In this quarterly report, Griffin Financial Group provides analysis and commentary on capital markets and valuation trends, mergers & acquisitions (M&A), and market research within the aggregates and construction materials industry.
Key takeaways for 4Q 2024 are:
- While the industry is primarily domestic, tariffs may have some indirect effects on producers with international supply chains and increase their input costs
- Weak sales volumes that were driven by decreased demand within light commercial segments, higher financing and construction costs, and weather-induced disruptions have been largely offset by upward pricing momentum
- Unlike broader capital markets, M&A activity and valuation multiples in the aggregates industry held strong throughout 2024 and beginning of 2025, despite higher interest rates
- Strategics continue to focus on strategic prioritization of assets by divesting non-core operations in favor of pure-play aggregates
- Private equity continues to drive acquisitions of downstream operators that provide asset- light road paving, repair and maintenance, and other asphalt and concrete services
Have questions about this report or would like to speak to our team about your company’s valuation? Please contact John A. Lee, Head, Commercial, Industrial and Services, at 610.205.6106, or Andrew D. Rudner, Vice President, at 610.205.6102.
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