EARNZLSE:EARN Gross Margin % is 25.01% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 1,720 Construction companies, EARNZ ranks better than 60.47% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. EARNZ's Gross Profit for the
six
months ended in Dec. 2025 was £1.76 Mil. EARNZ's Revenue for the
six
months ended in Dec. 2025 was £7.05 Mil. Therefore, EARNZ's Gross Margin % for the quarter that ended in Dec. 2025 was 25.01%.
The historical rank and industry rank for EARNZ's Gross Margin % or its related term are showing as below:
LSE:EARN'
s Gross Margin % Range Over the Past 10 Years
Min: -1359.09 Med: -60.67 Max: 25.89
Current: 25.89
During the past 10 years, the highestGross Margin % of EARNZ was 25.89%. The lowest was -1359.09%. And the median was -60.67%.
LSE:EARN's Gross Margin % is ranked better than 60.47% of 1720
companies
in the Construction industry
Industry Median: 20.715
vs LSE:EARN: 25.89
EARNZ had a gross margin of 25.01% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for EARNZ was 0.00% per year.
EARNZ (LSE:EARN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
EARNZ had a gross margin of 25.01% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
EARNZ Gross Margin % Related Terms
EARNZ Gross Margin % Historical Data
* Premium members only.
The historical data trend for EARNZ's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:EARN vs XXI, CCXI, DMII: Gross Margin % Comparison
For the Engineering & Construction subindustry, EARNZ's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EARNZ Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, EARNZ's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EARNZ's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
EARNZ (LSE:EARN) has a Gross Margin % of 25.01% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on EARNZ and its competitors. According to the industry distribution chart, EARNZ ranks #680 out of 1720 companies in the Construction industry, placing it in the top 39.5%.
Is EARNZ's Gross Margin % too high?
EARNZ's current Gross Margin % is 25.01%. The Construction industry median Gross Margin % is 20.72. EARNZ's value of 25.01% is 20.7% above this industry median. Based on the distribution chart, EARNZ ranks #680 out of 1720 companies in the Construction industry, which is above the industry midpoint.
How does EARNZ's Gross Margin % compare to XXI and CCXI?
According to the Construction industry distribution chart, EARNZ ranks #680 out of 1720 companies for Gross Margin %. This puts EARNZ in the upper half of its industry. The industry median Gross Margin % is 20.72. EARNZ's value of 25.01% is 20.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,720 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EARNZ's current Gross Margin % of 25.01% is 20.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on EARNZ and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EARNZ's current Gross Margin % is 25.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EARNZ stock overvalued right now?
EARNZ (LSE:EARN) has a current Gross Margin % of 25.01%. The current Gross Margin % is 25.01% and 20.7% above the Construction industry median of 20.72. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For EARNZ (LSE:EARN), the current Gross Margin % is 25.01% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
EARNZ PLC is a holding company based in the United Kingdom. Its principal activity is a buy-and-build approach, focusing on the acquisition and development of businesses aligned with decarbonisation and net zero objectives. The group operates and generates sole revenue from the United Kingdom. The group generates revenue from the Continuing operations, is Commercial and Industrial mechanical and electrical engineering services, Domestic maintenance and heating installations, Retrofit and solar services, and social housing retrofit services.
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