Outlook 2026: Energy, Power & Infrastructure

Across industries, the market is accelerating. Yet it’s a nuanced environment, in which quality is king, strategic options are expanding, technology is transforming the landscape, and change is a constant. Overall, 2026 offers a wealth of potential for buyers and sellers who can navigate this complexity with strategic conviction and tactical creativity. Read our 2026 Outlook.

Below, we explore how these dynamics are driving M&A opportunities in energy, power, and infrastructure.

Energy, Power & Infrastructure: Generating Long-Term Opportunities

Investor interest remains strong for companies tied to a variety of megatrends, including the energy transition, electrification, and grid modernization; infrastructure upkeep and upgrades; and a heightened focus on sustainability, connectivity, and digitization. Throughout these areas, businesses that serve high-growth end markets with innovative, differentiated solutions will be particularly sought after.

“In 2026 and going forward, a large and expanding universe of financial and strategic buyers will continue to seek exposure to these major global themes,” says Drew Spitzer, a managing director and co-head of our Energy, Power & Infrastructure Group. “We expect to see steady M&A activity across a broad range of products, services, and technology related to power generation, critical infrastructure like water and roadway, engineering, energy management, and other categories.”

Below, we highlight key energy, power, and infrastructure sectors for investors to watch in 2026 and a selection of clients that exemplify opportunities in the industry.

Critical Infrastructure: Essential End Markets, Appealing Traits

With key trends like rising electrification, the energy transition, and aging infrastructure, companies serving critical assets will continue to see substantial investor interest in 2026. Investors are placing a particular emphasis on businesses focused on attractive segments with strong earnings visibility, defensibility, and stable demand.

For instance, a diverse set of businesses are essential to the high-growth utility, renewable energy, data center, and commercial and industrial markets, generating strong demand for a variety of electric infrastructure solutions. Differentiated services and products across the power landscape continue to appeal to investors, as shown by several recent engagements including United Utility, GPRS, DMC Power, Avtron Power Solutions, LayerZero Power Systems, Shermco, RESA Power, PurgeRite, and Great Lakes Data Racks & Cabinets.

Along the same lines, the revitalization, strengthening, and expansion of the country’s roadway network is bolstering demand for products and services throughout the value chain. Going forward, the need to improve the nation’s roads, enhance driver safety, and protect work zones will continue to spark investor interest in a host of businesses. Exemplifying these opportunities are Frontline Road Safety within striping and roadway maintenance and Area Wide Protective within flagging and traffic control.

Energy Transition: Many Services to Watch

Themes across the energy management sector such as electricity consumption increases, data center growth, price volatility, renewable energy expansion, and infrastructure aging are supporting long-term growth. Additionally, technological advancements in smart meters, energy storage, and AI are transforming the space, creating opportunities for innovation and efficiency improvements.

Amid the energy transition, nuclear power is one area poised for strong growth. A resurgence in nuclear energy investment is underway, driven by the accelerating need for constant, reliable power. Nuclear energy is uniquely positioned to provide the steady, carbon-free power required to meet this surging demand, creating a host of new M&A opportunities.

As energy usage continues to evolve and expand, new technologies emerge, and sustainability remains in focus, demand will remain strong for energy management providers across many areas. “Whether providing sustainability consulting, load management, facility optimization services, installation of energy efficiency retrofits and upgrades, battery energy storage, or substation and T&D infrastructure solutions, leading energy management companies will have substantial upside in 2026 and beyond,” says Matt White, a managing director and group co-head.

Companies at the forefront of the energy transition will continue to see prolonged growth and investor interest. This is highlighted by LS Power’s acquisition of ENGIE Services U.S., which focuses on comprehensive energy solutions like energy efficiency upgrades, renewable energy systems, and energy storage. Many companies across utility services also showcase this potential, including United Utility, GPRS, Shermco, DynaGrid, and East Coast Power.

Engineering: Clear Revenue Visibility

Modernization, maintenance, and expansion of U.S. infrastructure; resilient public funding; and evolving environmental regulatory requirements are all supporting strong demand for engineering services. Combined, these themes also foster long-term revenue visibility. “Across the engineering space, companies specializing in growing, resilient end markets—including power and utility, water and wastewater, environmental, transportation, and critical facilities—remain particularly appealing to investors,” says Greg Waller, a managing director.

For instance, TRC is a leading global provider of advisory, consulting, construction, engineering, and management services supporting critical infrastructure. In addition, DCCM is a diversified engineering services firm specializing in public sector infrastructure projects, including transportation, water, and power and utilities, among other key categories.

Other prime examples within transportation include Consor Holdings LLC, which provides civil infrastructure planning, engineering design, structural assessment, program management, and consulting services, and GeoStabilization International (GSI), which offers geohazard mitigation and roadway safety services that protect and secure critical infrastructure.

The critical facilities segment also continues to see heightened M&A activity as illustrated by TTSP HWP, a German engineering firm focused on data center advisory, development, and design services. With its well-differentiated value proposition, the company is poised to continue delivering on the promise of powerful European infrastructure tailwinds.

Environmental Services: Resilient Demand and Substantial Funding

The environmental services market offers many attractive areas for businesses and investors, including solid waste management and recycling; diversified waste management and recycling; industrial, hazardous waste, and specialty services; water related services; and environmental testing, consulting, and engineering.

“This wide-ranging space is primed for continued growth as we move forward through 2026, thanks to its resilient demand drivers, substantial public and private investment, nondiscretionary and compliance-driven services, and large addressable market,” says Luke Semple, a managing director.

Supported by many exciting and durable trends, investors view environmental services as a great place to deploy capital. This highly fragmented landscape of opportunities will continue to see significant M&A momentum as demonstrated by O6 Environmental, which provides environmental remediation, industrial cleaning, waste transportation and disposal, liquid waste processing, and emergency response solutions. Another example is Wasteology, a managed waste services platform offering proprietary reporting and analytics to help customers optimize waste operations, drive efficiencies, and advance sustainability goals.

And in the water end market, prolonged underinvestment in water and wastewater infrastructure is leading municipalities and utilities to repair, replace, and improve a swath of outdated, deteriorating assets. These vital enhancements are driving a non-discretionary, long-term need for a wide range of water-related services and components. United Flow Technologies captured substantial investor attention by bringing a variety of value-added solutions to leading OEMs across process equipment, pumps, valves, and automation and controls.

What’s Next

Looking ahead through 2026, powerful global forces—such as the energy transition, rising infrastructure investment, and rapidly growing electricity demand—will continue to drive heightened demand for services, products, and technology across energy, power, and infrastructure. We expect this surge to keep fueling significant investment in innovative companies throughout the industry.

“The industry’s broad appeal will only strengthen, leading to sustained M&A activity,” says White. “The scale of these underlying trends and the long-term stability and growth they are creating will continue to attract a diverse pool of investors, including private equity firms, strategic acquirers, and infrastructure funds.”

Learn more about the Harris Williams Energy, Power & Infrastructure Group.