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NET PROFIT BENCHMARKS48 TRADES7 REVENUE BANDS24 SPM TRADESREAL DOLLARS AT YOUR REVENUENET PROFIT BENCHMARKS48 TRADES7 REVENUE BANDS24 SPM TRADESREAL DOLLARS AT YOUR REVENUE
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Net Profit Margin · 48 Trades · 7 Revenue Bands

WHAT’S THE AVERAGE
NET PROFIT FOR
YOUR TRADE?

Most subcontractors have no idea whether their net profit is normal, below average, or genuinely strong. Here’s the data: 48 trades, 7 revenue bands. Enter your revenue to see what every benchmark means in real dollars.

Net profit margins across commercial construction trades range from 5% at the low end (framing, painting, flooring at $1M–$5M) to 13.5% at the top (SWPPP, waterproofing, elevator, mechanical at $500M+). For most subcontractors doing $1M–$12M, the industry average sits between 5.5% and 9.5% depending on trade. The CFOS target is 12%. The gap between average and target is almost always overhead structure, not field performance.

Published: June 2026Updated: July 202648 Trades · 336 Data Points
48
Trades Covered
24
SPM Trades
$1M–$500M+
Revenue Range
NET PROFIT
Metric Tracked
Your Annual Revenue type or slide to see real dollar values
$ Million
$1M$3M$5M$10M$25M$50M$100M+
1% Net Profit Equals
$30,000
per year at your revenue
Industry Average Net Profit
$225,000
based on the average across all trades
Each 1% Improvement Adds
$30,000
to your annual bottom line
Net Profit Margin · Industry Benchmarks · By Trade and Revenue Band
SPM SPM serves this trade directly through CFOS
° derived from nearest comparable trade
SPM trade names are clickable. Click to see the financial operating system for that trade.
Trade $1M–$5M $5M–$10M $10M–$25M $25M–$50M $50M–$100M $100M–$500M $500M+
Civil & Earthwork
Civil ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Excavation ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Grading ContractorsSPM5.5%-6%-7%-8%-9%-10%-11%-
Sitework ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Underground Utility ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Demolition ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Paving ContractorsSPM5.5%-6%-7%-8%-9%-10%-11%-
Concrete & Masonry
Concrete ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Concrete Flatwork ContractorsSPM6%-7%-7.5%-8.5%-9.5%-10.5%-11.5%-
Masonry ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Structural Steel ContractorsSPM6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Precast Concrete Contractors°6%-7%-8%-9%-10%-11%-12%-
Environmental & Specialty Site
SWPPP / Erosion Control ContractorsSPM7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-13.5%-
Environmental Remediation Contractors°6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Landscaping Contractors°5%-6%-6.5%-7.5%-8.5%-9.5%-10.5%-
Irrigation Contractors°5.5%-6.5%-7.5%-8%-9%-10%-11%-
Electrical & Technology
Electrical ContractorsSPM7.5%-8.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Low Voltage / AV Contractors°6.5%-7.5%-8.5%-9%-10%-11%-12%-
Fiber ContractorsSPM6%-7%-8%-8.5%-9.5%-10.5%-11.5%-
Telecom ContractorsSPM6%-7%-8%-8.5%-9.5%-10.5%-11.5%-
Security System ContractorsSPM6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Solar Contractors6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Mechanical, Plumbing & HVAC
Mechanical Contractors7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-13.5%-
Plumbing Contractors7.5%-8.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
HVAC Contractors°7.5%-8.5%-9%-10%-11%-12%-13%-
Process Piping Contractors°6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Fire & Life Safety
Fire Protection Contractors7.5%-8.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Fire Alarm Contractors7.5%-8.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Elevator Contractors8.5%-9.5%-9.5%-10.5%-11.5%-12.5%-13.5%-
Structure & Envelope
Framing ContractorsSPM5%-6%-6.5%-7.5%-8.5%-9.5%-10.5%-
Roofing Contractors°6.5%-7.5%-8%-9%-10%-11%-12%-
Waterproofing ContractorsSPM7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-13.5%-
EIFS / Stucco ContractorsSPM5.5%-6.5%-7.5%-8%-9%-10%-11%-
Curtain Wall / Glazing Contractors8%-9%-9%-10%-11%-12%-13.5%-
Siding Contractors°5.5%-6.5%-7%-8%-9%-10%-11%-
Interiors & Finish
Drywall ContractorsSPM5.5%-6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-
Insulation ContractorsSPM6.5%-7.5%-8.5%-8.5%-9.5%-10.5%-11.5%-
Painting Contractors5%-6%-6.5%-7.5%-8.5%-9.5%-10.5%-
Flooring ContractorsSPM5%-6%-7%-7.5%-8.5%-9.5%-10.5%-
Interior ContractorsSPM5.5%-6.5%-7.5%-8%-9%-10%-11%-
Tile & Stone Contractors°5.5%-6.5%-7%-8%-9%-10%-11%-
Acoustic Ceiling Contractors°6%-7%-7.5%-8.5%-9.5%-10.5%-11.5%-
Marine & Specialty
Marine ContractorsSPM6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Bridge Contractors°6%-7%-8%-9%-10%-11%-12%-
Tunnel Contractors°6.5%-7.5%-8.5%-9.5%-10.5%-11.5%-12.5%-
Tank / Vessel Contractors°7%-8%-9%-10%-11%-12%-13%-
Scaffolding Contractors°6%-7%-7.5%-8.5%-9.5%-10.5%-11.5%-
Concrete Pumping Contractors°6.5%-7.5%-8.5%-9%-10%-11%-12%-
SPM badge = one of 24 CFOS trades. These are industry-average benchmarks, not the CFOS target. 1% of $1M = $10,000  |  1% of $5M = $50,000  |  1% of $10M = $100,000
FAQ
COMMON QUESTIONS.

Net profit margins for commercial subcontractors doing $1M to $5M in revenue typically range from 5% to 8.5% depending on trade. Specialty trades like mechanical, SWPPP, waterproofing, and elevator run 7.5 to 9.5% at that revenue band. Labor-intensive commodity trades like framing, painting, and flooring sit at 5 to 6%. Margins improve at higher revenue because fixed overhead spreads over more revenue.

The CFOS target for commercial subcontractors doing $1M to $12M is 12% net profit margin. Industry averages across most trades sit between 5.5% and 9.5% at that revenue band. The gap between industry average and the CFOS target is almost always explained by the overhead rate. Most subcontractors are running 18 to 28% overhead when their estimate assumes 10%.

Fixed overhead costs (rent, office staff, owner salary, software) do not grow proportionally with revenue. A subcontractor doing $10M with $1.2M in overhead runs a 12% overhead rate. The same overhead at $5M is 24%. As revenue grows against a stable fixed cost base, the overhead rate drops and net margin expands.

Net profit margin equals net income divided by total revenue. Net income equals revenue minus direct job costs (material, labor, subcontractors, equipment) minus all overhead costs (rent, office staff, owner salary at market rate, software, professional services, business taxes). Most subcontractors understate overhead, which makes net income appear higher than it really is until the cash flow reality surfaces.

The CFOS target is 12% net profit margin and 22 to 30% gross margin per project. Industry averages in this table represent what most subcontractors currently achieve, which reflects the average overhead management and estimating discipline across the industry, not the best. In the CEO Report the live target is set a step better than benchmark: gross margin up 2 points, net profit up 1.5 points, overhead down 2 points.

SPM serves 24 commercial subcontracting trades through the CFOS system: civil, excavation, grading, sitework, underground utility, demolition, paving, concrete, concrete flatwork, masonry, structural steel, SWPPP/erosion control, electrical, framing, waterproofing, EIFS/stucco, drywall, insulation, marine, fiber, telecom, flooring, security system, and interior contractors. Each trade has its own CFOS operating system page that explains the specific cash failure patterns for that trade.

Josh Luebker, The Construction CFO
Josh Luebker
FOUNDER, THE CONSTRUCTION CFO

Former commercial construction PM and master electrician. Work spanning 150+ projects and $2.1B+ in combined project value, individual jobs from $50,000 to $300M. Author of CONTROL: The Construction Financial Operating System. About Josh →

Stewart Bohrer, VP of Operations
Stewart Bohrer
VP OF OPERATIONS

Keeps the system running day to day: job costing, WIP, monthly financial reviews, and the follow-through between calls.

RELATED BENCHMARKS AND TOOLS
GROSS MARGIN
Gross Margin Benchmarks
What's left after direct job costs, before overhead
OVERHEAD
Overhead Rate Benchmarks
The single biggest driver of the gap between average and target net profit
HUB
All Three Metrics Together
Gross margin, overhead, and net profit side by side for the SPM 24

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Josh Luebker, The Construction CFO
JOSH LUEBKER
FOUNDER & CFO

Master electrician and former project manager, 150+ projects and $2.1B+ in commercial work. Now runs the numbers for subcontractors instead of standing on the job site.

LinkedIn About
Stewart Bohrer, The Construction CFO
STEWART BOHRER
VP OF OPERATIONS

Keeps the system running day to day: job costing, WIP, monthly financial reviews, and the follow-through between calls. Josh handles onboarding.

LinkedIn About
LinkedIn YouTube About Run on CFOS CONTROL Book →
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