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March 2018
Construction, Design-Build, and EPC
Sectorwatch
The construction, design-build, and EPC space has been active in terms of M&A activity. Deals have spanned from Granite Constructions's recent deal to acquire Layne Christensen in a transaction valued in excess of $500m down to smaller, strategic tuck-in deals. Activity is likely to continue across the water, energy, infrastructure, and buildings sectors amid market strength.
Industry Trends:
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
