MECHANICAL NET PROFIT MARGIN BENCHMARKS.
Mechanical contractors average about 9% net profit margin at $1M to $5M, rising to roughly 11% at $5M to $10M. The CFOS target at $1M to $5M is 12.5%, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. The distance between the average and the target is almost always overhead that was never loaded into the rate.
Mechanical has the highest net ceiling of the 48 trades at 10.5 percent by $25M to $50M, and at this revenue the five points to a 12.5 percent target are $50,000 on a $1M year and $250,000 on a $5M year. Getting there depends on one decision, which is whether service and construction are managed as two businesses or blended into one book where either can fund the other for years without anybody noticing. The market is pushing that question harder, because liquid-cooled data centers move roughly a third of project cost into mechanical scope and published analysis puts the backlog for firms with large chilled-water experience at about three times existing specialized capacity. A contractor who can't tell which division earns will price the biggest opportunity in the trade's history off a blended average.
Net profit margin formula: Net Profit divided by Total Revenue, times 100. Unlike gross margin this measures what survives after overhead and G and A. It's the number that funds owner draw, debt paydown and growth.
MECHANICAL FINANCIAL BENCHMARKS. WHERE YOU SHOULD BE.
| METRIC | INDUSTRY AVERAGE | CFOS TARGET | AT $10M TO $25M | NOTES |
|---|---|---|---|---|
| Net Profit Margin ($1M to $5M) | 9% | 12.5% | 13% | Industry figure rises to 11% at $5M to $10M and 13% at $10M to $25M. |
| Gross Margin ($1M to $5M) | 25% | 27.5% | 27% | Full detail on the gross margin page. |
| Overhead Rate ($1M to $5M) | 16% | 15% | 14% | Falls to 14% by $10M to $25M as fixed cost spreads over more revenue. |
| Days Sales Outstanding | 90 days | 45 days | 30 days | Ninety days is weak, 45 is the target, 30 is strong. Nothing else moves cash faster. |
Industry figures are the AVERAGE for the trade at each revenue band, from the SPM Trade Benchmark Reference, not a floor. Net profit is stated before taxes. The CFOS target is what we build toward. The third column is what companies at $10M to $25M average, shown for direction of travel; that is a larger company, which is a different thing from a better run one.
Gross margin and overhead come from CFMA, Jones Maresca and SPM's own trade data, because those are the figures those sources report by trade and size. Net profit is calculated from them as gross margin minus overhead, so the three rows tie. That makes it an operating profit figure: what is left before interest, other income and expense, and the tax planning choices owners make, such as bonuses, depreciation methods and retirement contributions.
Surveys report net income before taxes after those items, so a reported net can run below the figure here. At the typical contractor the difference is small: CFMA's 2025 medians are 7.1 percent before interest and taxes and 6.7 percent net income before taxes. It grows with size. Against the separate measured net profit dataset, the calculated net runs 0.8 points higher at $1M to $5M, 2.2 points at $5M to $10M and 3.5 points at $10M to $25M, because the gross margin and overhead rows change faster with size than reported net profit does. The bands above the $10M to $25M band are published at runoncfos.com as a modeled extension of the same curves. They have not been reconciled against the licensed CFMA Benchmarker, and the calculated net there runs well above survey medians, so read them as a model and not as a survey result.
Trade figures are from the SPM Trade Benchmark Reference, 48 trades, published by Sulphur Prairie Management, LLC. Net profit is stated before taxes, on the same basis CFMA reports, so the two are directly comparable. Re-validate against CFMA reporting on the normal quarterly cycle, per the benchmark reference's own instruction.
The reference itself is published at the mechanical entry in the reference.
- 2024 Construction Financial Benchmarker, Executive Summary, Construction Financial Management Association, 2024. 21.8% gross profit margin, 11.8% SG&A and 6.3% net income before taxes across all respondents, with a best-in-class top quartile at 11.9% net income before taxes.
- 2025 Construction Financial Benchmarker, Construction Financial Management Association, 2025. 6.7% net income before taxes (6.3% in 2023), a 7.1% EBIT margin and an 8.8% EBITDA margin at the median, with interest coverage of 30.4 times, across the 1,558 companies in the 2025 analysis (fiscal year 2024 results).
- 2025 Performance Benchmarks, Construction Companies, Jones Maresca and Company, 2025. Specialty contractor gross margin of 15% to 25%, net profit of 5% to 8% for a well managed company, and total indirect cost of 8% to 15%.
The same metric across every trade is published on Net Profit by Trade, and the full dataset for all 48 trades across the published revenue bands is available as JSON and CSV, with one plain-language statement per row. Free to use with attribution.
FLAT MONTHLY FEE. NO SURPRISES.
Priced by trailing 12 month revenue. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.
| Last 12 months revenue | Monthly fee | One-time onboarding |
|---|---|---|
| Up to $1M | $1,900 to $2,900 | $1,000 |
| $1M to $3.5M | $2,600 to $3,900 | $1,500 |
| $3.5M to $6.5M | $3,800 to $5,700 | $3,000 |
| $6.5M to $9.5M | $5,100 to $7,100 | $4,500 |
| $9.5M to $12.5M | $6,100 to $8,500 | $6,000 |
| $12.5M to $15.5M | $7,400 to $11,000 | $7,500 |
| $15.5M to $18.5M | $9,400 to $13,500 | $9,000 |
| $18.5M+ | Quoted individually | Quoted individually |
The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.
Your bookkeeper still does the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Your office stops answering coding questions and stops chasing a reconciliation on the last day of the month.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the books, the job costing, and the software. No payroll.
FREQUENTLY ASKED.
