Pavement Maintenance & Reconstruction June/July by ForConstructionPros.com

TOP CONTRACTOR

SURVEY RESULTS

The newest asphalt and pavement products.

It’s good news all-around as almost every industry sector grew.

The data is more nuanced than ever before, and the story of where the industry is going feels full of an anxious energy.

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While the service remained popular among contractors this year, there were other positive signs that this category’s erosion may have tapered off.

The strongest category for sub-contracting tells us that while volume fell, profits were consistent with previous years’ data.

The pavement repair sector recorded the most dramatic per-contractor reversal of any category in this year’s report.

WHAT’S ONLINE

HCSS, Geotab Partnership Improves Fleet Data, Maintenance Tracking

HCSS integrates with Geotab to bring realtime vehicle data into fleet management systems, reducing manual entry and improving maintenance and job costing accuracy.

Read the article at: https://pavemg.com/xtw6mz1r

I Learned Crack Sealing In A Desert

Rainstorm | No Edge Lines Season 3 Episode 4

Desert conditions and extreme temperatures push pavements to their limits, and learning how to repair them is even harder when you’re fighting bad weather.

Watch the video at: https://pavemg.com/NELS3E4

Expanding Opportunities for Women In Construction Can Help Address Labor Shortage

Women make up just 11% of the construction workforce as bias, limited advancement paths and workplace culture continue to impact retention and growth.

Watch the video at: https://pavemg.com/3l71go6e

ADVISORY BOARD

Agua Trucks Inc .................................................................... Wickenburg, AZ, Scott Duscher

Asphalt Contractors Inc., Union Grove, WI

Robert Kordus

Published and copyrighted 2026 by IRONMARKETS. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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PAVEMENT MAINTENANCE & RECONSTRUCTION is proudly supported by these associations:

Asphalt Restoration Technology Systems, Orlando, FL

Brahney Paving, Hillsborough, NJ

Eosso Brothers Paving; Hazlet, NJ

Connie Lorenz

Steven Brahney

Tom Eosso

Maul Paving/Concrete/Sealcoating, PLainfield, IL Chris Maul

Parking Lot Maintenance, Lake St. Louis, MO Todd Bruening

Petra Paving, Hampstead, NH Chris Tammany

Pioneer Paving, Albuquerque, NM Don Rooney

Roberts Traffic, Hollywood, FL Lisa Birchfield

Show Striping Inc. (SSI), Wisconsin Dells, WI Amber Showalter

T&N Asphalt Services, Salt Lake City, UT Nick Howell

Young Sealcoating Inc, Lynchburg, VA

Steve Young

The Paving Lady Mauro Comuzzi

JMP Excelsior Services

Jim Panzenhagen

Sweeping Industry Veteran Gabe Vitale

Flat Nickel Management

Wis-Coat Asphalt Maintenance

Clear Choice Sealing

Michael Nawa

Marvin Joles

Warren Johnson

Jacketta Sweeping Services Debbie Jacketta

Royal Pavement Solutions Kenneth Roy III

ASSOCIATION REPRESENTATIVES:

Pavement Coatings Technology Council ....................... Brian Riggs, Executive Director

Vol. 40, No. 5, June/July 2026

State of the Pavement Industry: Checking On That Sub-Base

It’s time to be as blunt as possible.

Typically, I am not the sort of person who feels the need to appease other people. In fact, you might say that I have a contrarian nature, at times. I am resistant when others tell me what to do, if I feel that they lack the sort of authority earned from experience and first-hand knowledge. Sometimes I’ve even been known to outright go in the opposite direction with things, just because I don’t like the way I was told. Am I painting the right sort of picture here?

Brandon Noel, Editor-In-Chief bNoel@iron.markets

234-600-8983

I’m not him. I’m not the guy who’s going to just say something because anyone told me to do it. Additionally, I’m not going to write an article in here about anything unless, at the very least, I’ve done my homework or vetted an idea to my best ability. Now, with that being said, Let me put this out there.

I’ve been concerned about the health and stability of the industry since Q3 of 2025. In December of last year, I wrote that a lot of things needed to go right in Q1 of 2026 for us to avoid the things that I was growing apprehensive about. Costs. Inflation. Materials. Trade policy. Service demand. Unfortunately, none of the factors I told people to watch for have gone the right way. Thankfully, however, I’ve yet to hear word from contractors in the field really sounding any alarms. There could be a few reasons for this, so here is my current working theory.

CASH-COST BLINDNESS

Recently, I was on location with a contractor who shared the details with me about a large bid they’d been party to. It was for a national commercial customer they’d worked for in the past, and so, their bid process was not unfamiliar. After being awarded the contract, he’d managed to find out what some of the other bids were, and, to his surprise, a few were lower. A lot lower though, as in, not even close to realistic.

“My first thought, when I saw them, was that it looked like a bid from three-or-four years ago,” he said. “Some people seem to be hesitant to raise their prices, but, it’s just not reality.”

If this is happening in other parts of the country, where contractors are holding on to outdated pricing structures in order to avoid customer sticker-shock, then that could partially explain some things...but not everything, because everyone I talk to still seems pretty busy.

Another possibility is that commercial clients are trying to push through as much of their annual maintenance as possible, as early as possible, to avoid what they all know is coming. At the time of this writing, the Iran war is entering its eleventh week, and there does not appear to be a clear off-ramp for the hostilities. We are two-weeks away from a full blown physical oil shortage being triggered. Last week, the final oil tanker that was en route before the war started, pulled into dock. There are no others coming, as of right now.

I’ve written about it before, but it bears repeating. Contractors should be building pricing protections into all their contracts going forward for the rest of the season. Things are too unpredictable and too volatile to do anything else. The commercial clients will feel it too, as transportation costs start impacting their businesses.

Worst case scenario: By mid Summer everyone might batten-down the hatches, and be trying to wait out the oil-shock/shortage. Best case scenario: We deal with a few months of elevated asphalt prices per ton.

See you on the road! ■

PAVEMENT

EDITORIAL

Editor-In-Chief Brandon Noel bnoel@iron.markets

Content Director, Marketing Services Jessica Lombardo jlombardo@iron.markets

Managing Editor Allyson Sherrier asherrier@iron.markets

AUDIENCE

Audience Development Director Angela Franks

PRODUCTION

Senior Production Manager Cindy Rusch crusch@iron.markets

Art Director ............................................................... April Van Etten

ADVERTISING/SALES

Brand Director Amy Schwandt aschwandt@iron.markets

Brand Manager Megan Perleberg mperleberg@iron.markets

Sales Representative Sean Dunphy sdunphy@iron.markets

Sales Representative Kris Flitcroft kflitcroft@iron.markets

IRONMARKETS

Chief Executive Officer Ron Spink

Chief Revenue Officer Amy Schwandt VP, Finance Greta Teter VP, Operations & IT Nick Raether

Brand Director, Construction, OEM & IRONPROS Sean Dunphy

Brand Director, Supply Chain Brian Hines Director, Marketing Services ..................................... Becky Peck

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CIRCULATION & SUBSCRIPTIONS

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Published and copyrighted 2026 by IRONMARKETS. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

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WWW.FORCONSTRUCTIONPROS.COM/PAVEMENT Published by IRONMARKETS 201 N. Main St. Ste 350, Fort Atkinson, WI 53538 (800) 538-5544 • IRON.MARKETS.COM

Large Repairs. Minimal Downtime.

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Link-Belt Excavators Reveals New Excavators, Grade Control Technology

Link-Belt Excavators

Link-Belt Excavators unveiled the 245 X4S and 80 X4 models, which are designed to improve fuel efficiency, operator comfort and machine connectivity. The booth also featured a technology area focused on connectivity, artificial intelligence and operator training. Two excavator simulators allowed attendees to experience machine operation and jobsite technologies in a hands-on environment.

Bobcat Updates Compact Loader Lineup with New Classic and Pro

Bobcat Co.

Bobcat’s lineup is now divided into Classic and Pro models. Classic loaders include compact track loaders such as the T450, T595, T650 and T770, as well as skid-steer loaders including the S70, S450, S590, S650 and S770. These machines focus on traditional controls and features suited for general construction, landscaping and rental applications.

The company also introduced an expanded Precision Grade 3D platform that supports grade control systems from Trimble and Topcon. The system is designed to allow contractors to install machine guidance technology more easily. In addition to equipment and technology displays, the exhibit included interactive demonstrations such as the Excavator Showdown, where operators competed to complete precision challenges using a 220 X4S excavator.

Thunder Creek Pickup Skids for Jobsite Fueling, Maintenance

LDJ

Manufacturing,

DBA Thunder Creek Equipment

Thunder Creek Equipment’s two pickupmounted skid systems aimed at improving fueling and preventative maintenance workflows on construction jobsites: the Diesel Pickup Skid (DPS) and Lube Pickup Skid (LPS).

The systems are designed to address ongoing challenges for contractors and fleet managers, including labor shortages, compliance requirements and equipment downtime. Fueling, diesel exhaust fluid (DEF) handling and routine maintenance often pull crews away from production. Equipment that does not require special licensing can expand who is able to perform these tasks in the field.

Both skids offer a total capacity of 230 gallons and are built for flexible deployment, with fork pockets and mounting options for pickup beds, flatbeds, trailers or stationary use.

Crafco Introduces Tack Tank for Asphalt and Paving Applications

Crafco, Inc.

Crafco has introduced a new Tack Tank designed for asphalt and paving operations, with models available in 300- and 600-gallon capacities.

The units feature a hydraulically driven pump capable of output up to 35 gallons per minute, allowing crews to handle a range of job sizes and operate even when material remains in the lines. The system also enables reversing the pump to reclaim unused material.

The Tack Tank is equipped with a 250,000-BTU burner and a triple-pass flue design to improve heating efficiency and reduce warm-up time.

The release reflects ongoing equipment updates aimed at improving productivity and material handling on paving jobsites.

The Pro category includes compact track loaders such as the T64-2, T66-2, T76-2 and T86-2, along with skid-steer loaders including the S64-2, S66-2, S76-2 and S86-2. These machines incorporate additional technology, including four selectable drive modes designed to adjust machine responsiveness for different tasks.

The Pro models also feature updated electrical systems, redesigned operator cabs with heated air ride seats and an 8-inch touchscreen display with integrated camera functions.

According to the company, the updates are intended to simplify machine operation and support operators with varying levels of experience.

Wacker Neuson new Compact Excavators, Wheel Loader and Telehandler

Wacker Neuson America Corporation

Wacker Neuson designs and builds both machines at its Menomonee Falls, Wisconsin, factory. The 3- to 4-ton excavators share a platform and feature a redesigned operator station with a 7-inch touch-screen display, keyless start and updated cab layout. Both models also include smooth hydraulics and a standard dozer blade with float function. They also introduced the WL750 as part of a new wheel loader lineup that includes the WL950 and WL1150. The company said the loaders pair a compact design with hydraulic quick-change systems and attachment compatibility for construction, landscaping and municipal work.

The new TH625 telehandler expands Wacker Neuson’s telehandler lineup with a model designed for lifting, material handling and ground-engaging tasks.

Red Wing Launches IronFlex Work Boots Built for Fit and Jobsite Performance

Red Wing Shoe Co.

Red Wing has introduced IronFlex, a new line of work boots designed for construction and trade professionals.

The medium-duty boots were developed using fit data from more than 3 million workers, aiming to improve comfort and mobility for long hours on the job. The design includes a roomier toe box, added heel stability and a flexible construction intended to move with the wearer.

Key features include a cushioned midsole, slip-resistant outsole with ladder grip and a waterproof leather upper. Select models also offer a micro-adjustable fit system. The IronFlex line includes multiple men’s and women’s styles, all meeting ASTM standards for jobsite safety. The boots are now available through Red Wing retail locations.

THE ALL-IN-ONE SOLUTION FOR LINE REMOVAL.

Meet the FLX System—a compact, trailer-mounted, high-pressure water jetting unit that’s ready to tackle line removal and a variety of surface prep projects. It’s built to be simple, cost-effective, and flexible, making it a game-changer for contractors who need an all-in-one solution.

• Complete & Compact

The pump, water tanks, debris tank, vacuum recovery, and an accessory all come on a easy-to-tow trailer.

• Customizeable for Any Job

Swap out the SpinJet®*, for a Curb Cleaner, eSync Hand Lance, or a Self-Guided SpinJet for various coating & line removal applications.

• Smart, Budget-Friendly Choice

Need an economical solution? The FLX System gives you pro-level performance without the price tag of a full-sized pavement marking removal truck.

• Save Time & Money with Automation

Pair it with the Self-Guided SpinJet for automated line removal, keeping operators safe and reducing labor costs.

Get the job done faster, easier, and smarter with the FLX System—the complete, flexible solution for your projects.

By Brandon Noel, Editor-in-Chief

Top Contractors Of 2026

Seeing the big picture.

Last year, I told a contractor about the big growth we had, and his response was: “We’ll probably see a correction to that next season.” He was right.

The TC 2026 data, drawn from CY 2025 financial data, shows the pavement maintenance industry pulling back from the historic surge that defined previous cycles. The average Top 40 contractor generated $32.9 million in gross sales in 2025, down from the $38.0 million percontractor average reported in TC 2025. That works out to a 13.4% year-overyear contraction at the contractor level, and it ends the two-year recovery arc the industry was riding after the inflation shock of 2022 finally cooled.

For the first time since I took over as editor, we’ve had to revise our Top Contractor list from 50 down to 40. This isn’t the first time this sort of change has happened. The lists were originally the Top 75. The change reflects a smaller respondent pool this year than in previous cycles. While analyzing the data, after the 40th rank, gross sales dropped below an avaerage financial threshold that we felt necessitated a reduction. Holding the line at 40 preserved the prestige of the list and kept the data set credible for year-over-year comparison.

The Top 40’s average revenue mix held its general shape from the previous year, but there are some interesting changes to discuss in the category analysis.

The most striking single-number was in subcontractor revenue. The Top 40 reported an average of 16.1% of gross

sales generated as a subcontractor, down from 25% in TC 2025. That is a ninepoint decline in a single year and ends a multi-year upward trend that pushed the figure from 17% in ‘22 to 25% in ‘25.

The contraction has a counternarrative buried in the margin data, and it deserves attention. Of the Top 40, 14 contractors reported profit margins above 20%, and 13 more reported margins between 16% and 20%. That puts more than two-thirds of the list, at margins of 16% or higher. Only two contractors reported margins below 5%. ■

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By Brandon Noel, Editor-in-Chief

Top 40 Paving Contractors: The Decline Did Not Continue

The data is more nuanced than ever before.

Last year’s analysis ended with a projection I wasn’t happy making. After three consecutive years of declining paving-only sales across the Top 50, the compound annual decline rate of ~12.5% suggested the segment could fall to roughly $611 million in 2026 and $534 million in 2027.

Well, the data point and, thankfully, it appears to be leveling off with a few caveats. The stabilization appears on a per-contractor basis, for paving-only sales, which rebounded.

The TC 2026 Top 40 Paving Contractors generated $638.5 million in paving-only revenue, which works out to an average of $15.96 million per contractor. That figure sits 14.3% above the TC 2025 per-contractor average of $13.97 million. The aggregate number is smaller than last year’s $698 million only because the Top 40 is ten contractors shorter than the Top 50. Per contractor, the segment grew.

The projected $611 million for 2026, scaled to a Top 50 framework, would have implied roughly $12.22 million per contractor. The actual per-contractor figure outperformed that projection by 31%.

However, the total gross sales picture for the Top 40 still tells a contraction story, and the broader recovery the industry posted in TC 2025 has clearly run its course. But the specific forecast made in last year’s analysis did not hold, and that should be recognized, even if we aren’t out of the woods, yet.

TOTAL SALES: PAVING TOP 40

The Top 40 Paving reported $1.278 billion in total gross sales, with an average per-contractor gross of $31.95 million. That average came in 16.2% below the TC 2025 Top 50 average of $38.13 million. Total gross softened, but paving-only revenue held up better than the overall business.

That divergence also showed in the revenue mix. Paving rose to 49.4% of the average Top 40 contractor’s gross, up from 48.5% in TC 2025. The Top 40 contractors leaned harder into paving as their other revenue streams somewhat thinned. Pavement repair fell to 15.3% from 21.3%, sealcoating rose to 15.6% from 11.0%, striping dropped to 5.7% from 7.6%, surface treatments held at 1.2%, and other work, including milling, earthworks, and concrete, climbed

to 12.8% from 11.1%.

Compared to the other Top 40 categories in this year’s report, pavingonly sales remained by far the highestearning segment, followed by pavement repair at $184.8 million ($557.2 million in TC 2025), sealcoating at $144.0 million ($165.8 million in TC 2025), and striping at $85.4 million ($134.1 million in TC 2025).

The aggregate drops in pavement repair and striping are dramatic on the surface, but those comparisons sit on the same Top 40 versus Top 50 footing I mentioned in the Overview.

THE CYCLE HYPOTHESIS

In last year’s analysis I introduced a working hypothesis that customer paving needs follow a cycle that mirrors the typical lifespan of asphalt pavement, in

conjunction with general new construction and community development. To test it, the TC 2025 survey added a question separating new construction from existing pavement maintenance. Of the Top 50 Paving Contractors that year, 80% of completed work happened on existing pavements, and 20% was wholly new surface.

The TC 2026 Top 40 reported 80.0% existing pavement maintenance and 20.0% new construction. The ratio did not move.

Two consecutive years at the same percentage split isn’t absolutely conclusive, but it is worth mentioning and continuing to track. The Paving Top 40 is a maintenance-driven segment with a roughly stable one-fifth share of newconstruction work riding on top. More than any single year’s revenue swings, this is probably the cleanest framework for understanding paving demand going forward. If the ratio shifts meaningfully in TC 2027, that itself will be interesting.

PROFIT MARGINS

The TC 2025 article tracked a consolidation of contractors into the highest profit margin band. That pattern moderated this year, with a small redistribution back into the upper-middle range. Among the Top 40 Paving Contractors:

• 35% (14) reported margins above 20%, down from 40% (20 of 50) in TC 2025

• 27.5% (11) reported margins in the 16% to 20% range, up from 14% (7 of 50)

• 20% (8) reported 11% to 15% margins, up from 18% (9 of 50)

• 12.5% (5) reported 6% to 10% margins, down from 26% (13 of 50)

• 5% (2) reported 5% or less, up from 2% (1 of 50)

The top tier of margins lost a couple of points, but the 16% to 20% band nearly doubled. Combined, those two upper tiers account for 62.5% of the Top 40, compared to 54% of last year’s Top 50. Pricing held in paving, even as the volume side of the business contracted.

PAVING 40

TYPE OF WORK

Every contractor in the Top 40 Paving did some parking lot work, with parking lots averaging 61.0% of the typical contractor’s work composition, down marginally from 60.6% the year before. Driveway work averaged 13.4%, up from 11.6% in TC 2025, with 24 of 40 contractors doing some driveway work at an average composition of 22.4% among those who did. Residential roads and city streets averaged 16.9%, down from 18.3%, with 30 contractors reporting some residential road work. Highway work averaged 3.5%, with only 10 of the 40 doing any highway work at all, a notable drop from the 14 of 50 a year ago. The other-locations category, which captures sports surfaces, cart paths, and sidewalks, averaged 5.2% with 20 contractors doing some.

The residential lean we identified in the overview shows up here: more driveways, fewer highways, parking lots still on top.

CUSTOMER MIX

Every Top 40 Paving Contractor did some commercial or industrial work, averaging 52.3% of the typical contractor’s mix, down slightly from 53.7% in TC 2025. Municipal work averaged 14.4%, down from 15.5%, with 31 of 40 contractors reporting some municipal work at an average composition of 18.6% among those who did.

Multi-family residential work averaged 16.4%, down from 19.3%. Singlefamily residential, the most striking move in the customer-mix data, averaged 13.1%, up from 8.6% in TC 2025, with 24 of the 40 contractors doing some single-family work at an average composition of 21.9% among those who did. The other-customer category averaged 3.7%, up from 2.9%.

Combined with the driveway data, the single-family jump confirms the residential pivot. Top 40 paving contractors leaned into smaller-scale residential work in 2025 in a way they had not done the year before.

All but one of the Top 40

self-performed at least 50% of their work, consistent with the 48 of 50 that did so in TC 2025. The bigger movement was in subcontracted revenue. The Top 40 generated an average of 16.7% of gross from acting as a subcontractor for other contractors, down from 22.8% in TC 2025. That is a six-point drop in a single year and reverses what had been a multi-year upward trend.

CUSTOMERS AND PROJECTS

• 35% (14) worked for more than 400 customers, and 55% (22) completed more than 400 projects

• 2.5% (1) worked for 301 to 400 customers, and 5% (2) completed 301 to 400 jobs

• 17.5% (7) worked for 201 to 300 customers, and 7.5% (3) completed 201 to 300 jobs

• 15% (6) worked for 151 to 200 customers, and 15% (6) completed 151 to 200 jobs

• 10% (4) worked for 101 to 150 customers, and 10% (4) completed 101 to 150 jobs

• 20% (8) worked for fewer than 100 customers, and 7.5% (3) completed fewer than 100 jobs

The Top 40 ran more concentrated customer relationships and higher project counts than last year’s Top 50, with 55% completing more than 400 jobs compared to 46% a year ago. Fewer customers, more repeat work, more volume per relationship.

FLEET REPLACEMENT

70% (28) of the Top 40 reported fleet replacement values above $2 million, down from 68% (34 of 50) in TC 2025. Another 10% (4) fell into the $1 million to $2 million range, with 17.5% (7) reporting between $500,000 and $1 million, and one contractor at less than $250,000. The capital concentration of the Top 40 paving segment held steady, and the rising equipment costs and tariff pressures noted in last year’s article will show up most clearly in next year’s data, when full-year impacts have worked through fleet decisions. ■

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BUILT TO CONNECT

By Brandon Noel, Editor-in-Chief

Top 40 Sealcoating Contractors: A Second Projection Didn’t Hold

There are positive signs that the sector erosion may have tapered off.

For the second consecutive category in this year’s report, last year’s projected decline failed to materialize at the contractor level. The TC 2025 analysis used an elevenyear compound annual growth rate of approximately -3.97% to project the Sealcoating Top 50 would fall to roughly $159.4 million in 2026, $153.1 million in 2027, and $147.0 million in 2028. The TC 2026 Top 40 reported $144.0 million in sealcoat-only revenue, which on the surface looks like a confirmation, but on a per-contractor basis, however, the sealcoat-only average grew to $3.60 million, up 8.6% from the TC 2025 average of $3.32 million, and up 17.7% from TC 2024.

While that is a positive piece of data, it’s still important to understand that the long-term aggregate decline from 2015-to 2025 is a real signal that has not been refuted by this year’s data. Additionally, the shrinking respondent pool that drove the Top 50 to Top 40 contraction is almost certainly a contributing factor in the aggregate-dollar figures and cannot be easily separated from the underlying trend. Third, the per-contractor numbers do not look like a sector in decline. They look like a sector holding the line.

Both pictures are true, and they will likely reconcile in one direction or the other, eventually.

TOTAL SALES FOR THE SEALCOATING TOP 40

The Top 40 Sealcoating Contractors

SEALCOATING 40

business outperformed the broader market in 2025, or the Top 40 framework filtered out lower-share sealcoaters who would have appeared in a Top 50. The data we have cannot fully separate those two effects, and only greater participation, with more contractor data would help sort things out in the future.