+57%
Spending in July vs. a year earlier, while private nonresidential fell 3.3%.5
19.4%
Average profit margin on $28.2B of revenue; construction is the largest client group.2
11+
Environmental, geotechnical and testing acquisitions in July 2026 alone.12
Four forces shaping the market.
Data center construction spending was up 57% year over year in July, while private nonresidential construction overall fell 3.3% and manufacturing fell 21%. Dodge reports that commercial project planning is being “powered almost entirely by data center projects.”56
Data centers are fast-tracked, and environmental approvals often set the schedule. Backup generators typically require state air permits and sometimes dispersion modeling, while water supply, stormwater and site contamination all have to be addressed before construction starts.8910
In August, a federal appeals court upheld EPA’s listing of PFOA and PFOS as hazardous substances under Superfund, creating cleanup liability. Combined with new drinking water limits, that makes thorough site assessment and PFAS-capable testing more valuable on every property deal and project.311
A bipartisan Senate bill would put deadlines on federal environmental reviews, extend Clean Water Act permits from five to ten years and limit court challenges. It hasn’t passed, but faster approvals would mean more projects moving to construction sooner.7
Three services, one project.
A single commercial project can draw on all three: consultants assess the site and secure permits, laboratories test soil and materials, and field teams monitor water and air through construction. Firms that offer more than one have an edge with developers on tight schedules.
$28.2B
U.S. industry revenue; forecast to grow 3.4% a year through 20312
- Infrastructure and construction companies are the largest client group, at 27% of revenue.2
- Environmental impact assessments and permitting are core work for new projects.2
- The industry’s average profit margin is 19.4%, the highest of the three.2
- Larger firms are buying specialists to broaden their services.2
$33.5B
U.S. laboratory testing revenue; forecast to grow 3.6% a year through 20311
$9.5B
U.S. water and air quality testing revenue, with a 13.9% profit margin3
What a data center needs before it can build.
Requirements vary by state and site, but most large data center projects work through the same environmental checklist, and each item is work for a testing or consulting firm.8910
Environmental site assessments and soil testing to identify contamination, now including PFAS, plus geotechnical investigation for heavy foundations.
Permits for diesel backup generators, often dozens per campus, sometimes requiring air dispersion modeling. As AI raises power needs, generator counts and scrutiny are both rising.
Water supply and discharge approvals for cooling, stormwater plans for large impervious sites, and wetlands review where the site requires it.
Notable Q3 2026 transactions.
Environmental testing and consulting is one of the most active corners of engineering services M&A. Private equity-backed platforms are buying regional consultancies, air-emissions testers and geotechnical labs, often several in a single quarter.1213
| Date | Buyer | Target | Value | Notes |
|---|---|---|---|---|
| Testing, inspection & laboratory | ||||
| Sep 18 | H.I.G. Capital | Mistras Group (NYSE: MG) | ~$866M EV | Asset integrity and laboratory testing; take-private, expected to close late 2026 or early 2027 |
| Sep 10 | Normec Group | Accurate Environmental | Undisclosed | Environmental testing and compliance services |
| Sep 2 | Halma plc | Pyxis Lab | $200M | Water quality monitoring and analysis instruments |
| Aug 24 | Pacifica Engineering Services | Goble Pile Check | Undisclosed | Deep foundation (pile) testing for construction |
| Aug 18 | NVI Nondestructive & Visual Inspection | Barracuda Specialty Service | Undisclosed | Nondestructive testing and inspection |
| Aug 11 | AmSpec | Turner Laboratories | Undisclosed | Environmental testing laboratory, Arizona |
| Aug 10 | Phenna Group | Sturbridge Metallurgical Services | Undisclosed | Materials and metallurgical testing laboratory |
| Jul 30 | Certerra | Testing Engineers | Undisclosed | Materials testing lab, metallurgy and structural steel, California |
| Jul 21 | Materials Testing Consultants | GeoTest | Undisclosed | Geotechnical engineering and testing, Wisconsin |
| Jul 14 | Alliance Technical Group | Emissions Test Group | Undisclosed | Industrial source emissions testing |
| Environmental consulting & permitting | ||||
| Aug 26 | Erthwrks | Arktos Environmental | Undisclosed | Optical gas imaging and leak detection; adds to air compliance and testing |
| Aug 12 | Verdantas | Pax Environmental | Undisclosed | California permitting, compliance and ecological restoration (~75 staff) |
| Jul 30 | Verdantas | Environmental Protection Industries | Undisclosed | Environmental consulting and brownfield remediation, Illinois |
| Jul 22 | MacKay | Pioneer Technical Services | Undisclosed | Engineering, environmental and geotechnical services, Montana and Idaho |
| Jul 8 | Verdantas | American Engineering & Environmental Consultants | Undisclosed | Environmental engineering and consulting, Virginia |
Not an exhaustive list. Sources: S&P Capital IQ; Zweig Group; PrivSource; company press releases.12131416
Where the multiples sit.
Public testing and environmental consulting companies trade at a median of about 13.9x LTM EBITDA, and the range is relatively tight. Global testing, inspection and certification groups trade at 13.7x, led by SGS at nearly 19x, and engineering and environmental consultants trade at 14.7x. Private middle-market firms most often sell for 9x to 12x EBITDA, and those with recurring testing work, accredited labs and permitting expertise can reach 14x.16
Testing & inspection companies
Median EV / LTM EBITDA across the six companies below, as of October 21, 2026.16
Engineering & environmental consulting
Median EV / LTM EBITDA across the four companies below, as of October 21, 2026.16
Private middle market
Most common EBITDA range in our deal team’s experience; transactions have ranged from 7.5x to 14x.
| Company | Enterprise value ($M) | LTM revenue ($M) | Rev. growth | EBITDA margin | EV / Revenue | EV / EBITDA |
|---|---|---|---|---|---|---|
| Testing, inspection & assessment | ||||||
| TIC Solutions (TIC)Formerly Acuren; growth reflects the NV5 merger | 3,435 | 2,055 | 84.6% | 12.0% | 1.7x | 14.0x |
| Eurofins Scientific (ERF) | 20,820 | 8,272 | 3.4% | 20.8% | 2.5x | 12.1x |
| SGS (SGSN) | 29,446 | 8,719 | 4.7% | 18.1% | 3.4x | 18.7x |
| Bureau Veritas (BVI) | 16,853 | 7,558 | 1.9% | 18.1% | 2.2x | 12.3x |
| Intertek (ITRK) | 14,205 | 4,730 | 3.9% | 22.4% | 3.0x | 13.4x |
| ALS (ALQ) | 8,002 | 2,324 | 10.7% | 21.3% | 3.4x | 16.1x |
| Median | 15,529 | 6,144 | 4.3% | 19.5% | 2.8x | 13.7x |
| Engineering & environmental consulting | ||||||
| Tetra Tech (TTEK) | 10,218 | 4,359 | (5.2%) | 15.0% | 2.3x | 15.6x |
| Stantec (STN) | 13,852 | 6,820 | 10.8% | 15.1% | 2.0x | 13.4x |
| WSP Global (WSP) | 23,272 | 13,733 | 10.2% | 12.3% | 1.7x | 13.8x |
| Onterris (ONT)Formerly Montrose Environmental15 | 919 | 773 | (0.9%) | 7.5% | 1.2x | 15.8x |
| Median | 12,035 | 5,589 | 4.7% | 13.7% | 1.9x | 14.7x |
LTM = last twelve months. Non-U.S. companies converted to U.S. dollars. Source: S&P Capital IQ, as of October 21, 2026.16
Buyers are paying for the capabilities that keep projects on schedule: accredited labs, permitting expertise and teams that can mobilize fast. The firms that can prove theirs will have plenty of options.
Data center work is lucrative but lumpy. Show buyers how much revenue depends on it and how much comes from steadier compliance and monitoring work.
Lab accreditations, PFAS methods, licensed professionals and state permitting track records are hard to replicate and command a premium.
Global testing companies, engineering firms and PE-backed platforms each value a business differently. Competition among them drives price.
Most advisors start with a transaction. We start with a conversation. Middle Market Value combines a deep understanding of how companies are valued with years of buy-side and sell-side deal experience, so we can show you the full range of options and help you choose the path that best fits your objectives.
- IBISWorld, Laboratory Testing Services in the US (NAICS 54138), October 2026.
- IBISWorld, Environmental Consulting in the US (NAICS 54162), September 2025.
- IBISWorld, Water & Air Quality Testing Services in the US (OD6068), August 2025.
- IBISWorld, Environmental Testing in the US (OD6297), July 2024.
- U.S. Census Bureau, Construction Spending, July 2026 (released September 1, 2026); Associated General Contractors of America analysis of data center spending.
- Dodge Construction Network data, as reported by EC&M, May 20, 2026.
- Greenberg Traurig, “Senate Negotiators Reach Agreement on Permitting Reform Text,” October 9, 2026.
- Langan, “Industry Insights: Air Permitting for Data Centers.”
- Nixon Peabody, “Data Center Permitting Challenges,” February 2026; Maryland Department of the Environment, data center air permit approval, March 25, 2026.
- K&L Gates, “Data Center Deep Dives: Navigating Water, Air and Other Environmental Considerations,” June 2026.
- National Law Review, “D.C. Circuit Upholds EPA’s PFAS Listing,” August 19, 2026.
- Zweig Group, “July 2026 M&A Transactions in AEC.”
- PrivSource, environmental services add-on acquisitions, 2026.
- H.I.G. Capital and Mistras Group announcement, September 18, 2026.
- Onterris, Inc. (formerly Montrose Environmental Group), “Montrose Environmental Group Is Now Onterris,” April 21, 2026.
- S&P Capital IQ, public company and M&A transaction screens, as of October 21, 2026.
This report is for general information only and is not investment, legal or tax advice. Figures from third-party sources are presented as published and have not been independently verified.