Honeywell International Inc. stock research
FY2025 Q1
Honeywell International (HON) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was lower compared to the prior quarter but higher compared to the same quarter a year earlier. Gross profit increased relative to both the prior quarter and the year-ago quarter, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter, resulting in gross margin that improved from the prior quarter but weakened from the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was lower compared to the prior quarter but higher compared to the same quarter a year earlier. Gross profit increased relative to both the prior quarter and the year-ago quarter, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter, resulting in gross margin that improved from the prior quarter but weakened from the year-ago quarter.
- The gross margin improvement from the prior quarter was driven by a proportionally larger increase in gross profit relative to the change in revenue, indicating that cost of revenue did not rise as steeply as revenue declined.
- Compared to the prior quarter, revenue decreased while gross profit increased, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue increased and gross profit increased, but gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.8%
Gross profit
$3.5B
Revenue
$8.9B
Cost of revenue
$5.5B
Quarter-over-quarter change
+3.6 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 | $8.2B | $3.2B | $5.6B | 39.5% |
| Jun 30, 2024 | $10.5B | $3.4B | $5.9B | 31.8% |
| Sep 30, 2024 | $9.7B | $3.4B | $6.0B | 35.1% |
| Mar 31, 2025 | $8.9B | $3.5B | $5.5B | 38.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+3.6 pts
Year-over-year change
Mar 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a proportionally larger increase in gross profit relative to the change in revenue, indicating that cost of revenue did not rise as steeply as revenue declined.
Compared to the prior quarter, revenue decreased while gross profit increased, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue increased and gross profit increased, but gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as the relationship between these metrics has shown divergent movements across the periods.