EARNZ (LSE:EARN) Operating Margin %: -11.31% (As of Dec. 2025)


What is EARNZ Operating Margin %?

EARNZ LSE:EARN Operating Margin % is -11.31% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 1,764 Construction companies, EARNZ ranks worse than 87.98% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. EARNZ's Operating Income for the six months ended in Dec. 2025 was £-0.80 Mil. EARNZ's Revenue for the six months ended in Dec. 2025 was £7.05 Mil. Therefore, EARNZ's Operating Margin % for the quarter that ended in Dec. 2025 was -11.31%.

The historical rank and industry rank for EARNZ's Operating Margin % or its related term are showing as below:

LSE:EARN' s Operating Margin % Range Over the Past 10 Years
Min: -10322.73   Med: -394.72   Max: -8.84
Current: -8.84


LSE:EARN's Operating Margin % is ranked worse than
87.98% of 1764 companies
in the Construction industry
Industry Median: 5.89 vs LSE:EARN: -8.84

EARNZ's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

EARNZ's Operating Income for the six months ended in Dec. 2025 was £-0.80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £-1.04 Mil.

Warning Sign:

EARNZ PLC has never been profitable in the past 3 years. It lost money every year.


EARNZ  (LSE:EARN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


EARNZ Operating Margin % Related Terms


EARNZ Operating Margin % Historical Data

* Premium members only.

The historical data trend for EARNZ's Operating 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.

EARNZ Operating Margin % Chart

EARNZ Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,855.56 -394.72 0.00 -43.31 -8.84

EARNZ Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 -8.84 -5.17 -11.31

LSE:EARN vs XXI, CCXI, DMII: Operating Margin % Comparison

For the Engineering & Construction subindustry, EARNZ's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Construction Industry

For the Construction industry and Industrials sector, EARNZ's Operating Margin % distribution charts can be found below:

* The bar in red indicates where EARNZ's Operating Margin % falls into.



EARNZ Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

EARNZ's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-1.042 / 11.785
=-8.84 %

EARNZ's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-0.797 / 7.049
=-11.31 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -11.31% mean?
EARNZ (LSE:EARN) has a Operating Margin % of -11.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on EARNZ and its competitors. According to the industry distribution chart, EARNZ ranks #1552 out of 1764 companies in the Construction industry, placing it in the top 88%.
Is EARNZ's Operating Margin % too high?
EARNZ's current Operating Margin % is -11.31%. Based on the distribution chart, EARNZ ranks #1552 out of 1764 companies in the Construction industry, which is in the bottom quartile relative to peers.
How does EARNZ's Operating Margin % compare to XXI and CCXI?
According to the Construction industry distribution chart, EARNZ ranks #1552 out of 1764 companies for Operating Margin %. This places EARNZ in the lower half of its industry. The industry median Operating Margin % is 5.89. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,764 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on EARNZ and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EARNZ's current Operating Margin % is -11.31%. 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 Operating Margin % of -11.31%. The current Operating Margin % is -11.31%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For EARNZ (LSE:EARN), the current Operating Margin % is -11.31% 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 Business Description

Address St James’ Square, St James House First Floor, Gloucestershire, Cheltenham, GBR, GL50 3PR
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.