Kratos Defense & Security Solutions (KTOS)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 29,000 | 31,100 | 5,500 | 27,900 | 29,300 |
| Revenue | US$ in thousands | 1,136,300 | 1,037,100 | 898,300 | 811,500 | 747,700 |
| Operating profit margin | 2.55% | 3.00% | 0.61% | 3.44% | 3.92% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $29,000K ÷ $1,136,300K
= 2.55%
The operating profit margin of Kratos Defense & Security Solutions has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin stood at 3.92%, indicating a relatively healthy percentage of operating income relative to sales. This margin experienced a decline in 2021, decreasing slightly to 3.44%, reflecting a modest reduction in operating efficiency or increased operating expenses relative to revenue.
The most pronounced decline occurred by the end of 2022, with the operating profit margin narrowing sharply to 0.61%. This significant contraction suggests that the company's operational profitability was considerably impacted during this period, possibly due to increased costs, pricing pressures, or other operational challenges. Despite this downturn, the margin improved somewhat in 2023, rising to 3.00%, indicating a partial recovery in operational profitability. However, it did not return to prior peak levels and continued a downward trend, with the margin decreasing slightly to 2.55% by 2024.
Overall, the operating profit margin trend reflects periods of operational challenges, especially in 2022, followed by partial recovery, yet the margins remain below the levels observed at the start of the period. This pattern may suggest ongoing cost management issues or shifts in revenue quality, and it underscores the importance of monitoring operational efficiency and effectiveness in this timeframe.
Peer comparison
Dec 31, 2024