Kratos Defense & Security Solutions (KTOS)
Pretax margin
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 27,900 | 26,500 | 30,100 | 31,100 | 20,200 | 11,100 | 4,400 | -11,200 | -17,800 | -32,700 | -30,600 | -17,200 | -14,800 | 4,400 | 4,200 | 7,200 | 7,200 | 6,800 | 8,300 | 6,100 |
| Revenue (ttm) | US$ in thousands | 1,161,700 | 1,136,300 | 1,127,000 | 1,125,700 | 1,082,500 | 1,037,100 | 1,012,600 | 966,600 | 933,900 | 898,300 | 860,600 | 832,600 | 813,500 | 811,500 | 806,300 | 807,700 | 773,000 | 747,700 | 726,400 | 708,500 |
| Pretax margin | 2.40% | 2.33% | 2.67% | 2.76% | 1.87% | 1.07% | 0.43% | -1.16% | -1.91% | -3.64% | -3.56% | -2.07% | -1.82% | 0.54% | 0.52% | 0.89% | 0.93% | 0.91% | 1.14% | 0.86% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $27,900K ÷ $1,161,700K
= 2.40%
The pretax margin of Kratos Defense & Security Solutions exhibits notable fluctuations over the analyzed period from June 30, 2020, to March 31, 2025. Initially, during mid-2020, the company reported modest pretax margins of approximately 0.86% in June and slightly higher at 1.14% in September, reflecting a relatively stable profitability environment. Throughout 2020 and into early 2021, the margins remained positive, ranging narrowly between 0.54% and 1.14%, indicating consistent, albeit modest, earnings before taxes relative to revenues.
However, starting in the first quarter of 2022, the company experienced a significant shift towards losses, with pretax margins turning negative, reaching lows of approximately -3.64% in December 2022. This downturn suggests increased costs, reduced profitability, or both, impacting the company's pre-tax earnings adversely. The negative margins persisted into 2023, with figures such as -1.91% and -1.16%, illustrating a continued challenging environment.
From September 2023 onward, there is a marked improvement, with pretax margins turning positive once again, reaching 0.43% in September 2023 and continuing an upward trajectory, achieving over 2.7% by June 2024. The overall trend from late 2023 through March 2025 indicates a recovery phase with a steady increase in pre-tax profitability, hinting at effective cost management, improved operational performance, or favorable market conditions contributing to the restored margins.
In summary, the pretax margin of Kratos demonstrates a historical pattern of modest profitability with periods of deterioration into losses mid-2022, followed by a significant recovery starting late 2023 and continuing into the first quarter of 2025. The data suggests a transition from a period of financial strain to a renewed phase of profitability, reflecting potential operational or strategic improvements.
Peer comparison
Mar 31, 2025