How Much Money Do Restoration Companies Make?
Let’s break down the revenue, margins, and real potential in this industry.
If you’re thinking about starting a restoration business—or already own one—you’ve probably asked: How much can this business really make? The short answer is: a well-run restoration company can generate high revenue and strong profits—but only if you manage your numbers carefully.
Let’s dig into the details.
Average Revenue for Restoration Companies
Revenue varies depending on service mix, location, team size, and referral sources. Here’s a rough breakdown:
Business Type | Annual Revenue Range
----------------------------|--------------------------
Solo Owner-Operator | $150,000 – $500,000
Small Crew (3–5 techs) | $500,000 – $1.5 million
Mid-Size Company | $1.5 million – $5 million
Larger Regional Operation | $5 million – $10+ million
Many successful companies in our Kiwi Cash Flow network report consistent $3M–$7M annual revenue—especially those who perform mitigation and rebuild work.
What About Profit?
Revenue is one thing—but profit tells the real story. Restoration companies typically aim for a net profit margin of 15%–25%, depending on how tightly they manage labor, COGS, and overhead.
Here’s what that looks like in practice:
Example: $100,000 in Revenue
Category | % of Revenue | Amount
----------------------------|--------------|---------
COGS (materials, subs) | 35% | $35,000
Labor (wages, taxes, PTO) | 25% | $25,000
Overhead (rent, trucks, etc)| 20% | $20,000
Net Profit | 20% | $20,000
This example reflects a company that has their job costing dialed in, keeps labor lean, and watches overhead closely.
What Impacts Profitability?
Several factors separate the most profitable companies from the ones just breaking even:
Efficient job costing
Realistic pricing based on labor burden
Tight A/R management and collections
Low equipment rental dependence
Strong referral relationships
Minimized callbacks and scope creep
Companies that don’t track these often find themselves busy—but broke.
Restoration Work Can Be Lucrative—If You Treat It Like a Business
The potential is there. Restoration businesses deal with urgent problems, get high-ticket jobs, and work in a space with relatively low competition. But the most successful owners watch their numbers like a hawk.
That’s where we come in.
Want to See How Much Your Company Could Be Making?
At Kiwi Cash Flow, we help restoration companies optimize financials, track profitability per job, and forecast with confidence.
👉 Schedule a call here and we’ll show you what top-performing companies are doing—and how close you are to joining them.