MULTI-INDUSTRIALS SECTOR UPDATE - Q3 2025

Key Takeaways

Deal activity picked up modestly compared to the same quarter last year. Strategics also showing appetite for larger transactions moves to capture growth from exposure to AI-driven data center demand, despite lingering tariff and macro uncertainty
Private equity interest in M&A remains selective, but eager to deploy record dry powder. Early signs that the PE “deal dam” is breaking as exit activity is accelerating with efforts to return capital to LPs, with sponsors capitalizing on improved financing conditions and strategic buyer demand
Publicly traded valuation multiples remain strong due to the supporting backlogs and a favorable long-term outlook, tempered slightly by supply chain constraints and tariff uncertainty with Electrical Equipment and Systems showing the largest multiple expansion in Q3 2025
Publicly traded equity performance was mixed across the board with Industrial Machinery and Technology and Electrical Equipment and Systems outperforming comparatively in the last quarter, driven by double digit net income growth, benefitting from data center tailwinds
Financial performance showed continued strength with revenue and EBITDA growth reported in all segments versus the same quarter prior year with Electrical Equipment and Systems leading the way

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