Applied Aerospace & DefenseAADX -1.06%11 Gross Margin % is 27.22% as of Dec. 2025, which is 5% above its 10-year median of 25.88. GuruFocus rates AADX with a GF Score™ of 11/100. The stock has 3 warning signs investors should review. Among 345 Aerospace & Defense companies, Applied Aerospace & Defense ranks better than 51.88% on this metric.
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
Applied Aerospace & Defense had a gross margin of 27.22% 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.
Applied Aerospace & Defense Gross Margin % Related Terms
Applied Aerospace & Defense Gross Margin % Historical Data
* 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.
Applied Aerospace & Defense Gross Margin % Chart
Applied Aerospace & Defense Annual Data
Trend
Dec24
Dec25
Gross Margin %
24.53
27.22
Applied Aerospace & Defense Semi-Annual Data
Dec24
Dec25
Gross Margin %
24.53
27.22
AADX vs YSS, ACHR, LUNR: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Applied Aerospace & Defense'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.
Applied Aerospace & Defense Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Applied Aerospace & Defense's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Applied Aerospace & Defense'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.
Applied Aerospace & Defense (AADX) has a Gross Margin % of 27.22% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Applied Aerospace & Defense and its competitors. This is near median its historical median of 25.88. Over the past decade, Applied Aerospace & Defense's Gross Margin % has ranged from 24.53 to 27.22. According to the industry distribution chart, Applied Aerospace & Defense ranks #166 out of 345 companies in the Aerospace & Defense industry, placing it in the top 48.1%.
Is Applied Aerospace & Defense's Gross Margin % too high?
Applied Aerospace & Defense's current Gross Margin % of 27.22% is near median its 10-year median of 25.88. Over the past 10 years, this metric has ranged from a low of 24.53 to a high of 27.22. The Aerospace & Defense industry median Gross Margin % is 26.70. Applied Aerospace & Defense's value of 27.22% is 1.9% above this industry median. Based on the distribution chart, Applied Aerospace & Defense ranks #166 out of 345 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Applied Aerospace & Defense has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Applied Aerospace & Defense's Gross Margin % compare to YSS and ACHR?
According to the Aerospace & Defense industry distribution chart, Applied Aerospace & Defense ranks #166 out of 345 companies for Gross Margin %. This puts Applied Aerospace & Defense in the upper half of its industry. The industry median Gross Margin % is 26.70. Applied Aerospace & Defense's value of 27.22% is 1.9% above this benchmark. Historically, Applied Aerospace & Defense's own Gross Margin % has ranged from 24.53 to 27.22 over the past decade. While the company's 10-year median is 25.88 vs. the industry median of 26.70, Applied Aerospace & Defense has consistently been above 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 Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.70, based on 345 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. Applied Aerospace & Defense's current Gross Margin % of 27.22% is 1.9% 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 Applied Aerospace & Defense and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Aerospace & Defense's current Gross Margin % is 27.22%, which is near median its own 10-year median of 25.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Aerospace & Defense stock overvalued right now?
Applied Aerospace & Defense (AADX) has a current Gross Margin % of 27.22%. The current Gross Margin % is 27.22%, which is near median its 10-year median of 25.88 and 1.9% above the Aerospace & Defense industry median of 26.70. Applied Aerospace & Defense's overall GF Score™ is 11/100 with 3 warning signs to review. 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 Applied Aerospace & Defense (AADX), the current Gross Margin % is 27.22% 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.
Applied Aerospace & Defense Inc specializes in providing engineering and vertically integrated manufacturing solutions for space and defense technology companies. The company builds complex hardware for extreme operating environments, combining deep material science and IP-enabled process expertise with the ability to enable rapid prototyping, enhance new product development, and responsively scale production. The majority of the company's revenue is derived from the sales of Defense Aviation and Airborne Systems, followed by Space and Launch Systems, C5ISR and Precision Strike Systems.
11GF Score
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