Zweig Group, the leading provider of management consulting, research, and education for the architecture, engineering, and construction industry, has announced the release of its 2025 Financial Performance Report of AEC Firms. This comprehensive benchmarking resource provides detailed insight into the financial practices, challenges, and performance metrics of firms across the AEC industry, offering financial leaders an invaluable tool for assessing operations and planning for the future.
The 2025 edition includes data from the 2024 fiscal year and covers all major aspects of financial performance, including firm revenue, profitability, chargeability, labor multiplier, overhead rates, financial leverage, and more. It also details how financial departments are structured, challenges they face, and the methodologies firms use to track and manage performance.
This year’s report highlights several key trends:
- EBITDA margin on NSR hits new high. Median EBITDA margin on net service revenue reached 19.2%, continuing an upward trend over the last decade. This figure has climbed steadily from 11.8% in 2014, reflecting improved operational efficiency and financial management across the industry.
- Revenue factor reaches record level. At a median of 1.9, the revenue factor is at its highest level in the past 10 years, indicating stronger productivity and improved financial outcomes.
- Chargeability rebounds. Median chargeability rose to nearly 62%, reversing a slight dip observed in 2024 and suggesting a return to higher staff utilization rates across the industry.
- Debt-to-equity ratio increases. Financial leverage metrics are beginning to shift, with the industry’s median debt-to-equity ratio rising from 0.52 in 2023 and 2024 to 0.73 in 2025. This may reflect increased borrowing activity in pursuit of growth and investment opportunities.
As the financial landscape of the AEC industry continues to evolve, the 2025 Financial Performance Report provides essential benchmarking insight to help firm leaders make informed, data-driven decisions. Whether focused on improving profitability, increasing efficiency, or navigating new investment strategies, AEC financial professionals will find this report an invaluable tool for planning and performance optimization.