MasTec acquires Superior Group for $1.65 billion in mega-deal for AI infrastructure engineering and construction services.
MasTec has entered into a definitive agreement to acquire The Superior Group, an electrical infrastructure contractor focused on data centers and mission-critical markets, in a transaction valued at approximately $1.65 billion. The deal is structured as $1.175 billion in cash, $475 million in MasTec common stock (approximately 1.2 million shares), and a performance-based earn-out tied to Superior's financial results over three years following closing. MasTec expects the transaction to close later this month pending regulatory approval.
The acquisition expands MasTec's exposure to artificial intelligence, cloud computing, and digital infrastructure markets. Chief Executive Officer Jose Mas described Superior as "one of the premier electrical infrastructure contractors" serving hyperscalers, data center developers, and mission-critical customers across the United States. "We believe this represents a generational infrastructure investment opportunity for the companies with the capabilities, skilled workforce, and track record to help build it," Mas said.
MasTec currently delivers critical infrastructure outside data center campuses, bringing power, communications, and energy to facilities. Superior adds capabilities "inside the campus" through electrical construction, integrated systems, prefabrication, commissioning support, and maintenance services. This combination allows MasTec to offer a more comprehensive, turnkey service to customers, including general contractors seeking larger, integrated partners capable of self-performing work, mobilizing labor at scale, and delivering complex projects with speed and reliability.
Chief Financial Officer Paul DiMarco stated that MasTec will fund the cash portion through cash on hand, borrowings under its existing credit facility, and delayed-draw term loan facilities arranged for the transaction. The upfront consideration represents 6.9 times Superior's expected 2026 EBITDA. Mas indicated that the earn-out could add approximately one additional turn to the upfront multiple, depending on Superior's performance, and noted the earn-out is uncapped and based on performance targets over three years.
MasTec expects the acquisition to be immediately accretive to revenue, adjusted EBITDA, earnings per share, and cash flow from operations. For the five months of 2026 following closing, Superior is projected to contribute $100 million to $150 million of adjusted EBITDA and $0.50 to $0.65 of adjusted earnings per share. For the full year 2026, Superior is expected to generate approximately $1.6 billion to $1.7 billion of revenue and $225 million to $250 million of adjusted EBITDA. For 2027, MasTec projects Superior will generate $2.2 billion to $2.5 billion of revenue and $250 million to $275 million of adjusted EBITDA.
DiMarco noted these expectations are preliminary, reflect a conservative approach, and do not include revenue synergies, cross-selling opportunities, or operational benefits from combining the businesses. Superior will operate as a new operating group within MasTec, with results reflected in the Power Delivery segment.
Superior has approximately 3,000 employees and operates as an all-union business. Mas described Superior's workforce as one of the company's most attractive assets and characterized the transaction as "a bet on labor scarcity." The company's workforce has grown nearly 400 percent over recent years, demonstrating a strong ability to recruit, train, and deploy skilled electrical labor. Superior has achieved 100 percent organic growth with no acquisitions contributing to its expansion and has historically operated primarily in three states, though signed contracts will expand operations into five states next year with potential for further expansion.
DiMarco stated MasTec expects pro forma net leverage to be modestly above two times at closing, declining below two times by year-end 2026. The transaction should generate a low double-digit return on invested capital in its first year and support MasTec's stated target of 16 percent by 2028. The company remains committed to maintaining strong liquidity and preserving its investment-grade credit profile.
Mas noted that based on conversations with customers, hyperscalers, and advisors during due diligence, MasTec views the data center build-out as still being in its early stages. While acknowledging the market may experience "ups and downs," he said MasTec remains bullish on the long-term opportunity. Regarding Superior's backlog, Mas said the company conducted project-by-project due diligence and has "enormous conviction" in its 2027 expectations, noting Superior has five large customers and a blue-chip customer base, with backlog expected to grow significantly through the remainder of the year.