Leonardo DRSSTU:2VZ -0.66%72 Gross Margin % is 25.06% as of Mar. 2026, which is 24% above its 10-year median of 20.18. GuruFocus rates STU:2VZ with a GF Score™ of 72/100 and a GF Value™ of €30.69 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 343 Aerospace & Defense companies, Leonardo DRS ranks worse than 55.1% on this metric.
The historical rank and industry rank for Leonardo DRS's Gross Margin % or its related term are showing as below:
STU:2VZ'
s Gross Margin % Range Over the Past 10 Years
Min: 16.91 Med: 20.18 Max: 24.36
Current: 24.36
During the past 8 years, the highestGross Margin % of Leonardo DRS was 24.36%. The lowest was 16.91%. And the median was 20.18%.
STU:2VZ's Gross Margin % is ranked worse than 55.1% of 343
companies
in the Aerospace & Defense industry
Industry Median: 26.61
vs STU:2VZ: 24.36
Leonardo DRS had a gross margin of 25.06% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Leonardo DRS was 6.10% per year.
Leonardo DRS (STU:2VZ) 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
Leonardo DRS had a gross margin of 25.06% for the quarter that ended in Mar. 2026 => 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.
Leonardo DRS Gross Margin % Related Terms
Leonardo DRS Gross Margin % Historical Data
* Premium members only.
The historical data trend for Leonardo DRS'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.
STU:2VZ vs HII, PL, SARO: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Leonardo DRS'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.
Leonardo DRS Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Leonardo DRS'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.
Leonardo DRS (STU:2VZ) has a Gross Margin % of 25.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Leonardo DRS and its competitors. This is 24% above median its historical median of 20.18. Over the past decade, Leonardo DRS's Gross Margin % has ranged from 16.91 to 24.36. According to the industry distribution chart, Leonardo DRS ranks #189 out of 343 companies in the Aerospace & Defense industry, placing it in the top 55.1%.
Is Leonardo DRS's Gross Margin % too high?
Leonardo DRS's current Gross Margin % of 25.06% is 24% above median its 10-year median of 20.18. Over the past 10 years, this metric has ranged from a low of 16.91 to a high of 24.36. The Aerospace & Defense industry median Gross Margin % is 26.61. Leonardo DRS's value of 25.06% is 5.8% below this industry median. Based on the distribution chart, Leonardo DRS ranks #189 out of 343 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Leonardo DRS has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo DRS's Gross Margin % compare to HII and PL?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #189 out of 343 companies for Gross Margin %. This places Leonardo DRS in the lower half of its industry. The industry median Gross Margin % is 26.61. Leonardo DRS's value of 25.06% is 5.8% below this benchmark. Historically, Leonardo DRS's own Gross Margin % has ranged from 16.91 to 24.36 over the past decade. While the company's 10-year median is 20.18 vs. the industry median of 26.61, Leonardo DRS 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 26.61, based on 343 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. Leonardo DRS's current Gross Margin % of 25.06% is 5.8% 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 Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current Gross Margin % is 25.06%, which is 24% above median its own 10-year median of 20.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo DRS stock overvalued right now?
Based on GuruFocus' analysis, Leonardo DRS (STU:2VZ) is currently considered Modestly Overvalued. The stock's GF Value™ is €30.69, compared to a current price of €37.75 — trading 23% above its estimated fair value. The current Gross Margin % is 25.06%, which is 24% above median its 10-year median of 20.18 and 5.8% below the Aerospace & Defense industry median of 26.61. Leonardo DRS's overall GF Score™ is 72/100 with 1 warning sign 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 Leonardo DRS (STU:2VZ), the current Gross Margin % is 25.06% as of Mar. 2026. 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 Leonardo DRS (STU:2VZ) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo DRS stock appears to be overvalued.
The current stock price of €37.75 is trading 23% above its estimated GF Value™ of €30.69.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for STU:2VZ:
Gross Margin %: 25.06% (24% above median its 10-year median of 20.18)
GF Value™: €30.69 vs. price of €37.75 (23% above fair value)
Industry Position: 5.8% below the Aerospace & Defense median (#189 of 343)
No single metric tells the full story. See the STU:2VZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. It is in the design, development, and manufacture of Advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. The company has two segments: Advanced Sensing and Computing, which generates the majority of revenue, and the Integrated Mission Systems segment. The Advanced Sensing and Computing segment is engaged in designing, developing, and manufacturing sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution by the customers.
72GF Score
Get the complete analysis for STU:2VZ
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
STU:2VZ has been successfully added to your 
