Air LeaseFRA:AVLA 64 Operating Margin % is 29.16% as of Dec. 2025, which is 9% below its 10-year median of 31.91. 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 1,070 Business Services companies, Air Lease ranks better than 89.91% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Air Lease's Operating Income for the
three
months ended in Dec. 2025 was €204 Mil. Air Lease's Revenue for the
three
months ended in Dec. 2025 was €701 Mil. Therefore, Air Lease's Operating Margin % for the quarter that ended in Dec. 2025 was 29.16%.
Warning Sign:
Air Lease Corp operating margin has been in a 5-year decline. The average rate of decline per year is -8.1%.
The historical rank and industry rank for Air Lease's Operating Margin % or its related term are showing as below:
FRA:AVLA'
s Operating Margin % Range Over the Past 10 Years
Min: 21.51 Med: 31.91 Max: 43.07
Current: 22.75
FRA:AVLA's Operating Margin % is ranked better than 89.91% of 1070
companies
in the Business Services industry
Industry Median: 6.275
vs FRA:AVLA: 22.75
Air Lease's 5-Year Average Operating Margin % Growth Rate was -8.10% per year.
Air Lease's Operating Income for the
three
months ended in Dec. 2025 was €204 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €599 Mil.
Air Lease (FRA:AVLA) Operating Margin % Explanation
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.
Air Lease Operating Margin % Related Terms
Air Lease Operating Margin % Historical Data
* Premium members only.
The historical data trend for Air Lease'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.
FRA:AVLA vs R, UHAL, GATX: Operating Margin % Comparison
For the Rental & Leasing Services subindustry, Air Lease'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.
Air Lease Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Air Lease's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Air Lease'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.
Air Lease'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.
Air Lease (FRA:AVLA) has a Operating Margin % of 29.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Air Lease and its competitors. This is near median its historical median of 31.91. Over the past decade, Air Lease's Operating Margin % has ranged from 21.51 to 43.07. According to the industry distribution chart, Air Lease ranks #108 out of 1070 companies in the Business Services industry, placing it in the top 10.1%.
Is Air Lease's Operating Margin % too high?
Air Lease's current Operating Margin % of 29.16% is near median its 10-year median of 31.91. Over the past 10 years, this metric has ranged from a low of 21.51 to a high of 43.07. The Business Services industry median Operating Margin % is 6.28. Air Lease's value of 29.16% is 364.7% above this industry median. Based on the distribution chart, Air Lease ranks #108 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to R and UHAL?
According to the Business Services industry distribution chart, Air Lease ranks #108 out of 1070 companies for Operating Margin %. This places Air Lease in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.28. Air Lease's value of 29.16% is 364.7% above this benchmark. Historically, Air Lease's own Operating Margin % has ranged from 21.51 to 43.07 over the past decade. While the company's 10-year median is 31.91 vs. the industry median of 6.28, 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 Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.28, based on 1,070 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. Air Lease's current Operating Margin % of 29.16% is 364.7% 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 Air Lease and its competitors. For the Business Services industry, the median Operating Margin % is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current Operating Margin % is 29.16%, which is near median its own 10-year median of 31.91. 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 Operating Margin % of 29.16%. 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 Operating Margin % is 29.16%, which is near median its 10-year median of 31.91 and 364.7% above the Business Services industry median of 6.28. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Air Lease (FRA:AVLA), the current Operating Margin % is 29.16% 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:
Operating Margin %: 29.16% (near median its 10-year median of 31.91)
GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
Industry Position: 364.7% above the Business Services median (#108 of 1070)
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
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