MasTec, Inc. MTZ is doubling down on the fast-growing data center and mission-critical infrastructure market with the acquisition of Electrical Specialists, Inc., doing business as The Superior Group, for approximately $1.65 billion. The deal is expected to close in mid-to-late July 2026, subject to customary regulatory approvals.
MTZ stock gained 2.6% during yesterday’s after-hours trading session, post the buyout announcement.
MasTec Strengthening Data Center Infrastructure Capabilities
Headquartered in Columbus, OH, Superior is a full-service electrical contractor with a history dating back to 1925, having grown into one of the largest electrical contractors in the United States, serving data centers, healthcare, entertainment and industrial customers. Its expertise spans design, engineering, prefabrication, modular manufacturing, construction, integrated systems and long-term maintenance services.
The acquisition advances MasTec's strategy of building a scaled infrastructure platform to capitalize on accelerating demand for data centers, power and mission-critical infrastructure. While MasTec has traditionally focused on "outside-the-fence" infrastructure such as power generation, transmission, substations and communications, Superior expands its capabilities "inside the fence" through electrical systems and integrated building services.
Immediate Financial Benefits Expected by MTZ
Superior has delivered double-digit compound growth in revenues and net income over the past four years through 2025, supported by rising demand for mission-critical infrastructure. For 2026, Superior is projected to generate $1.6-$1.7 billion in revenues and $225-$250 million in adjusted EBITDA.
MasTec expects the acquisition to be immediately accretive to revenues, adjusted EBITDA, adjusted EPS and operating cash flow. For the remainder of 2026, Superior is expected to contribute $800-$900 million in revenues, $100-$115 million in adjusted EBITDA and $0.50-$0.65 in adjusted EPS. Looking ahead to 2027, management projects revenues of $2.2-$2.5 billion and adjusted EBITDA of $250-$275 million.
Beyond the financial upside, the buyout deal strengthens MTZ’s relationships with leading hyperscalers, data center developers and technology customers while adding one of the nation's largest self-performing electrical workforces. With Superior's experienced leadership team remaining in place, MasTec appears well-positioned to benefit from the ongoing buildout of America's AI-driven digital infrastructure.
MasTec’s Capital Allocation Approach
MasTec maintains a disciplined, returns-focused capital allocation strategy that balances strategic acquisitions with long-term shareholder value creation. It prioritizes investments that expand its capabilities in high-growth infrastructure markets, including power delivery, clean energy, communications and data center construction, while ensuring acquisitions align with its financial return objectives.
Backed by a strong balance sheet and projected 2026 operating cash flow of approximately $1 billion, MasTec retains ample financial flexibility to pursue value-accretive opportunities. Management remains focused on maximizing return on invested capital through prudent capital deployment, operational execution and selective acquisitions, positioning the company to strengthen its competitive advantage while supporting sustainable earnings growth and long-term shareholder returns.
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Shares of this Florida-based infrastructure construction company have surged 64% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
MasTec Stock’s Zacks Rank & Other Key Picks
MasTec currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the same sector.
Argan, Inc. AGX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Argan delivered a trailing four-quarter earnings surprise of 40.5%, on average. The stock has surged 112.7% in the past six months. The Zacks Consensus Estimate for Argan’s fiscal 2027 sales and EPS indicates growth of 38% and 29.4%, respectively, from a year ago.
Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 29.1%, on average. Shares of Sterling have hiked 118.9% in the past six months.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 75.7%, respectively, from the prior-year levels.
Dycom Industries, Inc. DY currently sports a Zacks Rank of 1. Dycom delivered a trailing four-quarter earnings surprise of 25%, on average. The stock has gained 22% in the past six months.
The Zacks Consensus Estimate for Dycom’s fiscal 2027 sales and EPS implies an increase of 37.2% and 36.6%, respectively, from a year ago.
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MasTec, Inc. (MTZ): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).