MasTec stock jumps as $1.65B Superior deal boosts AI data center push

MasTec Inc. MTZ shares climbed about 6% on Wednesday after the infrastructure engineering and construction company announced a $1.65 billion acquisition of electrical contractor The Superior Group.

The deal expands its presence in the rapidly growing data center infrastructure market.

The cash-and-stock transaction, which is expected to close in mid-to-late July, subject to customary approvals, also prompted Mizuho to raise its price target on MasTec shares to $502 from $498 while maintaining an Outperform rating.

The acquisition is designed to strengthen MasTec's capabilities as companies continue investing heavily in artificial intelligence infrastructure, power networks and mission-critical facilities.

Superior acquisition expands data center capabilities

MasTec said it will acquire The Superior Group for approximately $1.65 billion, comprising $1.175 billion in cash, $475 million in MasTec stock and a 36-month earnout.

The transaction values Superior at roughly 6.9 times its estimated 2026 adjusted EBITDA.

Based in Columbus, Ohio, Superior is an IBEW-signatory electrical contractor employing approximately 3,000 people.

The company is projected to generate between $1.6 billion and $1.7 billion in revenue during 2026, while maintaining an EBITDA margin of 14% to 15%.

Around 90% of Superior's business is tied to data centers, including approximately 70% generated from hyperscale customers.

The company also has a backlog of $1.4 billion and operates a 300,000-square-foot prefabrication facility.

Following completion of the transaction, Superior will become part of MasTec's Power Delivery segment, where management expects the acquisition to help increase segment margins from roughly 9% to the low double digits.

AI infrastructure demand drives strategic expansion

MasTec said the acquisition strengthens its position in one of the fastest-growing areas of infrastructure spending as artificial intelligence continues driving investment in data centers and related power infrastructure.

The company has traditionally focused on "outside-the-fence" infrastructure, including power generation, transmission, substations and communications networks.

Superior expands those capabilities into "inside-the-fence" electrical systems, engineering and integrated building services.

"Superior expands our ability to serve one of the most compelling infrastructure opportunities in the market today—the ongoing buildout of data center, power and mission-critical infrastructure," MasTec CEO Jose Mas said.

Superior provides electrical design, engineering, prefabrication, modular manufacturing, construction, integrated systems and long-term maintenance services across data centers, healthcare, industrial and entertainment facilities.

Acquisition expected to boost earnings and revenue

MasTec expects the acquisition to contribute immediately to revenue, adjusted EBITDA, adjusted earnings per share and operating cash flow.

For the remainder of 2026, Superior is expected to contribute between $800 million and $900 million in revenue, adjusted EBITDA of $100 million to $115 million and adjusted earnings per share of $0.50 to $0.65.

For the full year, Superior is projected to generate between $1.6 billion and $1.7 billion in revenue alongside adjusted EBITDA of $225 million to $250 million.

Looking ahead to 2027, management projects revenue of $2.2 billion to $2.5 billion and adjusted EBITDA of $250 million to $275 million.

The acquisition also strengthens MasTec's relationships with hyperscalers, data center developers and technology customers while adding one of the largest self-performing electrical workforces in the United States.

MasTec said the transaction aligns with its broader capital allocation strategy of investing in high-growth infrastructure markets while maintaining financial flexibility.

The company expects to generate approximately $1 billion in operating cash flow during 2026, supporting future investments as demand for AI-driven digital infrastructure continues to expand.