Can You Really Make Money in Water Restoration? Yes—Here’s How
Water restoration isn’t just a steady business—it’s one of the most profitable service industries out there. If you’ve ever wondered whether you can actually make money doing water mitigation and restoration work, the answer is a clear yes. In fact, many owner-operators build strong six-figure incomes within just a few years—if they understand the numbers that drive profitability.
In this post, we’ll break down how water restoration companies make money, what the profit margins look like, and how you can set yourself up to keep more of what you earn.
💧 Why Water Restoration Is a High-Profit Industry
Water restoration work is in demand year-round. Whether it's a broken pipe, storm damage, or a slow leak that turns into a mold problem, property owners need help fast—and often turn to professionals who can bill insurance and handle the job start to finish.
What makes this business especially profitable:
Insurance-backed payments provide higher job values and more consistent cash flow
Recurring referral sources (like plumbers and property managers) can keep your pipeline full
High average ticket sizes ($3,000 to $15,000+) on residential jobs
Low marketing costs once you're established with local partners
💵 Realistic Profit Breakdown for Owner-Operators
Let’s say you complete 10 jobs in a month at an average of $6,000 each. That’s $60,000 in revenue. Here's what a strong-performing restoration business might look like:
Category % of Revenue Amount (based on $60K)
COGS (materials, subs) 35% $21,000
Labor (Included in COGS) 25% $15,000
Overhead (rent, trucks, insurance) 35% $21,000
Net Profit 30% $18,000+
With margins like that, a solo operator with one tech and a van can clear six figures annually—and scale from there.
📊 The KPIs That Drive Profit
The most successful restoration contractors don’t just work hard—they track the right key performance indicators (KPIs) to stay profitable:
Average job size – Are your jobs bringing in enough revenue?
Number of jobs per month – Is your pipeline consistent?
Labor % – Are you overstaffed, or running lean and efficient?
COGS % – Are materials and subs eating into your margin?
Overhead % – Is your business supporting growth without draining profit?
Net Profit % – What are you actually keeping at the end of the month?
These numbers tell the real story—not just how busy you are, but whether you’re actually building a profitable, sustainable business.
💼 How Kiwi Cash Flow Helps Restoration Contractors Succeed
At Kiwi Cash Flow, we specialize in helping water restoration business owners get financial clarity. We provide monthly reports, custom KPI tracking, and industry benchmarking tailored to owner-operators like you.
Our clients don’t just get a spreadsheet—they get insight into:
Why your labor % might be creeping up
Whether your job mix supports your revenue goals
How much cash you should be keeping every month
What changes to make when profitability dips
If you want to make more money—and keep it—we’ll help you get there.
✅ The Bottom Line
Yes, you can absolutely make money doing water restoration. But true profitability comes from knowing your numbers, pricing correctly, managing labor and overhead, and tracking KPIs monthly.
If you’re ready to stop guessing and start scaling with confidence, we can help.
📈 Learn more at https://www.kiwicashflow.com
💬 Schedule a call today to see how your restoration business stacks up—and how much more it could earn.