Industrial Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P 500 Industrials Index decreased by 8.9%, underperforming the S&P 500’s 2.3% increase over the same period.
• The mean EV/EBITDA multiple for reported strategic deals in the Industrial Services sector increased to 9.7x in 2026 from 7.0x in 2025, while the PE EV/Revenue multiple rose to 2.5x from 2.1x.
• M&A deal volume in the sector decreased 8.8% in Q3 to 351 deals from 385 in Q2, but increased 59.5% from 220 deals in Q3 of the prior year.
• North America was the most active region in Q3 with 193 deals in the Industrial Services sector. Most notably in North America in Q3 was AMETEK’s $5.0 billion acquisition of Indicor’s test and measurement business, a CD&R-backed provider of test and measurement instrumentation.
• Total capital invested in M&A transactions increased 2.7% in Q3 to $5.5B from $5.4B in Q2, due primarily to an overall increase in deal volume in the sector in Q3.