MasTec, Inc. announced the acquisition of The Superior Group, a Columbus, Ohio-based electrical contractor, for approximately $1.65 billion. The transaction comprises $1.175 billion in cash and $475 million in MasTec stock, with a 36-month earnout based on Superior's performance.

Importance of the Acquisition

This acquisition is significant as it positions MasTec to enhance its capabilities in the data center sector, which has been increasing demand. Superior's projected revenue for 2026 is between $1.6 billion and $1.7 billion, reflecting strong growth potential in a sector where MasTec is seeking to expand its footprint.

  • Transaction value: $1.65 billion
  • Cash portion: $1.175 billion
  • Equity portion: $475 million
  • Projected revenue for 2026: $1.6-1.7 billion

Following the announcement, MasTec's stock experienced a decline, dropping 5.72% to $358.85. The acquisition is viewed positively by analysts; Mizuho raised its price target on the stock to $502, maintaining an Outperform rating.

Future Contributions and Financial Expectations

MasTec anticipates that during the remainder of 2026, Superior will contribute between $800 million and $900 million in revenue and approximately $100 million to $115 million in adjusted EBITDA. Additionally, Superior has a backlog valued at $1.4 billion and operates a substantial prefabrication facility, highlighting its operational capacity.

Superior, which employs about 3,000 people, mainly focuses on projects involving data centers, with around 90% of its business linked to this area, and 70% from hyperscalers. The company’s inclusion is set to support MasTec's Power Delivery segment, which is expected to see its margins improve to low double digits.

Looking Ahead

The deal, still subject to antitrust regulatory approval, is anticipated to close in mid-to-late July 2026. Observers will be keen to see how this acquisition aligns with MasTec's overall strategy and whether it influences market dynamics within the electrical contracting sector.

This material is for informational purposes only and is not financial advice.