H2O America (HTO)

Gross profit margin

		Jun 30, 2025	Mar 31, 2025	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
Gross profit (ttm)	US$ in thousands	447,441	435,348	425,116	409,338	404,237	395,116	388,434	396,820	376,388	370,134	357,174	329,591	322,728	324,906	318,572	313,365	316,542	315,613	316,576	310,023
Revenue (ttm)	US$ in thousands	788,737	766,656	748,439	721,957	701,737	682,449	670,363	670,399	641,537	633,692	620,698	589,061	580,003	583,203	573,686	569,649	568,589	563,557	564,526	554,664
Gross profit margin		56.73%	56.79%	56.80%	56.70%	57.61%	57.90%	57.94%	59.19%	58.67%	58.41%	57.54%	55.95%	55.64%	55.71%	55.53%	55.01%	55.67%	56.00%	56.08%	55.89%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $447,441K ÷ $788,737K
= 56.73%

The gross profit margin of H2O America demonstrates a stable and gradually improving trend over the analyzed period. Starting at approximately 55.89% at the end of September 2020, the margin exhibits slight fluctuations but maintains a generally upward trajectory, reaching a peak of approximately 59.19% as of September 2023. This indicates an improvement in the company's ability to retain a higher proportion of revenue after cost of goods sold.

Within the observed timeline, there are periods of minor decline, such as from September 2023 to December 2023, where the margin decreases from 59.19% to 57.94%, and subsequent stabilization around 57.61% to 57.90% through mid-2024. Despite these short-term fluctuations, the overall pattern suggests enhanced gross profitability originating from better cost management or increased pricing power.

The consistent upward trend from mid-2021 through late 2023 reflects strategic improvements or operational efficiencies, whereas the subsequent stabilization indicates a potential plateau in margin expansion. The margins remain comfortably above 55%, signaling a strong gross profit position relative to revenue. This pattern suggests that H2O America has successfully maintained its gross profitability with a slight positive bias over the analyzed period, indicative of effective cost control and resilient revenue generation capabilities within its operational scope.