According to the newly-released Remodelers’ Cost of Doing Business Study: 2017, the typical residential remodeler’s net profit margin increased to 5.3% in 2015, up from 3.0% in 2011.
Remodelers surveyed reported an average of $1.8 million in revenue for 2015. An average of $1.3 million (71.1%) of this revenue went toward cost of sales, leaving a gross profit of 28.9% of revenue. After an average of $420,000 in operating expenses, remodelers ended the fiscal year 2015 with a net profit of $95,000.
In 2015, residential remodelers reported total assets averaging $414,000 on their balance sheets. About $279,000 (67.5%) of that was backed up by liabilities and the remaining $135,000 (32.5%) was held as owner’s equity.