Kratos Defense & Security Solutions (KTOS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.76% | 24.90% | 24.69% | 25.10% | 25.07% | 25.25% | 25.49% | 24.48% | 24.51% | 24.65% | 25.74% | 27.65% | 27.78% | 27.74% | 27.02% | 26.54% | 26.96% | 27.18% | 27.16% | 26.65% |
| Operating profit margin | 2.46% | 2.55% | 3.38% | 3.89% | 3.51% | 3.10% | 2.38% | 0.90% | 0.65% | 0.50% | 1.12% | 2.80% | 2.77% | 3.44% | 3.44% | 3.75% | 3.87% | 3.97% | 4.13% | 4.01% |
| 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% |
| Net profit margin | 1.68% | 1.43% | 1.31% | 0.89% | -0.06% | -0.74% | -1.82% | -2.57% | -2.87% | -4.09% | -3.60% | -3.05% | -2.41% | -0.25% | 9.76% | 10.34% | 10.57% | 10.65% | 0.62% | 0.65% |
The analyzed profitability ratios for Kratos Defense & Security Solutions over the specified periods reveal a complex profitability trend with periods of fluctuation and slight improvement in recent quarters.
Gross Profit Margin:
The company's gross profit margin has generally remained within a narrow range, fluctuating around 24.5% to 27.2%. From June 2020 through the first half of 2022, margins hovered around 26-27%, indicating relatively stable cost of goods sold relative to sales during this period. However, starting in late 2022, a noticeable decline is observed, with the margin dropping to approximately 24-25%. During 2023 and into 2024, the gross margin stabilized somewhat around 24.48% to 25.25%, with minor fluctuations, suggesting stable but modest gross profitability margins.
Operating Profit Margin:
Operating margins demonstrated a declining trend from 2020 through 2022, beginning with margins slightly above 4% in mid-2020 and decreasing sharply to below 1% by the end of 2022. The most pronounced decline occurs between late 2021 and early 2022, coinciding possibly with increased operational costs or reductions in revenue efficiency. Post-2022, a recovery emerges; margins improve gradually from a low of 0.50% at year-end 2022 to around 3.89% in mid-2024. The recent quarters show a pattern of recovery, approaching pre-2022 levels but still relatively modest.
Pretax Margin:
Pretax margins reflect a more volatile trend, with positive margins in 2020 and early 2021, but turning negative through much of 2022 into 2023. During this period, margins oscillate between approximately -3.64% to -1.16%. Toward the latter part of 2023 and into 2024, pretax margins improve markedly, turning positive again and reaching around 2.76% in mid-2024. This suggests a possible recovery in profitability before taxes, likely driven by improved operational efficiency or revenue growth.
Net Profit Margin:
The net profit margin experienced a significant surge in late 2020, reaching approximately 10.65%, after which it declined sharply through 2021 and 2022, with negative margins persisting through most of 2022 and 2023. The worst stretch was around -4.09% in December 2022. Starting in early 2024, the net profit margin shows notable improvement, moving into positive territory, reaching approximately 1.68% by March 2025. This indicates a recent trend toward sustainable profitability at the net level after period of losses.
Overall Summary:
Kratos Defense & Security Solutions exhibited stable gross profit margins throughout 2020 and 2021, with a decline beginning in late 2022, stabilizing in 2023 and 2024. Operating profit margins experienced a significant contraction during 2022 but have been gradually recovering. Pretax and net profit margins were volatile, turning negative in 2022 and most of 2023, but have recently trended toward positive figures in 2024, indicating a potential profitable turnaround or improved cost management in recent periods.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.43% | 1.49% | 1.99% | 2.29% | 1.98% | 1.97% | 1.51% | 0.56% | 0.39% | 0.29% | 0.61% | 1.47% | 1.44% | 1.76% | 1.76% | 1.94% | 1.91% | 1.90% | 2.04% | 2.00% |
| Return on assets (ROA) | 0.97% | 0.84% | 0.77% | 0.52% | -0.03% | -0.47% | -1.16% | -1.59% | -1.72% | -2.37% | -1.98% | -1.60% | -1.25% | -0.13% | 4.99% | 5.34% | 5.22% | 5.09% | 0.31% | 0.32% |
| Return on total capital | 1.64% | 2.20% | 2.84% | 3.27% | 2.90% | 3.28% | 2.69% | 0.95% | 0.02% | -1.60% | -1.37% | 0.29% | 0.88% | 2.90% | 2.99% | 3.30% | 3.28% | 3.20% | 3.66% | 3.38% |
| Return on equity (ROE) | 1.41% | 1.20% | 1.10% | 0.75% | -0.05% | -0.79% | -1.93% | -2.62% | -2.88% | -3.92% | -3.31% | -2.71% | -2.10% | -0.21% | 8.36% | 8.92% | 8.79% | 8.60% | 0.54% | 0.56% |
The analysis of Kratos Defense & Security Solutions' profitability ratios over the periods from June 2020 through March 2025 reveals a landscape of significant fluctuations, with notable trends and interim recoveries.
Operating Return on Assets (Operating ROA):
Initially hovering around modest levels of approximately 2.00% in June 2020, the Operating ROA experienced a slight increase through late 2020 and into early 2021, peaking near 2.04% in September 2020 before declining to approximately 1.44% by March 2022. The ratio then saw a sharp decline in the latter half of 2022, reaching as low as 0.29% in December 2022. Following this trough, a gradual recovery commenced, culminating in nearly 2.00% by March 2024, and maintaining a similar level through mid-2025. This pattern indicates a period of operational pressure, with a recent trend towards stabilization and slight improvement.
Return on Assets (ROA):
This overall profitability metric exhibits more pronounced volatility, transitioning from low levels of around 0.32% in June 2020 to a temporary peak of over 5% by December 2020 and March 2021, which suggests a period of strong asset efficiency and profitability. Subsequently, the ROA declined sharply into negative territory by March 2022, reaching as low as -2.37% in December 2022. The negative trend persisted through 2022 and into 2023, despite some improvements. Notably, from March 2024 onwards, the ROA moved toward positive territory, reaching 0.97% by March 2025, indicating a recovering profit trend after years of losses.
Return on Total Capital:
This indicator follows a pattern similar to ROA, starting from relatively modest levels around 3.38% in June 2020, experiencing minor fluctuations, and then a pronounced decline that pushed it into negative territory around late 2022. The lowest point was approximately -1.60% in December 2022. Post-2022, there has been a modest recovery, with a notable upward trend in 2023 and 2024, reaching approximately 3.28% in December 2023. The recent figures suggest a cautiously optimistic trend towards better utilization of capital, reflecting possible operational improvements or strategic shifts.
Return on Equity (ROE):
Historically low in 2020, the ROE rose sharply to nearly 8.60% late in 2020 and early 2021, indicating periods of relatively strong shareholder returns. However, the series then declined steadily into negative territory, with the lowest at approximately -3.92% in December 2022. The subsequent periods have seen a gradual improvement, with the most recent reading at 1.41% in March 2025, indicating a trend towards positive shareholder returns and perhaps better leveraging or profitability dynamics.
Summary:
Kratos Defense & Security Solutions experienced a period of robust profitability in late 2020 and early 2021, followed by a significant downturn into negative returns, particularly in 2022. The latter part of 2023 and into 2024 shows a discernible recovery across most ratios, suggesting that the company is gradually moving toward improved operational efficiency and profitability. These fluctuations reflect a complex period impacted by market conditions, project cycle fluctuations, or other strategic factors, with recent indicators pointing toward stabilization and a potential for sustained improvement in profitability measures.