Specialty Contracting Sector Spotlight - Fall 2025

M&A Trends

Resilient growth and strategic expansion drove strong Specialty Contracting M&A activity in Q3 2025 despite geopolitical headwinds and economic uncertainty.

Market Dynamics

• The Specialty Contracting sector continued to rebound in Q3 2025, demonstrating renewed momentum after a slower start to the year. Market sentiment improved significantly, with valuation levels rising as investors regained confidence in the sector’s fundamentals and growth outlook.
  • Specialty Contracting multiple growth is led by Homebuilding (+29.2%) as well as HVAC & Mechanical (+13.2%). General & Civil experienced negative multiple growth during the quarter with (-22.7%).
  • Similarly, Index Value performance was led by the same sectors, with Homebuilding returning (+20.1%) for the quarter, and HVAC & Mechanical returning (+23.6%).
• Government funding through the Infrastructure Investment and Jobs Act (IIJA) continues to drive growth through infrastructure projects. Highways, bridges, and public transit construction provides a significant, federally-funded opportunity for contractors.
  • Emerging construction activity derived from these federal grants will continue to act as a driver through 2026 as the government increasingly funds infrastructure, energy, and housing projects.

Learn More

Reach out to Dinan Capital Advisors Managing Director Tom Gerlacher for more report insights.