Q2 2025

Environmental Services M&A Update

In Q2, the NYSE Arca Environmental Services Index increased by 7.4%, but was outperformed by a 10.2% increase in the S&P 500 over the same period.
The median EV/EBITDA multiple for reported strategic deals in the Environmental Services sector decreased to 5.5x in 1H from 15.0x in 2024, while no private equity multiples were reported during the period.
M&A deal volume in the sector increased 4.7% in Q2 to 135 deals from 129 in Q1, but decreased 0.7% from 136 deals in Q2 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased in 1H to 79.1% from 31.2% in 2024.
North America was the most active region in Q2 with 62 deals. Most notably in North America was Atkins Réalis Group’s $300.0 million acquisition of David Evans & Associates, a provider of engineering, planning, and environmental consulting services.