Builders’ Profits Grew in 2023, NAHB Finds

Builders recorded average gross profit margin of 20.7% and net profit margin of 8.7% in 2023, their best numbers in more than a decade, research by the National Association of Home Builders finds.

NAHB’s triennial survey, published in its most recent Cost of Doing Business Study, said the typical builder averaged $11.3 million in revenue, took in a gross profit of $2.3 million, and recorded a net profit of $985,000.

While NAHB didn’t have numbers for 2024, John Burns Research & Consulting said that, of the public builders, one third had operating margins under 10% in 2024, one-third had margins between 10% and 15%, and the top third had operating margins above 15.%

Welcome To EquiNova Capital

EquiNova Capital Partners LLC is the new company launched by Michael Collins and Walk Kurek following their years as Managing Directors of Building Industry Advisors. EquiNova invests private equity capital in middle-market companies and provides merger and acquisition advisory services.

We Can Answer Your Most Pressing M&A Questions

How do the most active buyers in today’s market value my company?
What parts of the business should I change to improve its valuation?
When is the right time to sell?

These are questions that are commonly asked by the owners of building products manufacturers and distributors. Our work in selling and raising capital for companies puts us in a unique position to help answer these important questions. Regardless of when you might decide to approach the market, please contact me to have a confidential discussion about your company and ways to maximize its value for the owners.

Michael Collins

mcollins@equinovacapital.com

Work 312-854-8036

Cell 312-282-5462