Nov
2025
After a slow M&A environment for much of 2025, optimism is returning to the building products sector as sellers re-enter the market and buyers regain confidence. Long-term fundamentals including persistent housing shortages, aging inventory and growth in nonresidential sectors like data centers continue to support steady deal flow. Strategic buyers remain active, accounting for 64% of 2025 transactions (and 89% including sponsor add-ons), while private equity focuses on add-ons and prepares for a platform rebound in 2026.
Inside this update:
- Market outlook for residential and nonresidential construction, including housing starts, R&R trends and data center momentum.
- Key M&A themes: strategics driving activity, selective PE deployment and early signs of recovery ahead.
- Pricing trends across core materials and how tariffs, interest rates and input costs are shaping deal and project dynamics.