Key Takeaways
- MasTec (MTZ) announces purchase of electrical contractor The Superior Group valued at $1.65 billion through mixed cash-stock transaction
- Transaction terms include $1.175 billion cash payment and $475 million in MasTec equity, with additional earnout provisions spanning 36 months
- Superior anticipates generating between $1.6 billion and $1.7 billion in revenue throughout 2026
- MTZ shares declined 5.72% in response to the acquisition announcement
- Mizuho analysts increased MTZ price target to $502 while reaffirming Outperform stance
MasTec (MTZ) revealed plans to purchase The Superior Group, an electrical contracting firm based in Ohio, for roughly $1.65 billion. The company made the announcement public on July 7, 2026.
Shares experienced a 5.72% decline following the news, dropping $21.78 to close at $358.85.
The transaction structure consists of $1.175 billion in cash consideration and $475 million worth of MasTec shares. Additionally, the deal includes an earnout provision linked to Superior’s operational performance during the three years after closing.
Based on Superior’s projected 2026 adjusted EBITDA, the acquisition price represents approximately 6.9 times earnings.
The Superior Group operates from its Columbus, Ohio headquarters with a workforce of approximately 3,000 employees. As an IBEW-signatory contractor, the firm delivers comprehensive electrical services including engineering, design, construction, prefabrication capabilities, and project oversight.
Data center operations comprise roughly 90% of Superior’s revenue stream, with approximately 70% derived from hyperscaler clients.
For the complete 2026 fiscal year, Superior forecasts revenue between $1.6 billion and $1.7 billion, with adjusted EBITDA projected at $225 million to $250 million. Looking ahead to 2027, MasTec anticipates Superior will generate revenue ranging from $2.2 billion to $2.5 billion.
During the remaining portion of 2026, Superior is projected to add $800 million to $900 million in revenue to MasTec’s top line, along with $100 million to $115 million in adjusted EBITDA.
Superior brings additional assets including a $1.4 billion project backlog and a 300,000-square-foot prefabrication facility — representing valuable operational infrastructure for MasTec’s portfolio.
Integration Within MasTec’s Power Delivery Division
The Superior Group will function as an independent unit within MasTec, operating under the Power Delivery segment’s umbrella. This segment’s profit margins are projected to expand into low double-digit territory from their current level near 9%.
Bryan Stewart, who currently serves as Superior’s Chairman and CEO, will continue in his leadership capacity alongside the company’s entire management structure.
MasTec intends to finance the cash component through available cash reserves, its current credit facility, and two delayed draw term loan arrangements established in connection with the acquisition.
The transaction is anticipated to finalize between mid-to-late July 2026, subject to antitrust regulatory clearance.
Wall Street Response
Mizuho upgraded its MTZ price objective to $502 from $498 after the announcement, maintaining its Outperform recommendation. The firm observed that this acquisition finalizes the data center strategy MasTec presented during its May 12 analyst presentation.
Several other analysts had previously elevated their price targets before this transaction. KeyBanc maintained a $500 target alongside an Overweight rating. Stifel increased its projection to $455, while TD Cowen raised its target to $445 from $320. Jefferies currently holds a $493 target.
MasTec disclosed a 28% year-over-year backlog expansion in Q1 2026, with new contract awards rising 18% compared to the prior-year quarter. The company’s all-time high backlog reached $20.3 billion at the end of March.
MasTec conducted an investor conference call on Wednesday morning at 9:00 a.m. ET to provide details about the acquisition. Lazard served as financial advisor to MasTec; UBS represented Superior in the transaction.
