PPLNEUTRAL

Gross Margin

43.9%

Higher than 55% of Utilities sector peers

Updated 177h ago

Sector Performance

55th percentile

PPL

43.9%

Sector Median

43.3%

Sector Avg

46.7%

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Deep Analysis

PPL's gross margin of 43.9% means that for every dollar of revenue, the company keeps about 44 cents after paying the direct costs of producing its electricity and utility services.

That figure sits just above the sector median of 43.2%, placing PPL in the 55th percentile among utility peers—a slightly above-average position. Over the last eight quarters the trend direction is decreasing, though year-over-year change is not available; quarter-over-quarter, however, gross margin jumped 41.6% from 31.0% to 43.9%, while the quarter before that was 69.3%. The combination of a near-median current level with a long-term declining trend but a sharp recent recovery implies mixed signals: the business has not consistently maintained its margin strength, but the latest rebound could indicate a temporary improvement. This mixed picture neither contradicts nor strongly supports the overall NEUTRAL verdict, as the metric lacks clear directional conviction.

Frequently Asked Questions

What does the Gross Margin tell investors about PPL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PPL's Gross Margin compare to its sector?

PPL's Gross Margin of 43.9% compares to a Utilities sector median of 43.3%, placing it in the 55th percentile.

Who are PPL's closest peers by Gross Margin?

The closest Utilities peers by Gross Margin include: LNT (42.6%), ATO (46.0%), PCG (39.8%), PNW (37.9%), PEG (36.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.