Roofing Profit Margins: What’s Normal, What’s Not, and How to Increase Yours in 2026

If you’re running a roofing company and working harder than ever but still wondering where the money is going, you’re not alone.

One of the most searched questions we see from roofing contractors is:

“What should my roofing profit margins actually be?”

And the truth is — most owners don’t have a clear answer, because no one ever taught them how to read the numbers properly.

Let’s fix that.

What Is a Healthy Roofing Profit Margin?

In today’s roofing market, here’s what we see across the industry:

• 8%–12% net profit → solid, healthy roofing company
  
  
• 15%+ net profit → strong systems, good leadership, clean books
  
  
• 0%–5% (or negative) → high stress, cash flow problems, burnout coming
  
  

And here’s the part most contractors miss:

Doing $3M, $5M, or even $10M a year does not mean your business is healthy.

Revenue is vanity. Profit is reality.

Why So Many Roofing Companies Struggle With Profit Margins

This isn’t a work ethic problem.
It’s a systems and knowledge problem.

1️⃣ Poor Job Costing

Most roofing companies are estimating, not actually job costing.

If you don’t know:

• True labor cost per job
  
  
• Material waste percentages
  
  
• Real supplement totals
  
  
• What jobs actually made money
  
  

Then you’re guessing — and guessing always shows up in your bank account.

2️⃣ Underpricing to Stay Busy

We see this constantly.

Owners drop pricing because:

• “We need the work”
  
  
• “Everyone else is cheaper”
  
  
• “I’ll make it up on volume”
  
  

But volume without margin leads to:

• No cash
  
  
• No team
  
  
• No freedom
  
  

You don’t need more jobs — you need profitable jobs.

3️⃣ No Clear Financial Systems

If your books aren’t clean:

• You can’t trust your Profit & Loss statement
  
  
• You don’t know which crews are profitable
  
  
• You don’t know which jobs are bleeding money
  
  

That’s not a bookkeeping issue — that’s a leadership blind spot.

Gross Profit vs Net Profit (This Trips Up Almost Every Roofer)

Let’s simplify this.

• Gross Profit = Job revenue minus direct job costs
  
  
• Net Profit = What’s left after overhead, payroll, marketing, and expenses
  
  

Here’s the trap:
You can have strong gross profit and still have terrible net profit.

If overhead isn’t controlled, gross profit won’t save you.

How to Increase Roofing Profit Margins in 2026

This is what actually moves the needle — not theory.

✅ Dial in Job Costing

Every job should track:

• Labor
  
  
• Materials
  
  
• Dump fees
  
  
• Supplements
  
  
• Change orders
  
  

If you’re not tracking it, you can’t fix it.

✅ Review Your Numbers Monthly

At minimum, every roofing owner should review:

• Profit & Loss statement
  
  
• Cash flow
  
  
• Job profitability
  
  

Monthly financial reviews stop problems before they turn into crises.

✅ Price for Profit, Not Survival

Your pricing must:

• Cover overhead
  
  
• Pay you as the owner
  
  
• Leave room for growth
  
  

If one slow month wrecks your business, your pricing model is broken.

✅ Build Systems, Not Just Sales

Sales increase revenue.
Systems protect profit.

That includes:

• SOPs
  
  
• Clear roles and accountability
  
  
• Financial visibility
  
  
• Leadership structure
  
  

This is how roofing companies scale without chaos.

Final Thoughts for Roofing Business Owners

If you’re busy, stressed, and still asking, “Why don’t I feel profitable?” — the problem isn’t roofing.

The problem is most owners were never taught how to run the business side of roofing.

That’s why The Roofing Academy exists — to help contractors stop guessing and start running real businesses.

Want Help Improving Your Roofing Profit Margins?

At The Roofing Academy, we help roofing contractors:

• Understand their numbers
  
  
• Build profitable systems
  
  
• Scale without burning out
  
  

👉 Book a strategy call or explore our programs to see where your margins are really going.