Leonardo DRSDRS -4.26%80 Pretax Margin % is 9.10% as of Mar. 2026, which is 32% above its 10-year median of 6.87. GuruFocus rates DRS with a GF Score™ of 80/100 and a GF Value™ of $35.47 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 347 Aerospace & Defense companies, Leonardo DRS ranks better than 64.27% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Leonardo DRS's Pre-Tax Income for the
three
months ended in Mar. 2026 was $77 Mil. Leonardo DRS's Revenue for the
three
months ended in Mar. 2026 was $846 Mil. Therefore, Leonardo DRS's pretax margin for the quarter that ended in Mar. 2026 was 9.10%.
The historical rank and industry rank for Leonardo DRS's Pretax Margin % or its related term are showing as below:
DRS'
s Pretax Margin % Range Over the Past 10 Years
Min: -0.73 Med: 6.87 Max: 19.49
Current: 9.61
DRS's Pretax Margin % is ranked better than 64.27% of 347
companies
in the Aerospace & Defense industry
Industry Median: 6.17
vs DRS: 9.61
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Leonardo DRS Pretax Margin % Related Terms
Leonardo DRS Pretax Margin % Historical Data
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The historical data trend for Leonardo DRS's Pretax 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.
DRS vs HII, KTOS, MOG.A: Pretax Margin % Comparison
For the Aerospace & Defense subindustry, Leonardo DRS's Pretax Margin %, along with its competitors' market caps and Pretax 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 DRS Pretax Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Leonardo DRS's Pretax Margin % falls into.
* 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 DRS (DRS) has a Pretax Margin % of 9.10% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Leonardo DRS and its competitors. This is 32% above median its historical median of 6.87. According to the industry distribution chart, Leonardo DRS ranks #124 out of 347 companies in the Aerospace & Defense industry, placing it in the top 35.7%.
Is Leonardo DRS's Pretax Margin % too high?
Leonardo DRS's current Pretax Margin % of 9.10% is 32% above median its 10-year median of 6.87. The Aerospace & Defense industry median Pretax Margin % is 6.17. Leonardo DRS's value of 9.10% is 47.5% above this industry median. Based on the distribution chart, Leonardo DRS ranks #124 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Leonardo DRS has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo DRS's Pretax Margin % compare to HII and KTOS?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #124 out of 347 companies for Pretax Margin %. This puts Leonardo DRS in the upper half of its industry. The industry median Pretax Margin % is 6.17. Leonardo DRS's value of 9.10% is 47.5% above this benchmark. While the company's 10-year median is 6.87 vs. the industry median of 6.17, Leonardo DRS 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 Pretax Margin % for an Aerospace & Defense company?
The median Pretax Margin % among Aerospace & Defense companies is 6.17, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo DRS's current Pretax Margin % of 9.10% is 47.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median Pretax Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current Pretax Margin % is 9.10%, which is 32% above median its own 10-year median of 6.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo DRS stock overvalued right now?
Based on GuruFocus' analysis, Leonardo DRS (DRS) is currently considered Modestly Overvalued. The stock's GF Value™ is $35.47, compared to a current price of $42.45 — trading 19.7% above its estimated fair value. The current Pretax Margin % is 9.10%, which is 32% above median its 10-year median of 6.87 and 47.5% above the Aerospace & Defense industry median of 6.17. Leonardo DRS'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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Leonardo DRS (DRS), the current Pretax Margin % is 9.10% 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 DRS (DRS) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo DRS stock appears to be overvalued.
The current stock price of $42.45 is trading 19.7% above its estimated GF Value™ of $35.47.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for DRS:
Pretax Margin %: 9.10% (32% above median its 10-year median of 6.87)
GF Value™: $35.47 vs. price of $42.45 (19.7% above fair value)
Industry Position: 47.5% above the Aerospace & Defense median (#124 of 347)
No single metric tells the full story. See the DRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. It is in the design, development, and manufacture of Advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. The company has two segments: Advanced Sensing and Computing, which generates the majority of revenue, and the Integrated Mission Systems segment. The Advanced Sensing and Computing segment is engaged in designing, developing, and manufacturing sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution by the customers.
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