Quanta Services, Inc. stock research
FY2025 Q1
Quanta Services (PWR) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased compared to the prior quarter, while gross profit declined more sharply, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit both increased, and gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter, while gross profit declined more sharply, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit both increased, and gross margin improved.
- Gross margin was lower than the preceding quarter as cost of revenue declined at a slower pace than revenue. Compared to the year-ago quarter, gross margin was higher, with revenue growth outpacing the increase in cost of revenue.
- Sequentially, revenue and gross profit were lower, and gross margin weakened. Year over year, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.4%
Gross profit
$834.0M
Revenue
$6.2B
Cost of revenue
$5.4B
Quarter-over-quarter change
-2.8 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $6.2B | $834.0M | $5.4B | 13.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.8 pts
Year-over-year change
Mar 31, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was lower than the preceding quarter as cost of revenue declined at a slower pace than revenue. Compared to the year-ago quarter, gross margin was higher, with revenue growth outpacing the increase in cost of revenue.
Sequentially, revenue and gross profit were lower, and gross margin weakened. Year over year, revenue and gross profit were higher, and gross margin improved.
Monitor the relationship between revenue and cost of revenue trends, as the sequential margin compression reflects a proportionally higher cost base relative to revenue.