Ecolab Inc. stock research
FY2025 Q2
Ecolab (ECL) Gross Margin — Quarter Ended Jun 30, 2025
In the current quarter, revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Compared to the same quarter last year, revenue was unchanged but gross profit was higher, and cost of revenue remained flat, leading to an improved gross margin from both periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
In the current quarter, revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Compared to the same quarter last year, revenue was unchanged but gross profit was higher, and cost of revenue remained flat, leading to an improved gross margin from both periods.
- The improvement in gross margin was supported by cost of revenue rising at a slower pace than revenue sequentially and remaining flat year-over-year while revenue was stable. This relationship between cost of revenue and revenue was the most observable factor in the margin change.
- Relative to the prior quarter, the company reported higher revenue, gross profit, and cost of revenue, with gross margin improving. Compared to the same quarter a year earlier, revenue was stable while gross profit increased and cost of revenue remained unchanged, resulting in a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.8%
Gross profit
$1.8B
Revenue
$4.0B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $4.0B | $1.8B | $2.2B | 44.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.5 pts
Year-over-year change
Jun 30, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was supported by cost of revenue rising at a slower pace than revenue sequentially and remaining flat year-over-year while revenue was stable. This relationship between cost of revenue and revenue was the most observable factor in the margin change.
Relative to the prior quarter, the company reported higher revenue, gross profit, and cost of revenue, with gross margin improving. Compared to the same quarter a year earlier, revenue was stable while gross profit increased and cost of revenue remained unchanged, resulting in a stronger gross margin.
Monitor the risk factors disclosed in the company's SEC filings, as they may affect future revenue and cost dynamics and thereby influence gross margin.