For more than 40 years, PSMJ's AE Financial Performance Benchmark Results has provided architecture and engineering firm leaders with objective, peer-based financial data to evaluate performance, benchmark against similar firms, and support strategic business decisions.
Built from financial information submitted by 320+ AEC firms between February and April 2026, the 2026 AE Financial Performance Benchmark Survey Report provides a snapshot of year-end 2025 performance and highlights the financial trends shaping today's architecture and engineering industry. The findings reveal continued strong market conditions while offering firm leaders the financial benchmarks needed to evaluate their organizations against industry peers.
Record Profitability Despite a Changing Market
The 2026 Survey Report reflects continued strong market conditions across the AEC industry, with several key financial performance metrics reaching or returning to record levels.
Among the most significant findings:
- Operating Profits (EBBT) as a Percentage of Net Revenues reached an all-time high of 20.5%, up from 19.0% in the previous edition.
- Net Direct Labor Multiplier Achieved increased to 3.43, exceeding the median target multiplier of 3.29 and indicating that project financial performance remained above firms' expectations.
- Labor Utilization Rate remained relatively steady at 57.5%.
- Operating Overhead Rate Before Incentive/Bonus increased slightly to 167.6%, surpassing recent highs.
- Net Revenues per Total Staff increased to $195,224.
Financial Trends CEOs Should Monitor
While profitability remained strong, several important financial benchmarks shifted compared to the previous year.
- Net Revenues Backlog Change declined to a median of 5.0%, down from 11.1% in the previous edition.
- Net Revenues Backlog as a Percentage of Annual Net Revenues decreased from 103.8% to 92.6%.
- Net Revenues Change moderated slightly to 9.5%, compared to 10.0% in the prior edition.
- Staff Size Change increased to 7.4%, reflecting continued growth across participating firms.
- Staff Turnover Rate decreased slightly to 12.9%, after reaching its highest level in more than a decade in the 2022 edition.
Workforce and Operational Performance
- Net Revenues per Direct Labor Hour increased to $159.42.
- Direct Labor Costs per Direct Labor Hour increased to $46.41.
- Total Hourly Costs per Direct Labor Hour increased to $123.26.
- Net Payroll Multiplier (Revenue Factor) increased to 1.94.
- Return on Overhead (ROO) increased 13% to 42.5%.
- Operating Profits (EBBT) per Total Staff increased 13% to $38,881.
- Equity per Total Staff increased slightly to $59,914.
- Accounts Receivable Collections improved slightly, decreasing from 61.8 days to 61.1 days.
- Average Work-in-Process decreased from 17.9 days to 15.3 days, representing a 15% improvement.
Why Financial Benchmarking Matters
The metrics highlighted above provide only a snapshot of overall industry performance. The real value of benchmarking comes from understanding how your firm's financial performance compares with organizations of similar size, region, and market sector.
For CEOs and executive teams, that insight supports stronger strategic planning, more informed operational decisions, and a clearer understanding of where opportunities for improvement exist.
If your firm is not currently participating in PSMJ's AE Financial Performance Benchmark Survey Program, consider enrolling in a future survey. Participants contribute to one of the industry's most trusted sources of financial benchmarking research and become eligible for PSMJ's annual Circle of Excellence recognition
Access the Complete Benchmark Results
The 2026 Financial Performance Benchmark Results provide one of the industry's most comprehensive sources of financial benchmarking data, giving executive teams access to 100+ financial and operational benchmarks across hundreds of architecture and engineering firms.
With the complete Benchmark Results, your firm can:
- Compare financial performance against peer architecture and engineering firms.
- Benchmark profitability, utilization, overhead, backlog, growth, and other critical financial metrics.
- Analyze results by firm size, region, and market sector for meaningful peer comparisons.
- Support executive planning and strategic decision-making with objective industry data.
Whether you're evaluating your firm's financial performance, preparing next year's strategic plan, or identifying opportunities to improve profitability, the 2026 Financial Performance Benchmark Results provide the financial benchmarks needed to make more informed business decisions.
Continue Exploring the Executive Summary
The findings highlighted above represent only a portion of the insights included in this year's Executive Summary.
Download the FREE 2026 AE Financial Performance Benchmark Survey Executive Summary to explore additional benchmark findings, industry trends, and financial performance insights.
When you're ready for the complete analysis, order the 2026 Financial Performance Benchmark Results to access more than 100 financial and operational KPIs, detailed peer-group comparisons by firm size, region, and market sector, and the comprehensive financial benchmark data trusted by architecture and engineering firms for more than four decades.
Use objective, peer-based financial data to evaluate your firm's performance, identify opportunities for improvement, and benchmark against hundreds of architecture and engineering firms nationwide.
About PSMJ Resources, Inc.
For more than 50 years, PSMJ Resources, Inc. has helped architecture, engineering, and construction firms improve performance, increase profitability, and achieve sustainable growth through industry-leading research, benchmarking, training, consulting, and executive networking programs. PSMJ serves thousands of AEC firms worldwide and is recognized as one of the industry's most trusted sources of management insight and business intelligence.