Terra Drone (TSE:278A) Operating Margin %: -15.77% (As of Jan. 2026)

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TSE:278A Terra Drone Corp TSE:278A
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Price 円15,550.00
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What is Terra Drone Operating Margin %?

Terra Drone TSE:278A +1.17% 9 Operating Margin % is -15.77% as of Jan. 2026. GuruFocus rates TSE:278A with a GF Score™ of 9/100. The stock has 5 warning signs investors should review. Among 351 Aerospace & Defense companies, Terra Drone ranks worse than 84.9% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Terra Drone's Operating Income for the three months ended in Jan. 2026 was 円-254 Mil. Terra Drone's Revenue for the three months ended in Jan. 2026 was 円1,610 Mil. Therefore, Terra Drone's Operating Margin % for the quarter that ended in Jan. 2026 was -15.77%.

The historical rank and industry rank for Terra Drone's Operating Margin % or its related term are showing as below:

TSE:278A' s Operating Margin % Range Over the Past 10 Years
Min: -26.73   Med: -11.17   Max: 4.63
Current: -26.73


TSE:278A's Operating Margin % is ranked worse than
84.9% of 351 companies
in the Aerospace & Defense industry
Industry Median: 7.73 vs TSE:278A: -26.73

Terra Drone's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Terra Drone's Operating Income for the three months ended in Jan. 2026 was 円-254 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 was 円-1,295 Mil.


Terra Drone  (TSE:278A) 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 Nokia’s 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.


Terra Drone Operating Margin % Related Terms


Terra Drone Operating Margin % Historical Data

* Premium members only.

The historical data trend for Terra Drone'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.

Terra Drone Operating Margin % Chart

Terra Drone Annual Data
Trend Jan23 Jan24 Jan25 Jan26
Operating Margin %
4.63 -8.20 -14.14 -23.92

Terra Drone Quarterly Data
Jan23 Jan24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only -29.89 -38.50 -18.18 -15.77 -43.03

TSE:278A vs SPCX, GE, RTX: Operating Margin % Comparison

For the Aerospace & Defense subindustry, Terra Drone'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.


Terra Drone Operating Margin % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Terra Drone's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Terra Drone's Operating Margin % falls into.


TSE:278A
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Terra Drone Corp TSE:278A
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Terra Drone Operating Margin % Calculation

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.

Terra Drone's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=-1143.791 / 4782.585
=-23.92 %

Terra Drone's Operating Margin % for the quarter that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2026 ) / Revenue (Q: Jan. 2026 )
=-253.914 / 1610.415
=-15.77 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -15.77% mean?
Terra Drone (TSE:278A) has a Operating Margin % of -15.77% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Terra Drone and its competitors. According to the industry distribution chart, Terra Drone ranks #298 out of 351 companies in the Aerospace & Defense industry, placing it in the top 84.9%.
Is Terra Drone's Operating Margin % too high?
Terra Drone's current Operating Margin % is -15.77%. Based on the distribution chart, Terra Drone ranks #298 out of 351 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Terra Drone has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Terra Drone's Operating Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Terra Drone ranks #298 out of 351 companies for Operating Margin %. This places Terra Drone in the lower half of its industry. The industry median Operating Margin % is 7.73. 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 7.73, based on 351 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. 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 Terra Drone and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terra Drone's current Operating Margin % is -15.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terra Drone stock overvalued right now?
Terra Drone (TSE:278A) has a current Operating Margin % of -15.77%. The current Operating Margin % is -15.77%. Terra Drone's overall GF Score™ is 9/100 with 5 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 Terra Drone (TSE:278A), the current Operating Margin % is -15.77% as of Jan. 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.

Terra Drone Business Description

Address 2-12-19 Shibuya, Token International Building 3rd Floor, Shibuya-ku, Tokyo, JPN, 150-0002
Terra Drone Corp is engaged in developing hardware and software for drones for surveying, inspection, and agriculture, providing related services, and developing and providing systems for managing the safe and efficient operation of drones and flying cars (UTM).
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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