Industrials
Q1 2025 REPORT
Industrial Insights
The Trend
INDUSTRIAL TECHNOLOGY
Industrial Technology has shown resilience, with median public trading EBITDA multiples increasing modestly from 10.5x in Q1 2024 to 10.9 x in Q1 2025. Despite volatility in the equity markets, the subsector has tracked closely over the past year, mirroring the S&P’s highs/lows. Transaction volume has remained relatively steady with Q1 2025 transaction count slightly declining but with consistent buyer interest for high quality assets, reflecting ongoing demand for automation, software, and digital infrastructure capabilities as demonstrated in notable recent transactions including Siemens’ $10.6B acquisition of Altair and AMD’s $4.9B buyout of ZT Systems.
INDUSTRIAL SERVICES
Publicly traded Industrial Services companies experienced the most notable EBITDA multiple contraction from 14.3x to 12.5x year-over-year. Amid broader investor scrutiny and a pullback in valuations, index performance declined in early 2025 after tracking well above the broader market throughout most of 2024. However, buyer interest remains strong, as evidenced by several recent transactions, including Apollo’s $8 0B acquisition of GFL’s Environmental Services division and EMCOR’s $865 0M acquisition of Miller Electric While transaction counts have tapered from 2021 highs, activity persists, and financing momentum in early 2025 suggests improved liquidity and buyer appetite.
TRADITIONAL INDUSTRIALS
Traditional Industrials saw a slight pullback in median EBITDA public trading multiples, from 11.6x to 11.0x. Index performance mirrored that of Industrial Services, underperforming the S&P 500 since late Q4 2024. Notable transactions in this category include Nokia’s $2.4B acquisition of Infinera and NW Natural Holdings’ $425.0M purchase of SiEnergy The sector continues to account for a meaningful portion of total transaction activity, with Q1 2025 showing a rebound in financing volume ($5.0B) following a slower Q4 2024. While transaction volume has modestly softened, strategic and infrastructure-driven buyers remain active in pursuing stable, asset-heavy platforms.
Industrials Industry Commentary
“The FedEx team delivered improved profitability, while navigating a very challenging operating environment, including a compressed Peak season and severe weather events.”
– Raj Subramaniam, President and CEO; FedEx
“Deere’s performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions our customers are facing… we’re seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment.”
– John May, Chairman and CEO; John Deere
“With an unprecedented and broadly based backlog, healthy project pipelines, persistent demand for construction services relating to advanced technology, and an unmatched workforce, we expect continuing strong results in 2025.”
– Brian Lane, CEO; Comfort Systems USA
Industrial Summary & Outlook
ON THE GROUND: 2025 MARKET INSIGHTS
With 2025 well underway, our team has actively engaged with the M&A community across four major industry events ACG’s M&A South, DealMAX, NATE Unite, and FenceTech. While M&A South and DealMAX provided a macro-level pulse check on the broader capital markets and private equity sentiment, NATE Unite and FenceTech offered a more ground-level view into specific end markets — particularly infrastructure, telecom, and perimeter security
Through attending NATE Unite and FenceTech, we had the opportunity to observe how the broader market outlook is filtering down to the operating level. While these shows focus on specific sectors, they provide an additional perspective on how businesses are approaching growth, investment, and operational priorities in today’s environment Conversations at both events reflected a pragmatic tone, with many operators focused on steady demand, managing cost pressures, and navigating evolving compliance requirements. While sector-specific dynamics vary, the underlying mindset mirrors what we heard from investors: quality, discipline, and preparedness remain central to success in 2025.
What ties these conversations together is a clear shift toward strategy over speed Whether it’s a fund reevaluating platform theses or an operator reassessing supply chains in light of trade policy uncertainty, 2025 is emerging as a year where discipline and preparation are paramount.
Together, these conferences confirmed a central theme: the firms and companies best positioned for success are those aligning realistic expectations with a refined, quality-first approach to growth
Engaging with industry leaders at NATE Unite 2025 in Charlotte, NC
Connecting with business owners at FenceTech 2025 in Salt Lake City, UT
Key Economic Indicators
Industrial Production Index
Source: Board of Governors of the Federal Reserve System
Source: U.S. Bureau of Labor Statistics
Source: U.S. Bureau of Labor Statistics
Spending (Non-Residential)
Source: Board of Governors of the Federal Reserve System
$500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000
Source: U.S. Census Bureau
Total Construction Spending (Residential)
Source: U.S. Census Bureau
Industrial Public Trading Statistics
Harbor View’s Industrial Sub-Sectors
• Specialty Equipment & Devices
• Data Capture & Analysis
• Technology Enabled Solutions
• IIoT / Robotics
• Design & Engineering
• Environmental Solutions
• TICC
• Facility & Site Services
• Manufacturing
• Distribution / Logistics
• Installation & Construction
• Utilities & Telecom
Comparative Median EBITDA Multiples
Source: PitchBook, Data as of 3/31/25
One-Year Historical Index Performance
Select Industrial Public Trading Statistics
INDUSTRIAL TECHNOLOGY
Note: Privately held companies typically trade at a discount to public companies Source: PitchBook, Data as of 3/31/25
Select Industrial Public Trading Statistics
INDUSTRIAL
SERVICES
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 3/31/25
Select Industrial Public Trading Statistics
TRADITIONAL INDUSTRIALS
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 3/31/25
Select Industrial Public Trading Statistics
CONGLOMERATES
Note: Privately held companies typically trade at a discount to public companies
Source: PitchBook, Data as of 3/31/25
Active PE-Backed Buyers – Last 18 Months
1,276
Add-on acquisitions since October 1, 2023 of PE-backed buyers made more than 1 acquisition 16%
Note:
Recent Notable Financings Financing Activity
Select Industrial Venture Capital Activity
EARLY-STAGE VENTURE CAPITAL
Industrial M&A Summary
Industrial Expertise
Broad & Deep Industrial Expertise
Industrial Recycling Provider
Acquired by
STRATEGIC BUYER
White Glove
Transportation & Logistics
Acquired by
FINANCIAL BUYER
Metal Processor
Acquired by
FINANCIAL BUYER
Property Management Provider
STRATEGIC ADVISORY
SERVICES
Aerospace Component Testing Provider
Acquired by
STRATEGIC BUYER
Telecommunications Infrastructure Provider
Acquired by
FINANCIAL BUYER
Fluid Dynamics
Designer & Engineer
Acquired by
FINANCIAL BUYER
Light Industrial Staffing Provider
Acquired by
FINANCIAL BUYER
Solar Lighting Designer & Integrator
Acquired by
STRATEGIC BUYER
Note: Unless displayed with the Harbor View logo, the transactions documented were executed in previous roles
Wireless Tower Owner & Operator
Acquired by
STRATEGIC BUYER
Connect with Our Industrials Team
Building on his 28 years of Investment Banking and Private Equity experience, Nate leads Harbor View’s Industrials practice. In its role, the Industrials team advises clients in the Industrial Technology, Industrial Services, and Traditional Industrial sectors helping business owners navigate the company sale, acquisition, and capital raise processes.
Metal Fabricator
Acquired by
FINANCIAL BUYER
Data Capture & Analysis Provider
Acquired by
STRATEGIC BUYER
Suzi Felix Senior Associate
Carson Lubin Analyst
Zuri Goodman Associate
About Harbor View Advisors
Operating at the intersection of investment banking and management consulting, we partner with inspiring companies and private equity firms to help them design and execute their strategies for growth or exit. With decades of successful client outcomes, we help growing teams improve their opportunities for success. We provide Sell-side advisory, Buy-side advisory and Strategic Consulting to innovative companies and financial sponsors.
Call 904 285 4278 Email vision@hvadvisors.com Visit harborviewadvisors.com
Appendix – Industrial M&A Transactions
TRADITIONAL INDUSTRIALS
Appendix – Industrial M&A Transactions
INDUSTRIAL TECHNOLOGY
INDUSTRIAL SERVICES
The material in this report is for information purposes only and is not intended to be relied upon as financial, accounting, tax, legal or other professional advice. This report does not constitute and should not be construed as soliciting or offering any investment or other transaction, identifying securities for you to purchase or offer to purchase, or recommending the acquisition or disposition of any investment Harbor View Advisors does not guarantee the accuracy or reliability of any data provided from third party resources Although we endeavor to provide accurate information from third party sources, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future