- A windfall is a sudden and unexpected surge in earnings, often triggered by a one-time, out-of-the-ordinary event.
- A business makes windfall profits when there is a sudden change in the industry, such as a price drop or spike, or a surge in demand for a particular product.
- Businesses typically use this profit in part to increase dividends, buy back shares, reinvest in the business for future growth, or reduce debt.