Q4 2025 Automotive Aftermarket Industry Update

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GCG’s Q4 2025 Automotive Aftermarket Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.

Key findings include the following:

  • The North American automotive aftermarket navigated a challenging Q4 2025 environment, as elevated labor costs, tariff uncertainty, and continued pricing pressure constrained margin recovery, while slower EV adoption and OEM investment pullbacks extended the relevance of ICE and hybrid vehicles and supported durable aftermarket demand.
  • M&A activity remained active, with 33 announced transactions—just above the record pace of the prior two quarters—with strategic buyers accounting for 91% of activity and continued consolidation across collision repair, component suppliers, and technology-enabled service platforms.
  • Public aftermarket performance remained resilient in Q4 2025, led by continued strength in non-discretionary and technology-enabled platforms, while selective improvement in discretionary categories signaled early stabilization heading into 2026.
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