The first quarter of 2025 saw big moves, bold strategies, and a clear shift toward specialization.
The AEC industry came out swinging in the first quarter of 2025. From architecture to environmental consulting, firms across the board have been busy making deals: big ones, strategic ones, and a whole lot of them. If the start of the year is any indication, we’re in for a very active 2025.
So, what’s driving all this movement? In a nutshell: firms are looking to grow smarter, not just bigger. They’re after new geographies, new capabilities, and in many cases, very specific expertise that sets them apart in a competitive market.
Let’s break it down.
Civil engineering is where the action is. If there’s one clear takeaway from Q1, it’s this: civil engineering firms are hot commodities. They topped the list when it came to acquisitions this quarter. Why? Because infrastructure is booming. Whether it’s roads, water systems, or utilities, civil engineering is the backbone of so many projects in motion right now.
Just look at LJA Engineering, which picked up Florida-based Peters and Yaffee to beef up its traffic and transportation design services. Or CPH Consulting, which expanded its water and wastewater capabilities with the acquisition of Mittauer & Associates. These aren’t just regional plays. They’re strategic bets on where the work is heading.
Architecture firms weren’t far behind, especially those with a strong portfolio in sustainability, restoration, or urban planning. The deals here show that design is still a big priority, especially as clients look for spaces that are both beautiful and future-ready.
U.S. and Canada: The M&A hot zones. When it comes to where the deals are happening, the U.S. is leading the pack. States like Texas, California, Florida, and New York saw a flurry of activity. These regions already have strong pipelines of public and private sector projects, so it makes sense that firms want to double down there.
Canada was a close second, with a ton of action in cities like Toronto, Calgary, and Montreal. The Canadian deals were a mix of engineering and architecture, reflecting a balanced push into both infrastructure and design-forward development.
And don’t count Europe out. Firms from the U.K., Germany, Denmark, and the Netherlands made some smart cross-border plays, often targeting niche capabilities or entry points into the North American market. Global reach is clearly becoming more important.
Big firms are leading the charge (with some help from PE). Most of the acquisitions this quarter came from larger firms looking to round out their services or expand into new regions. Companies like NV5, Greenman-Pedersen, and Trinity Consultants were particularly active, scooping up firms that filled gaps in their portfolios – whether that was MEP engineering, commissioning, or environmental services.
Private equity was also in the mix. Signal Hill Equity Partners’ acquisition of MM Architects and Engineers, for example, shows that investors still see a lot of value in AEC firms with diverse capabilities.
It’s a clear signal that the market is shifting toward comprehensive, one-stop-shop service models. Clients want partners who can do it all, and firms are responding by building those platforms through acquisition.
Specialization is the new superpower. Here’s where things get really interesting: a good chunk of the deals this quarter were about acquiring very specific, high-value expertise. Think lighting design, acoustics, biosafety, even human factors engineering.
Why? Because as projects become more complex and technology-driven, that kind of niche knowledge becomes incredibly valuable. HLB Lighting Design added serious depth with its acquisition of CS Design, while Trinity Consultants went after acoustics and AV capabilities with Jaffe Holden.
These are firms positioning themselves not just to compete, but to lead in areas where very few others can.
What to expect for the rest of the year. If Q1 is the warm-up, Q2 and beyond could be even busier. Firms are looking ahead and seeing bigger, more integrated projects on the horizon. And that means more M&A activity, especially in areas tied to sustainability, infrastructure, and high-performance design.
Stantec’s recent agreement to acquire Page might be a signal of the scale and ambition we are likely to see throughout the rest of the year.
This massive move by Stantec will make them the second largest architecture firm in the US in addition to strengthening its position as the largest integrated engineering and architecture firm in North America. As other large firms pursue similar strategic moves, we can expect a rise in high-impact, integrative deals that align with long-term growth and specialization strategies.
We’ll likely see even more cross-border deals, continued interest from private equity, and a growing number of firms zeroing in on niche capabilities that help them stand out.
Bottom line: the AEC world is changing fast. The firms making moves now are the ones preparing to lead it.
Need help? Have questions about the M&A process? We’re here to help. Zweig Group’s M&A consultants are a cross-functional team of industry leaders who are driven to find solutions for business owners when it comes to strategic and capital challenges. Our extensive network spans North America, allowing us to blend industry and sector knowledge with experience across the M&A lifecycle.
We also love answering your questions, so don’t hesitate to reach out. You can find more information about what we do, as well as a link to contact our team, on the Zweig Group website.
Tracey Eaves is managing director of Transition consulting at Zweig Group. Contact her a teaves@zweiggroup.com. Will Swearingen is senior director of Transition consulting at Zweig Group. Contact him at wswearingen@zweiggroup.com.
