PwC report identifies strategic alignment as primary deal catalyst

Business consultancy PwC released a report titled US Deals 2026 Outlook: Transportation and Logistics that concludes mergers and acquisitions in the transportation and logistics sector are being driven primarily by strategic fit rather than by a pursuit of scale.

Renewed traction in the second half of 2025

PwC observed that T&L dealmaking regained momentum in the latter half of 2025, with buyers emphasizing strategic alignment over simply increasing size. The firm reported that from July to November transportation and logistics companies announced $114 million worth of deals over $50 million, up from $42 million in the same period of 2024, although the total number of announced deals fell to 44 in 2025 from 58 in 2024.

On a year-to-date basis through November, PwC said North American T&L deal value reached $128.8 billion—a figure that includes the proposed $85 billion merger between Union Pacific and Norfolk Southern—surpassing Europe at $7.2 billion and Asia/Australia at $29.9 billion for the first time since 2021.

Buyers targeting subsectors with defensible advantages

PwC said acquirers are focusing on subsectors that offer defensible growth, improved operating efficiency and exposure to markets with high barriers to entry. Activity spans the full value chain and reflects capital deployment intended to modernize operations and strengthen capabilities.

• Targets range from infrastructure assets to asset-light platforms
• Capital is being allocated for technology modernization
• Investment priorities include resilient supply chains and specialized logistics services

Rail consolidation is creating ecosystem opportunities

The proposed Union Pacific–Norfolk Southern rail merger is accelerating related deal activity across the rail ecosystem, PwC said, prompting investors to evaluate companies that support rail operations and infrastructure.

• Areas of investor interest include track infrastructure suppliers
• Railcar maintenance and leasing businesses
• Inspection technologies and transloading operations

PwC describes these segments as having regulatory complexity, contracted revenue and expansion potential, making them attractive targets amid consolidation.

Potential industry ripple effects if merger is approved

Darach Chapman, PwC Transportation & Logistics Deals Leader, told LM that approval of the railroad merger would likely 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,”

PwC added that the value of assets that provide alternative access, reduce congestion or connect disparate networks could shift as participants react to network changes.

Specialized logistics drawing investor interest

The report highlighted that providers are reshaping portfolios to emphasize sectors with specialized growth and stronger pricing power. PwC cited pharmaceutical and healthcare logistics, dedicated transport, temperature-controlled logistics and reverse logistics as focal areas tied to recurring volumes and mission-critical supply chains.

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

Outlook for 2026: quality over quantity

Looking ahead to 2026, PwC expects M&A activity in transportation and logistics to be defined more by strategic repositioning, timing and regulatory clarity than by deal volume. The firm said acquirers will focus on targeted transactions that enable network optimization, automation and operational resilience.

PwC noted that regulatory reviews and lingering policy uncertainty may affect deal timing, but that the underlying fundamentals—ample dry powder, renewed confidence in financing markets and accelerating digital integration—point toward a constructive environment for dealmaking across the sector.