PACCAR Inc stock research
FY2024 Q4
PACCAR (PCAR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly, reflecting that the reduction in gross profit was proportionally larger than the decline in revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly, reflecting that the reduction in gross profit was proportionally larger than the decline in revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: although both declined, the gross profit fell more sharply, causing the gross margin to contract. This indicates that cost of revenue did not decrease enough to offset the revenue drop.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, but gross profit, cost of revenue, and gross margin for that prior period are not available.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.6%
Gross profit
$1.7B
Revenue
$7.9B
Cost of revenue
$6.2B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
n/a
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 | $8.7B | $2.1B | $6.7B | 23.7% |
| Jun 30, 2024 | $8.8B | $2.0B | $6.8B | 22.8% |
| Sep 30, 2024 | $8.2B | $1.8B | $6.4B | 22.0% |
| Dec 31, 2024 | $7.9B | $1.7B | $6.2B | 21.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.3 pts
Year-over-year change
Dec 31, 2023
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: although both declined, the gross profit fell more sharply, causing the gross margin to contract. This indicates that cost of revenue did not decrease enough to offset the revenue drop.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, but gross profit, cost of revenue, and gross margin for that prior period are not available.
Monitor whether cost of revenue can be reduced at a pace that better aligns with revenue changes to stabilize gross margin.