Worthington Industries Inc (WOR)
Pretax margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 128,809 | 93,680 | 81,572 | 79,828 | 177,518 | 378,993 | 375,664 | 363,935 | 320,197 | 256,440 | 296,628 | 417,403 | 514,286 | 549,357 | 549,194 | 316,826 | 917,717 | 788,651 | 735,200 | 895,942 |
| Revenue (ttm) | US$ in thousands | 1,153,762 | 1,154,679 | 1,166,910 | 1,979,784 | 2,915,736 | 3,825,795 | 3,855,355 | 3,943,975 | 4,159,375 | 4,450,815 | 5,482,740 | 5,540,060 | 5,242,220 | 4,700,239 | 4,081,108 | 3,579,340 | 3,171,429 | 2,804,737 | 2,809,624 | 2,906,169 |
| Pretax margin | 11.16% | 8.11% | 6.99% | 4.03% | 6.09% | 9.91% | 9.74% | 9.23% | 7.70% | 5.76% | 5.41% | 7.53% | 9.81% | 11.69% | 13.46% | 8.85% | 28.94% | 28.12% | 26.17% | 30.83% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $128,809K ÷ $1,153,762K
= 11.16%
The analysis of Worthington Industries Inc.'s pretax margin over the period covered reveals substantial fluctuations indicating variability in profitability and operating efficiency. Initially, the company experienced a high pretax margin of 30.83% as of August 31, 2020. This elevated level was followed by a decline to 26.17% in November 2020 and a slight increase to 28.12% in February 2021. During this period, the company maintained relatively strong margins, suggesting robust operational performance.
In the subsequent quarters, the pretax margin exhibited a notable decline, dropping to 8.85% by August 2021, and then partially recovering to 13.46% in November 2021. Throughout 2022, the margin continued a downward trend, recording 11.69% in February, 9.81% in May, and declining further to 7.53% in August and 5.41% in November. This sustained decrease indicates a period of compression in profitability, possibly driven by increased costs, competitive pressures, or shifts in revenue mix.
In 2023, the pretax margin showed signs of stabilization and slight improvement, reaching 5.76% in February, then rising to 7.70% in May, and further to 9.23% in August. By November 2023, the margin slightly increased again to 9.74%, and continued to inch upward to 9.91% in February 2024. Nevertheless, this value remains significantly below the initial levels observed in 2020, demonstrating ongoing challenges in maintaining higher profitability margins.
Looking ahead, the projected figures suggest a renewed upward trajectory, with the margins estimated at 6.09% in May 2024, briefly dipping to 4.03% in August 2024, then rising again to 6.99% in November 2024, followed by an improvement to 8.11% in February 2025, and an anticipated peak of 11.16% by May 2025. These projections imply expectations of eventual margin recovery, though with continued fluctuations.
Overall, this pattern reflects periods of significant profitability and compression, with recent trends indicating efforts to restore margins, albeit at levels below those seen prior to 2021. The data suggests that Worthington Industries Inc. has faced varying operational and market challenges affecting its pretax margin, with a cautiously optimistic outlook indicated by the projected upward movement in the upcoming periods.
Peer comparison
May 31, 2025