Despite softness in the new home construction market, roofing contractors continued to see strong demand for repair and re-roofing work through Q3 2025. At Lion Business Advisors, we’ve noticed steady interest from strategic buyers and private equity firms focused on regional growth. High-margin service contracts, storm-driven backlogs, and succession-ready teams are generating the strongest buyer engagement.
Major Industry Development
New single-family home sales dipped 8.2% year-over-year in July 2025, according to the U.S. Census Bureau. While analysts expected a sharper slowdown, high mortgage rates continue to limit affordability and delay new builds. This pullback impacts roofing firms tied closely to new construction, but repair and replacement work, especially in Texas markets affected by seasonal storms, has remained resilient. As a result, business owners are reconsidering timelines for exit and leaning into the strength of maintenance-driven revenue. Roofers relying on storm restoration are diversifying into recurring service contracts to improve valuations.
Employment and Wage Trends
Employment in the roofing and siding sector remained flat in July 2025, with a slight -0.5% year-over-year decline, per Bureau of Labor Statistics data. Over the past three years, employment grew 7.4%, outpacing the 3.7% increase across all private industries. This signals moderate sector resilience and continued labor demand. Average hourly wages for nonsupervisory roofing workers rose to $32.91, up 5.9% over the past year. Though trailing overall wage growth in the private sector, roofing wages have grown 48.3% over the past decade, nearly matching broader trends. Wage pressure and labor scarcity remain key concerns for buyers evaluating operational scalability.
Industry Forecast
Vertical IQ projects a 5.07% compound annual growth rate (CAGR) for the roofing and siding industry through 2029, outpacing GDP and most construction-adjacent sectors. This above-average trajectory is driven by aging U.S. housing stock, increasing storm intensity, and growing demand for energy-efficient retrofits. No Texas-specific updates were reported this quarter.
M&A Market Outlook
The current roofing M&A climate remains balanced, with healthy buyer activity among both financial and strategic acquirers. Private equity is especially active in platform and add-on acquisitions, targeting companies with management teams willing to stay post-close. Buyers continue to value companies with:
Documented recurring revenue
Diversified customer base
Professionalized back-office systems
Minimal owner-dependency
Roofing contractors positioned as regional leaders, or those with storm restoration and solar integration capabilities, are commanding premium multiples.
As interest rates and housing pressures continue to shape the industry, roofing business owners would be wise to assess their readiness before market conditions shift. Preparing now can preserve value and give you more control over your exit timeline.
Thinking About Selling Your Roofing Company? Now is a smart time to understand your market value and evaluate your readiness. Take our Sellability Score assessment to see where you stand.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Roofing Q3-2025
Despite softness in the new home construction market, roofing contractors continued to see strong demand for repair and re-roofing work through Q3 2025. At Lion Business Advisors, we’ve noticed steady interest from strategic buyers and private equity firms focused on regional growth. High-margin service contracts, storm-driven backlogs, and succession-ready teams are generating the strongest buyer engagement.
Major Industry Development
New single-family home sales dipped 8.2% year-over-year in July 2025, according to the U.S. Census Bureau. While analysts expected a sharper slowdown, high mortgage rates continue to limit affordability and delay new builds. This pullback impacts roofing firms tied closely to new construction, but repair and replacement work, especially in Texas markets affected by seasonal storms, has remained resilient. As a result, business owners are reconsidering timelines for exit and leaning into the strength of maintenance-driven revenue. Roofers relying on storm restoration are diversifying into recurring service contracts to improve valuations.
Employment and Wage Trends
Employment in the roofing and siding sector remained flat in July 2025, with a slight -0.5% year-over-year decline, per Bureau of Labor Statistics data. Over the past three years, employment grew 7.4%, outpacing the 3.7% increase across all private industries. This signals moderate sector resilience and continued labor demand. Average hourly wages for nonsupervisory roofing workers rose to $32.91, up 5.9% over the past year. Though trailing overall wage growth in the private sector, roofing wages have grown 48.3% over the past decade, nearly matching broader trends. Wage pressure and labor scarcity remain key concerns for buyers evaluating operational scalability.
Industry Forecast
Vertical IQ projects a 5.07% compound annual growth rate (CAGR) for the roofing and siding industry through 2029, outpacing GDP and most construction-adjacent sectors. This above-average trajectory is driven by aging U.S. housing stock, increasing storm intensity, and growing demand for energy-efficient retrofits. No Texas-specific updates were reported this quarter.
M&A Market Outlook
The current roofing M&A climate remains balanced, with healthy buyer activity among both financial and strategic acquirers. Private equity is especially active in platform and add-on acquisitions, targeting companies with management teams willing to stay post-close. Buyers continue to value companies with:
Roofing contractors positioned as regional leaders, or those with storm restoration and solar integration capabilities, are commanding premium multiples.
As interest rates and housing pressures continue to shape the industry, roofing business owners would be wise to assess their readiness before market conditions shift. Preparing now can preserve value and give you more control over your exit timeline.
Thinking About Selling Your Roofing Company?
Now is a smart time to understand your market value and evaluate your readiness. Take our Sellability Score assessment to see where you stand.
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