EQT Corporation (EQT)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	252,656	340,426	700,521	656,782	2,104,182	3,722,108	4,603,582	5,881,626	2,324,696	2,451,096	-1,022,970	-3,502,140	-1,570,786	-3,895,446	-2,083,653	-1,170,161	-1,254,092	-2,870,252	-2,491,226	-1,960,717
Revenue (ttm)	US$ in thousands	5,273,312	5,691,582	5,593,882	5,660,120	6,908,920	8,345,750	9,229,110	10,737,870	10,563,420	10,923,280	10,637,870	9,188,260	7,651,563	5,064,453	3,452,530	2,901,704	3,058,841	2,817,741	3,597,190	4,380,366
Pretax margin		4.79%	5.98%	12.52%	11.60%	30.46%	44.60%	49.88%	54.77%	22.01%	22.44%	-9.62%	-38.12%	-20.53%	-76.92%	-60.35%	-40.33%	-41.00%	-101.86%	-69.25%	-44.76%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $252,656K ÷ $5,273,312K
= 4.79%

The pretax margin of EQT Corporation has shown significant fluctuations over the past few years. The company experienced negative pretax margins for most of 2020 and 2021, with the lowest being -101.86% in September 2020. This indicates that the company's operating expenses and non-operating costs, such as interest and taxes, outweighed its revenue during those periods.

However, there was a notable improvement in the pretax margin starting from the first quarter of 2022, with the company achieving positive pretax margins. The trend continued to strengthen throughout 2023 and into the first half of 2024, reaching a peak of 54.77% in March 2023.

This improvement suggests that EQT Corporation implemented effective cost-cutting measures, improved operational efficiency, or increased revenue generation during this period. The positive pretax margins in 2022 and 2023 indicate that the company was able to generate more income before accounting for taxes and other expenses.

The downward trend in pretax margins towards the end of 2024, where the pretax margin dropped to 4.79% in December, may raise concerns about the company's ability to sustain profitability. It is essential for EQT Corporation to monitor its costs, revenue streams, and operational effectiveness to ensure continued financial stability and growth.