ELECTRONICS & ELECTRICAL INDUSTRY UPDATE - Q2 2025
- Kevin Marsh
- Aug 24
- 1 min read
Updated: Sep 30
TRENDS & NEWS IMPACTING THE ELECTRONICS & ELECTRICAL COMPONENTS INDUSTRY
Key Takeaways
Deal activity within the industry was higher with 147 deals in Q2 2025 versus 134 in Q1 of 2025
Private equity interest in M&A was down (6 deals announced in Q2 of 2025 versus 13 in Q1 of 2025)
Publicly traded valuation multiples were up across all sectors
Financial performance was mixed in Q2. Sales were up across all sectors but margins were mixed. Notably, Fuses, Wire Harnesses, Connectors, & Cables suppliers had a significant increase in sales and EBITDA
Capital spending was mixed
Balance sheets remain healthy
National Electrical Manufacturers Association monthly survey for July had a business confidence index of 50% (up significantly from 17% in January). The outlook for the next six months was 75 (greater than 50 equals expansion)
Strategic buyers continue to have ample dry powder for further acquisitions
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