PwC report indicates transportation and logistics dealmaking activity is focused on strategy, not scale

A focus on strategic alignment is serving as a primary driver for transportation and logistics mergers and acquisition (M&A) activity, according to a new report issued today by business consultancy PwC, entitled “US Deals 2026 Outlook: Transportation and Logistics.”

The report observed that T&L dealmaking activity gained renewed traction over the second half of this year, with buyers prioritizing strategic alignment over scale. And it added that acquirers focused on subsectors offering defensible growth, operating efficiency, and exposure to high-barrier markets, with activity across what the firm called the full value chain, ranging from infrastructure to asset-light platforms, coupled with capital allocated for things like technology modernization, resilient supply chains, and specialized logistics services.

From July to November, PwC noted that transportation and logistics companies announced $114 million worth of deals over $50 million, up from $42 million, for the same period in 2024. But that comes with the caveat that even with the higher value, there were fewer deals, with 44 announced in 2025 compared with 58 in 2024. On a year-to-date basis through November, the report said that North American T&L deal value hit $128.8 billion (including the proposed $85 billion railroad merger between Union Pacific and Norfolk Southern), coming in ahead of Europe, at $7.2 billion, and Asia/Australia ($29.9 billion), for the first time since 2021.
Darach Chapman, PwC Transportation & Logistics Deals Leader, told LM that strategic buyers will continue to shape their portfolios in areas where they believe they have a “right to win,” including acquisitions in specialized logistics companies, as well as technology investments that enhance their capabilities and service offerings.

“We expect to see this trend continue into 2026 as dealmakers focus on strategic alignment over scale,” he said.

With the Union Pacific-Norfolk southern merger, and rail consolidation driving adjacent dealmaking activity, the report explained it is creating momentum across the rail ecosystem, with investors evaluating suppliers and services supporting track infrastructure, railcar maintenance, leasing, inspection technology, and transloading operations. Which it describes as segments with regulatory complexity contracted revenue, and expansion potential, with investors looking to capture value around rail industry consolidation.

PwC’s Chapman said that if this merger is approved, it is expected to trigger follow-on effects across the industry.

“For example, short line railroads and their customers may reassess their networks, routes, interchange points, and service options—potentially increasing market activity,” he said. “As a result, the value of assets that provide alternative access, reduce congestion, or connect disparate networks could shift.”

Looking at specialized logistics sectors, the report said that providers are reshaping portfolios around sectors with specialized growth and pricing power—citing pharmaceutical and healthcare logistics, dedicated transport, temperature-controlled logistics, and reverse logistics—which it said are tied to recurring volumes and mission-critical supply chains, while also viewed as long-term plays on demographic trends and shifting consumption patterns.

“Investors increasingly view specialized logistics—such as healthcare distribution and temperature-controlled services—as ways to gain exposure to steady demand and higher margins,” said Chapman. “These niche segments align with long-term demographic and behavioral shifts, including an aging population, omnichannel retail, and faster delivery expectations.”

As for 2026, PwC said that M&A activity is not likely to be defined by volume, stating it will be shaped by strategic repositioning, timing, regulatory clarity, and the ability to modernize operations through targeted acquisitions.

“With a pivot toward quality over quantity, investors are favoring platforms that enable network optimization, automation, and resilience,” it said. “While regulatory reviews and lingering policy uncertainty may shape deal timing, the fundamentals— including ample dry powder, renewed confidence in financing markets, and accelerating digital integration—all point to a constructive environment for dealmaking across the sector.”