Building Momentum: Construction & Engineering Trends During 2Q 2024
In Q2 2024, the Construction and Engineering industry demonstrated remarkable resilience, despite economic challenges like high interest rates and supply chain disruptions. Companies adapted by divesting non-core assets and reallocating capital towards core infrastructure, leading to sustained profitability. Additionally, investor confidence remained strong, driven by strategic realignments and growth through acquisitions.
- Resilience Amid Challenges: The Construction and Engineering sector adapted to economic headwinds, with firms divesting non-core assets to reduce costs and focus on high-value areas, such as infrastructure.
- Strategic Acquisitions Leading: Strategic acquirers dominated M&A activity in Q2 2024, particularly in civil infrastructure, electrical engineering, and HVAC industries. However, private equity is expected to become more active as interest rates fall and commercial construction activity picks up.
- Positive Valuation Trends: Valuation multiples increased across key verticals, particularly for building contractors, who saw an upward trend in EBITDA, reflecting higher profitability and confidence in the sector’s growth potential.