Smurfit Westrock Plc stock research
FY2025 Q1
Smurfit Westrock (SW) Gross Margin — Quarter Ended Mar 31, 2025
Gross profit equals revenue minus cost of revenue, and gross margin is the proportion of revenue retained after covering those costs. For this quarter, the reported gross margin reflects the difference between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Gross profit equals revenue minus cost of revenue, and gross margin is the proportion of revenue retained after covering those costs. For this quarter, the reported gross margin reflects the difference between revenue and cost of revenue.
- The sequential improvement in gross margin was accompanied by a larger increase in gross profit relative to the increase in revenue. Year over year, the decline in gross margin occurred as revenue grew more than gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.6%
Gross profit
$1.6B
Revenue
$7.7B
Cost of revenue
$6.1B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-3.6 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 | $3.0B | $693.0M | $2.3B | 23.3% |
| Sep 30, 2024 | $7.7B | $1.4B | $6.3B | 17.6% |
| Dec 31, 2024 | $7.5B | $1.4B | $6.1B | 19.1% |
| Mar 31, 2025 | $7.7B | $1.6B | $6.1B | 20.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.5 pts
Year-over-year change
Mar 31, 2024
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a larger increase in gross profit relative to the increase in revenue. Year over year, the decline in gross margin occurred as revenue grew more than gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was lower.
Monitor the trend in cost of revenue as the combined entity integrates its operations, given the completion of the combination noted in the filing.