H2O America (HTO)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 113,954 109,029 102,937 99,708 99,911 92,265 90,943 108,502 92,976 90,128 82,324 65,216 61,776 71,931 68,847 60,056 68,910 68,760 69,895 51,623
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
Pretax margin 14.45% 14.22% 13.75% 13.81% 14.24% 13.52% 13.57% 16.18% 14.49% 14.22% 13.26% 11.07% 10.65% 12.33% 12.00% 10.54% 12.12% 12.20% 12.38% 9.31%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $113,954K ÷ $788,737K
= 14.45%

H2O America has demonstrated a generally upward trend in its pretax margin over the analyzed period, reflecting an improvement in profitability before income tax expenses. Starting at approximately 9.31% on September 30, 2020, the pretax margin experienced fluctuations but showed an overall growth trajectory, reaching its peak at 16.18% on September 30, 2023. This represents a significant increase from the initial figure, indicating enhanced operational efficiency or better margin management.

Periodic variations are evident, with some setbacks observed: after reaching the 16.18% level in September 2023, the pretax margin declined slightly to 13.57% by December 2023 before stabilizing around 13.52% to 14.45% in the subsequent quarters. These fluctuations may be attributable to changes in revenue, cost structure, or external market conditions affecting profitability.

Overall, the data suggest that H2O America's pretax margin has improved relative to the initial period, signifying stronger profitability on its operations. The continued increase towards the second half of 2024 and into 2025 indicates a positive trend, albeit with some short-term volatility. This pattern underscores an effective management of costs relative to revenues, positioning the company for potentially sustained profitability in the near term.