Industrials M&A Update

RESOURCE HIGHLIGHTS

• In Q4, the S&P 500 Industrials Index increased by 0.5%, but was outperformed by a 2.0% increase in the S&P over the same period.
• The median EV/EBITDA multiple for reported private equity deals in the Industrial sector decreased to 9.0x in 2025 from 11.0x in 2024, but increased for strategic deals to 10.9x from 8.0x in the prior year.
• M&A deal volume in the Industrials sector increased 1.1% in Q4 to 530 deals from 524 deals in Q3, and increased 13.5% from 467 deals in Q4 of the prior year.
• Europe was the most active region in Q4 with 241 deals in the sector. Most notably in Europe was Leonardo’s $2.0 billion acquisition of Iveco Defence Vehicles, an Italian manufacturer of specialized wheeled and tracked vehicles designed for defense and civil protection.
• Total capital invested in M&A transactions increased 52.2% in Q4 to $38.2B from $25.1B in Q3, primarily due to Thoma Bravo’s $10.6 billion acquisition of Boeing’s Digital Aviation Solutions Business, a Virginia-based provider of aviation services and digital fleet support solutions.