Kratos Defense & Security Solutions (KTOS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 26,500 | 11,100 | -32,700 | 4,400 | 6,800 |
| Revenue | US$ in thousands | 1,136,300 | 1,037,100 | 898,300 | 811,500 | 747,700 |
| Pretax margin | 2.33% | 1.07% | -3.64% | 0.54% | 0.91% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $26,500K ÷ $1,136,300K
= 2.33%
The pretax margin of Kratos Defense & Security Solutions has exhibited notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. In 2020, the company maintained a positive pretax margin of 0.91%, indicating a modest profit before taxes relative to revenues. This margin declined significantly in 2021 to 0.54%, reflecting a step down in profitability, potentially due to increased costs or lower revenue realizations.
The year 2022 marked a substantial downturn, with the pretax margin turning negative at -3.64%, suggesting the company incurred pretax losses during that period. This shift to a negative margin could have been driven by increased expenses, reduced revenue, or a combination of both, impacting overall profitability.
Subsequently, in 2023, the pretax margin rebounded to a positive level of 1.07%, indicating a recovery in profitability or improved operational efficiency. The upward trajectory continued into 2024, with the margin improving further to 2.33%. This progression suggests an overall strengthening of the company's pretax profitability, possibly driven by cost management strategies, revenue growth, or a favorable shift in operational conditions.
Overall, the pretax margin trend reflects periods of volatility, with a significant dip into negative territory in 2022 followed by a steady recovery in 2023 and 2024. The positive margins in the latter years indicate a return to profitable operations, although the margins remain relatively modest, which may warrant further investigation into underlying operational efficiencies and market conditions influencing the company's financial performance.
Peer comparison
Dec 31, 2024