MasTec Acquires Superior Group for $1.65 Billion

What happened

MasTec announced it has entered into a definitive agreement to acquire Electrical Specialists, Inc., doing business as The Superior Group, for approximately $1.65 billion. The purchase price consists of $475 million in MasTec stock and $1.175 billion in cash, subject to customary adjustments. There is also a potential earnout payment based on Superior's 36-month post-closing financial performance. The transaction is expected to close in mid to late July 2026, pending antitrust regulatory approval. Superior, headquartered in Columbus, Ohio, has operated since 1925 and has been led by the Stewart family since the mid-1980s. Under Bryan Stewart's leadership, Superior has grown to approximately 3,000 employees and become one of the nation's largest electrical contractors. The company specializes in full-service electrical contracting for critical infrastructure, particularly data centers, and also serves healthcare, entertainment, and industrial markets. Superior provides end-to-end electrical solutions including design, construction, project management, engineering, integrated systems, prefabrication, modular manufacturing, and ongoing maintenance services. For the four years ending December 31, 2025, Superior achieved double-digit compounded growth in both revenue and net income. Superior is projected to generate full year 2026 revenue of approximately $1.6-$1.7 billion and Adjusted EBITDA of approximately $225-$250 million. Superior will operate as a new operating group within MasTec, with its financial results reflected in the Power Delivery segment. Bryan Stewart and Superior's existing management team will remain in place following the acquisition.

Why it matters

This acquisition significantly expands MasTec's capabilities in the rapidly growing data center and mission-critical infrastructure market. Prior to this transaction, MasTec primarily served critical infrastructure requirements outside the fence, including power generation, natural gas infrastructure, transmission, and substations. Superior's expertise extends MasTec's offerings inside the fence with electrical systems, integrated building systems, and ongoing facility services. This positions MasTec to deliver a more comprehensive suite of infrastructure solutions from power generation and grid interconnection through to electrical systems, connectivity, and long-term maintenance. Superior brings strategic relationships with leading hyperscalers, data center developers, general contractors, and technology customers, supported by a proven track record of delivering large, complex projects. The company is strategically positioned in some of the most attractive U.S. data center development corridors and has demonstrated the ability to scale rapidly, growing its workforce from approximately 800 to 3,000 team members over the past three years, representing over 50% CAGR. This provides MasTec access to one of the largest and most scalable skilled electrical labor platforms in the U.S. at a time when skilled labor is scarce. Based on current expectations and without accounting for potential revenue opportunities or synergies, MasTec expects Superior to be immediately accretive to Revenue, Adjusted EBITDA, Adjusted Diluted EPS, and Cash Flow from Operations. For the remainder of 2026, MasTec expects Superior to contribute revenue of $800-$900 million, Adjusted EBITDA of $100-$115 million, and Adjusted Diluted EPS of $0.50-$0.65. For full year 2027, MasTec expects Superior to generate revenue of $2.2-$2.5 billion and Adjusted EBITDA of $250-$275 million. MasTec plans to fund the cash portion of the transaction with a combination of cash on hand, drawings under its existing credit facility, and two new delayed draw term loan facilities.

Bigger picture

The acquisition reflects the broader infrastructure buildout driven by accelerating demand for data center capacity, fueled by artificial intelligence, cloud computing, and digital transformation. As hyperscalers and technology companies race to expand data center footprints, demand for specialized electrical contractors with the ability to deliver large-scale, complex projects has intensified. The market is characterized by tight labor availability and supply constraints, making scaled platforms with proven execution capabilities particularly valuable. MasTec's move to acquire Superior positions the company to capture more of the value chain in data center construction, from power generation and transmission through to the electrical and integrated building systems inside the facilities themselves. The transaction also highlights consolidation trends in the infrastructure contracting sector as larger players seek to build comprehensive service offerings and scale to meet growing customer demands. Superior's track record of rapid workforce scaling and project execution demonstrates the operational capabilities required to succeed in this environment. The deal structure, combining cash and stock with a potential earnout, aligns incentives and reflects confidence in Superior's growth trajectory while allowing the Stewart family leadership to participate in future upside. The immediate earnings and cash flow accretion expected from the acquisition suggests disciplined capital allocation and strong underlying economics in Superior's business model.

What to watch

Investors should monitor the timing and successful completion of the transaction, which is subject to antitrust regulatory approval and expected to close in mid to late July 2026. Key metrics to track following the closing include Superior's actual revenue and Adjusted EBITDA performance relative to MasTec's projections for 2026 and 2027, particularly whether Superior achieves the expected $1.6-$1.7 billion in revenue and $225-$250 million in Adjusted EBITDA for full year 2026. Integration progress will be important, including retention of Superior's approximately 3,000 employees and the management team led by Bryan Stewart, as well as the realization of any revenue synergies from cross-selling opportunities between MasTec's existing infrastructure capabilities and Superior's electrical expertise. Watch for updates on Superior's ability to continue scaling its workforce to meet project demands and maintain strong execution on large, complex data center projects. The extent to which MasTec can leverage Superior's customer relationships with hyperscalers and data center developers to expand its own business will be a key indicator of strategic success. Additionally, monitor MasTec's capital structure and leverage following the transaction, given the $1.175 billion cash component funded through credit facilities and term loans. Any updates on the earnout payment tied to Superior's 36-month post-closing performance could provide insight into operational momentum. Broader trends in data center development activity, permitting timelines, and infrastructure investment levels will affect demand for Superior's services. Finally, watch for MasTec's conference call on July 8, 2026, where management will provide additional details on the acquisition and its strategic rationale.