Worthington Steel Inc (WS)
Pretax margin
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 148,100 | 216,200 | 125,130 | 125,130 | 254,209 |
| Revenue | US$ in thousands | 3,093,300 | 3,430,600 | 3,611,590 | 3,611,590 | 4,068,930 |
| Pretax margin | 4.79% | 6.30% | 3.46% | 3.46% | 6.25% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $148,100K ÷ $3,093,300K
= 4.79%
The pretax margin for Worthington Steel Inc exhibits notable fluctuations over the specified periods. As of August 31, 2022, the pretax margin stood at 6.25%, indicating a relatively strong profitability position before taxes during that timeframe. By May 31, 2023, the margin declined to 3.46%, reflecting a significant reduction in pretax profitability. This lower level persisted through August 31, 2023, maintaining the same 3.46% margin, suggesting continued challenges in profit generation relative to revenue.
However, a subsequent increase is observed by May 31, 2024, when the pretax margin rose sharply to 6.30%, surpassing the prior August 2022 level and indicating an improvement in pre-tax profitability. Nonetheless, this positive trend appears to have moderated by May 31, 2025, with the margin decreasing to 4.79%, which remains higher than the 2023 levels but below the peak observed in 2022 and 2024.
In summary, the company's pretax margin has experienced variability across the periods analyzed, with initial strength in 2022, a decline in early 2023, a recovery in 2024, and a partial retreat in 2025. These fluctuations may reflect changes in operational efficiency, cost management, pricing strategies, or market conditions affecting the firm's pre-tax profitability.
Peer comparison
May 31, 2025