HU

Hubbell Incorporated stock research

Mar 31, 2025

FY2025 Q1

Hubbell (HUBB) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased compared to the prior quarter but was level with the same quarter last year. Gross profit decreased sequentially and increased year-over-year, resulting in a gross margin that weakened from the previous quarter but improved compared to the same quarter a year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue increased compared to the prior quarter but was level with the same quarter last year. Gross profit decreased sequentially and increased year-over-year, resulting in a gross margin that weakened from the previous quarter but improved compared to the same quarter a year earlier.

  • The strongest observable margin driver is the change in cost of revenue relative to revenue. From the prior quarter, cost of revenue grew faster than revenue, compressing margin; from the year-ago quarter, cost of revenue declined while revenue remained stable, expanding margin.
  • Compared to the immediately preceding quarter, gross margin was lower due to a larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher as cost of revenue decreased while revenue was unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.4%

Gross profit

$442.6M

Revenue

$1.4B

Cost of revenue

$922.6M

Quarter-over-quarter change

-2.7 pts

Year-over-year change

+1.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$1.4B$433.6M$965.5M31.0%
Jun 30, 2024$1.5B$513.8M$938.7M35.4%
Sep 30, 2024$1.4B$506.0M$936.6M35.1%
Mar 31, 2025$1.4B$442.6M$922.6M32.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

-2.7 pts

Year-over-year change

Mar 31, 2024

+1.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the change in cost of revenue relative to revenue. From the prior quarter, cost of revenue grew faster than revenue, compressing margin; from the year-ago quarter, cost of revenue declined while revenue remained stable, expanding margin.

Compared to the immediately preceding quarter, gross margin was lower due to a larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher as cost of revenue decreased while revenue was unchanged.

Monitor the trajectory of cost of revenue growth relative to revenue growth in upcoming quarters.