Air LeaseFRA:AVLA 64 Gross Margin % is 37.38% as of Dec. 2025, which is 3% below its 10-year median of 38.44. GuruFocus rates FRA:AVLA with a GF Score™ of 64/100 and a GF Value™ of €45.29. The stock has 11 warning signs investors should review. Among 1,007 Business Services companies, Air Lease ranks worse than 53.92% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Air Lease's Gross Profit for the
three
months ended in Dec. 2025 was €262 Mil. Air Lease's Revenue for the
three
months ended in Dec. 2025 was €701 Mil. Therefore, Air Lease's Gross Margin % for the quarter that ended in Dec. 2025 was 37.38%.
Warning Sign:
Air Lease Corp gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for Air Lease's Gross Margin % or its related term are showing as below:
FRA:AVLA'
s Gross Margin % Range Over the Past 10 Years
Min: 29.55 Med: 38.44 Max: 50.11
Current: 31.65
During the past 13 years, the highestGross Margin % of Air Lease was 50.11%. The lowest was 29.55%. And the median was 38.44%.
FRA:AVLA's Gross Margin % is ranked worse than 53.92% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs FRA:AVLA: 31.65
Air Lease had a gross margin of 37.38% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Air Lease was -4.90% per year.
Air Lease (FRA:AVLA) 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
Air Lease had a gross margin of 37.38% 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.
Air Lease Gross Margin % Related Terms
Air Lease Gross Margin % Historical Data
* Premium members only.
The historical data trend for Air Lease'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.
FRA:AVLA vs R, UHAL, GATX: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Air Lease'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.
Air Lease Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Air Lease's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Air Lease'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.
Air Lease (FRA:AVLA) has a Gross Margin % of 37.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Air Lease and its competitors. This is near median its historical median of 38.44. Over the past decade, Air Lease's Gross Margin % has ranged from 29.55 to 50.11. According to the industry distribution chart, Air Lease ranks #543 out of 1007 companies in the Business Services industry, placing it in the top 53.9%.
Is Air Lease's Gross Margin % too high?
Air Lease's current Gross Margin % of 37.38% is near median its 10-year median of 38.44. Over the past 10 years, this metric has ranged from a low of 29.55 to a high of 50.11. The Business Services industry median Gross Margin % is 34.50. Air Lease's value of 37.38% is 8.3% above this industry median. Based on the distribution chart, Air Lease ranks #543 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, Air Lease has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Air Lease's Gross Margin % compare to R and UHAL?
According to the Business Services industry distribution chart, Air Lease ranks #543 out of 1007 companies for Gross Margin %. This places Air Lease in the lower half of its industry. The industry median Gross Margin % is 34.50. Air Lease's value of 37.38% is 8.3% above this benchmark. Historically, Air Lease's own Gross Margin % has ranged from 29.55 to 50.11 over the past decade. While the company's 10-year median is 38.44 vs. the industry median of 34.50, Air Lease 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 a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Air Lease's current Gross Margin % of 37.38% is 8.3% 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 Air Lease and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current Gross Margin % is 37.38%, which is near median its own 10-year median of 38.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Lease stock overvalued right now?
Air Lease (FRA:AVLA) has a current Gross Margin % of 37.38%. The stock's GF Value™ is €45.29, compared to a current price of €55.50 — trading 22.5% above its estimated fair value. The current Gross Margin % is 37.38%, which is near median its 10-year median of 38.44 and 8.3% above the Business Services industry median of 34.50. Air Lease's overall GF Score™ is 64/100 with 11 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 Air Lease (FRA:AVLA), the current Gross Margin % is 37.38% 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 Air Lease (FRA:AVLA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Lease stock appears to be overvalued.
The current stock price of €55.50 is trading 22.5% above its estimated GF Value™ of €45.29.
Key valuation signals for FRA:AVLA:
Gross Margin %: 37.38% (near median its 10-year median of 38.44)
GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
Industry Position: 8.3% above the Business Services median (#543 of 1007)
No single metric tells the full story. See the FRA:AVLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Lease Corp is an aircraft leasing company based in the United States. It is engaged in the modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The company also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors, and offers fleet management services to investors and owners of aircraft portfolios for a management fee. Geographically, it derives a maximum of its revenue from the Europe and the rest from Asia Pacific, Middle East and Africa, Central America, South America, Mexico, the United States, and Canada.
64GF Score
Get the complete analysis for FRA:AVLA
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AVLA has been successfully added to your 
