Four forces shaping the market.
AI data centers need far more power, cooling and piping than traditional buildings. At Comfort Systems, technology work reached 59% of revenue this year, and backlog now runs 18 to 24 months instead of the historical nine. Data centers have also become the main growth driver for commercial construction overall.156
Contractors consistently name skilled labor as their biggest problem. Plumber pay rose 16.4% from 2021 to 2026, and the U.S. is projected to be 550,000 plumbers short by 2027. Comfort Systems says hiring, not demand, will limit its growth.126
Maintenance and repair is a quarter of HVAC revenue and much of plumbing’s. That recurring work is what private equity platforms are buying, and services businesses with a large maintenance base sell for more than project-driven firms.38
To stretch scarce labor, contractors are building systems off-site in controlled shops and installing them in the field. Buyers are rewarding firms with proven prefabrication capabilities with higher valuations.7
Three trades and the power grid.
Each trade is highly fragmented. Even Quanta Services, the largest electrical contractor, holds only about 6% of its market. Most contractors are regional firms that buy and sell through local relationships, which gives acquirers a long list of targets.1
$370.9B
Revenue; 6.2% a year over the past five years, 2.3% forecast; 7.2% profit margin1
$208.1B
Revenue; 4.9% a year over the past five years, 2.5% forecast; 5.6% profit margin2
$159.4B
Revenue; 2.6% a year over the past five years, 1.8% forecast; 7.0% profit margin3
Two kinds of buyers, both active.
Strategic acquirers and private equity-backed platforms are both buying MEP contractors, but they look for different things. For owners, that competition is an opportunity: a business that fits both buyer types can draw more bidders.
Public contractors such as EMCOR, Comfort Systems, MasTec, Quanta and Legence. They buy to add skilled crews, data center and critical-facility expertise, and new regional markets.
Platforms backed by firms such as Blackstone, Kohlberg, Quad-C and CCMP Growth. They buy regional brands, keep the names and teams in place, and build density in local markets.
Few MEP deals disclose multiples, so medians rest on a small number of transactions. Superior multiple calculated from the disclosed price and projected 2026 adjusted EBITDA.
Notable Q3 2026 transactions.
Our Q3 screen found 44 MEP-related acquisitions announced between July and September, and only four disclosed a price. Public strategic buyers made the largest deals, while private equity-backed platforms kept adding regional electrical, HVAC, plumbing and fire protection firms.11
| Date | Buyer | Target | Value | Notes |
|---|---|---|---|---|
| Strategic acquirers | ||||
| Aug 1 | Comfort Systems USA | Lewis Electrical; Neopod | Undisclosed | Two acquisitions expected to add more than $100M of annual revenue |
| Jul 30 | EMCOR Group | Schmidt Electric Company | Undisclosed | Electrical contractor |
| Jul 30 | Quanta Services | Phalcon | Undisclosed | — |
| Jul 20 | Centuri Holdings | J.J. White | $62M | Mechanical contractor |
| Jul 7 | MasTec | The Superior Group (Electrical Specialists) | $1.63B | Data center electrical contractor, Ohio (~3,000 employees); about 6.6x–7.3x projected 2026 EBITDA |
| Private equity-backed platforms | ||||
| Sep 14 | Loenbro (Kohlberg) | Prism Electric | Undisclosed | Electrical contractor, Texas and Oklahoma (~2,500 employees); Loenbro’s largest deal to date |
| Sep 3 | FirstCall Mechanical (SkyKnight Capital) | Lowder Brothers Heating and Air | Undisclosed | HVAC services |
| Aug 31 | Pye-Barker Fire & Safety (Leonard Green) | Suppression Systems | Undisclosed | Fire protection; Pye-Barker also bought E.H.S.-Emert Electric on Jul 30 |
| Aug 25 | Flow Service Partners (Quad-C) | Altman Air Conditioning | Undisclosed | Commercial HVAC, South Florida |
| Aug 25 | Hidden Harbor Capital Partners | Escape Fire Protection | Undisclosed | Fire protection |
| Aug 19 | Blackford Capital | Industrial Electronic Systems | Undisclosed | Electrical and controls |
| Aug 11 | Airo Mechanical (CCMP Growth) | Legrande’s Enterprises | Undisclosed | Plumbing and HVAC contractor, South Carolina |
| Aug 7 | Champions Group (Blackstone) | Powell Electric | Undisclosed | Residential electrical contractor, Southern California |
| Jul 20 | Greenbelt Capital Management | Bowe & Gant Electrical Services | Undisclosed | Electrical contractor |
| Jul 6 | Sila Services (Goldman Sachs Alternatives) | Davis Heating and Air Conditioning | Undisclosed | Residential HVAC services |
Selected from the S&P Capital IQ screen and company announcements; not an exhaustive list. Private equity sponsors shown in parentheses.69101112
Where the multiples sit.
Public MEP contractors trade at a median of about 14.5x LTM EBITDA. Companies most exposed to data centers and the power grid trade highest: Quanta at 29.0x, APi Group at 18.6x and Comfort Systems at 17.2x. Private deals happen at a steep discount to those levels: private equity buyers paid a median of 8.1x in Q1, and services businesses with a large maintenance base have sold for more than 10x. In our deal team’s experience, middle-market MEP contractors most often sell for 6.5x to 9.5x EBITDA.7811
Public MEP contractors
Median EV / LTM EBITDA across the ten companies below, as of October 21, 2026.11
Private middle market
EBITDA range in our deal team’s experience with middle-market MEP contractors.
| Company | Enterprise value ($M) | LTM revenue ($M) | Rev. growth | EBITDA margin | EV / Revenue | EV / EBITDA |
|---|---|---|---|---|---|---|
| Diversified MEP contractors | ||||||
| EMCOR (EME) | 28,193 | 18,598 | 18.9% | 10.7% | 1.5x | 14.2x |
| Comfort Systems USA (FIX) | 39,005 | 12,543 | 50.7% | 18.1% | 3.1x | 17.2x |
| Limbach (LMB) | 609 | 684 | 23.7% | 8.7% | 0.9x | 10.3x |
| Legence (LGN)Growth includes acquisitions | 4,051 | 3,746 | 69.2% | 6.9% | 1.1x | 15.7x |
| Median | 16,122 | 8,145 | 37.2% | 9.7% | 1.3x | 14.9x |
| Electrical contractors | ||||||
| IES Holdings (IESC) | 8,204 | 3,986 | 22.7% | 13.8% | 2.1x | 14.9x |
| MYR Group (MYRG) | 3,891 | 4,006 | 16.1% | 7.3% | 1.0x | 13.4x |
| Median | 6,048 | 3,996 | 19.4% | 10.5% | 1.5x | 14.1x |
| Electrical & infrastructure | ||||||
| Quanta Services (PWR) | 88,353 | 32,905 | 26.3% | 9.3% | 2.7x | 29.0x |
| MasTec (MTZ) | 16,604 | 16,109 | 23.5% | 8.1% | 1.0x | 12.7x |
| Primoris (PRIM) | 4,562 | 7,284 | 5.1% | 4.4% | 0.6x | 14.2x |
| Median | 16,604 | 16,109 | 23.5% | 8.1% | 1.0x | 14.2x |
| Building & life-safety services | ||||||
| APi Group (APG) | 20,040 | 8,438 | 14.1% | 12.8% | 2.4x | 18.6x |
| All companies | 12,404 | 7,861 | 23.1% | 9.0% | 1.3x | 14.5x |
LTM = last twelve months. Source: S&P Capital IQ, as of October 21, 2026.11
With strategic buyers and private equity platforms both looking, the best outcome comes from putting your business in front of both and letting them compete.
Service and maintenance revenue draws private equity; data center and critical-facility work draws strategics. Show buyers exactly how your revenue splits.
Licensed tradespeople, apprenticeship programs and a leadership team that stays after the sale are what buyers are really paying for.
A backlog tied to one data center customer or general contractor raises questions. Diversified customers support a stronger 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, Electricians in the US (NAICS 23821), August 2026.
- IBISWorld, Plumbers in the US (NAICS 23822b), July 2026.
- IBISWorld, Heating & Air-Conditioning Contractors in the US (NAICS 23822a), January 2026.
- IBISWorld, Transmission Line Construction in the US (NAICS 23713), May 2026.
- IBISWorld, Commercial Building Construction in the US (NAICS 23622a), May 2026.
- Comfort Systems USA, third quarter 2026 earnings call, October 23, 2026 (transcript via The Motley Fool).
- R.L. Hulett, “Mechanical, Electrical & Plumbing (MEP) Services M&A Update Q1 2026” (PitchBook data). The report notes its multiples are based on a limited number of disclosed deals.
- PKF O’Connor Davies, “U.S. HVAC M&A Industry Update,” Summer 2026.
- MasTec, “MasTec to Acquire The Superior Group,” July 7, 2026. Multiple calculated from the disclosed price and projected 2026 adjusted EBITDA.
- Schryver, “Champions Group Acquires Southern California’s Powell Electric,” August 2026.
- S&P Capital IQ, public company and M&A transaction screens, as of October 21, 2026.
- Pulse 2.0, “Loenbro Acquires Prism Electric,” September 21, 2026; sponsor information from company and sponsor announcements.
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.