M&A in Building Products & Construction stayed buoyant in Q2 2025. LTM deal volume reached 699—up 8.6% versus Q2 2024—while 156 transactions closed during the quarter. Strategics dominated activity (86.2%), but financial sponsors raised their share to 13.8% as dry-powder deployment accelerated. Median TEV/EBITDA inched up to 11.6× and TEV/Revenue to 1.70×, reflecting buyers’ willingness to pay for scale, labor capacity, and resilient end-markets. Electrical, HVAC, and prefab specialists drew premium bids, and seven headline deals exceeded $475 million, underlining healthy appetite for larger, synergy-rich targets.
Despite a 3.5% YoY dip in U.S. construction spending through May1, multiples edged higher as bidders chased contractors positioned for federally funded infrastructure work and energy-transition projects. Strategics sought regional leaders to secure labor and supply-chain proximity, while private equity concentrated on fragmented verticals—HVAC, roofing, and testing—where bolt-ons can quickly expand EBITDA. Prefabrication and modular capacity remain a key diligence theme as owners navigate labor shortages and schedule risk.2
Strategic Acquirers: Strategics executed 563 of 699 deals (86.22%) and 46 (8.2%) were PE-backed—targeting electrical contracting, paving, and metal-building manufacturers to deepen service breadth and geographic reach.
Financial Buyers: Pure-play sponsors closed 90 deals (13.78%), focusing on niche HVAC, roofing, and civil-engineering platforms where operational upgrades can unlock value.3
Building Products & Construction accounted for 5.2% of all U.S. M&A in Q2 and 5.0% on an LTM basis, roughly flat YoY. Deal flow in the sector outpaced other cyclical verticals despite tighter credit, underscoring investors’ confidence in infrastructure-linked earnings. While median EBITDA multiples rose 1% QoQ, they remain below 2021 peaks, suggesting disciplined but still-constructive pricing.
Top U.S. States: Florida (71 deals), Texas (69), and California (55) led volume, buoyed by demographic growth, infrastructure spending, and climate-resilient retrofit demand.
Cross-Border Trends: Cross-border interest—highlighted by WSP Global’s $1.78B acquisition of POWER Engineers—shows sustained Canadian appetite for U.S. engineering and prefab assets.
| Target | Buyer | Value ($mm) |
| Cupertino Electric, Inc. | Quanta Services, Inc. | $1,859.90 |
| POWER Engineers, Inc. | WSP Global Inc. | $1,780.00 |
| Fibrebond Corporation | Eaton plc | $1,400.00 |
| Asphalt Inc., LLC | Construction Partners, Inc. | $878.30 |
| Miller Electric Company, Inc. | EMCOR Group, Inc. | $868.60 |
| Airtron Heating & A/C, Inc. | Gamut Capital Management, L.P. | $500.00 |
| Mueller, Inc. | Cornerstone Building Brands, Inc. | $475.00 |
| Target | Buyer | Value ($mm) |
| Oklahoma Roofing & Sheet Metal | Tecta America Corp. | n/a |
| Spartan Infrastructure | SOLV Energy, LLC | n/a |
| Cannon & Cannon, Inc. | Ardurra Group, Inc. | n/a |
| MP Predictive Technologies | RESA Power, LLC | n/a |
| Horizons Engineering, Inc. | Verdantas LLC | n/a |
| Target | Buyer | Value ($mm) |
| DCCM, LLC | Court Square Capital | n/a |
| Gallo Mechanical Services | Citation Capital Mgmt. | n/a |
| Total Mechanical, LLC | Symbiome Capital Partners | n/a |
| RailPros, Inc. | Littlejohn & Co. | n/a |
| Greenwood Industries, Inc. | Dunes Point Capital | n/a |
Source S&P Capital IQ as of 7/6/2025 and PCE Proprietary Data
Opportunities: Federal infrastructure outlays and manufacturing-reshoring incentives should lift backlogs for electrical, paving, and engineering contractors.4
Risks: Persistent labor constraints, elevated financing costs, and a recent fall in construction spend may delay project starts.1
Predicted Activity: Expect steady consolidation in HVAC, prefab modules, and specialty distribution, with PE sponsors driving bolt-on velocity and strategics employing “buy-versus-build” to secure talent and capacity.5
Nicole Kiriakopoulos |
Michael Poole |
Will Stewart |
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Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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