Process & Flow Control Industry Update Q1 2025
Read more about M&A activity and trends in this sector
Process & Flow Control Industry Update
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Commentary:
- Process & flow control industry participants include manufacturers, distributors, and service providers offering solutions to support manufacturing and other processes through the management and control of liquids, gases, solids, and slurries across various end markets and applications
- As global flow control companies navigate near-term challenges posed by tariffs, including rising supply costs and the impacts of demand 'pull-forward’, supply chain complexity has increased meaningfully. Companies are striving to adeptly manage this dynamic environment to control costs and ensure product availability throughout the manufacturing process
- Many leading global flow control companies have local manufacturing in-place to serve local demand, providing a degree of insulation to tariffs, however, they are still grappling with residual impacts across globally interconnected supply chains
- While the competitive responses and demand impacts remain to be seen, companies are increasingly investing in advanced technologies and automation to mitigate supply chain disruptions and enhance operational efficiency, which may create opportunities for near- and re-shoring driven growth
- As companies enter a higher cost operating environment, they must drive efficiencies through targeted, tactical investments in automation and efficiencies
- Stock price performance for the process & flow control sector varied across sub-sectors in 2025 YTD as the overall sector has performed in-line with the broader market performance of the S&P 500, impacted by market volatility catalyzed by an uncertain tariff environment
- Process & flow control companies recorded an overall mean EV / YTD 2025 EBITDA of 15.9x as of March 31, 2025 – up from 15.5x as of March 31, 2024
- Consistent with the broader M&A market, transaction volume was subdued in Q1 2025 after demonstrating momentum in the second half of 2024. Volume and value were slightly up as compared to Q1 2024
- Lower transaction volume in Q1 2025 following an uptick in H2 2024 as market participants postponed M&A activity due to tariff-inflicted uncertainty
- Despite current headwinds, several notable transactions were announced in Q1 2025 as highlighted in our latest update
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Process & Flow Control Industry Update
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Chrisanne Corbett
Managing Director, Corporate Finance, KPMG Corporate Finance LLC
Chrisanne Corbett
Managing Director, Corporate Finance, KPMG Corporate Finance LLC