McDermott InternationalMCDBF 30 Operating Margin % is 2.01% as of Dec. 2025, which is 458% above its 10-year median of 0.36. GuruFocus rates MCDBF with a GF Score™ of 30/100. The stock has 1 warning sign investors should review. Among 1,767 Construction companies, McDermott International ranks worse than 71.02% on this metric.
McDermott International (OTCPK:MCDBF) 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 Nokias 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.
McDermott International Operating Margin % Related Terms
McDermott International Operating Margin % Historical Data
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The historical data trend for McDermott International'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.
McDermott International Operating Margin % Chart
McDermott International Annual Data
Trend
Dec24
Dec25
Operating Margin %
-1.29
2.01
McDermott International Semi-Annual Data
Dec24
Dec25
Operating Margin %
-1.29
2.01
MCDBF vs CDNL, ORN, BWMN: Operating Margin % Comparison
For the Engineering & Construction subindustry, McDermott International'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.
McDermott International Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, McDermott International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where McDermott International's Operating Margin % falls into.
McDermott International 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.
McDermott International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
McDermott International (MCDBF) has a Operating Margin % of 2.01% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on McDermott International and its competitors. This is 458% above median its historical median of 0.36. According to the industry distribution chart, McDermott International ranks #1255 out of 1767 companies in the Construction industry, placing it in the top 71%.
Is McDermott International's Operating Margin % too high?
McDermott International's current Operating Margin % of 2.01% is 458% above median its 10-year median of 0.36. The Construction industry median Operating Margin % is 5.89. McDermott International's value of 2.01% is 65.9% below this industry median. Based on the distribution chart, McDermott International ranks #1255 out of 1767 companies in the Construction industry, which is below the industry midpoint. Overall, McDermott International has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does McDermott International's Operating Margin % compare to CDNL and ORN?
According to the Construction industry distribution chart, McDermott International ranks #1255 out of 1767 companies for Operating Margin %. This places McDermott International in the lower half of its industry. The industry median Operating Margin % is 5.89. McDermott International's value of 2.01% is 65.9% below this benchmark. While the company's 10-year median is 0.36 vs. the industry median of 5.89, McDermott International has consistently been below the industry average. 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 1,767 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. McDermott International's current Operating Margin % of 2.01% is 65.9% below 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 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 McDermott International 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. McDermott International's current Operating Margin % is 2.01%, which is 458% above median its own 10-year median of 0.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDermott International stock overvalued right now?
McDermott International (MCDBF) has a current Operating Margin % of 2.01%. The current Operating Margin % is 2.01%, which is 458% above median its 10-year median of 0.36 and 65.9% below the Construction industry median of 5.89. McDermott International's overall GF Score™ is 30/100 with 1 warning sign to review. 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 McDermott International (MCDBF), the current Operating Margin % is 2.01% 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.
McDermott International Ltd is a fully integrated provider of engineering, procurement, construction, and installation (EPCI) solutions to the energy industry globally. The company designs and builds infrastructure to transport and process oil and gas, covering offshore, subsea, liquefied natural gas (LNG), and downstream oil and gas projects, including fixed, floating, and subsea production facilities, pipelines, storage systems, and processing plants. It also provides energy transition and sustainable engineering solutions. The company operates through the Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities segments, serving national and other oil and gas companies across energy-producing regions, and generates the majority of its revenue from United States.
30GF Score
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