Leonardo SpAFRA:FMN +3.31%80 Operating Margin % is 5.64% as of Mar. 2026, which is 11% below its 10-year median of 6.32. GuruFocus rates FRA:FMN with a GF Score™ of 80/100 and a GF Value™ of €14.77 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 347 Aerospace & Defense companies, Leonardo SpA ranks better than 59.08% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Leonardo SpA's Operating Income for the
three
months ended in Mar. 2026 was €251 Mil. Leonardo SpA's Revenue for the
three
months ended in Mar. 2026 was €4,448 Mil. Therefore, Leonardo SpA's Operating Margin % for the quarter that ended in Mar. 2026 was 5.64%.
Good Sign:
Leonardo SpA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Leonardo SpA's Operating Margin % or its related term are showing as below:
FRA:FMN'
s Operating Margin % Range Over the Past 10 Years
Min: 5.12 Med: 6.32 Max: 9.86
Current: 9.86
FRA:FMN's Operating Margin % is ranked better than 59.08% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs FRA:FMN: 9.86
Leonardo SpA's 5-Year Average Operating Margin % Growth Rate was 7.80% per year.
Leonardo SpA's Operating Income for the
three
months ended in Mar. 2026 was €251 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €1,951 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.
Leonardo SpA Operating Margin % Related Terms
Leonardo SpA Operating Margin % Historical Data
* Premium members only.
The historical data trend for Leonardo SpA'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:FMN vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Leonardo SpA'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.
Leonardo SpA Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Leonardo SpA'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.
Leonardo SpA'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.
Leonardo SpA (FRA:FMN) has a Operating Margin % of 5.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Leonardo SpA and its competitors. This is 11% below median its historical median of 6.32. Over the past decade, Leonardo SpA's Operating Margin % has ranged from 5.12 to 9.86. According to the industry distribution chart, Leonardo SpA ranks #142 out of 347 companies in the Aerospace & Defense industry, placing it in the top 40.9%.
Is Leonardo SpA's Operating Margin % too high?
Leonardo SpA's current Operating Margin % of 5.64% is 11% below median its 10-year median of 6.32. Over the past 10 years, this metric has ranged from a low of 5.12 to a high of 9.86. The Aerospace & Defense industry median Operating Margin % is 7.75. Leonardo SpA's value of 5.64% is 27.2% below this industry median. Based on the distribution chart, Leonardo SpA ranks #142 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Leonardo SpA has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Leonardo SpA ranks #142 out of 347 companies for Operating Margin %. This puts Leonardo SpA in the upper half of its industry. The industry median Operating Margin % is 7.75. Leonardo SpA's value of 5.64% is 27.2% below this benchmark. Historically, Leonardo SpA's own Operating Margin % has ranged from 5.12 to 9.86 over the past decade. While the company's 10-year median is 6.32 vs. the industry median of 7.75, Leonardo SpA 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. Leonardo SpA's current Operating Margin % of 5.64% is 27.2% 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 Leonardo SpA 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. Leonardo SpA's current Operating Margin % is 5.64%, which is 11% below median its own 10-year median of 6.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FRA:FMN) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.77, compared to a current price of €25.00 — trading 69.3% above its estimated fair value. The current Operating Margin % is 5.64%, which is 11% below median its 10-year median of 6.32 and 27.2% below the Aerospace & Defense industry median of 7.75. Leonardo SpA's overall GF Score™ is 80/100 with 1 warning sign 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 Leonardo SpA (FRA:FMN), the current Operating Margin % is 5.64% 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 SpA (FRA:FMN) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued.
The current stock price of €25.00 is trading 69.3% above its estimated GF Value™ of €14.77.
GuruFocus considers Leonardo SpA to be Significantly Overvalued.
Key valuation signals for FRA:FMN:
Operating Margin %: 5.64% (11% below median its 10-year median of 6.32)
GF Value™: €14.77 vs. price of €25.00 (69.3% above fair value)
Industry Position: 27.2% below the Aerospace & Defense median (#142 of 347)
No single metric tells the full story. See the FRA:FMN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
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