MULTI-INDUSTRIALS SECTOR UPDATE - Q4 2025

Key Takeaways

Deal activity accelerated compared to the same quarter last year, with strategics pursuing both tuck-ins and select larger portfolio moves to capture growth from AI-driven data center infrastructure demand, despite lingering tariff and macro uncertainty
Private equity interest in M&A remains selective, but active, with growing signs that the PE “deal dam” is opening as exit activity increases amid pressure to return capital to LPs, supported by improved financing markets and strong strategic buyer appetite. Private credit market volatility may make financing more challenging
Publicly traded valuation multiples remain elevated, supported by backlog visibility and a favorable long-term outlook, with Electrical Equipment & Systems trading at the highest levels among subsegments, reflecting continued investor conviction in AI-related infrastructure exposure
Publicly traded equity performance was strongest in Electrical Equipment & Systems and Industrial Machinery & Technology over the last twelve months, driven by double digit earnings growth and margin resilience, while broader markets experienced more muted performance
Financial performance remained solid across most segments with continued revenue and EBITDA growth versus the same quarter prior year, led by Electrical Equipment & Systems and supported by margin expansion in Industrial Machinery & Technology

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