ONEOK, Inc. stock research
FY2024 Q4
ONEOK (OKE) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, but cost of revenue rose more sharply, causing gross margin to decline. The company's filing highlights a strategy focused on operational safety, workforce engagement, and financial discipline.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, but cost of revenue rose more sharply, causing gross margin to decline. The company's filing highlights a strategy focused on operational safety, workforce engagement, and financial discipline.
- The primary observable driver of the gross margin change is the proportionally larger increase in cost of revenue relative to revenue, which compressed margins despite higher absolute gross profit.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a weakening trend. Revenue and gross profit were higher in both comparisons, while cost of revenue grew at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.8%
Gross profit
$2.5B
Revenue
$7.0B
Cost of revenue
$4.5B
Quarter-over-quarter change
-4.0 pts
Year-over-year change
-1.2 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 | $4.8B | $1.9B | $2.9B | 39.4% |
| Jun 30, 2024 | $4.9B | $2.0B | $2.9B | 40.9% |
| Sep 30, 2024 | $5.0B | $2.0B | $3.0B | 39.7% |
| Dec 31, 2024 | $7.0B | $2.5B | $4.5B | 35.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-4.0 pts
Year-over-year change
Dec 31, 2023
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the proportionally larger increase in cost of revenue relative to revenue, which compressed margins despite higher absolute gross profit.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a weakening trend. Revenue and gross profit were higher in both comparisons, while cost of revenue grew at a faster pace.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether margin pressure persists.