Masonry: average revenue, profit and margins

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The Dojo Business Team

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What is the typical annual revenue for masonry businesses?

Masonry businesses generate annual revenues ranging from $60,000 for small rural operations to over $500,000 for established regional contractors.

Small masonry businesses operating in rural areas typically bring in around $60,000 annually, while mid-sized suburban businesses average approximately $300,000 per year. Established regional players commonly report revenues between $150,000 and $500,000, with exceptional businesses exceeding $500,000 depending on their project portfolio and market reach.

The national masonry industry generates over $40 billion in total revenue, demonstrating steady growth across both residential and commercial segments. This growth reflects ongoing construction activity and the fundamental need for masonry work in building projects nationwide.

Revenue potential depends heavily on geographic location, business size, specialization, and the contractor's ability to secure consistent project flows. Businesses that develop strong reputations and client relationships tend to command higher project values and maintain steadier revenue streams throughout the year.

How large are masonry businesses in terms of staff and projects?

Most masonry businesses employ between 1 and 12 workers and handle anywhere from 15 to over 100 projects annually depending on their scale.

Owner-operator masonry businesses often work solo or with just 1-2 employees, focusing on smaller residential projects and specialized work. Mid-tier local operations typically employ 5-12 workers, allowing them to take on multiple simultaneous projects and handle larger commercial contracts.

The number of yearly contracts varies substantially based on business size and project complexity. A small masonry business might complete 15-30 projects per year, consisting primarily of residential repairs, patios, and small installations. Larger regional firms often juggle dozens or even over a hundred contracts annually, managing multiple crews across various job sites.

Project size and duration also influence these numbers—a business focusing on large commercial projects might complete fewer total contracts but generate higher revenue per project. Conversely, a residential-focused operation handling quick turnaround jobs might complete many more projects but with smaller individual contract values.

You'll find detailed market insights in our masonry business plan, updated every quarter.

What percentage of revenue comes from residential versus commercial work?

Residential projects typically account for 35-45% of masonry revenue, while commercial projects represent 55-65%, though this split varies by region and business focus.

What are the common pricing models and rates in masonry?

Masonry contractors use three primary pricing models: per square foot ($10-$65), hourly rates ($40-$109), and per-project pricing based on detailed estimates.

Per square foot pricing is the most common approach for standardized work. Standard repairs and basic masonry range from $10-$30 per square foot, while brick installations command $25-$65 per square foot depending on complexity, material quality, and design requirements. Premium stonework and specialized installations typically fall at the higher end of this range.

Hourly rates for skilled masons range from $40 to $109 per hour in 2025, with standard labor rates clustering between $35 and $75 per hour. These rates vary by geographic region, skill level, and whether the work involves union labor. Entry-level and less skilled labor typically costs $35-$50 per hour.

Per-project pricing is commonly used for larger or specialized jobs where work scope varies significantly. Contractors build these estimates from square footage calculations, material costs, labor hours, overhead expenses, and desired profit margins. This approach provides clarity for clients while allowing contractors to account for unique project requirements.

This is one of the strategies explained in our masonry business plan.

What is the average gross profit margin for masonry work?

Masonry businesses typically achieve gross profit margins between 15% and 30% before overhead costs are deducted.

Gross profit margin represents the difference between project revenue and direct costs (labor and materials) before accounting for business overhead like insurance, equipment depreciation, office expenses, and administrative salaries. Standard masonry work generally falls within the 15-20% gross margin range, reflecting the competitive nature of basic construction services.

Premium specialized work commands higher gross margins, often reaching 25-30% or more. This includes custom stonework, historical restoration, decorative masonry, and complex architectural installations. These higher margins reflect specialized skills, unique materials, and the added value clients place on craftsmanship and design expertise.

Contractors working on large commercial projects may accept lower gross margins (15-18%) due to competitive bidding pressures but compensate through volume and operational efficiency. Conversely, small residential contractors often achieve higher margins (20-30%) on custom projects where they can differentiate based on quality and personal service.

Material and labor efficiency directly impact gross margins—experienced crews who minimize waste and work efficiently can significantly improve profitability compared to less efficient operations with similar pricing structures.

What are the main cost drivers in masonry and their typical percentages?

The primary cost drivers in masonry businesses are labor (20-40% of revenue), materials (35-60%), equipment and tools (5-10%), and subcontracting services (10-20% when used).

What is the average net profit margin for masonry businesses?

Masonry contractors typically achieve net profit margins ranging from 5% to 10% after accounting for all overhead expenses.

Net profit margin represents what remains after deducting all costs—direct project costs (labor and materials), overhead expenses (insurance, office costs, administrative salaries, equipment depreciation), and operational expenses (marketing, licensing, permits). This is the actual profit the business owner takes home or reinvests in the company.

Well-managed masonry companies commonly report net margins in the 5-8% range, which aligns with general construction industry benchmarks. This seemingly modest percentage can still translate to substantial profits for businesses generating high revenue volumes—a company earning $500,000 annually with an 8% net margin profits $40,000.

Smaller local businesses occasionally achieve net margins of 10-15% due to lower overhead costs, streamlined operations, and direct client relationships that eliminate intermediary fees. However, these higher percentages often come with trade-offs in business stability, growth potential, and revenue consistency.

Factors affecting net profit margins include operational efficiency, overhead management, pricing strategy, project selection, and the ability to control costs while maintaining quality. Successful masonry businesses continuously optimize these factors to improve their bottom line while remaining competitive in their markets.

How do profit margins differ between small local and large regional masonry contractors?

Small local masonry businesses often achieve higher net profit margins (up to 15%) compared to large regional contractors (5-8%), though the dynamics differ significantly.

Small local masonry operations benefit from lower overhead costs—they typically have minimal administrative staff, smaller office spaces, and less equipment investment. Their direct relationships with clients eliminate intermediary costs, and their lean structures allow them to be more selective about projects, focusing on higher-margin work. These advantages enable net margins reaching 10-15% on successful projects.

However, small businesses face challenges including less revenue stability, limited capacity to handle multiple projects simultaneously, and vulnerability to seasonal fluctuations. Their higher percentage margins apply to smaller revenue bases, so total dollar profits remain modest despite impressive percentage returns.

Large regional contractors typically operate with net margins between 5-8% due to higher fixed costs, extensive administrative overhead, and competitive bidding pressures on large commercial projects. They maintain larger payrolls, invest in expensive equipment fleets, carry higher insurance costs, and often work on lower-margin contracts to maintain steady workflow and keep crews employed.

Despite lower percentage margins, large contractors generate substantially higher total profits through volume—their ability to handle multiple simultaneous projects and secure large commercial contracts means their 5-8% margins apply to much larger revenue bases, often resulting in greater absolute profit dollars than small operators achieve.

We cover this exact topic in the masonry business plan.

What are the typical seasonal fluctuations in masonry revenue and profit?

Masonry businesses experience significant seasonal variations, with peak demand from late spring through early fall and revenue dips of 20-40% during winter months in cold climates.

The seasonal nature of masonry work stems from weather dependence—freezing temperatures, precipitation, and shortened daylight hours limit exterior masonry installation during winter months. Mortar and concrete require specific temperature ranges to cure properly, making cold-weather work challenging or impossible without expensive climate control measures.

Peak season typically runs from May through October in most regions. During these months, masonry contractors see maximum revenue as residential and commercial projects move forward simultaneously. Contractors often work extended hours and manage multiple crews to capitalize on favorable weather conditions and strong demand.

Winter months bring substantial revenue declines, particularly in northern climates where exterior work becomes impractical. Many masonry businesses experience 20-40% revenue reductions during December through March. Some contractors shift focus to indoor work, planning and estimating, or equipment maintenance, while others experience temporary workforce reductions.

Successful masonry businesses plan for these fluctuations by building cash reserves during peak months, diversifying services to include some winter-appropriate work, and carefully managing overhead costs. Some contractors use slower periods for business development, crew training, and preparing for the upcoming busy season.

Regional differences matter significantly—southern and coastal areas with milder winters experience less dramatic seasonal swings, while northern operations must prepare for extended slow periods. Understanding and planning for these patterns is critical for maintaining business viability year-round.

How do rising material costs impact masonry profit margins?

Rising costs for cement, stone, bricks, and other masonry materials put significant downward pressure on profit margins, particularly when contractors cannot fully pass increases to customers.

Material costs represent 35-60% of masonry project expenses, making price fluctuations especially impactful. When cement prices increase by 10-15% or specialty stone costs rise sharply, these changes directly erode gross profit margins unless contractors adjust pricing accordingly. The challenge intensifies when material costs rise mid-project on fixed-price contracts.

Competitive market pressures often prevent full cost pass-through to clients. Contractors bidding on projects must price competitively, and those who bid before material price spikes may be locked into contracts that become unprofitable. Even when costs rise between bidding and project execution, many contractors absorb losses rather than risk client relationships or contractual disputes.

In highly competitive regions, masonry businesses may only recover 60-70% of material cost increases through higher pricing, with the remainder coming directly from profit margins. A 15% increase in material costs might translate to only a 9-10% increase in project pricing, compressing net margins by several percentage points.

Successful contractors implement several strategies to mitigate these impacts: negotiating material price locks with suppliers for upcoming projects, building escalation clauses into contracts, maintaining strategic material inventories when prices are favorable, and improving operational efficiency to offset cost pressures. Despite these efforts, rising material costs remain one of the most significant ongoing challenges for masonry business profitability.

What are the average labor costs in masonry and how do they affect profitability?

Masonry labor costs average $40-$109 per hour for skilled workers, with annual wages ranging from $50,000 to $87,000, representing 20-40% of total revenue.

• Skilled mason hourly rates: $40-$109 per hour depending on experience, specialization, and geographic region. Master masons and those with specialized skills (historical restoration, custom stonework) command premium rates at the higher end.
• Standard labor rates: Most masonry work falls in the $35-$75 per hour range for general skilled labor. This represents the most common rate band for experienced masons performing standard residential and commercial work.
• Entry-level labor: Less experienced workers and laborers earn $35-$50 per hour. These workers typically assist skilled masons with material preparation, cleanup, and basic tasks while developing their skills.
• Annual wages: Full-time masons earn $50,000-$87,000 annually. This includes base wages plus overtime during peak seasons, reflecting the project-based and seasonal nature of masonry work.
• Total labor cost impact: When including payroll taxes, workers' compensation insurance, and benefits, total labor costs reach 20-40% of revenue. Union shops and those offering comprehensive benefits typically fall at the higher end of this range.
• Profitability relationship: Labor efficiency directly determines profitability—experienced crews completing work faster generate better margins. A skilled crew finishing in 100 hours what an inefficient crew takes 140 hours to complete saves 40 hours of labor cost, dramatically improving project profitability.
• Regional variations: Urban markets and high cost-of-living areas see labor rates at the premium end, while rural regions typically have lower rates. Contractors must balance competitive local wage rates with the need to attract and retain skilled workers.

It's a key part of what we outline in the masonry business plan.

What are the key financial benchmarks and performance indicators for masonry businesses?

Masonry businesses track several critical financial ratios and KPIs to measure operational efficiency and profitability performance.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Dojo Business - Masonry Profitability
2. Business Plan Templates - Concrete Masonry
3. IBISWorld - Masonry Industry
4. Business Hue - Masonry Business Owner Salary
5. Bureau of Labor Statistics - Masonry Contractors
6. RenoQuotes - Masonry Work Price Guide
7. Nedes Estimating - Masonry Work Cost Per Hour
8. ServiceTitan - Construction Profit Margin
9. JMCO - Performance Benchmarks Construction Companies
10. Bureau of Labor Statistics - Brickmasons, Blockmasons, and Stonemasons