In Q1 2025, the material handling and process equipment industry demonstrated strength amid economic headwinds, buoyed by innovation, automation, and sustained demand from logistics, e-commerce, and industrial sectors.

Key takeaways include:

• Demand and Innovation Fueling Growth: Despite declining capacity utilization, demand for automation and logistics support remains high. Top-performing companies are offering integrated, tech-enabled solutions that address customer pain points in areas like conveying, screening, feeding, and heating/cooling equipment.

• Valuations Reflect Resilience: Middle-market companies in this space continue to attract strong valuations—averaging 7.7x EV/EBITDA—thanks to healthy margins and strategic importance in streamlining industrial operations. Buyers are prioritizing businesses with end-market diversity, scalable technology, and value-add services.

As companies adapt to supply chain pressures and labor shortages, those investing in automation, digital integration, and solution-based partnerships are well positioned to capture share in a competitive, evolving market.