MEP Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P 500 Construction & Engineering Industry Index decreased by 12.4%, underperforming a 2.0% increase in the S&P 500.
• The median EV/EBITDA multiple for reported private equity deals in the MEP Services sector increased to 8.1x YTD Q3 2026 from 7.4x in 2025, and for strategic buyers rose to 9.6x from 7.7x.
• M&A deal volume in the sector decreased 3.2% in Q3 to 448 deals from 463 in Q2, and decreased 10.4% from 500 deals in Q3 of the prior year.
• North America was the most active region in Q3 with 208 deals in the MEP sector. Most notably in North America was MYR Group’s $328.0 million acquisition of Valley Electric, an electrical contractor based in Seattle.
• Total capital invested in M&A transactions decreased 73.1% in Q3 to $6.8B from $25.3B in Q2 due primarily to fewer megasized deals (>$1B). Macquarie’s $1.5 billion buyout of Energy Assets Group was the largest Q3 deal, compared with Engie’s $14.2 billion acquisition of UK Power Networks in Q2.