What it looks like when it's running
Three numbers, at three different levels of the business. Any one of them can happen by accident. All three at once is a system.
Projects making 22 to 30% gross profit. The company running 12% net profit. And $650,000 in the bank at all times, which is the working capital rule at the $5M mark.
The three numbers
How far these are from the published averages
The benchmark reference holds 48 trades. Here is where the targets rank against what those trades average at $1M–$5M.
| Number | Published average | Outcome target | Trades already there |
|---|---|---|---|
| Gross profit | 22.1% | 22 to 30% | 32 of 48 average inside the range |
| Net profit | 7% | 12% | 0 of 48 |
| Cash held | Not surveyed | 13% of revenue | Read off your own balance sheet |
Read this the right way. The middle column is a survey of what companies do. The target column is what a run company produces. Published net profit at $1M–$5M spans 2 to 10% across the 48 trades, so 12% is above the whole population. That's the point of a target.
- 2024 Construction Financial Benchmarker, Executive Summary, Construction Financial Management Association, 2024.
- 2025 Construction Financial Benchmarker, Executive Summary, Construction Financial Management Association, 2025.
- 2025 Performance Benchmarks, Construction Companies, Jones Maresca and Company, 2025.
- SPM Trade Benchmark Reference, Sulphur Prairie Management, LLC, 2026.
Sourcing and method: the methodology page.
Which bands are measured. The 4 bands above $10M–$25M extend the survey curve further out and have not been reconciled against the licensed CFMA Benchmarker. How every figure was built is explained on the methodology page.
They come one at a time, in sequence
The step behind each number
All 8 steps are on one page with the dependency chain drawn out, or open the diagnostic to see your own trade and revenue band against the benchmark set.
What owners ask
What should a construction company's financials look like?
Three numbers, at three different levels. Projects at 22 to 30% gross profit, the company at 12% net profit, and $650,000 in the bank at the $5M mark. Each one is built on the one before it, so they come in that order and in no other.
Are these averages or targets?
Targets. The distinction counts here. Across the 48 benchmarked trades, gross margin at $1M–$5M averages 22.1% and net profit averages 7%, with a published span of 2 to 10%. Not one industry averages 12% net profit. These are what a run business produces, not what the population does.
Why do they have to come in that order?
Gross profit is a project number a crew can move this week. Net profit is a company number that only moves when overhead recovery changes. Cash is a balance sheet number that lags both. Chase the third one first and you get a good month followed by the same year.
Where does $650,000 come from?
The working capital rule at one revenue size. You want 10 to 15% of annual revenue in working capital and you aim at 13%. 13% of $5M is $650,000. At a different size the rule gives a different number, and the rule is the part that travels.
How long does it take to get there?
The install is 8 steps over 60 days. The numbers don't all turn up at once. Gross profit moves on the next jobs you bid, net profit moves on the next full quarter, and the bank balance is the one that takes a year of both holding.
Wrote CONTROL, the 8 step system behind these figures. More about the author.