Pentair plc stock research
FY2025 Q1
Pentair (PNR) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and cost of revenue both increased compared to the previous quarter, but gross profit grew more, leading to an improved gross margin. Compared to the same quarter last year, revenue was stable while cost of revenue was lower, resulting in higher gross profit and an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and cost of revenue both increased compared to the previous quarter, but gross profit grew more, leading to an improved gross margin. Compared to the same quarter last year, revenue was stable while cost of revenue was lower, resulting in higher gross profit and an improved gross margin.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased at a slower pace than revenue, and year-over-year, cost of revenue decreased while revenue remained steady, both contributing to margin expansion.
- Current quarter gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. The improvement was driven by a more favorable relationship between revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.9%
Gross profit
$403.3M
Revenue
$1.0B
Cost of revenue
$607.1M
Quarter-over-quarter change
+1.1 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.1B | $437.9M | $661.4M | 39.8% |
| Sep 30, 2024 | $993.4M | $393.2M | $600.2M | 39.6% |
| Dec 31, 2024 | $972.9M | $377.6M | $595.3M | 38.8% |
| Mar 31, 2025 | $1.0B | $403.3M | $607.1M | 39.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.1 pts
Year-over-year change
Mar 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased at a slower pace than revenue, and year-over-year, cost of revenue decreased while revenue remained steady, both contributing to margin expansion.
Current quarter gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. The improvement was driven by a more favorable relationship between revenue and cost of revenue.
Monitor the company's discussion of end-user demand for pool equipment and water solution products, as referenced in the filing, given their potential impact on future margins.