Architecture Engineering & Environmental Services

November 2017

Sectorwatch

As part of a growing trend among AEC firms enhancing their capabilities in IT and software, SNC-Lavalin announced the acquisition of Data Transfer Solutions, a developer of software for asset management, GIS, and transportation planning. AEC industry firms are likely to continue to advance their digital strategies through M&A, as data plays a more prevalent role in all aspects of buildings, infrastructure, and the environment.

 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating pricing power among clients/owners
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may indicate weak labor multipliers and/or utilization rates