What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Kinder Morgan (KMI) revenue becomes net income?

For TTM through Q2 2026, Kinder Morgan turned $11.9B of revenue into $1.59B of net income — a net margin of 13.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Kinder Morgan (KMI) gross, operating, and net margins?

For TTM through Q2 2026, Kinder Morgan reported a gross margin of 43.5%, an operating margin of 20.5%, and a net margin of 13.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Kinder Morgan (KMI) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Kinder Morgan (KMI) Income Statement Waterfall

Revenue

$11.9B

Gross Margin

+43.5%

Operating Margin

+20.5%

Net Margin

+13.4%

Income statement waterfall for Kinder Morgan (KMI) — TTM through Q2 2026

Net income: $1.59B

Margin breakdown for Kinder Morgan (KMI) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$11.9B	$11.9B
Cost of Revenue	-$6.7B	$5.16B
Gross Profit	$5.16B	$5.16B
Operating Expenses	-$2.73B	$2.43B
Operating Income	$2.43B	$2.43B
Other Income / Expense	$1.4B	$3.82B
Pre-tax Income	$3.82B	$3.82B
Income Tax	-$2.16B	$1.67B
Other Items	-$76M	$1.59B
Net Income	$1.59B	$1.59B

Revenue$11.9B
Cost of Revenue-$6.7B
Gross Profit$5.16B
Operating Expenses-$2.73B
Operating Income$2.43B
Other Income / Expense$1.4B
Pre-tax Income$3.82B
Income Tax-$2.16B
Other Items-$76M
Net Income$1.59B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Kinder Morgan (KMI) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

KMI Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation