Key Takeaways
- MasTec (MTZ) announced the purchase of electrical contracting firm The Superior Group for $1.65 billion through a combined cash and equity transaction
- The transaction consists of $1.175 billion cash and $475 million in MasTec shares, with an additional performance-based earnout over three years
- Superior expects to deliver between $1.6 billion and $1.7 billion in revenue throughout fiscal year 2026
- Shares of MTZ declined 5.72% in response to the acquisition news
- Mizuho upgraded its MTZ price objective to $502 while keeping its Outperform stance
MasTec (MTZ) revealed plans to acquire The Superior Group, an electrical contracting company based in Ohio, for roughly $1.65 billion. The announcement came on July 7, 2026.
Shares tumbled 5.72% after the disclosure, declining $21.78 to close at $358.85.
The transaction structure includes $1.175 billion in cash consideration alongside $475 million worth of MasTec common shares. An additional earnout component based on Superior’s operational results over the following 36 months is also included.
Based on Superior’s projected 2026 adjusted EBITDA, the purchase price represents approximately 6.9 times that metric.
With headquarters in Columbus, Ohio, Superior maintains a workforce of approximately 3,000 employees. As an IBEW-affiliated electrical contractor, the firm delivers comprehensive services spanning design, construction, engineering, prefabrication capabilities, and project oversight.
The company derives roughly 90% of its revenue from data center projects, with approximately 70% originating from hyperscale operators.
For full-year 2026, Superior anticipates generating revenue between $1.6 billion and $1.7 billion, with adjusted EBITDA ranging from $225 million to $250 million. Looking ahead to 2027, MasTec projects Superior will contribute $2.2 billion to $2.5 billion in top-line growth.
Through the remainder of 2026, Superior is positioned to add $800 million to $900 million in revenue and $100 million to $115 million in adjusted EBITDA to MasTec’s consolidated results.
Superior brings a robust $1.4 billion project backlog and maintains a 300,000-square-foot prefabrication facility — representing valuable strategic assets for MasTec’s operations.
Integration Within MasTec’s Power Delivery Business
Superior will function as an independent group under MasTec’s organizational structure and fall within the Power Delivery segment. Management anticipates this segment’s margins will expand into the low double-digit range from their current level of approximately 9%.
Bryan Stewart, who currently serves as Superior’s Chairman and CEO, will continue in his leadership role alongside the existing management structure.
MasTec intends to finance the cash component through available cash reserves, its current credit facility, and two newly established delayed draw term loan arrangements created in conjunction with the acquisition agreement.
The transaction is anticipated to finalize in mid-to-late July 2026, subject to standard antitrust regulatory clearance.
Wall Street Response
Mizuho increased its MTZ price objective to $502 from $498 after the announcement, maintaining its Outperform designation. The firm highlighted that this acquisition finalizes the data center strategy MasTec presented during its May 12 analyst day presentation.
Several other analysts had already adjusted their targets upward prior to this transaction. KeyBanc established a $500 target with an Overweight recommendation. Stifel increased its target to $455, while TD Cowen adjusted upward to $445 from $320. Jefferies currently maintains a $493 target.
MasTec disclosed a 28% year-over-year expansion in its backlog during Q1 2026, with new contract awards climbing 18% compared to the prior-year quarter. The company’s all-time high backlog reached $20.3 billion as of the March quarter-end.
MasTec conducted an investor conference call Wednesday morning at 9:00 a.m. ET to review acquisition details. Lazard served as financial advisor to MasTec throughout the transaction; UBS provided advisory services to Superior.
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