Targa Resources Corp. stock research
FY2025 Q1
Targa Resources (TRGP) Gross Margin — Quarter Ended Mar 31, 2025
In the current quarter, revenue was higher than the preceding quarter but gross profit was lower, as cost of revenue grew more than revenue. Compared to the same quarter last year, revenue was stable while gross profit was also stable, but cost of revenue was slightly higher, resulting in a marginally lower gross margin. The filing discusses forward-looking statements and liquidity sources but does not provide specific explanations for the margin changes.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the current quarter, revenue was higher than the preceding quarter but gross profit was lower, as cost of revenue grew more than revenue. Compared to the same quarter last year, revenue was stable while gross profit was also stable, but cost of revenue was slightly higher, resulting in a marginally lower gross margin. The filing discusses forward-looking statements and liquidity sources but does not provide specific explanations for the margin changes.
- The primary observable driver of the gross margin change is the shift in the relationship between cost of revenue and revenue. From the prior quarter, cost of revenue increased at a faster rate than revenue, while from the same quarter a year ago, cost of revenue rose slightly even as revenue remained unchanged.
- Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, indicating a weakening of gross margin. Compared to the same quarter one year earlier, revenue was stable and gross profit was stable, yet gross margin was slightly lower due to a marginally higher cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.6%
Gross profit
$1.3B
Revenue
$4.6B
Cost of revenue
$3.3B
Quarter-over-quarter change
-5.1 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 | $3.6B | $1.4B | $2.2B | 38.3% |
| Sep 30, 2024 | $3.9B | $1.5B | $2.4B | 38.6% |
| Dec 31, 2024 | $4.4B | $1.5B | $2.9B | 33.7% |
| Mar 31, 2025 | $4.6B | $1.3B | $3.3B | 28.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-5.1 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 primary observable driver of the gross margin change is the shift in the relationship between cost of revenue and revenue. From the prior quarter, cost of revenue increased at a faster rate than revenue, while from the same quarter a year ago, cost of revenue rose slightly even as revenue remained unchanged.
Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, indicating a weakening of gross margin. Compared to the same quarter one year earlier, revenue was stable and gross profit was stable, yet gross margin was slightly lower due to a marginally higher cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as the margin compression was driven by cost growth outpacing revenue growth.