Industrial Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P 500 Industrials Index increased by 4.5%, outperforming the S&P 500 which saw a 3.9% decrease over the same period.
• The mean EV/EBITDA multiple for reported strategic deals decreased to 6.6x from 7.0x in the prior year.
• M&A deal volume in the sector increased 8.9% in Q1 to 281 deals from 258 in Q4 2025, and increased 93.8% from 145 deals in Q4 of the prior year.
• North America was the most active region in Q1 with 147 deals in the Industrial Services sector. Most notably in North America was WSP’s $3.3 billion acquisition of TRC Companies, a Connecticut-based provider of environmental consulting and engineering services.
• Total capital invested in M&A transactions increased 106.5% in Q1 to $6.4B from $3.1B in Q4 2025 due primarily to the TRC Companies deal mentioned above. Comparatively, the largest deal in Q4 was Blackstone’s $1.6B acquisition of Shermco Industries.