OK

ONEOK, Inc. stock research

Mar 31, 2025

FY2025 Q1

ONEOK (OKE) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased from the prior quarter but increased from a year ago. Cost of revenue rose substantially, resulting in a gross margin that weakened relative to both comparison periods.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit decreased from the prior quarter but increased from a year ago. Cost of revenue rose substantially, resulting in a gross margin that weakened relative to both comparison periods.

  • The primary observable factor affecting gross margin was the larger increase in cost of revenue relative to the increase in revenue, which compressed the margin.
  • Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a decline from the prior quarter's level and a more pronounced decrease from the year-ago level.

Gross margin snapshot

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

Gross margin

29.7%

Gross profit

$2.4B

Revenue

$8.0B

Cost of revenue

$5.7B

Quarter-over-quarter change

-6.1 pts

Year-over-year change

-9.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$4.9B$2.0B$2.9B40.9%
Sep 30, 2024$5.0B$2.0B$3.0B39.7%
Dec 31, 2024$7.0B$2.5B$4.5B35.8%
Mar 31, 2025$8.0B$2.4B$5.7B29.7%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-6.1 pts

Year-over-year change

Mar 31, 2024

-9.7 pts

What the margin says

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

The primary observable factor affecting gross margin was the larger increase in cost of revenue relative to the increase in revenue, which compressed the margin.

Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a decline from the prior quarter's level and a more pronounced decrease from the year-ago level.

Monitor the financial integration and operational performance of the recently completed EnLink acquisition and the newly formed joint ventures.