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TLN (Talen Energy) Gross Margin % : 31.15% (As of Dec. 2024)


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What is Talen Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Talen Energy's Gross Profit for the three months ended in Dec. 2024 was $152 Mil. Talen Energy's Revenue for the three months ended in Dec. 2024 was $488 Mil. Therefore, Talen Energy's Gross Margin % for the quarter that ended in Dec. 2024 was 31.15%.


The historical rank and industry rank for Talen Energy's Gross Margin % or its related term are showing as below:

TLN' s Gross Margin % Range Over the Past 10 Years
Min: 13.75   Med: 35.53   Max: 58.27
Current: 26.51


During the past 10 years, the highest Gross Margin % of Talen Energy was 58.27%. The lowest was 13.75%. And the median was 35.53%.

TLN's Gross Margin % is ranked worse than
61.48% of 392 companies
in the Utilities - Independent Power Producers industry
Industry Median: 36.02 vs TLN: 26.51

Talen Energy had a gross margin of 31.15% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Talen Energy was 0.00% per year.


Talen Energy Gross Margin % Historical Data

The historical data trend for Talen Energy's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Talen Energy Gross Margin % Chart

Talen Energy Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.13 13.75 31.92 - 32.03

Talen Energy Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec20 Dec21 Dec22 Sep23 Dec23 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.68 - 14.04 31.71 31.15

Competitive Comparison of Talen Energy's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Talen Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Talen Energy's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Talen Energy's Gross Margin % falls into.


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Talen Energy Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Talen Energy's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=664 / 2073
=(Revenue - Cost of Goods Sold) / Revenue
=(2073 - 1409) / 2073
=32.03 %

Talen Energy's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=152 / 488
=(Revenue - Cost of Goods Sold) / Revenue
=(488 - 336) / 488
=31.15 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Talen Energy  (NAS:TLN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Talen Energy had a gross margin of 31.15% for the quarter that ended in Dec. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Talen Energy Gross Margin % Related Terms

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Talen Energy Business Description

Traded in Other Exchanges
N/A
Address
1780 Hughes Landing, Suite 800, The Woodlands, TX, USA, 77380
Talen Energy Corp is an independent power producer and infrastructure company. The company owns and operates approximately 10.7 gigawatts of power infrastructure in the United States. The group produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, including PJM and WECC, with its generation fleet located in the Mid-Atlantic and Montana.