Test & Measurement Industry Update Summer 2024

Stock price performance of the Test & Measurement ("T&M") sector varied across sub-sectors in the 2024 YTD period:

Industrial & Energy TICC Services (+24.0%): Strong performance following several years of significant under-performance, primarily driven by the pending take-private of Applus+ by TDR Capital and l Squared Capital, announced in April 2024

Instrumentation (+4.1%) and Diversified TICC Services (+2.8%): Positive performance, but significantly trailed the S&P 500 (+18.1%) as the index’s largest, technology-driven constituents drove the significant majority of appreciation in the period, charged by continued investor excitement around the implications of AI. Performance for Instrumentation and Diversified TICC Services peer groups was broadly in-line with the S&P Equal Weight Index (+4.6%)

Life Science Instruments (-2.7%): Negative performance as companies continue to work through lower growth, de-stocking headwinds, and lessened new capacity investment driven by a tighter funding environment

EV / 2024 LTM EBITDA multiples for the T&M sectorv remained relatively consistent over the 2024 YTD period, recording an overall mean of 18.0x as of 7/10/2024 as compared to 18.2x as of 1/1/2024

Industrial & Energy TICC Services: 6.8x as of 7/10/2024 vs. 6.9x as of 1/1/2024

Diversified TICC Services: 12.4x as of 7/10/2024 vs. 11.8x as of 1/1/2024

Instrumentation: 21.1x as of 7/10/2024 vs. 20.4x as of 1/1/2024

Life Science Instruments: 19.6x as of 7/10/2024 vs. 20.8x as of 1/1/2024

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.