2026 Australian Building Materials & Supplies Sector M&A Overview

By Morgan Business Sales | Updated May 2026 | Australian M&A Advisory

Sector Overview

The Australian building materials and supplies sector encompasses a wide range of businesses that sit between manufacturers and the construction end-market. It includes hardware and building supplies retailers, wholesale distributors, timber and panel merchants, tools and machinery suppliers, plumbing and bathroom products distributors, structural steel merchants, prefabrication specialists, and suppliers of safety, fastening, and consumable products to the trade. These businesses serve residential builders, commercial developers, civil contractors, subcontractors, and government project teams — forming an essential link in the construction supply chain.

According to IBISWorld, hardware and building supplies retailing in Australia generates approximately $31.3 billion in revenue in 2025–26 across 5,960 businesses, employing approximately 77,560 people. This figure represents only the retail segment of the supply chain. Hardware wholesaling — the primary distribution channel supplying tools, building materials, windows, and doors to trade customers — contributes a further $24.8 billion in revenue (IBISWorld, 2024–25). Timber wholesaling adds $5.9 billion, and metal and mineral wholesaling — supplying structural steel and fabricated metal products to construction — contributes $32.6 billion. Together, the broader building materials and supplies supply chain represents one of the largest sectors of the Australian economy, with combined revenues exceeding $90 billion annually.

The sector is characterised by significant diversity in business size and type. At the large end, ASX-listed groups such as Reece Limited (plumbing, bathroom, and HVAC-R distribution; $9.0 billion in FY25 revenue across ANZ and the US), Big River Industries (structural timber and panels), and Brickworks (bricks and masonry products; recently merged with Washington H. Soul Pattinson in a $9 billion+ transaction) dominate their respective niches. In the mid-market — which is where the vast majority of M&A advisory activity occurs — thousands of independent building materials distributors, specialist trade merchants, and regional hardware operators service construction companies across every state and territory.

For the purposes of this report, "building materials and supplies" businesses are defined as companies that supply building materials, tools, machinery, equipment, and essential construction products to construction companies, subcontractors, and trade customers — including hardware retailers and wholesalers, timber and panel merchants, structural product distributors, tools and equipment suppliers, and specialist materials distributors across categories such as plasterboard, cladding, insulation, roofing, and prefabricated systems.

Market Size, Scale, and Sub-Sector Composition

Understanding the scale and diversity of the building materials and supplies sector is essential context for business owners considering a sale. The sector is not homogeneous — sub-sector positioning, product mix, customer type, and geographic coverage are all critical determinants of both buyer interest and achievable valuation multiples.

Hardware and Building Supplies Retailing

The retail end of the sector generates approximately $31.3 billion in annual revenue (IBISWorld, FY2025–26) across approximately 5,960 businesses employing 77,560 people. This segment is heavily consolidated at the large end — Bunnings (Wesfarmers) commands over 50% of the hardware retail market — but the mid-market is populated by independent trade-focused operators, regional hardware businesses, and specialist category retailers. Revenue has experienced modest contraction in recent years (a CAGR of -1.3% between 2020 and 2025) as rising interest rates dampened residential construction activity and cost-of-living pressures reduced consumer renovation spending. IBISWorld projects a recovery of 2.9% in FY2025–26 as construction activity rebounds and housing demand remains elevated.

Hardware Wholesaling

Hardware wholesaling — the distribution of building supplies, tools, doors, windows, and construction materials to trade customers — generates $24.8 billion in annual revenue (IBISWorld, 2024–25) across approximately 1,400 businesses. This sub-sector has demonstrated stronger resilience than retail, growing at an annualised rate of 1.2% over the five years to 2024–25. Wholesale operators with established trade accounts, preferred supplier arrangements, and the ability to offer credit and delivery flexibility to construction companies typically command stronger M&A interest than pure retail operators, as their recurring trade relationships and order volume provide more predictable revenue for acquirers to underwrite.

Timber Wholesaling

Timber wholesaling contributes $5.9 billion in annual revenue (IBISWorld, 2025–26) across approximately 901 businesses, with revenue declining at an annualised 1.6% over the five years to 2024–25 as residential construction activity softened. However, structural timber and engineered wood products (LVL, glulam, cross-laminated timber) represent a premium niche experiencing strong demand from the residential medium-density and commercial construction sectors. Businesses with established relationships supplying engineered timber to project home builders or commercial contractors are particularly sought-after by acquirers looking to enter or consolidate in this product category. Big River Industries (ASX: BRI) — which supplies structural timber, formwork, and panel products — has been actively acquiring in this space, most recently completing the acquisition of Johns Building Supplies in Western Australia for $17 million in December 2025.

Metal and Mineral Wholesaling

Metal and mineral wholesaling — including structural steel fabrication, steel distribution, and mineral products supply to construction — generates $32.6 billion in annual revenue (IBISWorld, 2024–25), growing at an annualised 1.8% over five years. This is one of the largest subsectors by revenue and has attracted significant M&A activity, particularly from international acquirers seeking exposure to Australia's infrastructure pipeline. Heidelberg Materials' $1.7 billion acquisition of Maas Group's construction materials division (aggregates, ready-mixed concrete, and asphalt; February 2026) is the most prominent recent example of international capital targeting Australian materials distribution at scale.

Tools, Machinery, and Equipment Supply

Businesses that supply power tools, hand tools, safety equipment, formwork, lifting equipment, scaffolding accessories, and construction machinery to builders and contractors represent a compelling mid-market M&A niche. This sub-sector benefits from multiple revenue streams: product sales, tool hire, maintenance and repair services, and consumables replenishment — all tied to ongoing construction activity. Businesses with proprietary brands, exclusive distribution agreements with leading tool or equipment manufacturers, and a recurring hire and service revenue stream attract premium multiples. The ABS reported machinery and equipment wholesaling as the strongest-performing wholesale subsector in 2023–24, with earnings growing 16.7% year-on-year.

Demand Drivers and Market Outlook

Several structural forces are sustaining demand for building materials, tools, and construction supplies in Australia at elevated levels — and are expected to do so for the remainder of this decade. Each of these drivers has direct implications for the strategic value of well-positioned building materials and supplies businesses.

The National Infrastructure Pipeline

Infrastructure Australia's five-year pipeline of major projects stands at $242 billion, encompassing road, rail, water, energy, and social infrastructure investment across all states and territories. Projects of this scale and duration create sustained, multi-year demand for building materials, structural products, civil supplies, and specialist equipment. Businesses with established supply relationships to tier-one and tier-two civil contractors — particularly those supplying into transport, utilities, or defence infrastructure — carry a significant strategic premium because their revenue is underpinned by contracted government expenditure rather than cyclical private market demand.

The 1.2 Million Homes Target

The National Cabinet's target to deliver 1.2 million new, well-located homes by 2030 — agreed by Commonwealth, state, and territory leaders in August 2023 — represents an extraordinary medium-term stimulus for residential building materials demand. Australia is currently building approximately 165,000 new homes per year against a target that requires approximately 240,000 per year. Closing this gap will require a step-change increase in residential construction activity, which will flow directly into demand for structural timber, framing, cladding, plasterboard, roofing, insulation, plumbing fixtures, and all categories of residential building supplies. Businesses with established supply relationships to volume residential builders and project home companies are well-positioned to benefit.

Population Growth and Housing Demand

Australia's population grew at its fastest pace in decades over 2022–2024, driven by elevated net overseas migration. This population growth has created persistent housing undersupply in Sydney, Melbourne, Brisbane, and Perth, and is generating strong multi-year demand for new residential construction. Urban densification policies encouraging medium and high-density development in established suburbs are increasing demand for specialised materials including structural steel, engineered timber systems, acoustic panels, high-performance concrete, and curtain wall systems — all categories where specialist distributors with technical expertise command premium positioning.

The Energy Transition and Industrial Construction

Australia's renewable energy transition — including utility-scale solar, wind, battery storage, hydrogen production, and grid transmission infrastructure — is generating a significant and growing stream of industrial construction activity. Data centres, driven by AI infrastructure investment, have emerged as a major new demand driver for commercial construction materials, particularly in electrical, structural, and cooling-related supply categories. Building materials and supplies businesses with existing relationships in the industrial and commercial construction sectors — particularly those supplying into energy, mining, or logistics — are benefiting from this demand diversification, and acquirers seeking exposure to these growth verticals will pay accordingly.

Sustainability and Green Building Regulations

Australia's National Construction Code (NCC) has progressively raised energy efficiency and sustainability requirements for residential and commercial buildings. The 2022 NCC introduced the largest increase in residential energy efficiency standards in over a decade, requiring enhanced insulation, glazing, and ventilation across new builds. Compliance-driven demand for sustainable building products — including low-carbon concrete, recycled aggregates, certified timber, energy-efficient glazing, and green insulation products — is growing. Businesses that supply certified sustainable or low-carbon materials benefit from both regulatory tailwinds and a growing preference among major developers and project teams for verified-sustainable supply chains. This premium niche is attracting M&A interest from international groups (particularly European building materials companies) with established sustainable product portfolios seeking to leverage these products in the Australian market.

Recent M&A Transactions — 2023 to 2026

The following transactions illustrate the range and depth of M&A activity across the Australian building materials and supplies sector, from transformational international acquisitions of ASX-listed groups to targeted mid-market bolt-ons by ASX-listed consolidators. These deals confirm the breadth and motivation of the buyer universe — and the premium being placed on well-positioned Australian building materials businesses.

Valuation Benchmarks & EBITDA Multiple Ranges

EBITDA multiples across the Australian building materials and supplies sector vary significantly by sub-sector, business model, customer type, and product differentiation. The table below provides indicative ranges based on disclosed transaction data, comparable public company benchmarks, and market intelligence from mid-market advisory activity.

Sources: EAC Partners Construction Materials & Building Products Report (October 2024); Delancey Street Partners Building Products, Materials & Distribution 2024 Year in Review; Western Companies M&A Activity Report 2025; IBISWorld; disclosed transaction multiples (Saint-Gobain/CSR, Heidelberg/Maas); mid-market advisory benchmarks.

What Buyers Are Looking For: Key Value Drivers

Understanding what acquirers value — and how they assess building materials and supplies businesses — is essential to positioning a business for a premium sale outcome. The following factors consistently differentiate high-value from average-value transactions in this sector.

1. Recurring Trade Customer Relationships

The single most important driver of acquirer confidence and valuation premium is the quality and durability of trade customer relationships. A building materials business whose revenue is underpinned by a base of loyal, credit-account trade customers — builders, subcontractors, commercial developers — is fundamentally more valuable than a business reliant on transactional, one-off sales. Acquirers will assess customer tenure, average account value, churn rates, and the extent to which relationships are transferable to new ownership. Businesses where the owner personally manages key customer relationships represent a concentration risk that needs to be managed as part of any pre-sale preparation process.

2. Supplier Exclusivity and Preferred Distribution Agreements

Exclusive or preferred distribution agreements with major building materials manufacturers or brands are highly prized by acquirers. These agreements create defensible competitive advantages, protect margin, and restrict competitor access to the same product range. For an acquirer, acquiring a business with an exclusive distribution territory or preferred supplier status is effectively acquiring a protected revenue stream. The value of such agreements should be reviewed, documented, and formally confirmed as part of any sale preparation — including confirming they are assignable or survive a change of ownership.

3. Infrastructure and Government Exposure

Businesses with established supply relationships to the government-contracted construction sector — including state road and transport authorities, water utilities, defence infrastructure programs, and council projects — command a significant premium over purely private-market-exposed competitors. Preferred supplier panel positions, government accreditations, security clearances (where relevant), and a track record of on-time supply to government projects all contribute to this premium. In a market where the $242 billion infrastructure pipeline is the central investment thesis for many acquirers, businesses that are already established suppliers to this pipeline are among the most sought-after acquisition targets.

4. Product Mix and Margin Quality

Acquirers assess not just overall revenue and EBITDA, but the composition of that revenue. Businesses generating a higher proportion of revenue from higher-margin categories — branded proprietary products, specialist technical materials, tools and accessories with strong attach rates — will achieve better multiples than commodity distributors competing primarily on price. Similarly, businesses with a higher proportion of value-added services (technical advice, cutting and processing services, delivery, and project management support) command stronger valuation premiums because these services are harder to replicate and support customer stickiness.

5. Management Depth and Operational Independence

One of the most consistent value-discount factors in building materials business sales is excessive owner dependency. When key customer relationships, supplier negotiations, pricing decisions, and operational management all reside with the founding owner, acquirers face significant transition risk. Businesses that have invested in operational management depth — a capable general manager, sales team, and purchasing function that can run independently of the owner — are significantly more attractive to both strategic and financial buyers. This is particularly important for PE-backed acquirers and ASX-listed groups who need to integrate the business into a broader platform without ongoing founder involvement.

6. Sustainability Credentials and Green Product Range

The Saint-Gobain acquisition of CSR was explicitly framed around "light and sustainable construction" — reflecting the global building materials industry's strategic pivot towards sustainable products as a growth and premium-pricing driver. For mid-market building materials distributors, holding certified sustainable or low-carbon products, Forest Stewardship Council (FSC)-certified timber, or recycled aggregate products creates a meaningful differentiation from commodity competitors and aligns with the accelerating preference of major developers and project teams for verified-sustainable supply chains. International strategic buyers are specifically searching for Australian businesses that complement their sustainable product portfolios.

Buyer Profiles: Who Is Acquiring Australian Building Materials Businesses?

The buyer universe for Australian building materials and supplies businesses has broadened substantially over the past three years. Understanding who is actively acquiring — and what they are looking for — is critical to running a competitive sale process that maximises value.

International Strategic Acquirers

The period from 2022 to 2026 has seen extraordinary activity from global building materials groups targeting Australian acquisitions. Saint-Gobain ($4.3B / CSR), Heidelberg Materials ($1.7B / Maas Group), and CRH (Adelaide Brighton $2.1B; Civilmart ~$200–250M) have collectively committed over $8 billion to Australian building materials M&A in this period. These groups are motivated by Australia's high-growth construction market, the strength of the infrastructure pipeline, favourable long-term demographic fundamentals, and the strategic opportunity to introduce their global product portfolios and manufacturing expertise. They are primarily interested in businesses with established brands, national or significant regional presence, and manufacturing or specialist distribution capability. However, mid-market bolt-on acquisitions that add geographic coverage or specialist capability are also firmly on their radar.

ASX-Listed Building Products Groups

ASX-listed building products and distribution businesses — including Reece Group (plumbing, bathroom, HVAC-R; $9B revenue), Big River Industries (structural timber and panels), Boral (aggregates, concrete), and James Hardie (fibre cement) — are active, disciplined acquirers at the mid-market level. Reece completed three bolt-on acquisitions in ANZ during FY25; Big River acquired Johns Building Supplies for $17M in December 2025. These groups are seeking businesses that extend their geographic footprint, add complementary product categories, or bring established trade customer relationships that can be leveraged across a wider product range. For sellers, an ASX-listed strategic acquirer offers transaction certainty, clean counterparty risk, and the credibility of a publicly disclosed benchmark multiple.

Private Equity-Backed Consolidators

Private equity has demonstrated consistent, growing interest in the Australian building materials distribution sector. CPE Capital's acquisition and consolidation of Rocla Pipes and Civilmart — ultimately exited to CRH at an estimated 3.5x–4.5x return — is a textbook illustration of the PE consolidation playbook in building materials. PE-backed platforms operating in adjacent sectors (civil construction supplies, industrial distribution, trade services) are actively evaluating building materials as a complementary add-on. The global PE building products consolidation trend — exemplified by Pye-Barker Fire & Safety completing 57 fire protection acquisitions in 2025 in the US — is increasingly being replicated in the Australian market, with PE groups building platforms across trade supply verticals. For mid-market sellers, a PE buyer can represent a strong alternative to a direct strategic sale — particularly where a vendor wants ongoing equity participation in a growth platform.

Adjacent Industry Strategic Buyers

A significant proportion of building materials M&A activity involves acquirers from adjacent industries seeking to add complementary capability. Electrical contractors acquiring fire protection supplies, civil contractors acquiring specialist materials distribution, plumbing groups acquiring bathroom showrooms, and industrial services companies acquiring tools and equipment businesses are all recurring patterns. These buyers are motivated by cross-selling opportunities, shared customer bases, and operational synergies. They often represent the best value for businesses that may not be an obvious fit for a national consolidator but have strong relationships with a specific trade customer segment. Morgan Business Sales' fire protection services WA transaction — where a large electrical contractor acquired a fire protection business for $4.4M — illustrates exactly this dynamic.

Sector Challenges and Risk Factors

While the structural outlook for the building materials and supplies sector is favourable, business owners and prospective acquirers should be aware of the key risk factors that influence both trading performance and achievable sale multiples.

Construction Activity Cyclicality

Building materials businesses are inherently exposed to cycles in construction activity, which in turn are driven by interest rates, population growth, and government expenditure. The period from 2022 to 2025 saw a meaningful softening in residential construction activity as interest rate rises dampened new home approvals. IBISWorld data shows hardware and building supplies retailing revenue contracted at a CAGR of -1.3% between 2020 and 2025, and hardware wholesaling experienced a -3.9% decline in 2024–25 due to reduced construction activity. However, the structural factors driving demand — the housing undersupply, the infrastructure pipeline, and population growth — underpin a recovery outlook, with IBISWorld projecting 2.9% revenue growth in FY2025–26. For sellers, demonstrating through normalised EBITDA figures the underlying earning capacity of the business — stripped of temporary cyclical impacts — is an important part of sale preparation.

Bunnings and Large-Format Retail Competition

Wesfarmers' Bunnings commands over 50% of the Australian hardware retail market and exerts significant pricing pressure on independent operators competing in similar product categories. For business owners in the retail segment, the strategic response to Bunnings competition is critical: businesses that have successfully differentiated through trade focus, specialist product ranges, technical expertise, or a customer base that requires capabilities beyond what Bunnings offers are far more valuable and acquirable than those competing head-to-head on commodity products. Demonstrating a clear and sustainable competitive moat against Bunnings is an important part of positioning a hardware or building supplies business for sale.

Supply Chain Complexity and Input Cost Volatility

Building materials businesses face significant complexity in managing supply chains for products that are often heavy, bulky, or perishable (in the case of concrete and cement). Transport costs represent a major input, and fuel price volatility can substantially impact margins. Imported product categories — including certain types of tiles, hardware, and building accessories — remain exposed to currency movements and global supply chain disruptions. Acquirers will carefully scrutinise inventory management, supplier concentration risk, and the business's ability to pass through cost increases to customers. Businesses with strong supplier diversity, documented repricing mechanisms, and a track record of maintaining margins through cost cycles are significantly more attractive acquisition targets.

Skilled Labour Constraints

The Australian construction industry faces persistent skilled labour shortages that affect building materials businesses at multiple levels: difficulty finding experienced sales representatives and account managers with trade knowledge, challenges in warehousing and logistics operations, and constraints in technical and installation services where these are offered. An aging workforce and competition for trade-literate staff from the broader construction sector exacerbate the challenge. For sellers, having a well-trained and stable workforce — with documented systems and processes that reduce individual dependency — is a significant positive in buyer due diligence.

Regulatory and Compliance Requirements

Building materials businesses must comply with Australian Standards governing product performance, safety, and sustainability — including AS and ISO certifications for structural products, fire-resistance ratings, and energy efficiency compliance. The National Construction Code (NCC) revisions have progressively tightened performance requirements for building products, increasing the compliance burden for suppliers of envelope and structural products. Businesses supplying products to the residential market must also navigate the Australian Consumer Law requirements around product liability. For acquirers, regulatory compliance documentation — certifications, test reports, and code compliance histories — is an important part of due diligence, particularly for businesses supplying into commercial or government construction where compliance verification is mandatory.

2026 Market Outlook: Why Now May Be the Right Time to Exit

For building materials and supplies business owners contemplating an exit, the 2026 environment presents a confluence of favourable conditions that may not persist through the remainder of the decade.

The international strategic buyer pool for Australian building materials businesses has never been more active or better capitalised. Saint-Gobain, Heidelberg Materials, and CRH have collectively committed more than $8 billion to Australian acquisitions since 2022, and all three have publicly signalled continued investment in the Australian market. These groups are actively evaluating pipeline acquisitions at the mid-market level, not just large-cap transactions. A well-positioned specialist distributor or trade merchant that complements their existing Australian operations is a credible acquisition target.

Domestically, ASX-listed consolidators are supported by strong balance sheets and are executing bolt-on acquisition strategies across building materials sub-sectors. Reece, Big River, and Boral are all active, and the newly merged Brickworks / Soul Patts TopCo entity has significant capital to deploy in building materials. PE-backed consolidators are increasingly exploring the building materials distribution sector as a platform-building opportunity, attracted by the infrastructure pipeline thesis and the fragmented mid-market.

Valuation multiples for quality building materials businesses are at historically elevated levels. EAC Partners' October 2024 industry report identified average LTM EV/EBITDA multiples of 8.3x for the domestic ASX coverage group and 9.4x on a forward basis — levels that are highly supportive of strong exit valuations for privately held businesses in comparable sub-sectors. The disclosed transactions in this report confirm that premium assets (CSR at 10.7x, Maas Group at 8.4x post-synergies) are trading well above historical norms.

The interest rate cycle is also supportive: as the Reserve Bank of Australia progressively reduces the cash rate from its 2023–2024 peak, residential and commercial construction activity is expected to recover, the housing undersupply is being more actively addressed, and buyer confidence in forward earnings is improving. Business owners who sell into a strengthening market — before the cycle fully recovers and competition among sellers increases — are historically best-positioned to achieve premium outcomes.

Preparing a Building Materials Business for Sale

The difference between an average outcome and a premium outcome in the sale of a building materials or supplies business is almost always determined during the twelve to twenty-four months before the transaction, not during the sale process itself. The following preparation steps are consistently associated with the highest-value exits in this sector.

Document and formalise trade customer relationships. Where key trade accounts operate on informal arrangements or verbal understandings with the founding owner, introduce formal credit account agreements, documented pricing terms, and account management processes that demonstrate the relationship is transferable. Acquirers need confidence that customer relationships will survive a change of ownership — written agreements and demonstrated team-level relationships (not just owner-level) are the primary evidence they will seek.

Confirm and review supplier agreements. Ensure all distribution agreements, exclusivity arrangements, and preferred supplier positions are documented, current, and confirmed as assignable. If key supplier agreements are undocumented or rely on personal relationships, this represents a material risk that acquirers will heavily discount. Work with suppliers well in advance of a sale to formalise arrangements and confirm their willingness to continue them under new ownership.

Build management depth. If the business is owner-dependent, invest in hiring or promoting a capable operations or general manager in advance of a sale. An acquirer buying a business that requires the founding owner to stay for an extended transition period — or that faces operational risk without them — will price that risk into their offer. Businesses where a capable team can run day-to-day operations independently of the founder achieve materially better multiples.

Normalise financial statements. Building materials businesses often carry a range of owner-related expenses, discretionary costs, or one-off items that distort reported EBITDA. Prepare a clear normalised EBITDA schedule with supporting documentation for each adjustment. Cyclical revenue impacts — particularly from the 2022–2025 residential construction downturn — should be clearly identified and contextualised with forward-looking revenue data to help acquirers underwrite a normalised earnings base.

Identify and resolve compliance and certification gaps. Review all product compliance certifications, Australian Standards approvals, and quality management system documentation. Ensure accreditations are current, company-held (not individual-held), and transferable. Any gaps identified during due diligence become negotiating leverage for buyers to discount the offer price.

Frequently Asked Questions

What EBITDA multiple can a building materials or supplies business expect in Australia?

Australian building materials and supplies businesses typically transact at EBITDA multiples of 3.0x–5.5x for small-to-mid-market operators, rising to 5.5x–8.5x for businesses with strong recurring trade customer relationships, proprietary product lines, national distribution capability, or specialist supply into infrastructure and government projects. The multiple is heavily influenced by customer concentration, product differentiation, contract certainty, and whether the business supplies into high-demand segments such as social housing, infrastructure, or renewable energy construction.

Who is buying building materials and supplies businesses in Australia?

The buyer universe is broad and active. It includes ASX-listed building products groups (such as Big River Industries, Reece Group, and Boral) pursuing bolt-on acquisitions; large international building materials companies (Saint-Gobain, Heidelberg Materials, CRH) seeking Australian market expansion; private equity firms backed by the infrastructure pipeline thesis; and trade buyers from adjacent sectors such as civil construction, electrical contracting, or plumbing distribution seeking to add complementary product capability.

What drives valuation premium for building materials businesses in Australia?

The key value drivers are: a loyal, recurring trade customer base with low churn; exclusive or preferred distribution agreements with key suppliers; exposure to government-contracted or infrastructure-linked revenue; specialist product capability in high-demand categories such as sustainable materials, engineered timber, or prefabricated systems; geographic coverage across multiple states or regions; and management depth that enables the business to operate independently of the founder.

What are the main trends driving M&A in the Australian building materials sector?

Five key themes are driving deal activity: the $242 billion national infrastructure pipeline creating sustained demand for materials, tools, and equipment supply; the National Cabinet 1.2 million homes target by 2030 generating residential construction materials demand; international consolidators (Saint-Gobain, Heidelberg Materials, CRH) using Australia as a growth platform through acquisition; the energy transition and industrial construction boom driving demand for specialist materials and supply chains; and sustainability and green building regulations increasing demand for certified, low-carbon, and recycled building materials.

How large is the Australian building materials and supplies sector?

Hardware and building supplies retailing alone generates approximately $31.3 billion in annual revenue (IBISWorld, FY2025–26) across approximately 5,960 businesses, employing 77,560 people. Hardware wholesaling contributes a further $24.8 billion, timber wholesaling $5.9 billion, and metal and mineral wholesaling $32.6 billion. Combined, the broader building materials and supplies supply chain exceeds $90 billion in annual revenue.

Is now a good time to sell a building materials or supplies business in Australia?

Market conditions favour sellers. International strategic buyers are actively entering Australia through acquisition, and domestic consolidators are well-capitalised. The $242 billion infrastructure pipeline, the National Cabinet housing target, and the energy transition are all generating sustained construction demand — validating the strategic value of well-positioned building materials businesses. Business owners who can demonstrate recurring trade relationships, supplier exclusivity, or specialist capability in high-demand segments are well-positioned to achieve premium outcomes in a competitive sale process.

Disclaimer: This report has been prepared by Morgan Business Sales for general informational purposes only. It does not constitute financial, legal, or investment advice. Transaction values, EBITDA multiples, and market data are sourced from publicly available information and industry research and should not be relied upon as a guarantee of future performance or value. Business owners considering a sale should seek independent professional advice. All dollar values are in Australian dollars (AUD) unless otherwise stated.

Sources

• IBISWorld — Hardware and Building Supplies Retailing in Australia (2025–26)
• IBISWorld — Hardware Wholesaling in Australia (2024–25)
• IBISWorld — Timber Wholesaling in Australia (2025–26)
• IBISWorld — Metal and Mineral Wholesaling in Australia (2024–25)
• Saint-Gobain — Definitive Agreement to Acquire CSR Limited (February 2024)
• International Cement Review — Saint-Gobain Completes CSR Acquisition (July 2024)
• Heidelberg Materials — Acquisition of Maas Group's Construction Materials Business (February 2026)
• International Cement Review — CRH Moves to Buy Civilmart (November 2024)
• Big River Group — Acquisition of Johns Building Supplies, WA (December 2025)
• Reuters — Soul Pattinson and Brickworks $9.15 Billion Merger (July 2025)
• Ansarada — Construction Materials Demand Drives Consolidation in Industrials (2025)
• EAC Partners — Construction Materials & Building Products Industry Update (October 2024)
• Bain & Company — M&A in Building Products: Making the Right Bets in a Cyclical Industry (2026)
• Australian Bureau of Statistics — Australian Industry 2023–24
• IMARC Group — Australia Building Materials Market Size and Forecast 2034
• Aon Insights — Australian Construction Market, Plant & Equipment Summary 2025