$1bn+ construction mergers and acquisitions start to re-emerge in US

That’s according to a new report by accountancy firm PwC, which has tracked a rise in the vaue of deals throughout the year.

Its Engineering & Construction Deals 2026 Outlook found that while M&A remained below 2024 levels this year, large transactions have started to return after a “cautious” beginning of the year.

Cumulative deal value increase in Q3 2025, even as deal volume contracted slightly.

PwC said confidence was returning at the top end of the engineering and construction market but investors “remain selective” due to cost inflation, labour shortages, and uneven access to financing.

It added that investors are less interested in broad expansion than in repositioning for policy certainty, supply chain resilience, and productivity gains. “Buyers are adapting to shifting US trade and industrial policy by using M&A to strengthen domestic capacity and reduce supply chain risk,” it said.

PwC said that M&A in the US surged by 66% in the second half of the year, as company’s reacted to greater policy clarity and sought to derisk supply chains, expand domestic capacity, and offset tariff impacts.

It also suggested that rising material costs and shortages of skilled labour are compressing margins in construction and driving consolidation.

Image supplied by PwC

Meanwhile, although homebuilding deal volume and value held steady through late 2025, activity is below 2024 levels as high interest rates, construction costs, and tight credit see investors take a more selective approach.

But PwC said momentum could return to housebuilding sector deals once financing conditions ease.

Over the coming six months, the company said two factors were likely to drive M&A activity: a search for scale and stability driving “roll-ups” of companies across a fragmented value chain; and technology and sustainability moving centre stage.

PwC added, “E&C dealmaking in 2026 will be shaped by continued consolidation and ongoing technology-driven change. With infrastructure, data centre, and energy-transition activity supporting demand, disciplined buyers can use M&A to build scale, improve productivity, and strengthen resilience. As labour constraints, cost pressures, and policy dynamics continue to influence the market, firms that integrate technology, pursue scalable platforms, and enhance supply chain stability will be positioned to lead the next phase of industry transformation.”

This week has already seen news of a $3.3 billion deal that will see engineering firm WSP acquire TRC companies. Meanwhile, Terex recently put its aerials brand Genie up for sale. Outside of the US, Doosan Bobcat is looking to acquire a 63% stake in Germany’s Wacker Neuson.