Construction supplies profit margins and multiples

40 U.S. public companies · January 2026

Gross margin25.5%#71 of 94 · typical 36.9%
EBITDA margin19.5%#39 of 94 · typical 15.7%
Operating margin15.2%#37 of 94 · typical 12.1%
Net margin10.8%#31 of 94 · typical 7.3%
EV/EBITDA16.8×#26 of 91 · typical 13.2×
EV/Sales3.2×#40 of 94 · typical 2.6×
Cost of capital8.29%#13 of 94 · typical 7.08%

Value a business in the construction supplies industry

Buyer, discount, growth and tax
Pick the industry, then enter revenue and EBITDA.

Industry data: Damodaran, NYU Stern, January 2026 · sale multiple: BizBuySell, Q2 2026. An estimate, not an appraisal.

The numbers

MeasureConstruction SuppliesTypical industryWhat it means
Gross margin25.5%36.9%Revenue left after the direct cost of what is sold
EBITDA margin19.5%15.7%Profit before interest, tax, depreciation and amortization
Operating margin15.2%12.1%Profit from operations, before interest and tax
Net margin10.8%7.3%Profit after every cost and tax
EV/EBITDA16.8×13.2×Enterprise value ÷ EBITDA, profitable companies
EV/Sales3.2×2.6×Enterprise value ÷ revenue
Cost of capital8.29%7.08%Return investors require, debt and equity blended
SG&A ÷ revenue7.9%—Selling, general and administrative costs
Debt ÷ capital15.0%—Share of funding from debt, at market values
Beta (levered / total unlevered)1.15 / 2.82—Market risk / all the risk an undiversified owner carries

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates: total profit ÷ total revenue across the group, so large companies weigh more.

Frequently asked questions

What is the average profit margin in the construction supplies industry?

Across 40 U.S. public companies in the construction supplies industry, net profit is 10.8% of revenue, operating profit 15.2% and gross profit 25.5% (January 2026 data from NYU Stern). That gross margin ranks 71 of 94 industries.

What is a good EBITDA margin in the construction supplies industry?

The industry average is 19.5%, against 15.7% for the typical industry. A business above 19.5% keeps more of each sale than the listed companies in its field.

What multiple do businesses in the construction supplies industry sell for?

Listed companies in the construction supplies industry trade at 16.8× EBITDA and 3.2× revenue. Small private businesses sell for far less: U.S. small businesses averaged 2.7× seller’s discretionary earnings in Q2 2026 (BizBuySell).

What discount rate should I use for a business in the construction supplies industry?

A diversified investor would want about 8.3% on the whole business (the industry cost of capital). An owner with most of their wealth in it carries more risk: 3.95% + total beta 2.82 × 4.46% = 16.5%.