Marathon Petroleum Corporation stock research
FY2025 Q1
Marathon Petroleum (MPC) Gross Margin — Quarter Ended Mar 31, 2025
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue fell less proportionally, leading to lower gross profit and a weakened gross margin. The gross margin decreased from the previous quarter and from a year ago, reflecting a compression between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue fell less proportionally, leading to lower gross profit and a weakened gross margin. The gross margin decreased from the previous quarter and from a year ago, reflecting a compression between revenue and cost of revenue.
- Gross profit declined more sharply than revenue, and cost of revenue remained elevated relative to revenue, driving the gross margin lower. The strongest observable margin driver is the narrowing gap between revenue and cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit both decreased, and gross margin weakened. Relative to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.8%
Gross profit
$2.2B
Revenue
$31.5B
Cost of revenue
$29.4B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-2.7 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $37.9B | $4.0B | $33.9B | 10.5% |
| Sep 30, 2024 | $35.1B | $3.0B | $32.1B | 8.4% |
| Dec 31, 2024 | $33.1B | $2.6B | $30.6B | 7.8% |
| Mar 31, 2025 | $31.5B | $2.2B | $29.4B | 6.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.9 pts
Year-over-year change
Mar 31, 2024
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit declined more sharply than revenue, and cost of revenue remained elevated relative to revenue, driving the gross margin lower. The strongest observable margin driver is the narrowing gap between revenue and cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit both decreased, and gross margin weakened. Relative to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.
Monitor whether cost of revenue can decline in line with revenue in upcoming periods to prevent further gross margin compression.