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Highland Comfort Systems

Grants Pass, OR · NAICS 238220 Plumbing, Heating, and Air-Conditioning Contractors

Tax year 2026
Prepared by Sofia Vaughn
Medford, OR office
Section 1

Executive Summary

Highland Comfort Systems generated $5,317,000 of revenue in 2026 with 19 employees, producing an EBITDA margin of 6.2% against a peer median of 2.8%. Compared with 124 similar businesses, performance is strongest in liquidity and warrants examination in growth. Total benchmark variance across all categories is $90K.

Section 2

Company Snapshot

Revenue
$5.32M
Employees
19
Entity type
LLC
Years in business
3
Gross margin
45.8%
EBITDA margin
6.2%
Net margin
2.4%
Effective tax rate
20.5%
Section 3

Peer Group Definition

124 businessesNAICS 238220 — Plumbing, Heating, and Air-Conditioning ContractorsORRevenue $2.7M–$8.5M9–27 employeesTax year 2026

Comparison sample size 124; NAICS 238220; revenue range $2.70M$8.50M; geographic filter OR. Data availability for this client: 79% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold54.2%53.4%46.4%
Gross Profit45.8%46.6%53.6%
Payroll19.0%22.5%19.4%
Benefits4.2%3.9%3.6%
Occupancy1.9%2.1%1.9%
Marketing2.2%2.8%3.2%
Insurance2.7%2.2%1.9%
Professional Fees0.8%0.9%0.8%
Administrative & Other5.0%4.8%4.3%
EBITDA6.2%2.8%9.9%
Depreciation1.9%2.3%2.0%
Interest1.3%1.5%1.4%
Net Income2.4%-0.8%4.8%
Section 5

Profitability and Operational Efficiency

Growth
34th
Profitability
59th
Labor Efficiency
73rd
Operating Efficiency
49th
Liquidity
84th
Leverage
67th
Tax Efficiency
42nd
Asset Efficiency
44th
Section 6

Balance Sheet

Current Ratio
3.25
median 2.82
Quick Ratio
2.46
median 2.24
Debt / EBITDA
2.91
median 6.75
Debt / Equity
0.77
median 0.91
Days Sales Outstanding
33.22
median 42.50
Asset Turnover
2.02
median 1.84
Section 7

Tax Overview

Federal tax
$25,910
State tax
$7,308
Effective rate
20.5%
Section 179
$96,762
Owner compensation
$237,518
Owner distributions
$72,338
Retirement
$50,670
Capital expenditures
$179,936
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$4.11M+14.8%43.3%4.8%22.1%
2023$4.46M+8.5%43.1%4.7%22.0%
2024$4.68M+4.9%43.8%5.1%22.3%
2025$4.99M+6.6%45.6%6.1%23.1%
2026$5.32M+6.6%45.8%6.2%23.2%
Section 9

Opportunities for Discussion

  • Owner Compensation Structure. Owner compensation represents 4.5% of revenue compared with a 5.3% median for comparable entities. Should compensation strategy be reviewed with the tax team?Benchmark variance $44K
  • Gross Margin Variance. Gross margin of 45.8% compares with a peer median of 46.6%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $47K
  • Payroll Efficiency. Total labor cost represents 23.2% of revenue against a peer median of 26.7%. Is the staffing model carrying capacity for growth, or absorbing margin?
  • Operating Expense Load. Operating expenses run 39.5% of revenue versus a peer median of 43.3%. Which expense categories account for the difference?
  • Revenue per Employee. Revenue per employee of $280K compares with a peer median of $238K. Is productivity constrained by capacity, mix, or pricing?
  • Working Capital Position. Current ratio of 3.25 compares with an industry median of 2.82. How much liquidity headroom does the business need through its cycle?
  • Leverage Profile. Debt to EBITDA of 2.91x compares with a peer median of 6.75x. Does the capital structure match the asset base and cash cycle?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.