AustalAUTLF -0.33%68 Operating Margin % is 1.71% as of Dec. 2025, which is 88% above its 10-year median of 0.91. GuruFocus rates AUTLF with a GF Score™ of 68/100 and a GF Value™ of $2.12 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Austal ranks worse than 71.47% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Austal's Operating Income for the
six
months ended in Dec. 2025 was $13 Mil. Austal's Revenue for the
six
months ended in Dec. 2025 was $737 Mil. Therefore, Austal's Operating Margin % for the quarter that ended in Dec. 2025 was 1.71%.
The historical rank and industry rank for Austal's Operating Margin % or its related term are showing as below:
AUTLF'
s Operating Margin % Range Over the Past 10 Years
Min: -12.25 Med: 0.91 Max: 4.52
Current: 0.23
AUTLF's Operating Margin % is ranked worse than 71.47% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs AUTLF: 0.23
Austal's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Austal's Operating Income for the
six
months ended in Dec. 2025 was $13 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $3 Mil.
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.
Austal Operating Margin % Related Terms
Austal Operating Margin % Historical Data
* Premium members only.
The historical data trend for Austal's Operating 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.
AUTLF vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Austal'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.
Austal Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Austal'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.
Austal's Operating Margin % for the fiscal year that ended in Jun. 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.
Austal (AUTLF) has a Operating Margin % of 1.71% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Austal and its competitors. This is 88% above median its historical median of 0.91. According to the industry distribution chart, Austal ranks #248 out of 347 companies in the Aerospace & Defense industry, placing it in the top 71.5%.
Is Austal's Operating Margin % too high?
Austal's current Operating Margin % of 1.71% is 88% above median its 10-year median of 0.91. The Aerospace & Defense industry median Operating Margin % is 7.75. Austal's value of 1.71% is 77.9% below this industry median. Based on the distribution chart, Austal ranks #248 out of 347 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Austal has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Austal ranks #248 out of 347 companies for Operating Margin %. This places Austal in the lower half of its industry. The industry median Operating Margin % is 7.75. Austal's value of 1.71% is 77.9% below this benchmark. While the company's 10-year median is 0.91 vs. the industry median of 7.75, 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. Austal's current Operating Margin % of 1.71% is 77.9% 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 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 Austal and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Operating Margin % is 1.71%, which is 88% above median its own 10-year median of 0.91. 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 (AUTLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.12, compared to a current price of $3.00 — trading 41.5% above its estimated fair value. The current Operating Margin % is 1.71%, which is 88% above median its 10-year median of 0.91 and 77.9% below the Aerospace & Defense industry median of 7.75. Austal's overall GF Score™ is 68/100 with 4 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 Austal (AUTLF), the current Operating Margin % is 1.71% 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 (AUTLF) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of $3.00 is trading 41.5% above its estimated GF Value™ of $2.12.
GuruFocus considers Austal to be Significantly Overvalued.
Key valuation signals for AUTLF:
Operating Margin %: 1.71% (88% above median its 10-year median of 0.91)
GF Value™: $2.12 vs. price of $3.00 (41.5% above fair value)
Industry Position: 77.9% below the Aerospace & Defense median (#248 of 347)
No single metric tells the full story. See the AUTLF 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.
68GF Score
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