ServiceTitan Report Finds 75% of Roofing and Exteriors Contractors Expect Revenue Growth in 2026 Despite Tighter Margins
Roofing & Exteriors Contractors Are Doubling Down on Efficiency to Cut Costs, but with 79% Not Using AI or External LLMs, A Key Link in Their Strategy is Missing
LOS ANGELES – January 14, 2026 – ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its 2026 Roofing & Exterior Market Report, a study of more than 1,000 residential and commercial roofing-focused companies offering gutters, siding, windows, metal roofing, doors, garage doors, and restoration services. The report finds that 75% of contractors expect revenue growth in 2026 and 74% anticipate higher profits, yet profitability remains constrained, with one-third reporting EBITDA margins between 6% and 15%. These findings highlight the need to unlock efficiencies that support scalable growth and combat cost pressures. The report showed that most contractors have yet to adopt the AI and external LLMs that could help.
“Persistent cost inflation and labor constraints continue to challenge contractors as they look ahead to the new year, and they likely won’t go away any time soon, " said Vishal Laddha, Senior Director of Exterior Strategy at ServiceTitan. "To grow profitably in this environment, contractors have to adjust their playbook and focus on efficiency, smarter resource allocation, and technology that helps them do more with less. AI is a practical tool and when natively embedded into software, it provides contractors with a frictionless way to mitigate the day to day challenges that limit revenue growth and key business wins."
AI is a priority, but mostly still sitting on the sidelines
While AI and automation capabilities are increasingly prioritized in tech purchasing decisions for 21% of surveyed contractors, only a minority are actively using them. Businesses 15 years and older, as well as mid-market contractors show the fastest adoption of AI large-language-model (LLM) tools such as ChatGPT, or Gemini. Still, broader usage remains limited with only 4% using AI features built directly into their CRM, and 25% use external LLM tools. This gap highlights a significant opportunity for contractors to adopt CRMs with embedded, native AI that can leverage contextualized business data. The underutilization of AI highlights a significant opportunity to improve productivity at a time when margins are under pressure.
Cost pressures threaten business growth and profitability
According to more than one-third of contractors (39%) surveyed, rising labor and overhead costs are the primary business threats to these businesses. For 34% of contractors these challenges are further exacerbated by sustained skilled-labor shortages, while one quarter are concerned about an economic recession. In light of these challenges, 60% are focused on optimizing labor costs, 45% on material costs, and 41% are also focused on marketing efficiency.
Differentiation, speed, and professionalism are defining competitive advantages
Under current market pressures, differentiation is no longer optional. According to survey respondents, the top three differentiators are reputation (59%), transparent communication (47%) and exceptional customer service (43%).
The market is redefining what exceptional customer service looks like, with speed and professionalism becoming table stakes. Only 16% of contractors follow up with homeowners the same day for unsold estimates, despite most leads expecting rapid re-engagement. While most contractors (67%) have adopted this approach, nearly one-third (32%) have not, highlighting both a clear technology gap and a significant opportunity.
Technology adoption is accelerating signaling a move toward full workflow orchestration
The report shows that contractors are prioritizing minimal friction, automation and efficiency, with technology investments shifting toward platforms that support production management and operational scale. The top three decision drivers for technology purchases include robust production features (47%), ease of use (29%), and workflow configurability (24%).
Diversification is reshaping growth across the sector
Next year, contractors surveyed see the biggest opportunities in customization (40%), expanding into new trades (36%), and digital transformation (34%). Together, these trends signal a move toward more personalized offerings, diversified services, and tech-forward business models.
Additionally, insurance work remains a large but challenging part of the roofing industry with 40% of contractors participating in insurance work, but claims complexity (47%) and adjuster delays (36%) creating real operational drag. This underscores another opportunity for contracting businesses to leverage AI-enabled tooling to speed up estimates, cut manual entry, and keep projects on track from inspection to invoice.
To view the full findings and key takeaways, download ServiceTitan’s 2026 Roofing & Exterior Market Report here.
About the research
The survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling more than 1,000 residential and commercial roofing-focused companies. For the purposes of this survey, an “exterior and roofing business” is defined as diversified exterior providers offering gutters, siding, windows, metal roofing, doors, and restoration services with revenue exceeding $5 million. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates. Forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied.
About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.
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