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Engineering, Environmental & Infrastructure Update

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Engineering, Environmental, & Infrastructure

M&A Industry Update | September 2025

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In Today’s EE&I Marketplace – The Focus is on Deal Quality Over Quantity

Sector Summary

The U.S. Engineering, Environmental, and Infrastructure (EE&I) sector has shown remarkable resilience through the first half of 2025. Despite persistent macroeconomic challenges — including labor shortages, tariff-driven cost inflation, and ongoing interest rate uncertainty — deal activity has remained steady. This stability is underpinned by strong demand in construction, sustained public infrastructure investment, and a strategic shift by acquirers toward scalable, labor-efficient platforms that offer long-term value and operational leverage

1

The M&A landscape in the U.S. EE&I sector began 2025 with strong momentum, fueled by sustained infrastructure demand and strategic repositioning by acquirers

2

While recent tariff announcements introduced headwinds that tempered overall activity, investor appetite remains resilient

3

Both strategic buyers and private equity firms continue to pursue high-quality opportunities, as evidenced by notable platform acquisitions in June—such as Court Square Capital’s acquisition of DCCM and Citation Capital’s investment in Gallo Mechanical

4

Targets with niche capabilities—particularly in data center engineering, circular economy infrastructure, and PFAS treatment—are attracting premium valuations. Closed Loop Partners, for example, completed its fourth acquisition of the year in March with the purchase of Waste Recycling

5

Aggregate deal value in YTD-25 experienced a notable decline compared to YTD-24. However, it is important to note that the elevated deal value in YTD-24 was largely driven by $7.7B acquisition of Stericycle by Waste Management

KPMG Quick-Take:

Valuation multiples continue to favor businesses with recurring revenue streams and specialized technical expertise—attributes increasingly recognized as indicators of resilience, scalability, and long-term value creation. While project-based firms remain active participants in the market, platforms offering predictable cash flows and differentiated capabilities are commanding premium attention from buyers

Dive into our thinking:

Engineering, Environmental, & Infrastructure

M&A Industry Update | Summer 2025

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Corporate finance services, including Financing, Debt Advisory, and Valuation Services, are not performed by all KPMG member firms and are not offered by member firms in certain jurisdictions due to legal or regulatory constraints. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, 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. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. 

The information contained in this communication may not be representative of the experience of other clients and does not constitute a recommendation, offer, or solicitation to buy, sell or hold any security of any issuer. Past performance does not guarantee future results.

©2026 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. KPMG Corporate Finance LLC is not engaged in the business of public accountancy. All rights reserved.

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