7 Proven Steps to Grow Your HVAC Business in 2026

As an HVAC business owner, you are likely looking at ways to grow and expand your revenue and profit in your market.

The good news is that the HVAC industry offers a significant opportunity for business owners in 2025 and beyond, with projected demand for over 46,000 new technicians by 2028.

This growth trend outpaces other service businesses, making it an attractive sector for entrepreneurs and people who want to make their own way in their careers.

This article outlines some of the best strategies for growing an HVAC business and attracting customers in 2026.

If you are looking to grow your HVAC business in 2026 and beyond, this article will help you.

Understanding Basic HVAC Business Financials

Successful HVAC businesses have the potential to exceed $3 million in revenue, translating to a profit of roughly $300,000 annually, given an average profit margin of 10%.

Most HVAC companies with fewer than 3 team members will have an annual revenue of $500,000 to $1 million. For those HVAC contractors with between 4-7 employees, often the annual revenue will be around $1 million to $3 million.

The average salary for an HVAC owner is around $131,000 per year, with a salary range of $35,000 to over $78,000.

However, the average profit margin for HVAC companies is often less than 2%, primarily due to poor expense management and inconsistent revenue.

With a strategic business and financial plan, HVAC profit margins can increase to 10-20%.

To ensure growth, it’s crucial to keep expenses below 60% of gross revenue, aim for a minimum gross profit of 40%, and maintain overhead between 25% and 35% of total revenue.

Why Do HVAC Businesses Fail?

You might think that because most homes need HVAC services, that it is easy to keep an HVAC business afloat.

However, despite the service business industry’s potential, approximately 20% of HVAC companies fail annually. This statistic is still significantly lower than the statistic that 70% of new businesses fail in their first year.

Common reasons for HVAC business failure include:

• Market Fluctuations: Changes in demand, increased competition, and slower home improvement markets (e.g., post-COVID-19, political changes, economic downturns) can impact business.
  
• Lack of Business Skills: Many HVAC businesses are founded by skilled technicians who lack the basic business and financial acumen to grow their operations.
  
• Cash Flow and Customer Shortages: The most significant factors contributing to HVAC business failure are insufficient cash flow and an inadequate customer base, especially during slower seasons.

To succeed, HVAC businesses must build a strong customer base and prepare for periods of lower demand (also called the shoulder months or HVAC slow season) and changes in the industry overall.

Six Pillars of a Successful HVAC Company

While no two HVAC businesses are identical, several key components contribute to success and customer satisfaction. If you want to build and grow an HVAC company, there are key strategies and best practices that you can follow to ensure greater success.

1) Define a Specific Target Market

Perhaps the most difficult thing to get right in your HVAC business is standing out from the competition. To do this, you have to define a clear target market for your business.

Instead of broad advertising, it’s wise to define your ideal HVAC customer clearly. Focus your marketing efforts (Google Local Service Ads, PPC, content marketing, social media, email, customer reviews) on those who are most profitable and enjoyable to serve.

When you clearly define your services and service locations, you can target your website, social media, and Google Business Profile accordingly. This clarity improves marketing effectiveness and reduces wasted resources.

2) Clear Business Systems

One of the key differentiators for successful HVAC companies is that they operate with well-defined business systems.

Consistent, process-driven approaches ensure excellent customer service, even during busy periods. They help you better measure your progress and ensure a quality experience. Ideally, if you can implement HVAC sales scripts that technicians can follow, and utilize checklists, this will help keep your business running smoothly.

Businesses with clear, repeatable systems thrive, while those that “wing it” experience more stress and less profit. The goal is to create systems that allow your team to operate efficiently without constant oversight.

3) Unique Offering and Branding

Standing out in a competitive HVAC market is vital. If you look and sound like every other HVAC contractor, then the only way to differentiate is by offering cheaper pricing.

Instead of solely competing on price (which often leads to profitability issues), focus on creating a unique offering or a distinct brand.

Unique offerings could involve online bookings, financing options, or maintenance agreements with new unit installations. Spending more time taking videos, explaining issues, and helping customers make informed decisions is crucial to standing out.

Highlight these unique selling propositions in your marketing to attract more leads. At the end of the day, most customers remember solutions that fix their problems more than just the price.

4) Clear Values and Mission Statement

A clearly defined set of company values provides a strong foundation for marketing, hiring, and team retention. When employees and customers align with your core values and mission, it fosters loyalty.

Emulate successful companies by reflecting your values in your marketing, customer service, and hiring practices.

5) HVAC Sales Team Training

Growth in the HVAC industry is directly linked to the sales skills of your technicians. Technicians who can build trust and effectively solve customer problems are invaluable assets.

While historically sales were handled by owners or dedicated salespeople, the trend is towards empowering technicians with sales training.

Investing in HVAC sales coaching and HVAC business training can significantly increase revenue and profitability, as well as technician income and job satisfaction.

Experienced HVAC technicians can generate over $1-2 million in annual revenue with the right sales process. 

6) Focus on Growth and Improvement

Continuous improvement is essential to staying competitive. As a local business, becoming a trusted community service drives growth and revenue. Focus on upgrading services, product offerings, customer service, business operations, and team training.

HVAC businesses can potentially generate an additional $300,000-$500,000 in revenue by offering more add-on products and services.

Better service leads to greater customer loyalty, referrals, and positive Google reviews.

How to Accelerate Your HVAC Business Growth in 2026

To grow your HVAC business faster in a competitive, seasonal industry, prioritize these actions:

• Service Existing HVAC Customers: This is the biggest growth opportunity. Existing customers already know and trust your company and have a defined need. Reach out at least four times a year to offer tune-ups or renewals of your maintenance program. Consider offering free or discounted inspections during slow seasons to re-engage a significant portion of your customer base.
  
• Focus on Optimal Areas: Identify residential areas with high potential for HVAC sales. Target communities with similar-aged HVAC systems and concentrate marketing efforts where you’ve seen success. Focus your time and effort on these high-potential customer locations.
  
• Upskill Your HVAC Sales Team: Don’t neglect training during busy periods. Regularly meet with employees for professional development and HVAC sales training (at least one hour per week). Consistent investment in team growth leads to higher-producing technicians and increased average sales.
  
• Reward and Encourage Your Team: Recognize and reward desired behaviors. Highlight technicians who excel in selling specific products or services during team meetings. Implement “spiffs” (special incentives) during busy months for selling maintenance agreements. Set team goals for specific outcomes, such as increasing AC unit replacements or maintenance agreements. Focusing on training and rewarding excelling team members will motivate others to follow suit.

Ready to Grow Your HVAC Business in 2026?

Many HVAC business owners aspire to increase sales and build a self-sufficient operation. To do this, you need guidance from trusted sources that have walked the path before you.

BDR’s HVAC Business Coaching Program can help fast-track revenue, train sales teams, and achieve financial freedom through proven processes.