If you pay attention to the news, you will absorb negative sentiments about the economy. It is easy to let this information cloud your views. It happens to me sometimes, but then I see information that changes my outlook for the better, such as the results of the 12th-annual Herring Group Peer Benchmark Report. This year’s study reminds me that businesses have the power to improve their trajectories.
In 2025, 150 companies participated in the Benchmark Report, representing 20,000 employees and totaling $2.3 billion in annual revenue, which is coincidentally about the size of BrightView. The annual revenue of participating companies ranged from $1 million to $175 million.
A few highlights:
- Revenue growth averaged 16.7 percent in 2025.
- During the Benchmark Report webinar, nearly nine-in-10 poll participants said they expect revenue to be up in 2026 over 2025.
- The average operating profit margin increased to 7.9 percent, up from 6.9 percent in the prior year.
- The percentage of companies with an operating profit margin greater than 10 percent increased from 31 percent in 2024 to 35 percent in 2025, a 13 percent increase.
At The Herring Group, we focus on operating profit margin as a key benchmark for success in landscape businesses. It is the single metric that measures customer satisfaction, management effectiveness and operational efficiency.
Higher versus lower performers
We divide the Benchmark Report companies into two groups. One set has companies with an operating profit margin less than 10 percent (lower performers), and the other has companies with an operating profit margin greater than 10 percent (higher performers). The goal is to see what distinguishes low performers from high performers.
The average operating profit margin was 3.4 percent for the lower performers and 13.9 percent for the higher performers — a 10.5-point difference. Another way to think about it: Every time a lower-performing company earns a profit of $100, a higher-performing company earns $400 for the same work.
The increase in the percentage of companies with an operating profit margin greater than 10 percent was exciting to see. This number has increased every year, from 24 percent in 2021 to 35 percent in 2025.
Here is the question to consider: What is causing this increase in the percentage of high-performing companies? Because of our work with clients, we have a great view of what has been changing in the industry over the last five years.
First, the industry has benefited from great business management software like Aspire. Aspire helps organize the operations for a landscape company. In addition, the data that Aspire captures can provide great insights into areas where a company is either highly profitable or unprofitable.
Second, there are many new niche software products that increase the efficiency and effectiveness of operations. Team Engine is a good example. It organizes, automates and increases the speed of the recruiting, hiring and onboarding processes. It also offers AI-driven, automated employee communication in English and Spanish.
Third, landscape companies have profited from industry-specific technology like Weathermatic’s SmartLink system. This combination of hardware and software increases the efficiency and effectiveness of irrigation operations and improves employee satisfaction.
Fourth, the availability of outsourced professional services has enabled smaller companies to have the same level of resources as very large companies at a fraction of the cost. Examples include Covelso, a professional bookkeeping firm, and The Herring Group for specialized financial leadership.
Finally, the increased participation of private equity firms in the landscape industry has brought a serious focus on improving processes and boosting profitability.
Seeing what’s possible
Interestingly, there were high performers in every size range, with every revenue mix (maintenance, snow, construction) and in every region of the country.
The high-performing companies find a way. They have a high-performance mindset, they use data effectively, and they execute diligently.
