PKF Attest Corporate Finance's latest report highlights the leading role of strategic buyers, the rise of precision manufacturing, and growing investor interest in companies serving the healthcare, aerospace, energy, and defence industries
Mergers and acquisitions (M&A) activity in the mechanical engineering sector continues to demonstrate remarkable resilience across the Iberian Peninsula, supported by an industrial transformation driven by technological innovation, the need to strengthen supply chains and increasing diversification towards higher-value end markets.
These are among the key findings of the 2026 LTM edition of Iberian M&A Overview – Mechanical Engineering, published by PKF Attest Corporate Finance. The report analyses market developments, the sector's key trends, the most significant transactions completed in Iberia during 2025 and the valuation multiples of the leading listed companies operating in the industry.
Precision manufacturing remains at the forefront of M&A activity
The report highlights that the global precision manufacturing market continues to be one of the main drivers of M&A activity within the mechanical engineering sector. The industry's high degree of technological specialisation, combined with the constant need for innovation, is fuelling strong corporate activity led primarily by strategic buyers.
Companies are seeking to strengthen their industrial capabilities, expand their technological offering and reposition themselves in higher-margin segments, while developing more resilient production structures to cope with international market uncertainties.
Against this backdrop, PKF Attest notes that uncertainty arising from tariff policies and global trade tensions is accelerating corporate transactions. Many companies are investing in domestic supply chains and pursuing vertical integration strategies to reduce supply risks and strengthen their operational capabilities.
At the same time, market participants are steadily expanding their exposure to new end markets and industrial applications, directing investment towards high-margin sectors such as medical devices, aerospace and automotive.
Technological innovation driving future growth
Technological advances continue to reshape the mechanical engineering industry. According to the report, several key trends are expected to define the sector's evolution over the coming years.
Among the most significant is the growing adoption of artificial intelligence and machine learning algorithms to optimise mechanical system design, improve industrial processes and enhance operational efficiency.
Additive manufacturing through 3D printing is also becoming an increasingly important technology thanks to its ability to produce highly complex components with exceptional precision, accelerate product development and significantly reduce material waste during production.
The use of advanced materials represents another major driver of innovation. Developments in nanotechnology and materials science are enabling the creation of components with unprecedented performance characteristics, particularly for the aerospace and automotive industries.
Meanwhile, industrial automation continues to expand through the implementation of robotic systems capable of performing repetitive tasks, reducing labour costs, improving precision and minimising manufacturing errors.
The Internet of Things (IoT) is also transforming mechanical engineering by enabling intelligent systems capable of monitoring and controlling industrial equipment in real time, improving both productivity and predictive maintenance.
Finally, augmented reality and virtual reality are becoming increasingly valuable tools for design visualisation, prototype simulation and the remote operation of industrial equipment, reducing the need for physical models during product development.
End markets driving demand
Demand for mechanical engineering solutions continues to be supported by several strategic sectors of the economy.
The automotive industry remains a key source of demand, requiring increasingly sophisticated engineering capabilities to develop more fuel-efficient engines, advanced safety systems and next-generation mobility technologies.
In the aerospace and defence sectors, investment continues to focus on innovation in aerodynamics, materials science and propulsion technologies, driven both by stringent regulatory requirements and the need to enhance technological and strategic capabilities.
The energy sector also continues to generate significant demand for engineering solutions related to renewable energy development, the optimisation of conventional power generation and the modernisation of energy production, storage and distribution infrastructure, as well as water management systems.
Meanwhile, the healthcare industry continues to increase investment in the development of medical devices, surgical instruments and high-precision diagnostic equipment, reinforcing its position as one of the most attractive end markets for investors.
Public investment and sustainable industrialisation
The report also identifies several structural factors expected to support the continued growth of the mechanical engineering market in the coming years.
Among them is the sustained increase in public investment in infrastructure projects worldwide, including highways, bridges, power plants and other major civil engineering works, which will continue to generate demand for specialised engineering services.
This is complemented by the growing importance of sustainability and energy-efficient industrial solutions, encouraging the development of new technologies, advanced materials and more environmentally responsible manufacturing processes.
PKF Attest also identifies the shortage of skilled professionals as one of the industry's main challenges, highlighting it as a factor likely to constrain future growth.
Major M&A transactions in Iberia during 2025
Corporate activity throughout 2025 reflected the sector's strong momentum and the active participation of both strategic acquirers and financial investors.
Among the year's most significant transactions was PHI Industrial's acquisition of Palinox, strengthening the Spanish private equity firm's presence in the food processing machinery sector. Palinox specialises in the design and manufacture of industrial freezing tunnels and other food processing equipment.
In March, Nederman Ibérica also announced the acquisition of 100% of Euro-Equip for €15 million. The company designs and supplies turnkey solutions for foundries, metal recycling and aluminium casting operations.
In May, Kutxa Fundazioa acquired Grupo Inzu, a specialist in industrial services and machinery for advanced manufacturing systems, in a transaction aligned with its strategy to support the industrial fabric of Gipuzkoa.
In June, Austrian industrial group Andritz agreed to acquire Salico Spain and Salico Italy, companies specialising in finishing lines for ferrous and non-ferrous metal processing. PKF Attest Corporate Finance acted as Salico's financial adviser throughout the sale process.
That same month, Lekuona acquired 3G Hidráulica, a distributor of hydraulic and industrial products serving the marine, civil engineering and industrial sectors.
July proved to be one of the busiest months of the year. Atlas Copco completed the acquisition of ABC Compressors, the Eibar-based Spanish manufacturer of industrial piston compressors for air and gas applications, while also acquiring Haizea, a specialist in the maintenance, repair and installation of industrial compressed air systems.
Also in July, Grupo Daniel Alonso acquired Idesa, an engineering and manufacturing company focused on equipment for the energy sector, modular construction and projects related to the energy transition.
During the same period, EPER Metallic Solutions acquired Codesal, a company specialising in boilermaking, machining and the manufacture of metal structures for the naval and industrial sectors.
The market also saw Sunds Fibertech acquire Portuguese company Advanced Cyclone Systems, a developer of high-efficiency cyclone technologies.
Subsequently, Babcock Wanson Group acquired ACT Andaluces, a specialist in the installation and maintenance of industrial systems, while Irundin completed the acquisition of Mecanizaciones Alavesas, a manufacturer of machinery for bottling, filling and packaging plants.
The year concluded with Talde Private Equity's acquisition of Fluytec, further strengthening the Spanish investor's presence in the advanced water filtration systems market.
Valuations point to a robust market with distinct dynamics across segments
In addition to its analysis of M&A activity, the report includes a comparison of leading publicly listed companies in the mechanical engineering and industrial manufacturing sectors, using EV/Sales and EV/EBITDA market multiples as key valuation benchmarks.
Within the machine tools segment, the analysis covers companies including Andritz AG, DMG MORI Aktiengesellschaft, Bystronic AG, Feintool International Holding AG, Gesco SE, Mikron Holding AG, Hurco Companies, Nicolás Correa and Reko International Group.
The companies analysed report a median EBITDA margin of 8.7%, with median valuation multiples of 0.4x EV/Sales and 6.4x EV/EBITDA, reflecting a market characterised by moderate valuation levels and significant dispersion depending on each company's technological positioning and profitability.
In the forging and stamping segment, represented by companies such as Gestamp Automoción, CIE Automotive and Adval Tech Holding, the median EBITDA margin reaches 10.7%, while valuation multiples stand at 0.1x EV/Sales and 5.9x EV/EBITDA, indicating more conservative valuations despite the sector's solid operating performance.
Meanwhile, the diversified industrials segment, comprising companies such as OC Oerlikon Corporation and Kennametal, commands the highest valuation multiples in the report, with median multiples of 1.6x EV/Sales and 11.9x EV/EBITDA. This reflects more diversified business models, a higher degree of technological specialisation and a greater contribution from high value-added activities.
The analysis highlights that valuation trends remain closely linked to factors such as exposure to high-growth end markets, technological innovation capabilities, international expansion and each company's competitive positioning.
A market increasingly driven by technological specialisation
The report concludes that the mechanical engineering sector will continue to evolve towards increasingly technology-intensive business models, where automation, digitalisation, advanced manufacturing and sustainable solutions will become key drivers of value creation.
The search for differentiated capabilities by industrial buyers and private equity investors is expected to continue supporting acquisitions aimed at incorporating new technologies, expanding manufacturing capabilities and gaining exposure to higher-growth sectors.
At the same time, the growing complexity of global supply chains and the need to strengthen industrial resilience are expected to further encourage vertical integration strategies and the reshoring of manufacturing capabilities.
PKF Attest Corporate Finance's sector expertise
PKF Attest Corporate Finance has extensive experience advising on mergers and acquisitions across the industrial sector, with particular expertise in mechanical engineering.
The firm has advised on numerous sell-side and buy-side transactions, working alongside industrial companies, family-owned businesses, private investors and private equity firms on both domestic and cross-border transactions.
Its sector expertise spans industrial machinery, metal fabrication, automation, industrial components, advanced engineering and other manufacturing-related industries.
This specialist knowledge enables the firm to deliver highly tailored advice for each transaction, combining in-depth market insight with access to potential buyers and investors and extensive experience in negotiating and executing complex corporate transactions.
An international professional services firm
Founded in 1990, PKF Attest has established itself as one of Spain's leading professional services firms.
Today, the firm has more than 35 years of experience, over 1,000 professionals, 12 offices across Spain and a presence on five continents, serving more than 2,000 clients.
PKF Attest ranks among Spain's leading professional services firms and is a member of PKF Global, one of the world's largest international professional services networks.
PKF Global comprises 213 member firms operating across 150 countries, with more than 23,000 professionals, 513 offices worldwide and aggregate annual revenues exceeding US$2 billion, making it the 15th largest international audit network.
Access to a global network of buyers and investors
Within its Corporate Finance practice, PKF Attest is also a member of Pandea Global M&A, an international network specialising in mergers and acquisitions advisory services.
Pandea operates across 36 countries, with 68 offices, more than 400 M&A professionals, and has successfully completed over 2,500 transactions with an aggregate deal value exceeding €50 billion.
The organisation ranks 13th globally and 6th in Europe by number of completed transactions, providing member firms with direct access to international buyers, strategic investors, local market expertise and cross-border growth opportunities.
This international platform enables PKF Attest to support clients in both sell-side and buy-side transactions on a global scale, providing access to a broad universe of potential acquirers and acquisition targets.
A dedicated Corporate Finance team
PKF Attest's Corporate Finance practice is made up of experienced professionals specialising in financial advisory and corporate transactions, led by Partners Jaime Rodríguez, José-María Alberú, Judith Sendino, Juan Diego Martínez de Aguilar and Javier Martínez López.
The team also includes directors, vice presidents, associates and analysts advising clients on mergers and acquisitions, fundraising, company valuations, restructurings and corporate finance transactions.
Combining deep sector expertise, international reach and strong technical capabilities, PKF Attest Corporate Finance supports companies and investors throughout every stage of a transaction, from strategic planning through to successful completion.
About the report
The Iberian M&A Overview – Mechanical Engineering (LTM 2026), published by PKF Attest Corporate Finance, provides a comprehensive overview of the Iberian mergers and acquisitions market in the mechanical engineering sector. The report examines the industry's key trends, the factors driving demand, the most significant corporate transactions completed across Iberia during 2025, valuation multiples for leading listed companies, and the evolution of a sector that continues to play a pivotal role in industrial transformation, technological innovation and the transition towards a more efficient and sustainable economy.
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