Q3 2025

Industrials M&A Update

In Q3, the S&P 500 Industrials Index increased by 4.2%, but was outperformed by a 7.9% increase in the S&P over the same period.
The median EV/EBITDA multiple for reported private equity deals decreased to 9.0x in YTD 2025 from 11.0x in 2024, but increased for strategic deals to 8.9x from 8.0x in the prior year.
M&A deal volume in the Industrials sector increased 18.6% in Q3 to 524 deals from 442 deals in Q2, and increased 22.4% from 428 deals in Q3 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased in YTD 2025 to 46.3% from 25.1% in 2024.
Europe was the most active region in Q3 with 222 deals. Most notably in Europe was Macquarie Group’s $1.2 billion acquisition of Iberdrola’s smart metering business, a UK-based operator of smart metering systems that optimize electricity use for households, in September 2025.