MasTec to buy Superior for $1.65B; stock jumps

MasTec Inc. shares climbed about 6% on Wednesday after the company announced a $1.65 billion cash-and-stock acquisition of The Superior Group, an electrical contractor that focuses on data center work.

The transaction, expected to close in mid-to-late July subject to customary approvals, consists of $1.175 billion in cash, $475 million in MasTec stock and a 36-month earnout. The deal values Superior at roughly 6.9 times its estimated 2026 adjusted EBITDA. Mizuho raised its price target on MasTec to $502 from $498 and maintained an Outperform rating.

Columbus, Ohio-based Superior is an IBEW-signatory electrical contractor that employs about 3,000 people. The company projects 2026 revenue of $1.6 billion to $1.7 billion with an EBITDA margin of 14% to 15%. Around 90% of Superior’s work is tied to data centers, including roughly 70% from hyperscale customers. Superior carries a backlog of about $1.4 billion and operates a 300,000-square-foot prefabrication facility.

Superior will be integrated into MasTec’s Power Delivery segment. Management expects the acquisition to help raise that segment’s margins from about 9% to the low double digits and to contribute immediately to revenue, adjusted EBITDA, adjusted earnings per share and operating cash flow.

For the remainder of 2026, MasTec expects Superior to add $800 million to $900 million in revenue, $100 million to $115 million in adjusted EBITDA and $0.50 to $0.65 in adjusted earnings per share. For full-year 2026, projections for Superior are $1.6 billion to $1.7 billion in revenue and $225 million to $250 million in adjusted EBITDA. Management forecasts 2027 revenue of $2.2 billion to $2.5 billion and adjusted EBITDA of $250 million to $275 million.

MasTec described the acquisition as a way to expand its services from outside-the-fence electrical infrastructure-such as power generation, transmission and substations-into inside-the-fence electrical systems, engineering, prefabrication and integrated building services that support data centers and mission-critical facilities. Superior provides electrical design, engineering, modular manufacturing, construction and long-term maintenance across data centers, healthcare, industrial and entertainment sectors.

Jose Mas, MasTec’s chief executive, described the transaction as: “Superior expands our ability to serve one of the most compelling infrastructure opportunities in the market today-the ongoing buildout of data center, power and mission-critical infrastructure.”

MasTec stated the deal aligns with its capital allocation strategy of investing in high-growth infrastructure markets while maintaining financial flexibility. The company expects to generate about $1 billion in operating cash flow in 2026 to support future investments as demand for AI-driven digital infrastructure grows.