Contractors in CFMA's benchmark keep about 6% to 7% of revenue as pre-tax profit. CFMA's 2026 Financial Benchmarker, covering 1,359 contractors, put fiscal 2025 net income before tax at 6.8%, up from 6.7%, with EBITDA at 9%. Listed US engineering and construction firms averaged a 5.94% net margin in January 2026 data from NYU Stern.
- CFMA fiscal 2025: net income before tax 6.8%, EBIT 7.1%, EBITDA 9% (1,359 contractors).
- The average CFMA respondent had $25 million to $75 million in revenue, so smaller firms can differ.
- Listed US engineering and construction firms: 15.46% gross and 5.94% net margin (NYU Stern, January 2026 data).
What is the average profit margin in construction?
The most detailed public benchmark is the Construction Financial Management Association's Financial Benchmarker. As reported by ENR, the 2026 edition covered 1,359 companies with valid financial statements and found average net income before tax of 6.8% in fiscal 2025, up from 6.7%. EBITDA margin rose to 9% from 8.8%, and EBIT margin held at 7.1%.
Public companies tell a similar story. Aswath Damodaran at NYU Stern lists 48 US engineering and construction firms with an average gross margin of 15.46% and net margin of 5.94%, using data as of January 2026.
Construction profit margins by measure
Different measures answer different questions. Make sure you compare like with like:
| Measure | Margin | Who | Source |
|---|---|---|---|
| Net income before tax | 6.8% | CFMA respondents, fiscal 2025 | CFMA via ENR |
| EBIT | 7.1% | CFMA respondents, fiscal 2025 | CFMA via ENR |
| EBITDA | 9% | CFMA respondents, fiscal 2025 | CFMA via ENR |
| Gross margin | 15.46% | 48 listed US engineering/construction firms | NYU Stern |
| Net margin | 5.94% | 48 listed US engineering/construction firms | NYU Stern |
Source: ENR: Highlights from CFMA's 2026 Construction Financial Benchmarker (Sept 2026)
What could your crew earn?
Move the sliders to match your crew.
- Per worker
- $500
- You keep
- $4,000
- Per year
- $96,000
Illustrative, at about $10 per approved hour. Typical pay is $500 to $2,000 a month per recording employee; earnings vary and your agreement decides actual pay.
Do these figures apply to a small contractor?
Only partly. CFMA says the average Benchmarker respondent reported $25 million to $75 million in revenue, so the sample leans toward established firms with finance staff. ENR reports revenue per full-time employee of $525,424 and gross profit per employee of $86,952 across the sample.
Small contractors often run thinner or more volatile margins because one bad job, a slow-paying customer or idle weeks hit a smaller base. Track your own margin by job and by year rather than relying on the average.
What does that margin mean for the owner?
Multiply revenue by margin. At the 6.8% CFMA average, a $2,000,000 contractor makes about $136,000 before tax, and a $500,000 firm about $34,000. For comparison, the Bureau of Labor Statistics reports a 2025 median of $79,920 for first-line supervisors of construction trades. More on owner pay is in construction business owner salary.
How can a construction company improve its margin?
The usual levers:
- Estimate from real job costs and review every finished job against its estimate.
- Bill change orders as they happen, not at closeout.
- Keep crews busy between jobs; idle paid hours erase margin fastest.
- Watch overhead as revenue grows; CFMA respondents' revenue growth slowed to 4.8% in fiscal 2025 while margins held.
- Add revenue that does not need another job (below).
A new revenue line that uses work your crew already does
Amelia Robotics lists construction among its top priorities and pays businesses for approved first-person recordings of routine crew work, used to train AI and robots. Amelia's typical pay is $500 to $2,000 a month per recording employee, assuming 12.5 to 50 approved hours a week; earnings vary, and your agreement and the approved recordings decide what is actually paid.
Illustrative example for a crew of six recording framing, drywall or finish work: 6 crew members x 12.5 approved hours a week x 4 weeks x $10 = $3,000 a month, or $36,000 a year, at the typical rate. Amelia pays the business once a month with a statement, and you decide how much to share with the people who record.
At a 6.8% margin, $36,000 a year equals the pre-tax profit on about $530,000 of construction revenue. Results vary and depend on approval and site permission. See how this works for construction crews.
Next step
Estimate your crew's figure on the Physical AI hub.
Common questions
What is the average profit margin for a construction company?
About 6% to 7% before tax. CFMA's 2026 Financial Benchmarker put fiscal 2025 net income before tax at 6.8% across 1,359 contractors.
What is a good net profit margin in construction?
Beating the CFMA average of 6.8% before tax is good; listed engineering and construction firms averaged 5.94% net in NYU Stern's January 2026 data.
What is the gross profit margin in construction?
NYU Stern lists a 15.46% average gross margin for 48 listed US engineering and construction firms. Smaller and specialty contractors can run higher gross margins with higher overhead.
Are construction margins improving?
Slightly. CFMA reported net income before tax rising to 6.8% from 6.7% and EBITDA to 9% from 8.8% in fiscal 2025, even as revenue growth slowed to 4.8%.
How much profit does a construction company make on $1 million?
At the 6.8% CFMA average, about $68,000 before tax.
Sources and further reading
- ENR: Highlights from CFMA's 2026 Construction Financial Benchmarker (Sept 2026)
- CFMA Nebraska chapter: 2025 Financial Benchmarker results for residential construction
- Aswath Damodaran, NYU Stern: Operating and net margins by US sector (January 2026 data)
- O*NET OnLine (BLS 2025 wages): First-line supervisors of construction trades
- Amelia Robotics: business program (checked Nov 2026)
- Amelia Robotics: for robotics labs
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