MasTec (MTZ) Stock Drops 6% After $1.65B Superior Group Acquisition

TLDR

• MasTec (MTZ) is acquiring electrical contractor The Superior Group for $1.65 billion in a cash and stock deal
• The deal is structured as $1.175 billion in cash and $475 million in MasTec stock, plus a 36-month earnout
• Superior is projected to generate $1.6–$1.7 billion in revenue for full-year 2026
• MTZ stock dropped 5.72% following the announcement
• Mizuho raised its price target on MTZ to $502, maintaining an Outperform rating

MasTec (MTZ) has agreed to buy Ohio-based electrical contractor The Superior Group for approximately $1.65 billion. The deal was announced July 7, 2026.

The stock fell 5.72% on the news, trading down $21.78 to $358.85.

MasTec, Inc., MTZ

The acquisition breaks down to $1.175 billion in cash and $475 million in MasTec common stock. There’s also a potential earnout tied to Superior’s financial performance over the 36 months following the close.

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

Superior is headquartered in Columbus, Ohio. The company employs around 3,000 people and is an IBEW-signatory electrical contractor offering services across design, construction, engineering, prefabrication, and project management.

Around 90% of Superior’s business is tied to data centers, with roughly 70% coming from hyperscalers.

Superior projects full-year 2026 revenue of $1.6 billion to $1.7 billion and adjusted EBITDA of $225 million to $250 million. For 2027, MasTec expects Superior to bring in $2.2 billion to $2.5 billion in revenue.

For the remainder of 2026, Superior is expected to contribute $800 million to $900 million in revenue and $100 million to $115 million in adjusted EBITDA to MasTec.

Superior also holds a $1.4 billion backlog and operates a 300,000-square-foot prefabrication facility — not a bad addition to MasTec’s toolkit.

Superior Fits Into MasTec’s Power Delivery Segment

Superior will operate as a new group within MasTec and report into the Power Delivery segment. That segment’s margins are expected to climb to low double digits from around 9% currently.

Bryan Stewart, Superior’s current Chairman and CEO, will stay on along with the existing management team.

MasTec plans to fund the cash portion using cash on hand, its existing credit facility, and two delayed draw term loan facilities entered alongside the acquisition agreement.

The deal is expected to close in mid-to-late July 2026, pending antitrust regulatory approval.

Analyst Reaction

Mizuho raised its price target on MTZ to $502 from $498 following the announcement, keeping its Outperform rating. The firm noted the acquisition completes the data center framework MasTec outlined at its May 12 analyst day.

Other analysts had already been raising targets ahead of this deal. KeyBanc had a $500 target with an Overweight rating. Stifel lifted its target to $455 and TD Cowen moved to $445 from $320. Jefferies sits at $493.

MasTec reported a 28% year-over-year increase in backlog in Q1 2026, with new awards up 18% over the same period. The company’s record backlog stood at $20.3 billion as of March.

MasTec hosted a conference call Wednesday at 9:00 a.m. ET to discuss the acquisition. Lazard advised MasTec on the deal; UBS advised Superior.

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