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MasTec (MTZ) is nicely higher after agreeing to acquire The Superior Group for an enterprise value of approximately $1.65 bln, consisting of $1.175 bln in cash and $475 mln in MTZ stock. MTZ expects the transaction to be immediately accretive to revenue, adjusted EBITDA, adjusted diluted EPS, and operating cash flow before potential revenue opportunities or synergies. With the deal expected to close in mid-to-late July, MTZ expects Superior to contribute $800-900 mln of revenue, $100-115 mln of adjusted EBITDA, and $0.50-0.65 of adjusted diluted EPS over the remainder of 2026.

• Strategic fit: MTZ provides much of the power, pipeline, civil, and communications infrastructure outside the data-center fence. Superior adds inside-the-fence electrical construction, integrated systems, prefabrication, modular manufacturing, and ongoing maintenance, allowing MTZ to pursue a larger portion of data-center campus projects.
• Data center exposure: Approximately 90% of Superior's estimated 2026 revenue comes from data centers, including 70% from hyperscalers. The deal also adds more than 2,700 skilled electricians and technicians, providing MTZ with scarce self-perform capacity and greater ability to mobilize labor across large infrastructure projects.
• Growth profile and valuation: Superior is projected to generate FY26 revenue of $1.6-1.7 bln and adjusted EBITDA of $225-250 mln, followed by FY27 revenue of $2.2-2.5 bln and adjusted EBITDA of $250-275 mln. The $1.65 bln headline purchase price represents approximately 6.9x Superior's projected FY26 adjusted EBITDA, before any potential earnout.
• Segment impact: Superior will operate as a new MasTec operating group, with its results reflected in the Power Delivery segment. On a full-year pro forma basis, the acquisition would increase Power Delivery revenue to approximately $6.4 bln from $4.8 bln and lift its expected adj EBITDA margin profile from approaching double digits to the low-double-digit range.

Briefing.com Analyst Insight

The Superior acquisition fills a gap in MasTec's data-center offering by adding inside-the-fence electrical capabilities to its existing power, pipeline, civil, and communications operations. Superior's hyperscaler relationships, skilled electrical workforce, and strong projected growth could help MTZ capture a larger share of spending on increasingly complex and power-intensive data-center campuses. The immediate expected accretion, combined with Superior's growth outlook and MTZ's strong Q1 report, reinforces the favorable demand and earnings tailwinds across power delivery and data-center infrastructure. The deal also builds on the themes that have helped drive MTZ's strong run while adding a higher-margin business to its Power Delivery segment. Integration and execution will be important, particularly with MTZ using stock to fund part of the deal. Still, the acquisition should strengthen MTZ's long-term growth profile and move the company further up the value chain on larger and more complex infrastructure projects.