PN

Pentair plc stock research

Dec 31, 2024

FY2024 Q4

Pentair (PNR) Gross Margin — Quarter Ended Dec 31, 2024

Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit increased year-over-year but declined sequentially, while cost of revenue fell in both comparisons, leading to a gross margin that improved from the prior year but weakened from the preceding quarter.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit increased year-over-year but declined sequentially, while cost of revenue fell in both comparisons, leading to a gross margin that improved from the prior year but weakened from the preceding quarter.

  • The most observable driver this quarter was the year-over-year decrease in cost of revenue, which outpaced the decline in revenue and supported gross profit growth.
  • Compared to the prior quarter, gross margin weakened on lower gross profit despite slightly lower cost of revenue. Versus the same quarter last year, gross margin improved as gross profit rose while cost of revenue fell.

Gross margin snapshot

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

Gross margin

38.8%

Gross profit

$377.6M

Revenue

$972.9M

Cost of revenue

$595.3M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

+1.6 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$1.0B$390.1M$627.1M38.4%
Jun 30, 2024$1.1B$437.9M$661.4M39.8%
Sep 30, 2024$993.4M$393.2M$600.2M39.6%
Dec 31, 2024$972.9M$377.6M$595.3M38.8%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.8 pts

Year-over-year change

Dec 31, 2023

+1.6 pts

What the margin says

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

The most observable driver this quarter was the year-over-year decrease in cost of revenue, which outpaced the decline in revenue and supported gross profit growth.

Compared to the prior quarter, gross margin weakened on lower gross profit despite slightly lower cost of revenue. Versus the same quarter last year, gross margin improved as gross profit rose while cost of revenue fell.

Monitor the sequential decline in revenue to assess whether top-line trends may persist.

PNR Gross Margin — Quarter Ended Dec 31, 2024