MP

Marathon Petroleum Corporation stock research

Dec 31, 2024

FY2024 Q4

Marathon Petroleum (MPC) Gross Margin — Quarter Ended Dec 31, 2024

Revenue for the quarter was lower than both the immediately preceding quarter and the same quarter a year earlier. Gross profit declined more sharply than revenue, causing the gross margin to weaken compared to both periods.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue for the quarter was lower than both the immediately preceding quarter and the same quarter a year earlier. Gross profit declined more sharply than revenue, causing the gross margin to weaken compared to both periods.

  • The primary observable driver of the margin change is the larger proportional decline in gross profit relative to revenue, with cost of revenue not declining as much as revenue.
  • Compared to the prior quarter, revenue and gross profit were lower, and the gross margin weakened. The same pattern holds versus the year-ago quarter, with the margin being lower.

Gross margin snapshot

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

Gross margin

7.8%

Gross profit

$2.6B

Revenue

$33.1B

Cost of revenue

$30.6B

Quarter-over-quarter change

-0.7 pts

Year-over-year change

-2.3 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$32.7B$3.1B$29.6B9.5%
Jun 30, 2024$37.9B$4.0B$33.9B10.5%
Sep 30, 2024$35.1B$3.0B$32.1B8.4%
Dec 31, 2024$33.1B$2.6B$30.6B7.8%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.7 pts

Year-over-year change

Dec 31, 2023

-2.3 pts

What the margin says

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

The primary observable driver of the margin change is the larger proportional decline in gross profit relative to revenue, with cost of revenue not declining as much as revenue.

Compared to the prior quarter, revenue and gross profit were lower, and the gross margin weakened. The same pattern holds versus the year-ago quarter, with the margin being lower.

Monitor the trend in operating results as highlighted in the management discussion, given the decrease in operating cash flows attributed to lower operating results.