Phillips 66 stock research
FY2024 Q4
Phillips 66 (PSX) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year, reflecting a larger proportional decline in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year, reflecting a larger proportional decline in gross profit relative to revenue.
- The decline in gross profit outpaced the decline in revenue, which was the primary factor compressing gross margin. Cost of revenue fell at a slower rate than revenue, further pressuring margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter a year ago, all three metrics were lower, and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.7%
Gross profit
$2.9B
Revenue
$33.7B
Cost of revenue
$30.8B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-2.9 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $35.8B | $3.4B | $32.4B | 9.6% |
| Jun 30, 2024 | $38.1B | $3.5B | $34.6B | 9.2% |
| Sep 30, 2024 | $35.5B | $3.3B | $32.2B | 9.4% |
| Dec 31, 2024 | $33.7B | $2.9B | $30.8B | 8.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.7 pts
Year-over-year change
Dec 31, 2023
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit outpaced the decline in revenue, which was the primary factor compressing gross margin. Cost of revenue fell at a slower rate than revenue, further pressuring margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter a year ago, all three metrics were lower, and gross margin also weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.