PPG Industries, Inc. stock research
FY2025 Q1
PPG Industries (PPG) Gross Margin — Quarter Ended Mar 31, 2025
In the most recent quarter, revenue was stable compared to the preceding quarter, while cost of revenue was lower, resulting in a higher gross profit and an improved gross margin. Relative to the same quarter one year earlier, revenue and gross profit were both lower, and gross margin also weakened.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the most recent quarter, revenue was stable compared to the preceding quarter, while cost of revenue was lower, resulting in a higher gross profit and an improved gross margin. Relative to the same quarter one year earlier, revenue and gross profit were both lower, and gross margin also weakened.
- The strongest observable driver of the gross margin change was the variation in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue held steady, lifting the margin; year over year, both revenue and cost of revenue decreased, but the margin contracted.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.9%
Gross profit
$1.5B
Revenue
$3.7B
Cost of revenue
$2.1B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-0.9 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 | $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% |
| Mar 31, 2025 | $3.7B | $1.5B | $2.1B | 41.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.3 pts
Year-over-year change
Mar 31, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the variation in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue held steady, lifting the margin; year over year, both revenue and cost of revenue decreased, but the margin contracted.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.