Westinghouse Air Brake Technologies Corporation stock research
FY2024 Q4
Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue remained unchanged, resulting in a gross margin that weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue remained unchanged, resulting in a gross margin that weakened sequentially but improved year-over-year.
- The primary observable driver is the stable cost of revenue combined with fluctuating revenue, which directly influences gross margin. This relationship highlights the sensitivity of margin to revenue changes.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a larger decline in gross profit relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, as revenue and gross profit grew while cost of revenue remained flat.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.9%
Gross profit
$797.0M
Revenue
$2.6B
Cost of revenue
$1.8B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $2.5B | $815.0M | $1.7B | 32.6% |
| Jun 30, 2024 | $2.6B | $874.0M | $1.8B | 33.1% |
| Sep 30, 2024 | $2.7B | $880.0M | $1.8B | 33.0% |
| Dec 31, 2024 | $2.6B | $797.0M | $1.8B | 30.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.2 pts
Year-over-year change
Dec 31, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the stable cost of revenue combined with fluctuating revenue, which directly influences gross margin. This relationship highlights the sensitivity of margin to revenue changes.
Compared to the immediately preceding quarter, gross margin was lower, driven by a larger decline in gross profit relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, as revenue and gross profit grew while cost of revenue remained flat.
Monitor revenue trends and their impact on gross margin given the stable cost base.