HomePro’s margin underperformance is concentrated in the Midwest and is consistent across all three service lines. While South, Northeast, and West regions operate close to peer margins, Midwest margins lag by 4 to 10 percentage points depending on the service.

Because the gap appears across HVAC, plumbing, and electrical, this suggests the issue is not service specific pricing or demand, but rather regional operational inefficiencies such as labor productivity, scheduling, or branch overhead. This pattern indicates the margin gap is likely fixable through operational improvements rather than structural market limitations.

This finding supports the investment thesis that margin expansion is achievable, but only if the buyer focuses on targeted operational fixes in underperforming Midwest branches rather than relying on broad scale benefits alone.