PPG Industries, Inc. stock research
FY2024 Q4
PPG Industries (PPG) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased from the previous quarter but increased compared to the same quarter one year earlier, while cost of revenue followed a similar pattern. Gross margin weakened slightly from the previous quarter yet improved from the year-ago period, reflecting a mixed comparative performance.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased from the previous quarter but increased compared to the same quarter one year earlier, while cost of revenue followed a similar pattern. Gross margin weakened slightly from the previous quarter yet improved from the year-ago period, reflecting a mixed comparative performance.
- The improvement in gross margin from the year-ago quarter is the strongest observable driver, as gross profit grew more relative to revenue than cost of revenue did. This margin change aligns with the filing's reference to lower raw material costs and restructuring savings.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was slightly weakened. Versus the same quarter one year earlier, all three metrics were higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.6%
Gross profit
$1.5B
Revenue
$3.7B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+3.0 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 | $3.8B | $1.6B | $2.2B | 42.7% |
| Jun 30, 2024 | $4.2B | $1.8B | $2.5B | 42.1% |
| Sep 30, 2024 | $4.0B | $1.7B | $2.4B | 40.9% |
| Dec 31, 2024 | $3.7B | $1.5B | $2.2B | 40.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.4 pts
Year-over-year change
Dec 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the year-ago quarter is the strongest observable driver, as gross profit grew more relative to revenue than cost of revenue did. This margin change aligns with the filing's reference to lower raw material costs and restructuring savings.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin was slightly weakened. Versus the same quarter one year earlier, all three metrics were higher and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as it will determine whether the recent margin improvement from the prior year can be sustained.