Key Takeaways from SEMA/AAPEX 2025: Optimism and Opportunity in the Automotive Aftermarket

Fresh back from a week at the 2025 SEMA & AAPEX Shows, the FOCUS Automotive Team gained an even clearer pulse on aftermarket services as we met with over 40 operators, existing clients, and strategic/financial buyers and attended daily industry receptions and events.

The energy was unmistakably positive, even amid mixed economic signals. Here’s what privately held founders and owners in the automotive aftermarket need to know as we head into 2026.

1. The Show Floor Told a Story: Where the Action Was (and Wasn’t)

One of the most striking observations as we walked in: the North and Central Halls were packed. Performance, restoration, powersports, utilities, electronics, business services, and competitive builds drew massive crowds. In contrast, the South Hall (traditionally home to tires, wheels, collision repair, and shop equipment) felt noticeably quieter. Pre- and post-show conversations confirmed that many tire and wheel companies simply chose not to exhibit this year.

This shift underscores a broader theme: capital and attention are flowing toward high-growth, tech-enabled segments of the aftermarket, while more commoditized categories face pressure.

2. M&A Remains the Hot Topic and the Catalyst for Growth

Virtually every conversation circled back to “What’s next?” Independents are weighing their options against well-capitalized consolidators and conglomerates. This dynamic is playing out across:

• Collision repair
• General automotive repair
• Heavy-Duty parts and repair
• Tire dealerships and service

Operators are asking: What adjacent services (e.g., ADAS calibration, auto glass, mechanical repair, quick lube) will be bundled into the next wave of platform building? The answer will largely determine who captures the premium valuations.

3. ADAS Is No Longer Just a Collision Conversation

One of the biggest evolutions we observed: ADAS calibration has firmly expanded beyond body shops. Tire dealers, general repair shops, and even mobile service providers now view accurate calibration as table stakes. The complexity of modern vehicles is forcing vertical integration and creating new M&A opportunities for platforms that can deliver calibration at scale.

4. 2025 Was Resilient; 2026 Looks Busy

Despite macroeconomic headwinds, many distributors, parts manufacturers, and chemical suppliers reported solid growth in 2025, many in the double digits. Collision repair faced a tougher year, but claims volume is trending upward into year-end, and the mood for 2026 is overwhelmingly bullish.

Key themes from our meetings:

• Technology & labor solutions dominate capex plans especially tools with a meaningful AI component to improve margin, throughput, and technician efficiency.
• Private equity add-on and platform investments have picked up, and almost all operators we met with confirmed investment interest accelerated during 2h 2025, signaling a clear “risk-on” environment from investors.
• Tire and collision consolidation continues to mature, but attractive regional platforms still command strong interest.
• Heavy-duty parts and repair consolidation opportunities were discussed at AAPEX, with multiple questions about the implications of the FleetPride and TruckPro merger.
• Automotive and heavy-duty mechanical repair remains highly fragmented with excellent margins which is a “green-field” opportunity for financial buyers.
• The recent Boyd Group (Gerber) acquisition of Joe Hudson’s Collision Centers dominated hallway discussions as everyone wants to understand the valuation and strategic implications.
• Caliber’s pending IPO is being watched closely as a potential bellwether for public-market appetite.
• .
• Vertical integration (adding glass, calibration, etc.) is now standard among leading regional MSOs.

Our 2026 Outlook: Expect an Active M&A Market

Private equity dry powder focused on automotive services is at all-time highs. Combined with resilient demand, aging vehicles, and technological tailwinds, we expect 2026 to be one of the busiest years on record for aftermarket services M&A.

We anticipate the first dedicated wave of ADAS calibration platform deals to launch next year as consolidators race to secure diagnostic and calibration capabilities nationwide.

If you’re a founder or owner thinking about your next chapter, whether you’re exploring a full sale, growth capital for acquisitions, or a partnership to accelerate expansion, the window is wide open right now. Valuations for scaled, tech-enabled platforms remain robust, and buyers are competing aggressively.

The key is preparation with clean financials, a clearly defined and communicated growth story, and the right advisory partner.

The FOCUS Automotive Team has advised dozens of aftermarket services transactions and would welcome a confidential conversation about your business and options in today’s market.

Reach out anytime:

• Giorgio Andonian – [email protected]
• Cole Strandberg – [email protected]
• Chandler Kohn – [email protected]

Or visit www.focusbankers.com/automotive to learn more about our team and recent transactions.

See you on the show floor in 2026. We suspect it will be even busier! Until then, you will see us at:

• Heavy Duty Aftermarket Week (HDAW) Jan 19-22 – Grapevine, TX
• MEMA Aftermarket Vision Conference – April 15 – Dearborn, MI
• Advanced Clean Transportation (ACT) Expo – May 4-7 – Las Vegas, NV
• AutoTech Novi – June 2-4 – Novi, MI

This piece was jointly authored by Cole Strandberg, Giorgio Andonian, and Chandler Kohn.