Architecture & Engineering Services Update 1H 2025

Architecture and engineering firms enter the back half of 2025 with mixed demand and clear priorities. Power, water, transportation, healthcare, and data center work are providing momentum, while office and retail remain softer and housing is rate-sensitive. Firms are scaling AI, BIM, and cloud workflows, elevating cybersecurity, and leaning on selective M&A to add talent and capability.

The question now is whether technology-enabled productivity and disciplined consolidation can outpace labor constraints and uneven end markets.

Download the 1H 2025 Architecture & Engineering Services Update to see the data, valuations, and recent deals.

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Insights include:

Technology moves from pilots to practice: AI adoption is on the rise and firms expect efficiency gains without broad headcount cuts, while cybersecurity stays a top priority.
Demand is uneven, but key end markets are resilient: Energy and power, healthcare, transportation, and surveying are growing, and data centers are a notable tailwind.
Consolidation and valuations remain constructive: Large transactions underscore active strategic and private equity interest, and public companies are trading near 17x LTM EV/EBITDA as of June 2025, with analysts expecting modest margin expansion.

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