Year-over-year change
Dec 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin change was driven primarily by the relationship between revenue and cost of revenue. Cost of revenue increased sequentially and decreased year-over-year, while revenue declined in both periods, causing the margin to weaken sequentially and improve year-over-year. The company's 10-K filing describes a diversified global power solutions business, but no specific segment-level margin detail is provided in this analysis.
Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter a year ago, gross margin improved as cost of revenue declined while revenue was slightly lower and gross profit held steady.
Monitor cost of revenue trends, as shifts in this figure have a direct and material effect on gross margin.