Ecolab Inc. stock research
FY2025 Q1
Ecolab (ECL) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased while cost of revenue fell proportionally less, resulting in a lower gross profit and an improved gross margin. The gross margin strengthened relative to both the prior quarter and the same quarter one year earlier, driven by a more favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased while cost of revenue fell proportionally less, resulting in a lower gross profit and an improved gross margin. The gross margin strengthened relative to both the prior quarter and the same quarter one year earlier, driven by a more favorable relationship between revenue and cost of revenue.
- The gross margin improvement was primarily associated with a decline in cost of revenue that outpaced the decline in revenue, leading to a higher margin ratio.
- Compared with the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin was also higher. Revenue was lower than both the prior quarter and the year-ago quarter, while gross profit was slightly lower than the prior quarter but comparable to the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.2%
Gross profit
$1.6B
Revenue
$3.7B
Cost of revenue
$2.1B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.0 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 | $3.8B | $1.6B | $2.1B | 43.3% |
| Jun 30, 2024 | $4.0B | $1.7B | $2.2B | 43.8% |
| Sep 30, 2024 | $4.0B | $1.7B | $2.3B | 43.4% |
| Mar 31, 2025 | $3.7B | $1.6B | $2.1B | 44.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.8 pts
Year-over-year change
Mar 31, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was primarily associated with a decline in cost of revenue that outpaced the decline in revenue, leading to a higher margin ratio.
Compared with the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin was also higher. Revenue was lower than both the prior quarter and the year-ago quarter, while gross profit was slightly lower than the prior quarter but comparable to the year-ago quarter.
Monitor the relationship between revenue and cost of revenue, as the current period showed a more favorable cost structure that may not persist.