MasTec Bets $1.65 Billion on an Electrical Contractor to Ride the AI Data-Center Boom — But Is the Price Right?

Shares surged 6.7% to $383.01 after MasTec announced its largest acquisition in years, a $1.65 billion deal for The Superior Group, an Ohio-based electrical contractor. The move signals an aggressive push to become a one-stop shop for data-center construction — but it also loads up the balance sheet at a moment when the stock had already more than doubled over the past year.

• The Deal Fills a Gap in MasTec's Data-Center Playbook. MasTec, which primarily caters to data centers' power generation and energy transmission needs, will now be able to supply the electrical systems for data centers through the Superior Group deal.

Superior employs about 3,000 people and is one of the largest electrical contractors in the United States. The logic: tech giants spending billions on AI infrastructure want fewer vendors, and MasTec can now pitch end-to-end capability.

• The Numbers Point to Immediate Earnings Growth. For the remainder of 2026, MasTec expects Superior to contribute revenue of $800 million–$900 million, adjusted EBITDA of $100 million–$115 million, and adjusted diluted EPS of $0.50–$0.65.

For full year 2027, MasTec expects Superior to generate revenue of $2.2 billion–$2.5 billion and adjusted EBITDA of $250 million–$275 million. That means the deal is priced at roughly 6.6–7.3× projected 2026 EBITDA — a reasonable multiple for a fast-growing contractor, though there is a potential earnout payment based on the cumulative 36-month financial performance of Superior post-closing , which could push the total cost higher.

• MasTec Is Taking On Significant Debt to Get It Done. The purchase price consists of approximately $475 million in MasTec common stock and approximately $1.175 billion in cash.

To finance the cash portion, MasTec arranged a new $700 million delayed-draw term loan and expanded its revolving credit facility by $350 million to $2.25 billion. Added leverage is manageable if data-center spending stays hot — but a slowdown in AI capital budgets would pressure the math.

• Wall Street Still Sees Upside, But the Stock Isn't Cheap. Analysts have a Strong Buy consensus based on 17 Buys, with an average price target of $480.24, implying about 34% upside. Yet MasTec already carries a $28 billion market cap on trailing revenue of $15.3 billion, with revenue up 23% year-over-year — a premium valuation that leaves little room for execution stumbles. The company's record $20.3 billion backlog provides a cushion, but integration risk on a deal this size is real.