Record profits can also be a supply/demand mis-match. If production for a given good/service is low, companies can charge higher prices until demand is level with their supply level. That gap is profits as you say. How else do you balance who gets to buy/use a given good/service without prices (otherwise it's a lottery effectively).

Large profits does show an opportunity in a market for another player to come in and produce the same goods/services at a better price. If they are unable to produce it, we should be look into what's causing competition from appearing. Is it a natural resource? Is it regulator capture? Is it labor shortage?

There is going to be some cause for the mismatch, the question is, what is that cause?