How much does a Roofing Contractor cost to buy?

A typical Roofing Contractor sells for 2x to 3.5x annual revenue. With average revenue of $1.5M, expect to pay $3.0M to $5.3M.

How much does it cost to start a Roofing Contractor?

Startup costs range from $30K to $150K depending on location, equipment, and scale.

Service

Roofing Contractor

Q: What are the profit margins for a Roofing Contractor?

The average profit margin for a Roofing Contractor is around 14%. Primary costs: crew labor (30–45% of revenue), materials/shingles ($25–35% of revenue), vehicles, equipment (nail guns, compressors, ladders), liability and workers' comp insurance (8–12% of revenue). Owners who subcontract crews run leaner. Marketing is often referral + storm canvassing for small operators.

Every roof fails eventually — and insurance money pays the bill

Residential and commercial roofing contractors install, repair, and replace roofs on homes, apartment complexes, and commercial buildings. The US roofing market generates over $51.9 billion annually across 108,000+ companies. A well-run regional operator with 3–5 crews handles 200–500 residential jobs per year (average ticket $8K–$18K), plus storm damage / insurance work that can spike revenue dramatically in active weather years. Net margins of 10–20% are typical for owner-operators; firms with estimating systems and subcontractor crews run leaner. Private equity is aggressively rolling up roofing companies, making this a hot acquisition market with strong exit optionality for the buyer of a small platform.

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Avg Revenue

$1.5M

Profit Margin

14%

Acquisition Multiple

2x - 3.5x

Startup Cost

$30K - $150K

Difficulty

3/5

How It Works

Crews estimate, tear off old roofing materials, install underlayment and new shingles or membrane, and perform flashing and gutter work. Revenue comes from residential replacements (~70% of the market), commercial flat roofing, repairs, and storm/insurance restoration work. Storm chasers follow hail and wind events and can add 30–100% to annual revenue in good weather years. The modern roofing business runs on sales (canvassers, estimators), crew management, and material purchasing — not the owner swinging a hammer. SDE multiples for small operators run 2.0–2.7x; quality platforms with $5M+ revenue see 3–5x EBITDA as PE roll-up targets.

Revenue Range

Low End

$500K

Typical

$1.5M

High End

$4.0M

Pros

+Insurance-funded storm work creates irregular but massive revenue windfalls — one hail storm can add $500K+
+PE roll-up activity is intense: roofing is one of the hottest M&A categories heading into 2026, creating a strong exit market
+Recurring demand: residential roofs last 20–30 years, ensuring a steady replacement pipeline
+Subcontractor model limits W2 headcount risk and scales crew capacity without fixed labor cost

Cons

-Thin margins (10–15% net) on standard work require high volume and tight job cost controls
-Physical danger: falls from roofs are the #1 cause of construction fatalities — insurance and safety protocols are mandatory
-Highly seasonal in northern climates; winter revenue dips require cash management discipline
-Storm-chaser competition is fierce in active hail markets — margin compression on insurance jobs is common

Best For

Operators with construction or trades background; ideal acquisition for a buyer seeking a platform to participate in the PE roll-up wave — buy at 2–3x SDE, run efficiently, sell at 5–7x EBITDA to a PE aggregator

Operating Costs

Primary costs: crew labor (30–45% of revenue), materials/shingles ($25–35% of revenue), vehicles, equipment (nail guns, compressors, ladders), liability and workers' comp insurance (8–12% of revenue). Owners who subcontract crews run leaner. Marketing is often referral + storm canvassing for small operators.