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Applied Aerospace & DefenseAADX -9.08%11 Operating Margin % is 9.42% as of Dec. 2025, which is 7% above its 10-year median of 8.82. GuruFocus rates AADX with a GF Score™ of 11/100. The stock has 3 warning signs investors should review. Among 350 Aerospace & Defense companies, Applied Aerospace & Defense ranks better than 58% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Applied Aerospace & Defense Operating Margin % Related Terms
Applied Aerospace & Defense Operating 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.
AADX vs YSS, ACHR, LUNR: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Applied Aerospace & Defense's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Applied Aerospace & Defense's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Applied Aerospace & Defense's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Applied Aerospace & Defense's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (AADX) has a Operating Margin % of 9.42% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Aerospace & Defense and its competitors. This is near median its historical median of 8.82. Over the past decade, Applied Aerospace & Defense's Operating Margin % has ranged from 8.22 to 9.42. According to the industry distribution chart, Applied Aerospace & Defense ranks #147 out of 350 companies in the Aerospace & Defense industry, placing it in the top 42%.
Is Applied Aerospace & Defense's Operating Margin % too high?
Applied Aerospace & Defense's current Operating Margin % of 9.42% is near median its 10-year median of 8.82. Over the past 10 years, this metric has ranged from a low of 8.22 to a high of 9.42. The Aerospace & Defense industry median Operating Margin % is 7.58. Applied Aerospace & Defense's value of 9.42% is 24.4% above this industry median. Based on the distribution chart, Applied Aerospace & Defense ranks #147 out of 350 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 Operating Margin % compare to YSS and ACHR?
According to the Aerospace & Defense industry distribution chart, Applied Aerospace & Defense ranks #147 out of 350 companies for Operating Margin %. This puts Applied Aerospace & Defense in the upper half of its industry. The industry median Operating Margin % is 7.58. Applied Aerospace & Defense's value of 9.42% is 24.4% above this benchmark. Historically, Applied Aerospace & Defense's own Operating Margin % has ranged from 8.22 to 9.42 over the past decade. While the company's 10-year median is 8.82 vs. the industry median of 7.58, 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.58, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Aerospace & Defense's current Operating Margin % of 9.42% is 24.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Aerospace & Defense and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Aerospace & Defense's current Operating Margin % is 9.42%, which is near median its own 10-year median of 8.82. 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 Operating Margin % of 9.42%. The current Operating Margin % is 9.42%, which is near median its 10-year median of 8.82 and 24.4% above the Aerospace & Defense industry median of 7.58. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Applied Aerospace & Defense (AADX), the current Operating Margin % is 9.42% 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.
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