Key Takeaways
- MasTec (MTZ) announced the purchase of electrical contracting firm The Superior Group for a total of $1.65 billion
- The acquisition package includes $1.175 billion cash and $475 million in stock, with an additional earnout provision spanning 36 months
- Superior anticipates generating between $1.6 billion and $1.7 billion in revenue throughout 2026
- Following the deal announcement, MTZ shares declined 5.72%
- Mizuho upgraded its MTZ price objective to $502 while reaffirming an Outperform stance
MasTec (MTZ) revealed plans on July 7, 2026, to acquire The Superior Group, an Ohio-based electrical contracting company, in a transaction valued at roughly $1.65 billion.
Following the disclosure, the stock experienced a 5.72% decline, dropping $21.78 to settle at $358.85.
The transaction structure comprises $1.175 billion in cash payments alongside $475 million worth of MasTec shares. An additional earnout component has been included, contingent upon Superior’s financial results during the three-year period after deal completion.
Based on Superior’s projected 2026 adjusted EBITDA, the purchase price represents approximately 6.9 times that metric.
The Superior Group operates from Columbus, Ohio, with a workforce of roughly 3,000 employees. As an IBEW-signatory electrical contractor, the firm delivers comprehensive services spanning design, construction, engineering, prefabrication capabilities, and project management solutions.
Data center projects account for approximately 90% of Superior’s revenue stream, with hyperscaler clients representing about 70% of total business.
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 final months of 2026, Superior is positioned to add $800 million to $900 million in revenue to MasTec’s financials, along with $100 million to $115 million in adjusted EBITDA.
Superior brings additional value through its $1.4 billion project backlog and a 300,000-square-foot prefabrication facility — strategic assets that enhance MasTec’s operational capabilities.
Integration Within MasTec’s Power Delivery Division
The Superior Group will function as an independent unit under MasTec’s organizational structure, reporting directly to the Power Delivery segment. This segment’s profit margins are projected to increase to low double-digit percentages, up 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 company’s existing management structure.
To finance the cash component, MasTec will utilize existing cash reserves, draw from its current credit facility, and leverage two delayed draw term loan facilities established in conjunction with the acquisition agreement.
Subject to antitrust regulatory clearance, the transaction is scheduled to finalize during the mid-to-late July 2026 timeframe.
Wall Street’s Response
Mizuho increased its price objective for MTZ to $502 from a previous $498 target after the announcement, maintaining its Outperform recommendation. The investment firm highlighted that this acquisition finalizes the data center strategy MasTec presented during its May 12 analyst day event.
Multiple analysts had already adjusted their targets upward prior to this transaction. KeyBanc maintained a $500 price target with an Overweight recommendation. Stifel increased its target to $455, while TD Cowen revised its objective to $445 from $320. Jefferies currently projects a $493 target.
During Q1 2026, MasTec reported a 28% year-over-year backlog increase, with new contract awards climbing 18% compared to the prior-year period. The company’s all-time high backlog reached $20.3 billion as of the end of March.
MasTec conducted an investor conference call on Wednesday morning at 9:00 a.m. ET to provide additional details about the acquisition. Lazard served as financial advisor to MasTec for the transaction, while UBS advised Superior.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
