How Much Do Restoration Companies Really Make?

May 17

A Breakdown by Job Type

If you’ve ever asked, “How profitable is a restoration company?”—you’re not alone. Whether you’re already in the industry or considering launching a water damage restoration business, understanding what different restoration job types actually bring in is critical to forecasting revenue and long-term success.

The truth is: not all jobs are created equal. Some types of work come with high margins and quick payouts. Others tie up your crew for weeks and deliver slimmer profits. In this post, we’ll break down how much restoration companies really make, job by job.

Average Income for a Restoration Business

Restoration company profits can vary based on size, service mix, and geography, but here's a general guide:

Solo operator or small team: $250K–$1M in annual revenue
Mid-sized company (5–10 techs): $1M–$5M/year
Larger firms (10+ techs & admin): $5M–$15M+/year

But topline revenue doesn’t tell the whole story. Net profit margins typically range from 10–20%, depending on job efficiency, overhead, and how well the company prices and manages each service.

Restoration Job Types and Their Profitability

Here’s a breakdown of common job types and how they contribute to restoration business income:

1. Emergency Water Mitigation

Typical Gross Profit: 55–70%
Payout Time: 15–60 days
Pros: Fast jobs, quick cash flow, program work availability
Cons: Night/weekend hours, heavy competition, billing caps with some carriers

2. Structural Drying & Mold Remediation

Typical Gross Profit: 50–65%
Payout Time: 30–90 days
Pros: Higher per-job revenue, opportunity for markup on equipment and materials
Cons: Licensing requirements in some states, regulatory documentation

3. Fire and Smoke Restoration

Typical Gross Profit: 45–60%
Payout Time: 30–120 days
Pros: Larger ticket sizes
Cons: Longer job duration, more complex project management, slower collections

4. Pack-Outs and Contents Cleaning

Typical Gross Profit: 35–50%
Payout Time: 60–120+ days
Pros: Adds value to fire or water jobs
Cons: High labor, storage logistics, easily underbid

5. Rebuild/Construction Services

Typical Gross Profit: 20–35%
Payout Time: 60–180 days
Pros: Big revenue driver, extends customer relationship
Cons: Low margin, scheduling delays, permits and inspections slow down cash flow

Pro tip: Some of the highest revenue jobs have the lowest margins. Track profitability by job type, not just total sales.

What Impacts Restoration Company Profits?

Several key factors influence how much a restoration company can make:

Labor efficiency and cost control
Job mix (mitigation-heavy vs. rebuild-heavy)
Use of software like Xactimate for estimates
Timely collections and low A/R aging
Overhead control: trucks, equipment, marketing, admin costs

How to Maximize Your Restoration Business Income

Want to grow your revenue and profit? Here are 3 key strategies:

Focus on Mitigation-Heavy Jobs
These are quicker to complete and usually offer better margins than reconstruction.
Track KPIs Monthly
Keep tabs on labor %, gross margin, overhead %, and average job size to spot trends early.
Benchmark Against Industry Standards
Don’t guess—compare your numbers to what top-performing restoration companies are doing.

Final Thoughts

Restoration companies can absolutely be profitable—but only if you understand what types of work drive income and how to manage costs job by job. If your revenue looks healthy but your bank account doesn’t, it’s time to start digging deeper into the numbers.

Need help analyzing your profit by job type?

We can help you break it down and rebuild your pricing strategy.
👉 Schedule a review with Kiwi Cash Flow

Michele Gray