Quanta Services, Inc. stock research
FY2024 Q4
Quanta Services (PWR) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue remained stable sequentially and increased year over year. Gross margin improved from both the prior quarter and the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue remained stable sequentially and increased year over year. Gross margin improved from both the prior quarter and the year-ago period.
- The improvement in gross margin was driven by gross profit growing at a faster pace than revenue, with cost of revenue increasing less proportionally.
- Compared to the immediately preceding quarter, revenue was slightly higher and gross profit was higher, while cost of revenue was unchanged, resulting in an improved gross margin. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, but gross profit increased more than cost of revenue, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.2%
Gross profit
$1.1B
Revenue
$6.6B
Cost of revenue
$5.5B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+2.5 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 | $5.0B | $623.5M | $4.4B | 12.4% |
| Jun 30, 2024 | $5.6B | $811.3M | $4.8B | 14.5% |
| Sep 30, 2024 | $6.5B | $1.0B | $5.5B | 15.6% |
| Dec 31, 2024 | $6.6B | $1.1B | $5.5B | 16.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.6 pts
Year-over-year change
Dec 31, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit growing at a faster pace than revenue, with cost of revenue increasing less proportionally.
Compared to the immediately preceding quarter, revenue was slightly higher and gross profit was higher, while cost of revenue was unchanged, resulting in an improved gross margin. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, but gross profit increased more than cost of revenue, leading to a higher gross margin.
Monitor the relationship between cost of revenue and revenue growth to see if the current margin improvement can be sustained.