Industrial Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P 500 Industrial Services Index increased by 4.3%, but was outperformed by a 7.9% increase in the S&P over the same period.
• The mean EV/EBITDA multiple for reported strategic deals increased slightly to 8.4x in YTD 2025 from 8.2x in 2024, while the EV/Revenue multiple for private equity deals increased to 1.6x in YTD 2025 from 1.3x in 2024.
• M&A deal volume in the sector increased 1.4% in Q3 to 220 deals from 217 deals in Q2, and increased 14.0% from 193 deals in Q3 of the prior year.
• North America was the most active region in Q3 with 129 deals. Most notably in North America was NDT Systems & Services’ $300.0 million acquisition of Entegra, an Indiana-based provider of commercial and industrial services, in April 2025.
• Total capital invested in M&A transactions decreased 82.1% in Q3 to $1.2B from $6.7B in Q2. This was largely driven by Herc Holdings’ $5.3 billion acquisition of H&E Equipment Services in the prior quarter coupled with a general shift in mix to smaller sized deals in Q3.