The National Systems Contractors Association (NSCA) has released its 2025 Financial Analysis of the Industry report, providing industry-specific information for systems integrators on key business fundamentals like markets served, systems and technologies offered, sales trends, labor breakdowns and company financial health.
Now in its 17th edition, the report draws data from nearly 100 integration companies across 31 U.S. states, three Canadian provinces and Puerto Rico. Key findings from the 2025 report include:
- Shift to negotiated sales: Direct and negotiated sales now account for roughly 72% of total industry revenue, continuing the move away from competitive bidding.
- Improved profitability and cash flow: Median gross profit margins rose to 34.2%, and cash-on-hand increased across most respondents, indicating greater financial stability despite ongoing economic uncertainty.
- Labor utilization trends: Smaller firms report operating at or near full capacity, while larger organizations are seeing signs of underutilization and restructuring in response to variable workloads.
- Growth in recurring revenue: Managed services and recurring contracts now represent the largest share of total revenue in the report’s history, reflecting the industry’s growing focus on predictable income streams.
“The data in this report can’t be found anywhere else in our industry,” said Tom LeBlanc, NSCA executive director. “Our members use it to see where they excel and where adjustment is needed. Only when you understand where you stand among your peers can you begin to target areas for improvement and prioritize actions that build a healthier, more competitive business.”
The report was developed in partnership with ESG Professional Accountants, an independent research firm that collected and analyzed the confidential data.
The 2025 Financial Analysis of the Industry enables NSCA members to:
- Benchmark financial ratios against industry medians.
- Adjust staffing and utilization strategies by firm size.
- Refine pricing and bidding strategies based on market shifts.
- Improve job costing and purchasing practices.
An exclusive Financial Analysis of the Industry webinar for NSCA members will be held on Nov. 18, 2025, featuring Tom LeBlanc, Joel Harris (Solutions360) and Chris Mounts (FORTÉ), who will discuss how to apply the report’s findings to improve business performance.
The 2025 Financial Analysis of the Industry report is free to NSCA members and available for purchase to non-members at www.nsca.org