AustalASX:ASB -2.99%73 Gross Margin % is 13.26% as of Dec. 2025, which is 22% above its 10-year median of 10.87. GuruFocus rates ASX:ASB with a GF Score™ of 73/100 and a GF Value™ of A$3.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 342 Aerospace & Defense companies, Austal ranks worse than 81.58% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Austal's Gross Profit for the
six
months ended in Dec. 2025 was A$147 Mil. Austal's Revenue for the
six
months ended in Dec. 2025 was A$1,109 Mil. Therefore, Austal's Gross Margin % for the quarter that ended in Dec. 2025 was 13.26%.
Warning Sign:
Austal Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for Austal's Gross Margin % or its related term are showing as below:
ASX:ASB'
s Gross Margin % Range Over the Past 10 Years
Min: -4.34 Med: 10.87 Max: 16.11
Current: 13.23
During the past 13 years, the highestGross Margin % of Austal was 16.11%. The lowest was -4.34%. And the median was 10.87%.
ASX:ASB's Gross Margin % is ranked worse than 81.58% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs ASX:ASB: 13.23
Austal had a gross margin of 13.26% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Austal was -2.90% per year.
Austal (ASX:ASB) Gross Margin % Explanation
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
Austal had a gross margin of 13.26% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
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.
Austal Gross Margin % Related Terms
Austal Gross Margin % Historical Data
* Premium members only.
The historical data trend for Austal's Gross 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.
For the Aerospace & Defense subindustry, Austal'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.
Austal Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Austal'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.
Austal (ASX:ASB) has a Gross Margin % of 13.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Austal and its competitors. This is 22% above median its historical median of 10.87. According to the industry distribution chart, Austal ranks #279 out of 342 companies in the Aerospace & Defense industry, placing it in the top 81.6%.
Is Austal's Gross Margin % too high?
Austal's current Gross Margin % of 13.26% is 22% above median its 10-year median of 10.87. The Aerospace & Defense industry median Gross Margin % is 26.65. Austal's value of 13.26% is 50.2% below this industry median. Based on the distribution chart, Austal ranks #279 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Austal has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Austal ranks #279 out of 342 companies for Gross Margin %. This places Austal in the lower half of its industry. The industry median Gross Margin % is 26.65. Austal's value of 13.26% is 50.2% below this benchmark. While the company's 10-year median is 10.87 vs. the industry median of 26.65, Austal 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 Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 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. Austal's current Gross Margin % of 13.26% is 50.2% 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 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 Austal and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Gross Margin % is 13.26%, which is 22% above median its own 10-year median of 10.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austal stock overvalued right now?
Based on GuruFocus' analysis, Austal (ASX:ASB) is currently considered Significantly Overvalued. The stock's GF Value™ is A$3.10, compared to a current price of A$4.22 — trading 36.1% above its estimated fair value. The current Gross Margin % is 13.26%, which is 22% above median its 10-year median of 10.87 and 50.2% below the Aerospace & Defense industry median of 26.65. Austal's overall GF Score™ is 73/100 with 4 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 Austal (ASX:ASB), the current Gross Margin % is 13.26% 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.
Is Austal (ASX:ASB) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of A$4.22 is trading 36.1% above its estimated GF Value™ of A$3.10.
GuruFocus considers Austal to be Significantly Overvalued.
Key valuation signals for ASX:ASB:
Gross Margin %: 13.26% (22% above median its 10-year median of 10.87)
GF Value™: A$3.10 vs. price of A$4.22 (36.1% above fair value)
Industry Position: 50.2% below the Aerospace & Defense median (#279 of 342)
No single metric tells the full story. See the ASX:ASB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austal Ltd is engaged in designing, constructing, and supporting revolutionary defense and commercial vessels. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval vessels; naval surface warfare combatants; and patrol boats for government law enforcement and border protection agencies. Its reportable segments are USA Shipbuilding; USA Support; Australasia Shipbuilding and Australasia Support. Maximum revenue is generated from its USA Shipbuilding segment which manufactures high performance defence vessels for U.S. Navy and Coast Guard. Geographically, the company derives a majority of its revenue from the United States of America and the rest from Australia, Europe, Asia, South America, and the Middle East.
73GF Score
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