Dow Inc. stock research
FY2024 Q4
Dow (DOW) Gross Margin — Quarter Ended Dec 31, 2024
Revenue in the current quarter decreased compared to both the preceding quarter and the same quarter one year earlier. Gross profit and gross margin also declined relative to both prior periods, while cost of revenue fell at a slower rate than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue in the current quarter decreased compared to both the preceding quarter and the same quarter one year earlier. Gross profit and gross margin also declined relative to both prior periods, while cost of revenue fell at a slower rate than revenue.
- The decline in gross profit was proportionally larger than the decline in revenue, leading to a weakened gross margin. Cost of revenue as a share of revenue increased, which was the primary observable factor compressing margin.
- Compared to the preceding quarter, revenue, gross profit, and gross margin were lower, while cost of revenue decreased but not enough to offset the revenue decline. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and gross margin weakened modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.0%
Gross profit
$935.0M
Revenue
$10.4B
Cost of revenue
$9.5B
Quarter-over-quarter change
-0.8 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 | $10.8B | $1.3B | $9.5B | 11.9% |
| Jun 30, 2024 | $10.9B | $1.3B | $9.6B | 12.1% |
| Sep 30, 2024 | $10.9B | $1.1B | $9.8B | 9.8% |
| Dec 31, 2024 | $10.4B | $935.0M | $9.5B | 9.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.8 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 decline in gross profit was proportionally larger than the decline in revenue, leading to a weakened gross margin. Cost of revenue as a share of revenue increased, which was the primary observable factor compressing margin.
Compared to the preceding quarter, revenue, gross profit, and gross margin were lower, while cost of revenue decreased but not enough to offset the revenue decline. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and gross margin weakened modestly.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline has been a key factor in margin compression.