GCP Applied Technologies Income Statement 2021-2011 | GCP

Brief overview of profit and loss at GCP Applied Technologies

This overview is based on financial performance over the past five years. Revenue at GCP Applied Technologies moved from 1 billion dollars in 2016 to 970 million dollars in 2021. The total change was −7.3%, with a CAGR of approximately −1.5%. The scale of the core business was largely unchanged.

At the gross-profit level, the result moved from 418 million dollars to 344 million dollars, a change of −17.6%. Cost of revenue developed less favorably than sales and pressured gross profitability. Comparing the endpoints gives gross margins of 39.9% and 35.4%. The margin decline reflects a less favorable sales-and-cost structure.

The operating result measured by EBITDA moved from 216 million dollars to 45.9 million dollars, or −78.8%. Operating performance weakened relative to revenue. At the operating-margin level, the figure shifted from 20.7% to 4.7%. The business retained less EBITDA from each unit of revenue.

The net result moved from 72.8 million dollars to 21.2 million dollars, or −70.9%. The decline reduces the quality of the financial trajectory.

Market capitalization changed from 1.9 billion dollars to 2.3 billion dollars (+22.7%). The higher valuation contrasts with weaker financial performance.

Financial takeaway

The current trajectory does not yet confirm a sustainable recovery. The weaker side of the profile includes weaker operating efficiency, lower net income and a softer top-line trend. The key question is whether sales can be converted into sustainable profit.