Executive summary
November was Northside HVAC's strongest profit month of the year. Revenue grew 12.0% over October to $187,420, while gross margin expanded a full three points to 42.0% — your highest reading in 2025. The improvement was driven primarily by stronger emergency-service pricing and a steady mix of high-margin maintenance work. Operating profit climbed 18.2% to $31,210.
Cash position improved meaningfully. Days sales outstanding dropped to 14 days — the lowest of the year — and cash on hand rose by $11,400. The one area that softened was commercial work, where margin slipped to 38.0%; this is the second consecutive month commercial has trailed your other service lines. Labor cost ratio also drifted up one point to 28.0%, which is worth watching but not yet a concern.
Bottom line: the business is healthy, profitable, and generating cash. The clearest opportunity heading into Q1 is repricing commercial work and protecting your maintenance renewal base.
KPI snapshot
Service line profitability
| Service line | Revenue | COGS | Gross profit | Margin | Jobs | Status |
|---|---|---|---|---|---|---|
| Emergency service | $38,910 | $20,700 | $18,210 | 46.8% | 42 | Excellent |
| Maintenance contracts | $62,340 | $33,910 | $28,430 | 45.6% | 124 | Excellent |
| Residential install | $54,180 | $31,370 | $22,810 | 42.1% | 87 | Good |
| Commercial | $31,990 | $19,830 | $12,160 | 38.0% | 18 | Monitor |
| Total | $187,420 | $105,810 | $81,610 | 43.5% | 271 |
Cash flow & working capital
| Cash collected from customers | $181,640 |
| Payroll & labor | -$52,440 |
| Materials & equipment | -$58,920 |
| Overhead & SG&A | -$28,310 |
| Subcontractor payments | -$15,200 |
| Net operating cash flow | +$26,770 |
Strategic recommendations
- 1Reprice commercial work for Q1
Commercial margin slipped to 38.0% — well below your other lines. Audit the last 6 commercial jobs and rebuild quotes with a 44% target margin.
- 2Lock in current emergency-service pricing
Emergency service is your highest-margin line at 46.8%. Standardize the current dispatch and after-hours rate sheet across all techs before Q1.
- 3Push maintenance renewals before January
Maintenance drives 33% of revenue at 45.6% margin. Run a renewal sprint now to protect Q1 recurring revenue before seasonal volume drops.
- 4Hold collections discipline
DSO improved to 14 days, your best of the year. Keep the weekly AR review in place — slipping back to 18 days costs roughly $9K in working capital.
- 5Monitor labor cost ratio
Labor ratio ticked up to 28%. Not alarming yet, but if it crosses 30% next month, review tech utilization and overtime allocation.