How Much Do Excavation Companies Make? Owner Pay and Profit Margins

Small excavation companies commonly bring in $300,000 to $1.5 million a year, with net profit often around 10% to 20%. Owner-operators often earn $70,000 to $200,000+. The money is good, but so are the costs: equipment payments, fuel, maintenance and insurance take a big share.

These are rough ranges; location, services and equipment use change them a lot.

Revenue by size

How much do excavation company owners make?

Owner pay depends on how busy machines are. Owner-operators often take home $70,000 to $150,000, and owners of larger companies can earn $200,000+.

Typical hourly rates

Excavators and skid steers with an operator are often billed at $100 to $200+ per hour, depending on machine size and region.

Biggest costs

1. Equipment payments and depreciation
2. Fuel
3. Maintenance and repairs
4. Operator wages
5. Insurance
6. Trucking and disposal fees

How to be more profitable

• Keep machines working, not parked
• Bid from real costs and track job profit
• Add higher-margin services (utilities, septic, drainage)
• Own trucks when trucking spend gets high
• Build repeat builder and contractor work
• Maintain equipment to avoid downtime

Running it well: How to run a successful excavation company. Starting: How to start an excavating business.

Frequently asked questions

How much do excavation companies make?

Small companies often bring in $300,000 to $1.5 million a year.

How much do excavation company owners make?

Often $70,000 to $200,000+, depending on size and utilisation.

What is the profit margin for excavation?

Often around 10% to 20% net.

How much do excavators charge per hour?

Often $100 to $200+ per hour with an operator.

Is excavation profitable?

Yes, if equipment stays busy and bids cover all costs.