Ingersoll Rand Inc. stock research
FY2024 Q4
Ingersoll Rand (IR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was roughly unchanged from the prior quarter and higher than the same quarter last year. Gross profit rose slightly from the prior quarter and improved year over year, while cost of revenue increased relative to both periods; gross margin weakened slightly sequentially but matched the year-ago level.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was roughly unchanged from the prior quarter and higher than the same quarter last year. Gross profit rose slightly from the prior quarter and improved year over year, while cost of revenue increased relative to both periods; gross margin weakened slightly sequentially but matched the year-ago level.
- The sequential decline in gross margin was driven by a higher proportion of revenue consumed by cost of revenue, even as total revenue held steady. Year over year, the margin was unchanged, indicating cost of revenue grew at the same rate as revenue.
- Compared with the immediately preceding quarter, the gross margin weakened slightly as cost of revenue grew faster than gross profit. Versus the same quarter one year earlier, the gross margin was stable, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.9%
Gross profit
$815.4M
Revenue
$1.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.1 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 | $1.7B | $746.3M | $923.8M | 44.7% |
| Jun 30, 2024 | $1.8B | $793.3M | $1.0B | 43.9% |
| Sep 30, 2024 | $1.9B | $815.0M | $1.0B | 43.8% |
| Dec 31, 2024 | $1.9B | $815.4M | $1.1B | 42.9% |
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
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a higher proportion of revenue consumed by cost of revenue, even as total revenue held steady. Year over year, the margin was unchanged, indicating cost of revenue grew at the same rate as revenue.
Compared with the immediately preceding quarter, the gross margin weakened slightly as cost of revenue grew faster than gross profit. Versus the same quarter one year earlier, the gross margin was stable, with revenue and gross profit both higher.
Monitor whether cost of revenue continues to absorb a larger share of revenue in upcoming periods, as this would further pressure gross margin.