Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast #247 LEGENDS | The $1.2B Contractor: How Kelso Built a Billion-Dollar Empire
Oct 2, 2025
Steve Carroll, Founder and CEO of Kelso Industries, shares his journey of scaling the company to a massive $1.1–$1.2B by leveraging acquisitions and a decentralized model. He explains the strategic Kelso flywheel that starts with construction and expands into maintenance and service. Topics include how to balance centralization with empowering local leaders, the importance of leadership pipelines, and adapting to market demands, particularly in data centers. Carroll emphasizes a partnership approach that respects local teams while driving growth.
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Land-Expand Flywheel For MEP Growth
- Kelso uses a construction ➜ retrofit ➜ maintenance ➜ service flywheel to land and expand with commercial clients.
- They enter at any point and cross-sell MEP work to earn long-term relationships.
First Acquisition Taught Hard Lessons
- Their first acquired company was a $17–18M commercial business bought May 28, 2021 where the owners left within weeks.
- That painful handoff taught them they couldn't simply replace long-tenured owners.
Rapid Scale Creates New Leadership Needs
- Kelso scaled to roughly $1.1–$1.2B revenue and ~3,500 employees in ~5 years via acquisitions and partnerships.
- Rapid scale forced new communication and leadership challenges across 30+ offices.
