The first quarter of 2026 industrials M&A was a story of much changing and much staying the same. Though the war in Iran gave the word uncertainty a boost in its quest for word of the decade, a mixed bag of positive and economic signals has actually resulted in a steady, albeit bifurcated, market.

It’s ultimately a tale of two assets — the so called “A+” businesses, and everything else.

“I think what we’ve seen is a return to what traditionally drives M&A in the sector, with volatility as the new norm,” said Mike Jenny, a managing director at Stout Capital LLC who focuses on metals and specialty manufacturing. “I think for the moment, companies in marketing seeking capital or an M&A solution are self-selecting for the ones that have gotten good at managing volatility, in different ways. They’ve become indispensable to their suppliers or customers, or they’re doing something valuable not everybody can replicate.”

SPS by With Intelligence tracked a total of 169 industrials deals in Q1, down from 197 the year before. Roughly 21% of those deals were between $1 billion and $4.9 billion, while the remaining 78% of deals were valued at between $10 million and $499 million.

“A+” assets are those with exposure to headline-making sectors, highlighted by data centers and the power space, which ultimately feeds into data centers and their surging energy consumption. Non A+ assets, by contrast, are those more squeezed by uncertainty.

“The broader industrial landscape not tied to data centers, power or A&D has been relatively flat for the last 24 months or so as a function of indecision in their end markets,” said David D. Dunstan, head of industrials at Citizens M&A Advisory.

“If a traditional industrial business picks up a product line or customer base driven by data centers and all of a sudden 20% to 30% of the business is growing at a much faster rate, it changes the story pretty significantly, including the multiple and opportunity,” Dunstan said.

Editor’s note: The original, full version of this article was published April 16, 2026, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a demo.