TRG | The Bottom Line – 8/8

This week was one of the busiest weeks across TRG’s universe as it was 1) an earnings week, and 2) there was a flurry of M&A activity across multiple sectors. Industry contacts had pointed to a pickup in M&A activity in 2H’25 and 2026, and this week certainly proved that out. There were 6 notable M&A announcements and a handful of other deals completed in Q2 that were announced with Q2 earnings. We view these deals as both a sign of continued strong outlook (in the case of heavy materials M&A) and as consolidation during the lower-demand points of the cycle (in the case of resi and office furniture M&A). For those doing deals in these times of slower demand (resi and office furniture), a commonality is the use of stock to get the deal done. Companies are balancing using their attractive stock price with the high rate of debt, a trend that seems more common in today’s environment than the recent past. We expect to see further M&A deals before year end given the state of the market (good outlook for public and non-res, consolidation opportunities in resi), the optionality of using stock as payment, and what companies themselves are communicating.

Notable M&A news this week:

• MLM asset swap with Quikrete and acquisition of magnesia specialty producer

• GVA acquisition of materials-led businesses with much higher margin profiles

• ROAD acquisition in Houston Metro

• MBC acquires AMWD (all-stock)

• HNI acquires SCS (cash and stock)

• TIC closes acquisition of NVEE