Direct Answer
86 SEC filers are classified under the Standard Industrial Classification codes that describe the commercial services & supplies industry, and their latest annual reports show $564.1 billion of combined revenue and a median operating margin of 5.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Commercial services and supplies companies provide waste, security, office, facilities and printing services and products to businesses. Contracts and route density give steady revenue, and cost control and pricing drive margins. The first numbers to compare across companies here are organic growth, pricing and volume and operating margin.
Key Industry Metrics
- Organic growth: Revenue growth excluding acquisitions and currency. It shows whether underlying demand and pricing are rising in route-based and contract-based services.
- Pricing and volume: Split of growth between price increases and changes in service quantity. Price gains with falling volume point to weak demand, while balanced growth is healthier.
- Operating margin: Operating profit as a share of revenue. Route density, labor and fuel drive it, so it shows pricing against cost inflation.
- Contract retention: Share of customer contracts renewed. Route-based services depend on keeping customers, so high retention lowers cost to serve and stabilizes revenue.
- Free cash flow: Operating cash flow after capital spending. It shows capacity to fund acquisitions, debt reduction and dividends, and it is less easy to flatter than earnings.
Primary Macro Drivers
- Business activity: Waste, security and facility services scale with activity at client sites, so volumes follow business conditions.
- Pricing power: Contract price escalators and service quality let providers raise rates faster than cost, supporting margin.
- Labor and fuel costs: Wages and fuel are major costs, so changes affect operating margin until pricing resets.
- Acquisitions: Buying local rivals adds routes and density, increasing scale and margin if integrated.
Major Risks
- Wage inflation: Labor is the main cost, so pay rises squeeze margin when contracts are slow to reprice.
- Fuel costs: Route-based services burn fuel, so price spikes hit margin; watch fuel surcharge recovery.
- Competition: Local and national rivals bid for contracts, pressuring pricing and retention, which shows up in organic growth and operating margin.
- Customer churn: Lost contracts reduce route density and revenue; watch retention and pricing trends.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Commercial Services & Supplies Filers in the SEC Record
86 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 7340, 7389, 4953, 4955, 7363. Their latest fiscal years end between 2024 and 2026, and together they reported $564.1 billion of revenue. Median revenue growth over the prior year was 5.9%. Median operating margin was 5.3% and median net margin 3.2%. Median total liabilities were 61% of total assets, and 53 of 86 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Accenture Plc | $69.7 billion | 7.4% | 14.7% | 11.0% | FY 2025 |
| Pdd Holdings Inc. | $61.8 billion | 14.5% | 21.6% | 22.7% | FY 2025 |
| Uber Technologies, Inc | $52.0 billion | 18.3% | 10.7% | 19.3% | FY 2025 |
| Visa Inc. | $40.0 billion | 11.3% | 60.0% | 50.1% | FY 2025 |
| Paypal Holdings, Inc. | $33.2 billion | 4.3% | 18.3% | 15.8% | FY 2025 |
| Mastercard Inc | $32.8 billion | 16.4% | 57.6% | 45.6% | FY 2025 |
| Mercadolibre Inc | $28.9 billion | 39.1% | 11.1% | 6.9% | FY 2025 |
| Waste Management Inc | $25.2 billion | 14.2% | 17.1% | 10.7% | FY 2025 |
The 8 largest of 86 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Commercial Services & Supplies guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Commercial Services & Supplies industry?
Key performance indicators for the Commercial Services & Supplies industry include: Organic growth, Pricing and volume, Operating margin, Contract retention, Free cash flow. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Commercial Services & Supplies industry?
The Commercial Services & Supplies industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Commercial Services & Supplies industry?
The primary risks for Commercial Services & Supplies companies include: Wage inflation, Fuel costs, Competition, Customer churn. Investors should assess each company's exposure to these factors and its track record of navigating them.