What Is the Least Profitable Industry?

Least Profitable Industries

  • Green and Renewable Energy industry had the lowest net profit margin at -11.39% in 2020, making it the least profitable industry.
  • Companies operating oil and gas wells had a net profit margin loss of 7.6%, comprising the least profitable industry in the U.S.

Analysis of Profitable Industries

  • Sageworks analyzed private company financial statements, using net profit margin to rank industries.
  • Profitable service-based industries don’t require major investments in materials or operations. This benefits entrepreneurs who can’t invest millions in a startup.

Comparison of Business Profits

  • The airline industry historically runs on high volume and low margins.
  • Retail is also among the least profitable U.S. industries, while tech companies generally see higher margins and are more recession proof than traditional media firms.

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