PSMJ Resources’ 2026 AE Financial Performance Benchmark Results found record-setting financial performance for AE firms.

The industry report recorded a median operating profit margin on net revenue of 20.5%, the highest level in the survey’s history.

“The findings underscore the remarkable resilience and financial discipline demonstrated by AE firms despite broader economic uncertainty, labor shortages, and shifting market conditions,” according to a PSMJ news release.

“Achieving a 20.5% operating profit margin on net revenue is evidence that many firms are executing at an exceptionally high level,” says Gregory Hart, President, PSMJ Resources. “Further supporting this, we saw record-setting values for both the target and achieved direct labor multipliers as well as several other metrics.”

Several factors likely contributed to the record-setting profitability, including:

• Strong demand across key infrastructure, transportation, environmental, and private-sector markets
• Continued focus on project selection and risk management
• Improved pricing discipline and fee management
• Greater operational efficiency driven by technology investments
• Enhanced workforce productivity and utilization management

While the industry continues to face challenges related to talent acquisition, succession planning, and technological disruption, the survey results suggest that leading firms are successfully adapting and positioning themselves for sustained growth, according to PSMJ.

"The firms achieving these results aren't simply benefiting from favorable market conditions," Hart added. "They're making deliberate investments in leadership, project management, technology, and operational excellence. The best-performing firms continue to raise the bar for what is possible in the architecture and engineering profession."