Roofing Contracting: M&A Market Update 2025

Market Observations

• Roofing Contracting is a large, highly fragmented industry – market size of over $50BN, with the top three largest companies only holding ~6% market share in the U.S.
• A variety of fundamental industry characteristics contribute to a compelling investment thesis for institutional capital and strategic acquirors, including:
  • Non-discretionary nature of roof repairs mitigates economic cyclicality risk and creates a robust demand driver
  • Recurring and re-occurring revenue produced by service, maintenance, and re-roofing work creates a durable revenue profile
  • Aging stock of commercial and residential facilities drives the need for roof repairs and maintenance
  • Highly fragmented competitive landscape presents an opportunity for accretive M&A growth strategies
• The market is generally segmented between residential versus commercial operators, each segment possessing unique characteristics that are appealing to various pools of acquirors.
• While private equity and consolidation activity have been robust in recent periods, the industry outlook for M&A remains positive.̶
  • For sellers and business owners, there is an active market of enthusiastic acquirors. Private equity funds remain interested in an initial investment into the roofing industry, while existing platforms are searching to “bolt-on” acquisitions to rapidly expand operations.
  • For acquirors, roofing remains massively fragmented relative to other industries, many independent companies are seeking professionalization and additional resources in an increasingly competitive environment, and precedent market returns point to a promising M&A strategy.

Note: Represents count of select U.S. transactions based on KPMG research
Source: Pitchbook, Capital IQ, IBISWorld