M&A & CONSOLIDATION — THE WINDOW IS OPEN AND NARROWING

The electrical contractor M&A market is entering a re-acceleration phase in 2026 following a more normalized 2025. For both buyers and seller-owners, the current environment is one of the most favorable in recent memory.

Public power services and electrical infrastructure companies — including Quanta, Comfort Systems, MYR Group, EMCOR, and IES Holdings — are trading at a current EV/EBITDA multiple of 19.6x, representing a 38% premium to the 5-year historical benchmark of 14.2x. That premium is bleeding through to private transactions, creating a window for sub-$250M business owners that does not come around often. Founders Advisors

Electrical contractor M&A activity is expected to rebound or grow into 2026, driven by a normalized market environment. Private equity firms are increasingly active, focusing on platform companies and add-on acquisitions, especially in high-growth, technical, and fragmented market segments. Key growth drivers include data center buildouts, infrastructure modernization, electrification, and rising demand for ongoing electrical services and maintenance. EC&M

EMCOR's acquisition of Miller Electric is the headline deal establishing the benchmark. EMCOR acquired Miller Electric Company on February 3, 2025 — from the acquisition date through September 30, 2025, Miller Electric contributed $794.4 million to total revenues and $21.2 million to operating income, strengthening EMCOR's electrical construction capabilities across data centers, manufacturing, and healthcare markets while expanding geographic presence. EMCOR's largest acquisition to date, Miller Electric was acquired for $865 million. EMCOR disclosed revenue of $14.566 billion for 2024 with 40,400 employees. Yahoo Finance Mergr

FMI Managing Director Ryan Foley notes: "We have seen a notable uptick in commercial and industrial electrical contractor M&A activity over the past 18 to 24 months, driven by private equity consolidation, data center demands, and the increased complexity of electrical systems." In 2024, 30 pure-play EC acquisitions were closed, along with 10 private equity-backed platforms pursuing consolidation strategies in the space. EC&M

What This Means for Contractors: Firms with exposure to data centers, electrification, EV infrastructure, and specialty electrical services are commanding the strongest valuations. Owners considering a transaction in the next three to five years should be actively building the story — diversified end markets, recurring service revenue, capable second-tier management, and documented systems — now, not at letter of intent.