EBIT

[ee-bit]

noun

Finance, Business.

1. earnings before interest and taxes: a widely used measure of the profitability (or lack thereof) resulting from a company’s core operations, calculated by subtracting from total revenue the cost of goods (or services) sold, sales and marketing expenses, the cost of overhead, and deductions for depreciation and amortization (generally of property and equipment). Other costs that may be indirectly related to operations, as interest (paid on company debt) and taxes (paid on profits), are not taken into account when calculating EBIT.

Word History and Origins

Origin of EBIT¹

First recorded in 1960–65

Example Sentences

Sutcliffe raises her full-year Australia Ebit margin to 9.3% to 8.8%, but declines to fully translate the 1Q beat across the whole of fiscal 2026.

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Analyst Rohan Koreman-Smit says Steel & Tube isn’t likely to achieve breakeven Ebit until at least February or March.

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“However the 1Q performance of the Australian business is exceeding consensus revenue and Ebit growth expectations,” analyst Craig Wong-Pan says.

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Ebit growth of 5.8% was achieved in the quarter.

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XLSmart’s outperforming earnings could help Axiata meet its 2025 guidance of high single-digit Ebit growth, she says.

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