Industrial Services M&A Update

RESOURCE HIGHLIGHTS

• In Q4, the S&P 500 Industrials Index increased by 0.9%, but was outperformed by a 2.0% increase in the S&P over the same period.
• The mean EV/EBITDA multiple for reported strategic deals in the Industrial Services sector decreased to 7.0x in 2025 from 8.2x in 2024, while the EV/Revenue multiples for private equity and strategic deals increased to 2.1x and 1.7x from 1.3x and 1.5x, respectively, over the same period.
• M&A deal volume in the sector increased 17.3% in Q4 to 258 deals from 220 in Q3, and increased 43.3% from 180 deals in Q4 of the prior year.
• North America was the most active region in Q4 with 127 deals in the Industrial Services sector. Most notably in North America was Blackstone’s $1.6 billion acquisition of Shermco Industries, a Texas-based provider of electrical testing, maintenance, and engineering services for power infrastructure.
• M&A volume in the Industrial Services sector is widely expected to accelerate in 2026 as stabilizing interest rates and a growing pipeline of high-quality, mission-critical businesses with repeat service demand align with significant private equity dry powder and sustained demand from strategic buyers.