Zweig Group, the leading provider of management consulting, research, and education for the architecture, engineering, and construction (AEC) industry, has released the 2026 Financial Performance Report of AEC Firms, one of the industry's most comprehensive resources for benchmarking financial performance, operational efficiency, and firm health.
Built from detailed financial data submitted by AEC firms across the United States, the report provides firm leaders with a clear, data-driven view of how their organizations compare across key performance indicators including revenue, profitability, overhead, utilization, leverage, staffing, and financial management practices.
The report examines the 2025 fiscal year and offers valuable benchmarks for CEOs, CFOs, controllers, and firm leaders seeking to improve performance, identify opportunities, and make informed strategic decisions in an increasingly competitive environment.
Key trends from the 2026 report include:
- Backlog fell below double digits. Median backlog declined from 10.7 months to 8.9 months, signaling a moderation in future workload after several years of exceptionally strong demand. Despite the decline, firms continue to maintain healthy project pipelines by historical standards.
- Firms increased their use of debt. Median debt-to-equity increased from 0.73 to 0.77, while interest-bearing debt-to-EBITDA rose from 0.20 to 0.30. The increase across multiple leverage measures suggests firms are relying more heavily on debt financing to support growth, ownership transitions, and strategic investments.
- Billing efficiency improved significantly. Median work-in-process turnover improved from 22 days to 18 days, a nearly 20% reduction. Firms appear to be converting project work into invoices more quickly, improving internal billing efficiency and reducing unbilled work sitting on the balance sheet.
- Revenue factor retreated from a record high. After reaching a record median of 1.90 in the prior year, the revenue factor declined to 1.86. While still historically strong, the decline suggests firms may be experiencing greater pressure on labor utilization and operational efficiency as market conditions normalize.
- High-profit firms continue to separate themselves through higher multipliers. Firms reporting very high profitability achieved a median net multiplier of 3.43, compared to 3.05 among firms reporting low profit or losses. Even firms in the high-profit category posted a median multiplier of 3.34, reinforcing the strong relationship between effective pricing, project execution, and overall financial performance.
"The firms that consistently outperform their peers are the ones that understand their numbers and use them to drive decisions," said Chad Clinehens, president and CEO of Zweig Group. "This report provides leaders with the benchmarks and perspective they need to evaluate performance, identify areas for improvement, and position their firms for long-term success."
The 2026 Financial Performance Report includes comprehensive data on financial performance, financial departments, industry challenges, methodologies, and financial practices across the AEC industry. Key financial statistics include net service revenue, profitability measures, labor multipliers, turnover rates, professional-to-administrative staff ratios, and a wide range of additional performance metrics.
For firm leaders seeking a deeper understanding of their financial position and operational performance, the report provides a unique perspective on where they stand relative to the industry and where opportunities for improvement may exist.
Access the 2026 Financial Performance Report of AEC Firms today.