Trades Talk Weekly Update: Benchmarking Profitability and Building Your 2026 Strategy

This week Justin breaks down one of the most important tools in the landscape industry: the annual Benchmark Report from Greg Herring and The Herring Group. Hundreds of companies contribute real financial data each year and the results show where the industry is winning, where it is tightening, and what top performers do differently. Justin unpacks the shift from the old twelve percent net profit target to today’s new normal of ten percent. He explains why inflation and market dynamics pushed this change and why profit alone does not always tell the real story of customer experience or long term health. He also shares real examples from K and D’s own journey and why fast growing companies need a clear view of investment versus expense when analyzing profit. In this episode you will hear clear targets for 2026 planning including gross profit, overhead labor, total overhead, operational expense, marketing investment and AR days. Justin explains how to interpret each benchmark and how to use them to strengthen your budget and strategy. You will also hear why construction heavy companies struggled this year, why recurring revenue continues to rise in value and why construction might actually be the hidden opportunity for the next cycle. This is a deep dive for owners, leaders and anyone who wants to understand the numbers behind a healthy landscape company. You will walk away with clearer profit targets, a stronger sense of how to interpret your financials and a better framework for building your 2026 plan. Takeaways • Ten percent net profit has become the industry’s new standard • Benchmark targets help leaders understand performance more clearly • Growth investments can temporarily pull net profit down • AR discipline is one of the most underrated profitability levers • Construction may be a major opportunity while the rest of the industry focuses on recurring revenue If you want a deeper dive, check out Landscape Intelligence inside the Disruptors community. It now includes the full 2025 Benchmark Report so you can benchmark your company instantly.