Average HVAC Company Revenue: How Much They Make
The HVAC industry is booming: According to Mordor Intelligence, the U.S. HVAC services market, which includes repair, maintenance, and other service work, reached about $28.2 billion in 2025.
So if you own an HVAC business (or are thinking about starting one), you’re probably wondering how much revenue other companies are earning—and how much your business should be bringing in.
Figures vary wildly depending on several factors. But plenty of HVAC companies are bringing in 7-figures and higher annually.
What really matters, though, is how much money stays in the business, and that’s your profit margin. Because it doesn’t matter if your business earns seven figures in revenue each year if you’re spending nearly as much.
Below, we’ll break down the average HVAC company revenue, ideal profit margins, and the factors that will influence your business’s bottom line. We’ll also share strategies we recommend to our HVAC clients at Therapeutic Tax Solutions that will help you grow beyond the average for a more profitable, rewarding business.
What Is the Average HVAC Company Revenue?
Industry data from a 2025 database of U.S. HVAC firms shows that a large share of companies report annual revenue in the $500K–$2.5 million range.
Most HVAC businesses are small operations, typically owner-operated with fewer than five employees and annual revenues under $1 million. These smaller firms often face challenges with pricing, marketing, and accessing the same buying power as larger competitors.
On the other end of the spectrum, there are many examples of residential and small commercial HVAC companies surpassing the $2 million mark and beyond. Multi-location enterprises with established systems, strong brand recognition, and multiple crews can generate significantly higher revenue—sometimes reaching $10 million or more annually.
The wide range in revenue comes down to how the business is structured and managed. A solo contractor doing mostly repair work will naturally bring in less revenue than a company with a fleet of trucks, a full sales team, and contracts for new construction and commercial projects.
Why Knowing Average HVAC Company Revenue Matters
Whether you’re just starting out or are a long-time pro in the industry, understanding how your revenue compares to industry benchmarks helps you set realistic goals and identify opportunities for growth.
If your current revenue is below average, it’s a signal to take stock of potential areas of improvement, like your pricing, marketing, or efficiency. If your revenue is above average, it’s a sign that you’re well-positioned for expansion or for making strategic investments in your business.
Profit Margins: How Much of That Revenue Is Actually Profit?
Your profit margin is the most important and accurate indicator of your business’s financial health. Revenue only tells you what’s coming in the door, but your profit margin is how much stays in your pocket. And in the HVAC industry, profit margins can be razor-thin if you’re not carefully managing costs.
On average—after all expenses, including interest, taxes, and operational costs—HVAC companies see net profit margins between 5% and 10%.
Smaller HVAC contractors tend to run tighter margins (typically 5-7% net profit) because they typically have less buying power and smaller teams. Large HVAC companies with more established operations, reputations, and the ability to purchase inventory and equipment wholesale often hit 8-12% net profit margins.
Ideally, your HVAC business’s net profit margin is somewhere in the 8-12% range. But anything above 10% indicates a healthy bottom line.
See also: HVAC Profit Margins: What Contractors Need to Know in 2025
Typical HVAC business expenses that will impact your profit margin include:
Rent and utilities for your office space
Labor costs, including wages, payroll taxes, workers' compensation, and benefits
Insurance, such as liability, auto, and health insurance, for your team
Vehicles, including purchase or lease payments, gas, maintenance, and repairs
Equipment, tools, and specialized machinery
Licenses, certifications, and permits
Income tax, self-employment tax, and business taxes
Marketing and advertising
Average HVAC Business Owner Salary and Income Potential
The average salary of HVAC business owners also varies widely depending on the size of the company, its profitability, efficiency, and location.
And unlike employees who get a consistent paycheck every month, most business owners' income comes from net profit—after expenses—which means take-home pay will likely fluctuate month to month.
Most HVAC business owners make somewhere between $70,000 and $150,000 per year. But many solo contractors are earning much less than these numbers, while top earners can easily exceed $200,000.
Revenue Benchmarks: How Your Business Compares
Understanding where your business falls on the revenue spectrum can help you set realistic growth targets. Here's a general breakdown based on business size:
Factors That Influence HVAC Company Revenue
There are several factors that influence revenue:
Company Size: The more technicians you have in the field, the more jobs you can complete—and the more revenue you can generate.
Location: HVAC business owners in regions with hot summers or freezing winters—or in areas with a higher cost of living—are in higher demand and can charge higher prices. Smaller markets or areas with milder seasons will see less pay.
Years of Experience and Reputation: Established companies with strong reputations can charge premium prices because they’ve earned trust.
Marketing and Online Presence: A strong online presence—including a professional website, Google My Business listing, and positive reviews—helps you attract more customers and stand out in a competitive market through brand recognition.
Customer Service and Job Quality: Doing great work and treating customers well leads to repeat business and word-of-mouth referrals. (On the flip side, poor service or sloppy work can tank your reputation.)
Pricing Strategy: If you're undercharging for your services, you're leaving money on the table. If you're overcharging without justifying the value, you'll lose jobs to competitors. Pricing strategy is one of the most important methods of increasing profitability. (That’s why it’s so important to know your numbers!)
Competition: In markets with high competition, you'll need to differentiate your business by standing out or specializing. In less competitive areas, it may be easier to dominate the market, but you’ll also have to work harder to find new business.
How To Grow Beyond the Average HVAC Company Revenue
Growing your revenue and profitability requires strategic pricing, planning, and operations. Here's how to move your business forward.
Develop A Strategic Pricing Strategy
Make sure your prices cover all your costs—labor, materials, overhead, and profit—and are within industry standards for your market.
Flat rate pricing helps ensure that labor costs, parts, and overhead are all accounted for in every job. Clear pricing makes it easier for you to determine which services are most profitable, and customers know exactly what to expect up front. Understanding job costs will help you choose fixed rates that help your business stay profitable.
Plan for Seasonality
Prepare for slow months by anticipating them. Set aside cash reserves during peak season so you’re not scrambling in the off-season. Also, avoid making large purchases during the off-season. If you can buy parts wholesale during your busy season, you’ll save money that way, too.
Train Your Technicians to Bring in Sales
Your technicians should generate revenue for your business. Upselling customers on maintenance contracts or add-ons can boost your bottom line significantly. Invest in sales training for your staff or contractors, and incentivize them to bring in additional revenue with bonuses.
Keep Clean Books
Accurate expense tracking, organized financial records, and up-to-date bookkeeping are the foundation of a profitable business. Without clean books, you can't make budgets, evaluate profitability, or plan for taxes. You're flying blind.
Therapeutic Tax Solutions - We Help HVAC Contractors Increase Revenue, Boost Profit Margins, and Build a More Predictable Business
Most HVAC owners think revenue is the problem, but it’s almost always the financial structure underneath it.
Because it doesn’t matter if you’re doing $800K or $4M. If your job costs aren’t clear, if you’re underpricing, or if your margins are slipping through the cracks, growth just creates more stress.
Here’s how we help HVAC contractors grow beyond “industry average” and into real, sustainable profitability:
✓ Clean, accurate bookkeeping that gives you a crystal-clear picture of how your business is performing
✓ Job costing and profitability tracking so you know exactly where your money is made, and where it’s leaking
✓ Pricing and margin analysis to help you raise profit (not just revenue)
✓ Cash flow forecasting so slow seasons never feel like emergencies again
✓ Financial advisory built specifically for HVAC owners so you can make strategic decisions with confidence
✓ Guidance on scaling, such as hiring, equipment, marketing, and multi-crew expansion — backed by real numbers, not guesswork
You don’t need to “hope” you’ll grow.
You need financial systems that show you exactly how to grow and how to keep more of what you earn.
FAQs
What Is a Healthy Profit Margin in the HVAC Industry?
A healthy net profit margin for HVAC companies typically falls between 8% and 12%. If you're running above 10%, you're in good shape.
Gross profit margins usually range anywhere from 30% to 60%, depending on your business model and efficiency. Your ideal margin depends on your company's size, market, and growth plans. Consistently tracking and improving your margins is key to long-term profitability.
What Is the Average HVAC Company Revenue per Year?
The average HVAC company brings in between $500,000 and $1.25 million per year, though this varies widely. Most solo contractors earn less than $100,000 annually, while small companies with a few technicians may generate between $100-500k. Mid-sized operations can reach up to $2 million, and large multi-location companies often exceed that.
Is It Possible for an HVAC Company to Become a Multimillion-Dollar Business?
Absolutely! Many residential and small commercial HVAC companies surpass the $2 million mark and continue growing from there.
Scaling to this level (and sustainably) requires strong systems, efficient operations, strategic pricing, and a skilled team—not to mention an investment in marketing and excellent customer service. Most HVAC companies that bring in this much revenue either expand into commercial work or into multiple locations.
How Long Does It Take for an HVAC Business to Become Profitable?
Most HVAC business owners begin drawing a steady, decent salary within 12 to 24 months of launching their company.
However, profitability timelines vary based on startup costs, market conditions, and whether you're starting from scratch or have an existing client base. Entrepreneurs with strong industry connections or operating in high-demand areas may become profitable sooner. The key is keeping overhead low, pricing correctly, and building a reliable customer base quickly.
How Can HVAC Companies Increase Their Revenue without Raising Prices?
There are several ways you can boost revenue without necessarily increasing your rates. Maintenance contracts are one easy way to create recurring, predictable income.
Training your technicians to upsell services like air quality improvements or system upgrades can also add a lot to your bottom line. Investing in your marketing will help generate more leads and fill your schedule.
And increasing your efficiency allows your techs to complete more jobs per day. Finally, keeping clean records of your billable hours, material costs, and expenses you can deduct later is crucial. We can help with that!
The Bottom Line
Growing a profitable HVAC business is about so much more than bringing in more money. It also requires you to have a firm grasp on your numbers, manage costs, and price services strategically so you can keep more money in your pocket.
When you track your revenue and expenses, review your financial statements regularly, and plan ahead for taxes, you can build and grow a sustainable business without razor-thin margins.
At Therapeutic Tax Solutions, we specialize in working with HVAC contractors. We help you clean up your books, set up systems that track job costs and profitability, and provide financial advisory so you can make better decisions about pricing, hiring, and growth.
Learn more about our services or get in touch!
